Should you keep insurance on a repossessed vehicle?

It is not typically necessary to maintain insurance on a repossessed vehicle. Once the car has been repossessed, the lender takes control of the vehicle and is responsible for any damage or accidents that might occur. The lender's insurance will usually cover such events.

As the original owner, however, you may still benefit from keeping liability insurance on the vehicle, especially if you plan to purchase another vehicle soon. Liability insurance offers coverage for any property damage or bodily injuries you cause to others while driving a car. In that case, it's advisable to contact your insurance company, inform them about the changes, and keep your policy active until you dispose of the car or cover a different one under their protection.

For further clarification on specific legal requirements and your responsibilities concerning lapsed insurance for a repossessed car, we recommend consulting with a local attorney well-versed in relevant automotive regulations in your area.