jhp012

I was wondering if anyone who is leasing or financing through Honda finance?

Are you on liability or full coverage?

Of course anytime you don't fully own your car you have to have full coverage, but I have noticed some companies don't really find out.

I have a Lexus and anytime I drop full coverage they get notified immediately and they send me a letter.

Just wondering if this is possible with Honda or the S2000.

And sometimes it seems when leasing the car they are more strict then when the car is financed?

MitsukillinS2K

well im stationed in VA and the DMV will find out and then i get slammed from them.

Ive had full on it the whole time ive had it so im not too sure. im not looking to get just comp for it either

JaTe

is it worth the risk? worst case...if you total it and still owe the bank $$$...you are now responsible for the payoff of the car to the bank and left with a undriveable car worth nothing.

jhp012

You can always total your car even while you own it under liability. That is the same thing.

JaTe

you can total the car anytime...full coverage, liability and no insurance.

the difference is:
lets say you financed and you owe $20k when you total it.

if you had full coverage and insurance values it at $20k, then you owe the bank nothing and you are just out the payments you have already made and the downpayment.

if you had liability only or no insurance...then you still owe the bank $20k and have an undriveable piece of metal that you just paid $20k for (plus what you already paid up front).

so the difference is $20k and is not the same thing.

in my opinion, i would always full coverage unless the car was worth $5k.

Shoof

Whether you leased it or financed it, regardless of what bank it's with, you are required to carry full insurance. Generally for a lease the liability limits are no less than 100,000 per person, 300,000 per accident, 50,000 property damage, and 1000 max deductible. On a finance, you can carry a lower limit (25/50/10), but you still need to be fully insured.

Shoof

A lease=The bank owns the car
A finance=You own the car

That's why the limits on a lease need to be higher.

JaTe

very true...dealers are supposed to let the insurance companies know when you leased or financed the car so you have appropriate coverage.

on the OP's defense...i was able to drop the lienholder on my insurance policy when i paid my s2k off (kept full coverage though). they did not ask for any documentation to verify that the bank no longer has interest on the vehicle. assuming the OP can do this, then he can drop full coverage and have liability without the bank knowing (even though it probably wont be legal).

RedY2KS2k

When you sign a finance or lease agreement, you agree to provide insurance coverage on the collateral. It's your legal obligation. What's hard to understand about that?