The nuances of car insurance when buying on credit

With increasing material well-being, and increasing the number of cars on the roads. Cool car - new car, but few are able to lay out for him all the cash at once. In this case, help comes in the form of auto loan - this type of banking is gaining popularity. But in many cases the bank requires to insure the car, if it acts as collateral. Hull increases the cost of the loan by a substantial amount. What should I look for when the contract of insurance?

In most cases, the insurance company, which will be issued a contract for car insurance, indicates the bank is giving credit. It is possible that this is the most impeccably insurance company, and it has no alternative. But before entering into a contract of insurance, the borrower still should learn more about this insurer.

Which sections of the insurance contract should be paid attention in the first place? The borrower should know under what provisions of the insurance benefit is paid and on what - not paid. Also need to find other insurance conditions and the interest rate. No matter how it seemed tedious, choosing an insurance company should not indulge in laziness, you should read the contract of insurance and out, including all the footnotes, which are usually typed in small print. It is very often clients being deceived by the very low interest rate car loan, “fall” on the exaggerated insurance rates just on the advice of the bank. A change insurance company is no longer possible. Learn more about auto insurance rates.

Deputy Head of Sales auto RosEvroBank Natalia Bondarev said that when buying a car on credit is necessary to focus attention on such items of the contract: the contract of pledge should be an indication of the value of the car, for which he acquired and the actual term of the loan. “We have concentrated peruse items on the rights and obligations of the parties, namely, the obligation of the borrower with the constructive loss or theft of the car. In addition, it is necessary to focus on the functioning of the insurance contract period - it should not be less than the loan period, “- she adds. We should not lose sight of that in the insurance auto loan customer must pay a premium equal during the entire loan period, despite the fact that the vehicle is operating at an annual falls in price.

Moreover, the borrower should be aware that with the onset of the insured event, compensation for damages is not paid to him, and the bank that issued the car loan. That is, in case of breakage or theft of the car, is the beneficiary bank. Insurance company assesses the damage and the amount required to credit the account of the bank. If the monetary obligations of the borrower to the bank is less than the amount paid by the insurance company, the bank cancels the debt of this amount, the client, and the balance shall transfer to his account. If there is no agreement CASCO (or some basis in insurance payments denied), the loss to the bank - in full and out of pocket - compensates for car buyers.

Currently, the approximate rate of CASCO insurance for the car price up to 20 thousand dollars, for the borrower, which has two years of driving experience and age 25 to 30 years, in the order of 8-15% of the value of the car.