Final answer:
When financing a vehicle, you are typically required to carry collision insurance until the car is paid off, as a protection for the lender. Insurance costs vary by age, driving history, and car safety ratings, and must be paid continuously even after full ownership of the vehicle.
Step-by-step explanation:
If you finance the cost of a vehicle, you are usually required to carry collision insurance until it is fully paid off. This is generally a stipulation by lenders to ensure their investment is protected in case of an accident.
Car insurance rates can depend on various factors such as the vehicle's safety rating, your driving record, age, and, for used vehicles, its history. Younger, less experienced drivers often face higher insurance premiums. Even after your vehicle is paid off, insurance premiums continue as an ongoing expense, though you may have more flexibility in the coverage options you choose.