Auto insurance question?

when you are financing a vehicle, do you only have to have the state's minimum requirements or do you have to have $100,000/$300,000? I looked on the company that is financing my car and it says for a LEASED vehicle you need $100,000/$300,000, but here's how it reads for financing....

'Retail Financed Vehicles - At least the minimum coverage types and amounts required by your state's law. The deductible on both comprehensive and collision must be $1,000 or less. The "Loss Payee" on your insurance policy (for financed vehicles) must read...'

It seems pretty clear, but all the years I have financed a car, I always thought you had to have the maximum amount of coverage... now I'm confused...
Additional Details
so, if the company that is financing my car says '... at least the minimum requirements, blah, blah, blah...'
I can drop my insurance down to 15,000/30,000?

srp1965

the difference is in the "ownership" of the vehicle. when you purchase it but it's financed (loan payments), you are the owner with a "lien" on the vehicle. the lienholder wants to make sure you have the state mandatory coverage AND coverage to protect their interest in the vehicle (collision and comprehensive) in case something happens to the car. if you're in the car and are at fault for an accident with a lot of damage, the bank isn't liable as they aren't the "owner" of the vehicle, you are, so your liability limits are up to you, as long as they meet the state min. requirements. if the vehicle is "leased", you're basically in a long-term rental situation, which means that you don't actually own the car. the "lessor" which is the company you're leasing the vehicle from, is still the owner and you, the "lessee" have to have pretty much whatever coverages they tell you to have. this is why on a lease they require much higher liability limits because GMAC, Honda, nissan, ford motor credit, whatever have a lot to loose if you drive like a maniac and kill somebody.
hope this clears it up a bit.

techman

http://www.freeautowarrantyquote.com/FreeAutoInsuranceQuote.html

montgov1

I'm an Insurance Agent. You are correct in stating that you need to carry $100/300/50 if the car is leased. If it is financed, you only need to carry the minimum required by law as well as comprehensive and collision. Yes, you can drop the insurance to $15/30 if that is the minimum that your state requires.

Vipassana

The state has one requirement. A minimum level.

The provider of your lease may have a different requirement. They can require up to the maximum coverage. Or any other coverage, as long as it meets at least the minimum.

But seeing as you have their vehicle...and may not buy it, they're going to want the most protection they can have on it.

jay

If I finance a veichle and I drop the insurance coverage from full to liability will the bank that gave me the loan or the car dealer find out?

Financing a car can I drop from full coverage to liability?

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