by cwilliams9215 » Mon Jun 23, 2008 11:18 pm
I just bought a new car, and my lien holder has informed in that I have to bring me deductible on my insurance down from $1000 to $500. Can they legally ask me to do this?
Posted: Tue Jun 24, 2008 12:27 am Post Subject:
'Legally'? well they can put anything they want in THEIR contract to loan you money I suppose...I've heard of this before and assume it has to do with lein holders re-popping cars that haven't been repaired because the owners didn't have the deductibles...You can always 'shop' your loan around to other lenders......or atleast threaten too! :wink:
Posted: Tue Jun 24, 2008 02:28 am Post Subject:
Yup... 'cause it's going to be in every loan contract (at least every policy with a LH I've seen has a $500 ded or less.
As Lori mentioned, the LH wants to protect their interest in the vehicle. If it's damaged they want to make sure the customer can afford to have it repaired and/or if they default on the loan, the LH only needs to spend up to $500 to have the damage taken care of.
Of course, I handled non-standard policies for a long time. Those people would bash the heck out of their cars and then they would be repo'ed. There would be damages all over the car, from many separate accidents. A new ded applies to each occurrence so it could end up costing $2000 and up for all the damage.
Posted: Tue Jun 24, 2008 04:56 am Post Subject:
Can they legally ask me to do this?
:? I'm not sure if they can legally ask you to lower your deductibles but as the other posters have mentioned, the lender, to protect its interest, can include any clause in the loan paper.
Its true, that higher deductible will lower the premium charged on the policy, but at the same time is putting you at the risk of paying a higher amount upfront at the time of need. However, you always have the option to shop around if you're not satisfied with the conditions imposed by the lender.
Posted: Tue Jun 24, 2008 10:37 am Post Subject:
I'm not sure if they can legally ask you to lower your deductibles but as the other posters have mentioned, the lender, to protect its interest, can include any clause in the loan paper.
Well Rupert as the one writting the contract they can put in it that the OP has to wear a red shirt every friday if they want to and it will be legal...It's up to the OP if he signs the contract or not, thus agreeing to the terms set in it...However, you always have the option to shop around if you're not satisfied with the conditions imposed by the lender.
My point as well...Per Tcope though this is pretty standard....I've always carried 500 deducts so didn't know this and been a long time since I had or took out a car loan (Thanks Lord :wink: )...So as T said could be the same everywhere...Posted: Tue Jun 24, 2008 10:53 am Post Subject:
Well Rupert as the one writting the contract they can put in it that the OP has to wear a red shirt every friday if they want to and it will be legal
:lol: :lol: Oh dear! so, they can be real tyrants at times.
My point as well...Per Tcope though this is pretty standard
Rightly so, $1000 deductible is considered to be pretty high. Also, if you try to get a quote online, under normal circumstances it'll calculate the rate considering $500 as deductible.
Posted: Tue Aug 12, 2008 06:26 pm Post Subject:
May be they can ask you for reducing your deductibles 'if their conditions are not met' ,which you might have missed to read while signing up for the insurance policy ..
Posted: Fri Aug 15, 2008 06:39 pm Post Subject:
It depends on what the loan contract says. A 1000 deductible is pretty high, so it might be to your advantage to lower it to 500.
low.com/insurance=auto insurance
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