You may owe a certain amount on your financed vehicle but this does not mean that your car insurance cover will settle the outstanding balance in full if the vehicle is written off, stolen or lost through some other means.
Car insurance, and comprehensive cover in particular, is one of the best ways to financially protect yourself against damage or loss of your vehicle. It is mandatory for financed vehicles but this does not mean that car insurance will protect your completely when it comes to outstanding loans. Without top up cover, the insurance payout may be insufficient to settle the outstanding loan value if the car is stolen, hijacked or written off in an accident.