Do You Need Full Coverage on a Used Financed Car?

2020 Nissan Armada


Interested in financing a used car near Peoria? The Avondale Nissan finance team is here to make the process as simple and stress-free as possible. However, used car shoppers tend to come to us with this question: “Do you need full coverage on a used financed car?” Turn to us to explore the used car finance process, in addition to your insurance options.



Finance a Used Nissan: What You Need to Know

Generally speaking, most states don’t require full insurance coverage for your car purchase, whether you are buying new or used. However, liability insurance is mandatory in most states, and the majority of lenders do require full coverage for the duration of the loan to ensure their investments are sound. These terms are generally spelled out in the finance agreement you sign after you apply for financing and obtain a loan. For instance, your loan term may be 36 months, which indicates that the lender holds the vehicle’s title for that period of time. Only when you have paid off your auto loan and have the vehicle’s title in hand can you adjust your insurance coverage.

How Do You Decide What Insurance Plan is Best for a Used Financed Car?

You now know that more often than not, full coverage is necessary on a used financed car. So, how do you decide what insurance plan is best for a used financed car? The finance experts at Avondale Nissan are always happy to help you in making a selection. Otherwise, here are some tips as you peruse insurance plans:

  • Remember that full coverage car insurance includes liability coverage, comprehensive coverage, and collision coverage. States also have unique requirements for full insurance coverage as well.
  • Consider GAP insurance in addition to other coverages. GAP insurance covers the difference between what you owe on your car loan and what your car is worth.
  • Other insurance components to consider include rental reimbursement, roadside assistance, and umbrella insurance.
  • Get quotes from various insurers to secure the best premium possible.

How Many Years Can You Finance a Used Car? 

When you are looking at your options to finance a used Nissan near Phoenix, the terms available to you ultimately depend on your credit score, your down payment, and lender flexibility. Our team will work closely with you to find financing options that accommodate your budget. Feel free to use our payment calculator to determine loan terms that you’re comfortable with.

Finance a Used Nissan at Avondale Nissan

When you are ready to finance a used Nissan or other pre-owned model, get in touch with Avondale Nissan! We are happy to serve as your resource for all things related to auto finance and insurance in the Surprise area.


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