Is there an lender who does not require Full coverage?

[Superduper2014]

I was just wondering if there is a lender who will not put a lien on the title when doing a car loan or at least no require full coverage on the vehicle. Reason I am asking is because insurance rates are ridiculously high in the miami area where this car should be insured. 

[Anonymous]

It is unlikely that you'll find a lender willing to take that risk. The primary reason is because of the car is in an accident, and there isn't sufficient coverage, the borrower is far more likely to default.

Good luck though, Miami insurance rates are insane

[sccredit]

It is a standard requirement. it is protecting their collateral. Should you default on the loan under normal circumstances they can sell the car. Should the car be wrecked or stolen and you default they have nothing to recover. You can try getting a personal loan through a credit union and purchasing a car with those proceeds but it wouldn't be a prudent financial decision. 

[Anonymous]

True, because regardless which Bank you owe the Loan to. If you total the car and cannot repair it, would you continue to pay on it while not being able to drive? Getting a personal Loan to purchase said car outright would be the way around your particular issue, yet the same problem remains. 

Trust me, in my earlier days i too though about doing this so that I wouldn't have to pay for full coverage. It just isn't a wise decision.

There are a lot of less riskier things to save Money on in life.

[ldkcivilservant]

Please don't persue this.

My 2013 F150 that was 2 years into $35k of financing back in 2015 was totalled by an 18 wheeler. Not my fault, and the other driver failed to stop. My insurer forked over $29k, and even then I was only saved of being nearly $2k out of pocket by my GAP coverage.

Don't drive without decent insurance. It's expensive, but if you need it, you might really need it.

[RSX]

i have had 2 vehicles totaled - one was in 1991 - one was in 2019

the first one happened after 2 weeks of ownership - if i hadnt had GAP, i would have been $3k in the hole, without a car

the second one was a battery fire that totaled a car i had for 8 months 

unexpected things happen - that is what insurance is for

you can dial back your insurance when you have paid off most of the car (ahead of depreciation)

but not advised at the very start of the loan

[Anonymous]

It's smart to self-insure if: you possess sufficient risk tolerance & you can afford to pay the loss. 

Sounds like you can't afford to pay the loss. Maybe pay cash for a less expensive vehicle?

[Loquat]

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@Anonymous wrote:

It's smart to self-insure if: you possess sufficient risk tolerance & you can afford to pay the loss. 

Sounds like you can't afford to pay the loss. Maybe pay cash for a less expensive vehicle?

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At the rate in which vehicles depreciate I'd seriously suggest reconsidering the self insure route.  You get hit by someone texting 5 minutes after taking delivery and you're in a very dark place financially.  It just ain't worth it in my opinion.  

[Superduper2014]

This is another good point. 
She will be buying a used car though that is known to keep it's value a bit more than other brands if you will, but are you seeing prices for used vehicles starting to go down due to covid?

I have not seen the prices go down on the used Lexus older year 2013 - 2016 despite social distancing and lower sales.

I remember looking at these prices several months ago and they have remained the same.

I wonder if she needs to wait a little longer when people are more willing to let their cars go for less due to lack of buyers or else. 

Penfed allows you to use the check for up to 30 days before pulling credit again, so I would be more inclined to have the car purchase done before then to avoid any issues. 

Thoughts are appreciated. 

[Brian_Earl_Spilner]

The prices on cars aren't going to come down like everyone thought. With the automakers not making new cars and trucks, dealers need to hold on to whatever inventory they have for when the country starts opening up. There's a chance prices will start to go up on certain models that are desirable.