phreezee

For those who bought the car and got a loan from the bank, did you buy loan insurance?

I was 23, put down $11g on my $54g. After loan insurance, the loan was still $49g. My payments are about $900 a month.

The insurance was about $7500 ... I'm kinda regretting it ... don't know if it was a wise thing to do. It pays off my loan if I die, and pays monthly payments if I'm on disability though.

Did the rest of you get Loan Insurance?

padam07

I got loan insurance when I purchased a 1998 Nissan Maxima. I paid 13,000 for the car and it costed me $528 for the insurance. It turned out to be $11 a month more. the only reason why I got it is because my uncle got into a real bad accident whe nhe was my age that left him in a body cast. It ended up that he had to sell his car because he couldn't afford it anymore.(he totalled his sister's car) I said what the hell I will go for it.

acey

That price just can't be wright. If you were 100 years old and had a extremely dangerous profession I'd say maybe.

Thanks
Acey

DriveI65

Phreezee is in Canada and those are $CDN dollars he is quoting. Easy mistake.

WayneTN

I don't see why you need loan insurance. For one thing, personally, I'm not gonna bet several hundred dollars that I'm gonna die within the next X years (however long your loan is). Second, I already have life and disability insurance through my company where I work. Third, even if I die or am disabled, I or my survivors would still have my Z to sell or keep and make payments on.

The only reason you would want this insurance is if you wanted to bet that it would pay off (you are going to die or be disabled), and you wanted to give your survivors a free ride. Instead, you might want to save your money and just give it to the would-be survivors. That might be a better investment. It's your money.

WayneTN

phreezee

That's sort of how I'm feeling. I wonder if there's anyway to cancel it? Anyone ever buy loan insurance and cancel it?
As Chris Rock says "Shouldn't I get the money back if sh*t don't happen?"

padam07

When I got my loan I asked if I could cancel the insurance later nad they told me i could but it wouldn't make the monthly payments go down it would only shorten the loan.

phreezee

Thanks! I'm fine with the monthly payments, it's just knowing that I'm paying close to $75g for the car with loan+insurance+interest over 5 years. That's kinda disconcerning for someone who wants to save up for a wedding and house also. Thanks for your input.