Do banks check if I have full cover insurance on the car at all times?

I'm about to buy a used car valued at about $5000, however, the full cover insurance that the bank lending the money requires is almost the same as the monthly car payment. If I get fell cover insurance for the first 3 months and then I change to just liability, will banks usually check this or not?|||It depends upon the state, but usually insurance companies are required to notify the lender if full coverage is dropped from a car with a lien.





So if you change it, they'll tell the bank.|||you mean take the collision off..HHHMMMMM..what an idea..Id try it ...Several yrs age i bought a car for 10,000 and ysed a personal loan not an auto loan.so i didnt have collision ins...worked out ok.|||You could pry get away with it for a little while. I got a DUI and my insurance dropped me obviously because I diddn't have a license to have insurance but I owned a $13,000 vehicle and eventually my bank forced insurance through them on the vehicle which they included in my monthly payments.|||As the lien holder the ins. company will send them a change of insurance notice,however if your in good at your bank.you mite get them to waive full coverage on this small amount.|||Think about it. You are borrowing $5,000 because you don't have $5,000. Somebody steals the car, or torches it, or you run into a telephone pole, writing it off, liability pays you nothing, nada, zilch. The whole balance becomes due and payable to the bank immediately. Remember, you don't have $5,000! Then you write to Yahoo Answers and say HELP! But, we can't.|||The insurance company will send a notice of cancelation to your bank. Then the bank will take out a single intrest policy on your car and make YOU pay it -- which will be about twice what you would be paying to begin with. Hint: you are too broke to buy this car!|||Cowboybill is sooo right! It's not worth it to try it. The lender will be notified once you remove the full coverage from your vehicle and in some states if you are pulled over and have a loan on you vehicle and found to not have full coverage your license plates can be taken away and you could even possibly receive a fine. If you are trying to save money, try increasing the deductible and lowering the liability. It should help. Or do what most people do. Shop around for insurance. Insurance quotes are free and it will be well worth it to save the money if you can find cheaper insurance.