Auto Insurance Claims: auto loan insurance, full coverage insurance, uninsured motorist coverage

Question
Do you have to carry full coverage insurance on a loan under $5,000.

Answer
Hi John,

I would surely insure the value of the vehicle for at least the amount of your loan.  

But if that is all you can afford, then PLEASE DO NOT DRIVE.  It is irresponsible to drive without insuring yourself and your passengers with FULL COVERAGE for BOTH medical payments AND uninsured motorist coverage (UIM).

It is NOT you, John, who is going to be the cause of an accident. No, instead it is going to be some doofus who is driving without any liability insurance, merrily cruising along, perhaps under the influence.  THAT is the real danger here.  He will have no insurance, and all the damage he does to you and your passengers needs to be paid via your OWN UIM COVERAGE.  Does that make sense?

Here are a couple of pages that show the smartest way to buy auto insurance
http://www.settlementcentral.com/page8006.htm

auto insurance explained http://www.settlementcentral.com/page8008.htm

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com