How do you insure a car that is not being driven but is held for collateral by a bank?
The truck is no longer being driven due to a new job. I need to keep some kind of insurance on it for collateral by the bank.
Whether or not the vehicle is being driven, you still need the state minimum liability coverage — in Mississippi, the state-required liability limits are 25/50/25, meaning you are required to carry $25,000 per person and $50,000 per accident of bodily injury coverage and $25,000 in property damage coverage. In most cases, if the vehicle is used as collateral for a loan, the loan company will require you to have comprehensive and collision coverage to protect your vehicle. Check with the loan company for their specific requirements. Good luck and if you have any questions, don't hesitate to ask. For related articles, see below: