| Most
states require auto insurance. Technically, you prove your financial
ability to pay a specified level of damages when registering a vehicle
or renewing license plates. The only way for most people to satisfy this requirement
is to have car insurance for the minimum amount of coverage.
If you have a car loan or
if you lease your vehicle, the loan company or leasing company will
also require that you have insurance. You name the company as a "loss
payee" on your policy. If the vehicle is damaged, any insurance
payment will go to the company, and it uses the money to either to repair
the vehicle or pay off the loan balance. |
