In fact, I know numerous people who have had to declare bankruptcy because they did not have medical insurance or health insurance and a car accident resulted in extremely high medical bills. Many drivers interested in buying a car, whether new or used, will finance their purchase. Not only is financing much easier than paying for an entire car with cash, it can also be a smart financial decision if you get a good interest rate. You might find, however, that insurance rates can be a little higher than expected.
Lender Requirements When you buy your car with cash, you own it outright. The title is fully in your name, with no liens and no loans to pay off. Buy with cash, and you have all the freedom to do exactly as you please with insurance, provided, of course, that you meet your state's minimum coverage requirements. It's not quite that simple when you finance a car.
The reason for this is simple: You're not the sole owner of the car anymore, and the co-owner (your lender) is interested in protecting its investment. Many lenders require low deductibles, which will likely drive up your insurance rate beyond what you might expect to pay if you own the car yourself. I want to point out that insurance laws vary considerably from state to state car insurance yukon. You’ll want to check whatever you read here against your own state’s rules.