WHAT YOU SHOULD KNOW BEFORE HIRING A CAR LOAN-LINKED INSURANCE

WHAT YOU SHOULD KNOW BEFORE HIRING A CAR LOAN-LINKED INSURANCE

How the mortgage or any other loan, when you apply for funding to pay for your car's raining you proposals for insurance of all kinds. For example, any loan or credit entity, surely the Bank or any other company credit, you offer life insurance linked to the loan. In the case of loans to buy a car, many banks also offer you that you purchase the insurance with them.

Before continuing, remember that it is not obligatory to hire any basic insurance more than insurance to third parties and that, in any case, life insurance linked to the payment of the loan is not obligatory, although highly recommended, which leads us to the next point. Do not forget that you can also purchase insurance with who you want and they cannot deny you the operation by not insurance, whatever it is.

NOT TO CONFUSE YOU

It is usual that the entity offers to which request funding a lower loan interest rate if you hire car insurance with them. This discount may appear interesting, although we must assess many aspects to decide whether, by comparing all the factors, really outweighs the savings in the loan, although it is more expensive to pay for it, in the end outweighs comparing insurance with insurance companies.

First, there are more options than the lender for the loan payment protection insurance. Even if you take a little time, it is worth review much secure a loan with an independent entity and, in case that you get a discount for purchase payment protection insurance, compare real savings.

On the other hand, in regards to car insurance, you must make numbers and see if the interest rate saving compensates you taking into account the price of the insurance. Also remember that not always hire a car insurance is a matter of price. If you are looking for is a basic insurance to a third party covering only the compulsory civil liability, surely most important is price. But if you want to hire an expanded third-party insurance or all-risk insurance you have to take many factors into account, review the coverages, conditions, limits and allowances, without forgetting the franchises in the case of all-risks insurance.

IF YOU HIRE AN INSURANCE, WELL SEE INSURANCE

The best way not to be "distracted" with car loan savings is to consider besides the car insurance, look at conditions and compare options. Keep in mind that it is one thing to save on the price of insurance for car and quite another is to "Save" benefits. If the price of the insurance is cheaper because it cuts benefits you must consider if what you offer is sufficient or if it is worth or not to pay a little more. The price comparisons must be done always with insurance under the same conditions, because only thus you'll find insurance cheaper in price without the "saving" a question of cuts.