If im financing a car does it have to be insured both ways? i live in quebec?

Question

If im financing a car does it have to be insured both ways? i live in quebec?

Answer 1

Yes, if you finance and the borrower has a lien (lease, conditional sales contract or loan with hypothec) they will insist on insurance both ways.

For those wondering: it means insured for property damage when the accident is the other driver's fault (one way) AND insured for property damage when it is your own fault.

They'll also require fire, theft and vandalism (the basics). Each borrower may differ on the level of liability coverage: $250K, $500K, $1 million...

Answer 2

I'm not sure what that means exactly.  But when financing a car you will just need to have the legal level of insurance.  You will sign a document with the  financeer that says if you do not provide them with proof of insurance they can take out a policy on your behalf, but as long as you have insurance and show them they will not do this.

I think that may be where you got confused.  Just make sure you have a valid insurance policy and that should be the only insurance you need.

Answer 3

I'm not sure did I get your question right, but I believe you're asking about the Lienholder's protection for your financial company. If you have to finance a vehicle, your dealer will contact your agent/broker/direct insurer to get a confirmation of insurance. You require to buy a FULL coverage insurance for your financing vehicle including OPCF #23 (Lienholder's protection) with OPCF #43 (Waiver of Depreciation - only for brand new vehicle first 2 years or limited kilometres), these endorsements would not affect your insurance premium.