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When you buy a car with a loan, you technically own the vehicle, but the bank holds the title until the loan is paid off. This means that while you are the legal owner, the bank retains official ownership through the title until full payment is made. Your insurance covers you as the driver, not the bank. You have the freedom to sell or refinance the car, despite the bank holding the title. Once the loan is paid off, the bank sends you the title, and you become the full owner without any outstanding agreements.