Do you pay car insurance when you are in the army?

If the car will be driven while one is in the army, liability insurance should be maintained on the owner and on the person/people who will be driving it. This insurance is protection against claims by third parties based upon negligence by the driver. Many states hold the owner vicariously liable for the negligence of the driver and apply a presumption that the owner gave permission to the driver to use the vehicle.

Additionally, physical damage coverage should be maintained on it (collision and comprehensive). These pay for the repair of the vehicle in the event of physical damage to it. If the car is garaged while the owner is in the service, one can take a chance and not maintain physical damage coverage on it.

However, keep in mind that if the car is financed, the lender may require that physical damage coverage be maintained until the loan is paid with the lender being named on the policyas a loss payee. The failure to do so may constitute a breach of the loan contract. If the lender learns that physical damage coverage has lapsed, it may purchase "single interest" physical damage coverage and charge the premium to the borrower by adding the premium to the loan balance. The premium for this type of insurance is usually significantly greater than were the insured to have kept physical damage coverage in place as required by the lender.