To add teen daughter to auto policy the insurance agent says I need to change one of our vehicles to a liability only policy for $5000 per year; can I do this if both our vehicles have a loan lien? 
You are absolutely right , if you have a car loan or are leasing a vehicle , both contracts require that you carry Physical Damage coverage provided by both Collision and Comprehensive . If you remove those lines of coverage you perhaps run the risk of voiding your finance agreement . Now , purchasing an older car and choosing not to carry anything but liability on oit is yours , not your agent 's choice to make . Some companies assign a specific driver to a specific vehicle , others use a `` driver averageing '' system whereby no one is asigned to a particular vehicle . 