A friend in Ttwitter (@Axotla) I was wondering what happens to insurance, when you buy a car on credit and it is lost total until you get your pay. To who should pay him the safe that loss? Is it correct that pay it to the Bank? Who pays the deductible? are only some of the questions that arise for it and for who can be in a situation similar.
When buy a car to credit, your creditor, that well can be a bank or a financial, you asks, among other things, that the auto is is in guarantee of the loan. Regularly up to stay with the invoice. That means while you get your pay credit car still is not your property. We can say that it is more than them to yours. Especially in the beginning, when you paid very little. Indeed are obliged to hire a safe of coverage wide so is ensure that if you passes something to the car, as theft total or lost total, they not lose the money that you lent.
Within the obligations you have, also purchase insurance, it is that they (the Bank’s) appear in the policy as preferred beneficiaries. This is correct and legal. Which allows them to know that if the car is lost and the insurer must be issued a payment they are leaders who pay. Thus they guarantee credit to you. An obligation rather than have is it’s pay the deductible to the insurance. Those also run by your account.
With all it previous must know that there is the high probability of that if you steal the auto, or is lost total, before finish of pay your credit still follow Dante to the Bank. Why happens this? by several factors, mainly because the bank charges you an interest rate and on the other hand the car it depreciates over time. A car that is worth 200 thousand pesos the first year the second year of use already not worth it same. Its value tends to go down with the time. On the other hand if the Bank or the financial total you pay at a rate of 10% per year, you’ll end up paying more than 200 thousand originals that is worth the drive.
If you are thinking of buying a car on credit, or already have one, it takes into account these factors. It is not that you deprimas. He thinks that without insurance the thing could be even worse. Do you have more questions? Like to leave some opinion? do it in the part intended for this on this blog. We are enriching the content of this space and your opinion is the most important. Do not stay with the desire to express your comments.