Car Insurance for Insurance for financed cars

Numbers refreshed November 4, 2026

For insurance on financed cars, official and insurer sources list the rules, discounts and programs.

Car insurance for financed cars: what to know

Your lender requires full coverage when you have an auto loan, and that means collision coverage plus coverage for non-collision damage. (NAIC: auto insurance coverage)
If your down payment was under 20% or your loan runs 60+ months, what you owe and the car's value can differ by thousands. (Texas Department of Insurance: Gap insurance tips)
About 2 years (approx.) is when you usually cancel gap, once what you owe drops below what the car is worth. (Texas Department of Insurance: Gap insurance tips)
A dealer or bank might sell you a gap product that isn't insurance (Texas DOI cannot help with those). (Texas Department of Insurance: Gap insurance tips)
When you finance GAP into the loan, interest costs rise; sell, refinance or prepay and you may receive a refund. (Consumer Financial Protection Bureau: What is GAP insurance?)
South Carolina law doesn't require collision coverage or coverage for non-collision damage, but your lender may require them. (South Carolina Department of Insurance: Automobile Insurance)

The calculator gives you a price for your state based on the car, your age and your record, with no name or phone.

First written November 4, 2026