In general, the minimum auto insurance coverage required for a loan includes:
* Bodily injury liability insurance: This coverage pays for medical expenses and lost wages for people who are injured in a car accident that you cause.
* Property damage liability insurance: This coverage pays for damage to property caused by a car accident that you cause.
* Collision insurance: This coverage pays for damage to your own car caused by a car accident, regardless of who is at fault.
* Comprehensive insurance: This coverage pays for damage to your own car caused by events other than car accidents, such as theft, vandalism, and fire.
The amount of liability insurance coverage required will vary by state. Some states require a minimum amount of liability coverage, while others allow you to choose the amount of coverage you carry.
The amount of collision and comprehensive insurance coverage you carry is up to you. However, keep in mind that your lender may require you to carry a certain amount of coverage in order to protect their investment.
If you are not sure what the minimum auto insurance requirements are on your loan, you can contact your lender or your auto insurance company.
