Do you need full coverage insurance for a buy here pay here car?

Yes, almost always full coverage rather than liability, and the lot will want to see proof before the car leaves the lot.

The reason is straightforward: the lot holds the title until you've finished paying, so the car is still its collateral. Liability only covers damage you do to someone else. If your car is wrecked or stolen with liability only, the lot's collateral is gone and you'd still owe every payment — which is why they insist.

Budget for it as part of the payment rather than a separate surprise. Full coverage on an older car costs less than on a new one, but for a driver with a thin record it can still be a meaningful monthly number, and people who only planned for the car payment get caught out.

Get quotes before you go, not at the desk. Rates vary widely between insurers for exactly the same driver, and having a policy ready removes the pressure to take whatever's easiest to arrange in the office. If the lot offers to add insurance to your loan, price it independently first — bundled coverage is convenient and usually not the cheapest.