Overview
To refinance your auto loan through Upstart’s platform, you must have a valid and active auto insurance policy that meets certain coverage requirements. Having the right insurance ensures that your vehicle remains protected throughout the life of your loan.
Minimum Insurance Requirements
Most lenders require borrowers to maintain:
✔ Comprehensive and Collision Coverage – Both types of coverage are required for auto refinancing eligibility.
✔ Maximum Deductible – Your policy must have a deductible of $1,500 or less for both comprehensive and collision coverage. Deductible requirements vary by lender.
✔ Policy Status – Insurance must be active and valid, with no lapses in coverage.
✔ Lender as a Loss Payee/Lienholder – Once your loan is refinanced, your lender must be listed as a lienholder on your insurance policy.
💡 Note: If your current policy does not meet these requirements, you may need to adjust your coverage before your auto refinance loan is finalized.
Why Are Both Collision and Comprehensive Coverage Required?
Lenders require both collision and comprehensive coverage to protect the value of the vehicle that secures the loan.
Collision Coverage
✔ Covers damage to your vehicle from an accident, regardless of fault.
✔ Includes collisions with other vehicles, objects, or road hazards (e.g., potholes).
Comprehensive Coverage
✔ Covers damage from non-collision events, such as:
- Theft
- Vandalism
- Fire
- Flooding
- Falling objects
✔ Also protects against animal-related damage (e.g., hitting a deer).
Since your vehicle serves as collateral for the refinanced loan, having both types of coverage ensures that it remains fully protected in case of an accident, theft, or unforeseen damage.
Next Steps
If you're considering auto refinancing, check with your insurance provider to confirm that your policy meets the minimum coverage requirements. If adjustments are needed, you may need to update your policy before completing the refinance process.
📌 Related Articles:
- Auto Refinancing: How It Works
- Vehicle and Loan Eligibility for Auto Refinancing
- How to Check Your Rate for Auto Loan Refinancing