Print

[ira01]

If you had an unsecured car loan, you would save money due to not having to have full coverage insurance...

You would be an idiot not to have full coverage on a car you owe money for.

Even if one maintains full coverage, one could at least raise the deductibles and thus save some on the premiums.

I don't know of any lender that has a requirement on deductibles - is that common? I've financed through pretty much every major manufacturer and a bank (USAA) and I've never had a requirement on deductibles.

Yes, I've seen creditor maximum insurance deductibles several times.  Sometimes they'll evaluate it on a case by case basis (once I had the bank say that they only allowed a maximum $500 deductible, but when I called and told them I had plenty of money in the bank to cover a higher deductible, they said OK). 

[Mtnchick]

Yes, I've seen creditor maximum insurance deductibles several times.  Sometimes they'll evaluate it on a case by case basis (once I had the bank say that they only allowed a maximum $500 deductible, but when I called and told them I had plenty of money in the bank to cover a higher deductible, they said OK). 

Learn something new every day.

I still wouldn't use P-----r as a lender on a car

[ira01]

Yes, I've seen creditor maximum insurance deductibles several times.  Sometimes they'll evaluate it on a case by case basis (once I had the bank say that they only allowed a maximum $500 deductible, but when I called and told them I had plenty of money in the bank to cover a higher deductible, they said OK). 

Learn something new every day.

I just typed those exact same words in response to a post of yours in another thread!

I still wouldn't use P-----r as a lender on a car

Me neither.  My last few car loans were in the 4% range, and I can't imagine getting that on Prosper.

[112233]

Yes, I've seen creditor maximum insurance deductibles several times.  Sometimes they'll evaluate it on a case by case basis (once I had the bank say that they only allowed a maximum $500 deductible, but when I called and told them I had plenty of money in the bank to cover a higher deductible, they said OK). 

Learn something new every day.

I still wouldn't use P-----r as a lender on a car

I would if I were say .. a creditboard borrower. No need to go through all the trouble of hiding the car from the repo man

[Risk_Reward]

If you had an unsecured car loan, you would save money due to not having to have full coverage insurance...

You would be an idiot not to have full coverage on a car you owe money for.

Even if one maintains full coverage, one could at least raise the deductibles and thus save some on the premiums.

I don't know of any lender that has a requirement on deductibles - is that common? I've financed through pretty much every major manufacturer and a bank (USAA) and I've never had a requirement on deductibles.

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

[112233]

If you had an unsecured car loan, you would save money due to not having to have full coverage insurance...

You would be an idiot not to have full coverage on a car you owe money for.

Even if one maintains full coverage, one could at least raise the deductibles and thus save some on the premiums.

I don't know of any lender that has a requirement on deductibles - is that common? I've financed through pretty much every major manufacturer and a bank (USAA) and I've never had a requirement on deductibles.

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

the insurance company would definitely love you

[threnody]

If you had an unsecured car loan, you would save money due to not having to have full coverage insurance...

You would be an idiot not to have full coverage on a car you owe money for.

When I paid the car loan off with the prosper loan, I did change from full coverage to minimum.  I did this also because the car is 7 years old and the Kelly blue book price on the vehicle is only about $4000.  At the same time, I added apartment insurance to the policy but I'm considering dropping that now. 

[Mtnchick]

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

If you're that stupid and the insurance company says OK, then I don't see why not. I double checked with my current lease and there is no maximum deductible. There are minimums as far as coverage, but I carry more than those minimums any way.

But hey, getting a P------r loan so you can get a higher deductible which you probably wouldn't be able to pay sounds like a GREAT idea - keep rooting for it

[Caladia]

...I double checked with my current lease and there is no maximum deductible. There are minimums as far as coverage, but I carry more than those minimums any way.

But hey, getting a P------r loan so you can get a higher deductible which you probably wouldn't be able to pay sounds like a GREAT idea - keep rooting for it

My Credit Union required me to have the lowest deductibles on Comprehensive and Collision coverage (I can't remember what they were... something really low, though, like $150).  As soon as I paid off the car with the Prosper loan, I changed the deductibles to $1000.  The lower insurance payment will save me more than $1000 over the next few years.  (Even if anything happened and I had to pay the deductible, I'd still come out ~$200 ahead.) 

[ira01]

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

If you're that stupid and the insurance company says OK, then I don't see why not.

The whole point of requiring comp and collision on a vehicle securing a lease or loan is so that when you total the vehicle (or it gets stolen), the bank isn't left holding the bag.  Having a high deductible defeats this purpose -- and the extreme example posited above is entirely equivalent to not having comp/collision coverage at all. 

[Mtnchick]

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

If you're that stupid and the insurance company says OK, then I don't see why not.

The whole point of requiring comp and collision on a vehicle securing a lease or loan is so that when you total the vehicle (or it gets stolen), the bank isn't left holding the bag.  Having a high deductible defeats this purpose -- and the extreme example posited above is entirely equivalent to not having comp/collision coverage at all. 

You didn't ask if a BANK would allow it - in fact, you didn't mention it was a financed car at all. I stick with my comment

I have full coverage on a car that's paid off and I have a relatively high deductible ($1K which I have on both my cars - including the lease) on it. Yeah, I could cancel collision, but why? When the car's worth less than what I'm paying annually to cover it, then I'll think about dropping collision. I could cover the cost of replacing it if it was totaled now, but again - why when I can insure it?

Again, I've never personally seen a bank tell you what deductible to get and I've financed a lot of cars through a lot of different banks and credit unions. I was just commenting on my experience

[Risk_Reward]

So, I could insure a $20,000 car with a $20,000 deductible and the lender wouldn't have a problem with it?

If you're that stupid and the insurance company says OK, then I don't see why not.

The whole point of requiring comp and collision on a vehicle securing a lease or loan is so that when you total the vehicle (or it gets stolen), the bank isn't left holding the bag.  Having a high deductible defeats this purpose -- and the extreme example posited above is entirely equivalent to not having comp/collision coverage at all. 

You didn't ask if a BANK would allow it - in fact, you didn't mention it was a financed car at all. I stick with my comment

What are you talking about?  The word lender is all over the place and yes by lender it meant on an auto loan, not an unsecured loan.

You conventiently left out all the quoted comments.

[bluestar148]

Yes, I've seen creditor maximum insurance deductibles several times.  Sometimes they'll evaluate it on a case by case basis (once I had the bank say that they only allowed a maximum $500 deductible, but when I called and told them I had plenty of money in the bank to cover a higher deductible, they said OK). 

Learn something new every day.

I still wouldn't use P-----r as a lender on a car

Wow!!! Really prophetic words a year ago!

[JammingJAY]

If you had an unsecured car loan, you would save money due to not having to have full coverage insurance...

You would be an idiot not to have full coverage on a car you owe money for.

well, yeah, you'd be an idiot, but i could see that being in someone's list of reasons.

Can you show your list of reasons? Your loan is quite late now.

[misssalaska2000]

(psst, Jammin' Jay... check the dates.)