I am financing a tc through my credit union...What are your thoughts on:

Loan protetcion (insuring your loan against loss-of-life, disability and unemployment)
Gap insurance

I am a single with no kids and I am just wondering if any of this is really needed for myself...Do any of you get this when purchasing your tc?

thanks in advance!

 

thats really up to you and how good of a rate you are getting those services at.

I didnt do it because I had a large down payment and I owed a small amount.


If you can get it at a decent price and you feel thats what you might need then yes.

 

GAP Insurance is an excellent thing...eventhough I think its kinda shady concept!...BUT if your tC get totaled out your pretty well covered..etc..
I had 2 ex-club members that totaled their cars within a yr of getting it...

I went through my Credit UNion for my loan I had good credit I got an awesome Interest rate...
Only bad thing I did was I chose the longest payment plan..to lower my monthly payment...lol

 

Thanks for your help...I've been doing some research on the gap insurance and I think i'm going to get it from my credit union where I got my loan. Its $245 and I'm guessing I need it since I still have family in the hood and I visit often.lol. (they steal cars like crazy where i'm at)

Still don't know about the loan protection for loss of life/unemployment/disability....I honestly didn't know that if you die, your family will have to pay off the car loan...kinda crazy

 

I am an Insurance Agent. I wouldnt recommend insuring your loan, but I WOULD recommend a standard Disability program. Insuring your loan only means one thing - your car would get its payments made if you were disabled, or very ill (cancer, surgeries ect). A standard Disability Policy (available through your employer or on your own) will PAY YOU DIRECTLY so you can use the money as YOU WISH. not just car payments (IE food, heat, electricity, rent/mortgage)

I personally would pass on GAP coverage as well, your throwing good money after bad. Here is a brief review of what GAP REALLY is.

For buyers, gap insurance only makes sense if you expect to be "upside down" on the car (you owe more than it is worth). If you made a low down payment, if you bought a car that depreciates rapidly, if you have a high interest rate or if you rolled over other costs, such as money owed on a trade-in, into your new-car payments, gap insurance makes sense. Most buyers, particularly those who made a healthy down payment, will always be right-side-up on the car, and therefore don't need gap insurance.

 

Thanks alot for the info!

Quick question (hopefully not a stupid question)

How much should I expect to pay monthly for a policy you referred to? Also, I don't have any other insurance (like life insurance etc.), as a 22 year-old-soon-to-be-college-grad, any advice on what I should have insurance-wise to protect myself?

(sorry for the crazy questions...I don't have parents that can school me on this stuff and I am at that point in my life where I need to make sound decisions.)

 

^^^ Illmatic - You should check through your employer to see if there is a group program in your company benefits package available to you.

There are 2 ways pricing works for these policies
1) they give you a rate, and tell you what your max benefit is (ie $1000 a month, or whatever) this would be through your employer.

2) you can elect your OWN benefit amount (which of course is controlled by cost, a person that wants $5k per month, would NOT be able to make the payment(s) on the insurance if they only made like 9.00 an hour.


My rule of thumb for insurance is not the standard "you need 60% of your take net pay" but more like this - insure your 2-3 most valuable necesities, plus add a little bit for spending.

#1 rule with insurance is to NOT over insure things (this is money you wont get back, if you dont use it) but mearly cover your mortage (or rent), car payment, then add about $400-500 for misc spending (food, gas, head, electricity, internet bills, ect). I would recommend starting with something along the lines of $1000 or so.

This is kinda hard for me to type out 7 years of learned info in here.. lol, but here it goes.

IF you get a program on your own (IE not company sponsored) you can do it through lots of avenues. I work for Allstate, you can your local agent and do this. ALSO I am licensed in 6 states, so I maybe can help you out.

Rates are based on this though
1) how much do you want
2) how long do you want the insurance to pay YOU (6 months, 12 months, 24 months, 5 years)
3) what is the elimination period (meaning time you can go with out a check, a IMMEDIATE elimination period is going to cost more than say a 1 month , which would start paying you after 30 days).

PM me what state your in, and IF I can help, Ill educate you real quick and I can help you decide whats best.

And remeber my #1 rule.. dont over insure yourself - most agents wont tell you that, and will kinda try to maybe hit you for what you can afford, versus what you need.

 

^^ What Insurance Company you work for??

Are you "really" an Agent?..u just play one on SL??

Will you hookup us SL people w/ good plans?....hehe

 

Nah I am a Allstate agent for real me and my partner have our own agency. I work with companies setting up health plans, 401k options, life insurance, disability, cancer and heart/stroke insurance. Ive been doing it for 7 years, and I would hook people up with the correct programs they need. There isnt any "discount" I can provide for Insurance because its all regulated by state and fed commisions, but I wont take advantage of people either (which is a whole different story.. make SURE your Insurance agent is a decent guy or gal, or you could get taken advantage of, because most people dont have enough knowledge in this category).. same thing with doing my taxes, I take my CPA's word for it, but I know he is a good guy and I know his family and I dont know crapola about doing taxes (my taxes are WAY different then just a w-2 standard, its like a puzzle, plus with all the deductions and buisness credits I am almost lost..)

 

What states are you licensed in ??? Do you know of any good websites where I can learn more ??? You've helped me out alot I appreciate very much...