Yes, you will need auto insurance to complete the sale of a new or financed vehicle. You can start the loan application process before getting insurance, but a dealership will not release the car until they receive proof of insurance.

If you are in the process of obtaining a loan and purchasing a vehicle but don't have insurance yet, click here to compare auto insurance prices from several different companies.

Before you let lenders look up your credit report, you should obtain a copy yourself to avoid surprises. Recently, the federal government mandated that each citizen is entitled to a free credit report once a year from each of the three major credit agencies (TransUnion, Experian, and Equifax). Make sure you order your credit report from annualcreditreport.com. Its free, and its the only site authorized under federal law.

Yes. Although credit history is one of the most important factors used to determine your loan approval, you can still obtain a loan without any credit history. You may not receive the best interest rate, but you will probably receive a rate slightly better than someone with bad credit. Lenders are willing to loan you the money because they have the security of at least getting the vehicle back if you are unable to pay.

If you are in the middle of paying off a vehicle loan and die suddenly, the lender will still want to be repaid, and may require payments from your spouse or surviving family members. Life insurance and finance insurance can prevent this from happening, as both would pay off the remainder of the loan in the event that the borrower dies.