I know it like a loan, and if person dies, vehicle paid off. But when good ol'e boy(car salesman and my dad) that have known each other for 30yrs get together, and dealer knew my dad had every illness there was and they still let him sign policy. All I'm saying is if the dealership knows person has illnesses that don't qualify, then don't give application. And by the way COCHISE, my mother was not there with my dad when he got vehicle and she also has stated that dad should not have signed(FRAUD!) and dealership shouldn't have even pulled it out. Credit life should have people do a physical when they are applying, instead of when they die ask for all medical records, and talk about digging the body up for autopsy. We plan to write an article in paper telling people about this so called credit life and dealerships, it's all wrong on everyone's part.
2006-09-13 14:55:21 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
It is an additional profit maker for the dealership.
Just as those extended warranties are another profit maker for the dealership.
Giving you a loan is another profit maker.
Dealer mark-up is my favorite.... This is just another
word for dealer extra profit.
Add-ons, like undercoating, rustproofing, etc. are another
rip-off that make the dealer beaucoup bucks....
2006-09-13 16:38:11 · answer #1 · answered by jimbo_wizard 5 · 0⤊ 0⤋
They offer credit life because it's a profit item for the dealer and the finance company. I've never seen one that ever asked any questions about the borrower's health, though. It's such a terrible deal for the borrower that they don't need to worry about the unhealthy customers.
If a health questionnaire is not required for the policy, the insurance company cannot deny coverage for a concealed medical condition since they didn't even ask in the first place. In that case, no fraud exists.
Even if a medical questionnaire is presented, dealers are not doctors or insurance actuaries and cannot evaluate the questionnaire legally or ethically. It's entirely up to the person who signs the questionnaire to be honest when filling it out. If someone lied on an insurance application, your gripe is with that person, not the dealer or even the insurance company!
2006-09-13 18:19:29 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The dealer nor your dad was doing anything wrong. The insurance company knows what the averages are and set their price accordingly. They know very well that some will die before the car is paid off. Think of this one. If your dad had teen children that were legal drivers then should they insure the loan. Teens have a high rate of accidents. That kind of policy is a blanket policy and has its rates set to take this into account. Just be glad this is available for people like your dad. Another thing ou might start thinking about is not jumping to conclusions so quickly without any knowledge's about what you talk about.
2006-09-13 15:25:51 · answer #3 · answered by Anonymous · 1⤊ 0⤋
A regular term insurance or disability insurance plan is cheaper.
Per item insurance costs about 50x more and has all sorts of gotchas.
2006-09-13 15:03:20 · answer #4 · answered by girl with a gun 2 · 0⤊ 0⤋
Profit.
2006-09-13 15:02:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Let it go already!
2006-09-14 14:22:41 · answer #6 · answered by Chris 5 · 0⤊ 0⤋