What happens if you can't afford full coverage on a financed vehicle?

Sorry to hear about the situation. Rates for 18-year-olds tend to be high to begin with. How the lean-holder responds really depends on how her loan is set up. You may want to get a copy of the terms to see what the outcome may be. It's likely that they will do one of the following: They will either force place insurance coverage of their own and charge it to her loan (making her pay a higher bill on their end) or they may just say she breached the loan terms and repossess the vehicle. In either case, I would continue to shop around and see if you can find an option that might work.