Car loans..?

Question

Got a new car, had to take out finance. There is insurance added to the loan. But it says there is no optional payment protection insurance on the loan. It is down as other insurances. What are other insurances..Can i cancel them.

Answer 1

all the insurances are optional, it's a common trick used by lenders to screw extra money out of you. By law you have 7(or maybe 14, I forget) days to cancel completely.

Answer 2

Optional could also mean disability and/or credit life insurance. These are protections primarily for the lender. For instance, on disability protection, they claim to make payments for you during the time you are out due to a covered disability. Be sure to see if they mean short or long term, partial or full disability.

For credit life, this would mean paying off the vehicle if you died before the last payment was made. Unfortunately, you'll be paying the same amount per month during the last year of the payment, as you did for the first year. They may even go up on the premium, without you noticing.

Were you forced to accept their auto insurance added to your loan, or did you get to choose your own auto insurance carrier? You may want to compare rates.

Answer 3

Most lenders will offer an insurance with the loan.

The commission is around 50%, so try shopping your own insurance, or you may avoid it if you already have some salary/disabled insurance from your work.

Answer 4

Without seeing the contract, no one can tell what you paid for. The dealer and/or finance company would insist that you have collision and comprehensive insurance. For your own protection, you need auto liability insurance.

Answer 5

Read every word then go back to the person who sold you the car,it is your responsibility to ask and theirs to answer. Also, call the issuing insurance company and ask them the questions you asked here.

Answer 6

Contact any dealer