In the world of car financing, the buy here pay here (BHPH) model is becoming popular, offering good people with less-than-perfect credit a chance to own a reliable used car. One of the most common questions we receive at Credit Cars, located in Orlando, Florida, is whether full coverage insurance is required to drive one of our vehicles off the lot. Let’s delve into that question.


Understanding Buy Here Pay Here:



Buy here pay here dealerships, like Credit Cars, provide a unique financing model where good people can purchase a vehicle and make their loan payments directly to the dealership. This approach is beneficial for those facing credit issues, as traditional car loan lenders may be less likely to approve their loan applications.



Insurance Requirements in Florida:



The state of Florida mandates certain insurance requirements for vehicle owners. However, the specific insurance requirements for vehicles purchased through a buy here pay here dealership depend on different factors.



  1. State Minimum Requirements:


Florida law requires all vehicle owners to have at least the minimum insurance coverage, which typically includes:

    • $10,000 in personal injury protection (PIP) coverage.


    • $10,000 in property damage liability (PDL) coverage.

  1. Full Coverage Insurance:


Full coverage insurance, which usually includes comprehensive and collision coverage in addition to the state minimums, is often recommended for financed vehicles. While it is not a legal requirement in Florida, it CAN be an obligation required by the buy here pay here dealership.



  1. Dealership Policies:


Buy Here Pay Here dealerships may have their own insurance policies and requirements. It's crucial for buyers to carefully review the terms and conditions of their financing agreement to understand the dealership's stance on insurance coverage.



Benefits of Full Coverage Insurance:


While full coverage insurance may not be a legal requirement in Orlando, Florida, it offers several advantages for buyers at a buy here pay here dealership.



Asset Protection:


Full coverage helps protect the investment made in the vehicle. In the event of an accident, comprehensive and collision coverage can assist in covering repair or replacement costs.



  1. Lender Requirements:


Many lenders, including buy here pay here dealerships, may require full coverage insurance as a condition of the financing agreement. This is often done to protect their financial interest in the vehicle.



  1. Peace of Mind:


Knowing that you have comprehensive coverage can provide peace of mind, especially if you rely heavily on your vehicle for daily activities.

In conclusion, while the state of Florida requires a minimum level of insurance coverage for all vehicle owners, the need for full coverage insurance in a buy here pay here scenario varies by dealership! Something to think about when buying a car is considering the benefits of full coverage in terms of protection, even if you don’t need it.



Does Credit Cars Require Full Coverage Insurance?


NO! A big plus for purchasing a car at Credit Cars is that you don’t need full coverage insurance. We specialize in getting good people with credit issues approved. No need to be nervous; our goal is to make your used car buying experience a pleasure. Give us a call today or visit us in person at 4500 W Colonial Dr, Orlando, FL 32808.

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