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What type of car insurance plan should I buy for cars under hire purchase (bank loan)?

It is advisable to purchase a comprehensive insurance for cars under hire purchase. Furthermore, most banks or finance companies require you to insure your vehicle with a comprehensive car insurance coverage. This is the reason why an experienced car insurer will ask for the name of your hire purchase. They will help you to notify your bank/ finance company that you have bought a suitable coverage that meets their requirement.

Bear in mind that the vehicle is legally under the bank/finance company until you have fully paid off the loan. Thus, it is imperative for you to get a policy that they have mandated.

Some banks/ finance companies do allow you to purchase a 2nd party insurance when you have less than 1 to 2 years of loan to service with them.