If you have an auto loan, how much coverage (insurance) does a lender in CA generally require you to care?
I can’t find my loan paperwork right now, and until now I have been carrying extremely ample coverage, but I just got a speeding ticket and now I can’t afford that coverage. I’m trying to get some other quotes but I’m not sure what I should be guestimating at. I’m with a Credit union if it matters, but I am guessing its pretty standard for these things?
“Full coverage” is a term that means absolutely nothing to me, when I am trying to get a quote there are a bunch of numbers. Which numbers for each category are considered “full” coverage?
Most lenders require full coverage insurance. This is to cover replacement costs should you have an accident and quit making payments. Normally, if the coverage is changed or dropped, the lender is notified by the insurance company.
Most require “full” coverage with 100,000/300,00/50,000 limits. You would be stupid to carry any less do to the high costs of auto body repair, and the high awards often awarded in law suits. It’s really just a few dollars more than minimum coverage. Minimum coverage would barely cover just court costs.
Lenders require comp & collision with a minimum $500 deductible. They dont care if you carry liability insurance,they just care about their property….unless you have a lease and then they require a minimum of 100/300/100 in liability.
Liability coverage minimum in CA is 15/30/5. BTW, there is no such thing as full coverage…you either purchase the appropriate coverage for your needs or you don’t. Full coverage assumes all inclusive and that is not the case..each coverage is seperate and pays for different things.