There is no law so to speak that states you must maintain "full coverage" on a vehicle with a lein. However, if there is a lein on the vehicle, you do not own it outright--the leinholder does until the car is paid off. The leinholder requires this coverage so that if the vehicle is damaged or totaled, their interest is protected. This is most likely stipulated in your finance agreement/contract and failing to maintain "full coverage" is in essence a breach of contract. So, if this is stated in your contract then you must maintain the specified coverage. So, what happens if you don't? A few of possibilities: -The leinholder will force insurance on you and send you a bill for it. This is usually VERY expensive and failure to pay could result in a reposession. Typically, the leinhlder will request "proof of insurance" at regular intervals or your insurance company may automatically send them a copy of your policy at each renewal term. -If the car is totaled and there is still money owed on the car and you have no insurance. You will be held liable for the balance remaining on the loan and you won't even have a car to show for it. You are out all the payments you have already made to boot. -You get away with it and luck is on your side. The bottom line is that if it is in your contract (which you signed and accepted the terms of) you must maintain "full coverage" until the car is actually yours (paid for in full with no leinholder).