Insurance question.

My dad’s friend has a question that neither of us knows the answer to, so he asked me to post it here:

I need advice. Daughter has a 2014 Hyundai Veloster, not even 71,000 miles and the turbo went and therefore threw metal into the engine, destroying the engine. She still owes over 11,000 (4 years) on it but since she’s not the original owner, the warranty is not in affect. Has anyone had any experience here? If she gets a beater car until the loan is paid off, will she still need to carry full insurance on the one that literally won’t run? I’m guessing yes because the loan holder won’t know it’s dead. Any recourse with Hyundai? Anyone have a line on a something reliable for 1500? Any help is appreciated!

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