In NS, what should I know about insurance requirements for car loans?

In Nova Scotia, securing a car loan necessitates specific insurance coverage to protect both the borrower and the lender's financial interest. You are legally required to carry third-party liability insurance, with a provincial minimum of $200,000, though most lenders and drivers opt for higher limits like $1 million or $2 million for enhanced protection against accident-related lawsuits. For any financed vehicle, lenders will also mandate comprehensive and collision coverage. Collision insurance covers damage to your vehicle from an at-fault accident or impact with an object, while comprehensive covers non-collision events such as theft, vandalism, fire, or damage from severe weather. These coverages are critical because they safeguard the lender's asset - the vehicle itself - from damage or loss, ensuring their investment is protected even if the car is totalled or stolen. Lenders will typically require themselves to be listed as a 'loss payee' on your policy. This matters significantly to the consumer because failing to maintain these specific coverages can result in the lender placing expensive force-placed insurance on your behalf, or even declaring a default on your loan, directly impacting your financial standing and the terms of your agreement. Always budget for these costs and shop around for competitive rates, especially given current market conditions.