Automotive

Help required to de-mystify car insurance

  • Last Updated:
  • Nov 12th, 2020 5:16 pm
Sr. Member
Mar 31, 2017
650 posts
633 upvotes

Help required to de-mystify car insurance

Hi Friends

I am in a process to finance a Car and looking for insurance. I want to know what does below clause in image says about insurance.
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7 replies
Deal Addict
Jul 16, 2019
1640 posts
858 upvotes
It means that when you get your insurance you have to make sure that Honda is on the insurance details since they own the car and you are leasing it. They have probably also asked for minimum coverage - in the case of BMW it was $2M liability
Just provide this to your insurance company.
Sr. Member
Mar 31, 2017
650 posts
633 upvotes
Thanks a lot. Looks like I need to talk to my insurance company.
Do I need to insure Finance amount?
Deal Addict
Jul 16, 2019
1640 posts
858 upvotes
Capindy wrote: Thanks a lot. Looks like I need to talk to my insurance company.
Do I need to insure Finance amount?
You just need to give the insurance company the details that Honda provided and they will do the rest.
They will need : date of lease, is the car brand new, demo, etc, value of the car, VIN, any modifications, Honda name and address (which Honda provided). Rest is standard insurance stuff i.e. dependent on your driving record
Sr. Member
Jun 14, 2016
595 posts
346 upvotes
Calgary
Honda Finance is asking that you get full coverage on the vehicle, comprehensive and collision coverage (max deductible $1000) with a minimum $1M liability coverage. This is to ensure that until the car is paid off, if anything were to happen, it'd be covered under insurance.
Deal Fanatic
User avatar
Aug 11, 2008
9502 posts
1456 upvotes
Ontario
no, you only need to list the leinholder on the policy and conform to their requirements in regards to the liability and physical damage coverage's.
Capindy wrote: Thanks a lot. Looks like I need to talk to my insurance company.
Do I need to insure Finance amount?
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Newbie
Nov 23, 2014
94 posts
103 upvotes
Regina, SK
vernonco wrote: ... since they own the car and you are leasing it.
It's financed, not leased, so they don't own the car (but do have a lien on it). Still, they are just making sure their loan is covered in case of a total loss.
Deal Addict
Jul 16, 2019
1640 posts
858 upvotes
100OceanSpray wrote: It's financed, not leased, so they don't own the car (but do have a lien on it). Still, they are just making sure their loan is covered in case of a total loss.
Sorry, yes. Its financed not leased and as you said the outcome is the same - the car company is making sure their loan is covered.

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