True or False: Insurance coverage is often influenced by the terms of a vehicle loan.

Insurance coverage being influenced by the terms of a vehicle loan is true. When you take out a loan to purchase a vehicle, the lender often has specific requirements regarding the insurance coverage you must maintain on the car. This typically includes comprehensive and collision coverage, as the lender wants to protect their financial interest in the vehicle until the loan is paid off.

If a car is financed, the lender wants assurance that if the vehicle is damaged or totaled, the insurance will cover the cost of repair or replacement up to the amount owed on the loan. Therefore, the requirements set by the lender directly impact the type and amount of insurance coverage you must carry.

Other options suggest that this influence is conditional, like being applicable only to new cars or financed vehicles. However, the key point is that any vehicle under a financing agreement is likely to be subject to specific insurance terms dictated by the lender.