How much insurance could a loan company (lien holder) impose
on buyer???
My car loan company required that I get a insurance with $500
or less deductible for comprehensive and collision coverage...

Any lawyer on the board??

 

I am no lawyer but I have bought two new vechicles in the last year and that is the coverage that I have to keep. Seems to be what most banks make you do.

 

same here...same coverage my credit union required

 

same here, they require full coverage

 

The loan company doesn't want to be left empty handed if you wrap the Evo around a telephone pole.

I've never heard of them imposing a deductible limit. But I have always been required to have Comp, collision, and uninsured motorist coverages with each of my last 3 new car purchases.

 

I've heard of finance companies doing that, having a deductible limit. It may be a function of your credit score. I don't think it's particularly fair; if they're going to impose a deductible limit, then they ought to pick up part of the extra premium as well. Going from a $500 to a $1000 deductible can you save you something like 20% on your annual premium. I suggest you call and complain and explain you'll go with another bank if they don't waive that limit.

As for having full insurance coverage for the car, that is standard industry practice.

 

I'm sure if you put $1000 in a CD or somethign with the bank they might be inclined to allow a $1000 deductible.

 

I have full coverage... actually quite high coverage....
250/500/100... and 100/300...

But I don't understand the deductible requirement.... I have
$1000 for both comprehensive and collision right now... They
think that I will not be able to pay for the extra $500 in case
of accident (when my monthly payment for the loan is already
over $500)??????

Going from $1000 to $500 deductible is going to cost me extra
$400 per year.... It makes more sense to me that I actually refi
through another lender (though at a higher rate)...