Car Insurance for Car Loan
Posted on Oct 24, 2000 08:15:27 AM
When you register auto loan banks require customers to insure the car. And it is quite understandable. The car is the collateral, it can be stolen or broken, then the client has lost motivation to return to the bank loan and pay interest.
But car insurance is one of the most expensive items for the consumer when buying a car loan. To insure the car is required every year, and the interest rate for the insurance is taken with the initial cost. But the car ages, the real value of it decreases. As a result of the overpayment on a credit car to average 8-10 thousand rubles a year.
Rates for insurance credit car can be higher than that of non-credit, since the non-credit insurance, the basic insurance rate can be reduced through a variety of discounts.
Typically, in such insurance contracts, namely the bank indicated the beneficiary, that is, has every right to receive insurance reimbursement. A bank has already rasporyadaetsya at its discretion. And there are several options.
Option One: any insurance payment goes to repay the loan. The owner of brand new car may be very surprised when I turned to the insurance company, for example in connection with damage to the windshield, he learns that, to restore the damaged car he will have his own expense, a sum equal to the cost of repair, will be paid by the insurance company to the bank and aims to repay the loan.
Option Two: insurance money would go to restore the car. When such damage to the vehicle when its refurbishment economically expedient (ie repair cost does not exceed 60-80% of the cost of the car), insurance money goes to pay for repairs. It costs the insurer, usually lists the direct service centers. In this case, the borrower has maintained an interest to continue to pay the loan payments, as reconstructed by a car insurance payment can be used and further, on the other hand, the bank benefit, which is restored after repair value of the collateral.
amount, bank, car, credit, insurance, price, refund,- What is mortgage insurance
- Where better to take out a loan for medical treatment
- Car Loan nationals without a residence permit in Moscow
- Insurance policies for car insurance
- How to buy a car on credit