Car Loan Extra Insurance

Is car insurance cheaper if you own the car and don t finance.

Car loan extra insurance. After all by financing all or part of the vehicle s cost your lender is a co owner. For instance imagine taking out an extended 6 year loan on a car. The provider sells insurance products through 48 000 independent agents in 26 states and. Often required for new or financed vehicles it covers the difference in cost between the car s value and how much you still owe on it if the car is totaled.

That s still a little wordy though so here s an example that should help explain it. What a loan does is add additional coverage requirements to your policy mainly collision and comprehensive so the financial institution your loan is through covers its investment. Every car insurance policy is tailored to every person s needs and quotes may be different as well depending on where you live and your concrete situation which is why it is usually advised to talk to your local agent and determine your priorities to get as much coverage as possible for less money finding that perfect balance. A total loss accident a year after purchase would leave you owing more than it s worth even after the insurance payout because most of the payments over the last year went straight to interest.

So if you owe 25 000 on your car and it s only worth 20 000 gap insurance will make up the difference. We offer three types of car insurance prestige standard and lite so you ll buy only what you need. Adds other individuals to your car insurance policy so they re also covered if they get in an accident while driving your vehicle. One type of extra insurance you might want to consider is gap insurance which covers the difference between the actual cash value of your vehicle and the current outstanding balance on your loan if your car is totaled.

Drive with peace of mind with aviva car insurance which covers your car against loss or damage due to accident theft and flood. Credit insurance is optional insurance that make your auto payments to your lender in certain situations such as if you die or become disabled. Extra insurance that s worth the money. Say you buy a new car for 30 000 and you finance the entire amount over 60 months.

When you are applying for your auto loan you may be asked if you want to buy credit insurance. Spread over the life of the car loan that would be about 4 800 meaning a more reasonable sticker price was somewhere around 27 000 to meet her affordable total price goal of 32 000. Compare car insurance rates with instant car insurance quotes when you buy online. Simply put gap insurance is additional insurance on a vehicle that covers the vehicle s value between the amount you owe and the amount the vehicle is worth.