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When you purchase a car with a loan, the bank holds the title while you are considered the owner. Although you may not have the title, you retain ownership rights, meaning you can sell or refinance the vehicle. Your insurance covers you, the driver, not the bank. The arrangement with the lender allows you to use the car as your own while the title is held until the loan is fully paid off. Once you pay off the loan, the bank sends you the title, confirming your full ownership of the vehicle.