Can a car dealership or bank repossess the car if insurance payments are not made?

Depends upon the agreement you signed and what it states. Also, different state-laws could give someone certain/extra rights. * Yes, there are no lenders who would allow a person to drive a car that has not been completely paid for without it being insured. State laws governing whether or not a vehicle must be insured to be registered and driven are a different issue than the lender requiring insurance coverage.