If you are living and driving in the state of Virginia, you need to have state-mandated auto insurance. In order to register a vehicle, you need to have the necessary insurance coverage. This is required whether you have a car loan or not. At The Pivotal Insurance Agency LLC in Louisa, VA, we are an independent insurance agency that places the needs of our customers first. We work for you, not for an insurance company, and we take that responsibility seriously.
In simple terms, yes, you do need to have auto insurance when your auto loan is paid off. The mandated insurance is 25/50/20. That is $25,000 for the first person injured in an accident where you are the at-fault driver, with a maximum of $50,000 for an entire accident. The $20,000 is for property damage. This is a reasonable amount but it may not be adequate depending on the accident.
When you have a car loan, your lender will require that you have more than the mandated liability insurance required by the state of Virginia. You need to carry auto insurance that will protect your vehicle. To protect your vehicle, you must have collision and comprehensive coverage. This insurance is important coverage which you should consider having even if you no longer have a loan.
Do you use your vehicle every day? Do you need a vehicle to get to work and to do other daily activities? Would you be able to repair or replace your vehicle in the event of an accident, damage incurred by a hit and run, or events beyond your control? If it is a hardship, then having auto insurance to protect your vehicle is a necessity for you.
Contact The Pivotal Insurance Agency LLC in Louisa, VA when you have questions or needs for auto insurance.