If the bank puts their own insurance on the vehicle due to no coverage and you get in an accident what is covered?

This coverage is called Lenders Single Interest Insurance, and it insures the LENDER against loss. If you crash the car and damage another person's property, the insurance will pay the bank the amount of the loan and cover any damages that may be assessed against the bank if they are sued. Then the insurance company will attempt to collect all of these amounts from YOU. And of course you are responsible for the damage if you are sued. In other Words, THE DRIVER/OWNER has NO PROTECTION from this insurance, even though the premium was added into his bank loan.