Question by Jay R: When purchasing a new car, what is the difference between a personal loan and finance for insurance purposes?
Best answer:
Answer by just me
If you get a personal loan to purchase a car and do NOT use the car as collateral for the loan, it is usually up to you to carry full coverage on the vehicle. But, also know, that if you have an accident, it is your responsibility to cover any damage or any law suit resulting from the accident. If you get a personal loan, WITH the car as collateral, then you have to have full coverage on the vehicle. The bank is owed money on the car and wants to make sure they get their money if there is any damage or totaled.
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