Buyer Question: What is Credit Life insurance?   

Comment: In the event of your death, Credit Life Insurance pays the balance of your vehicle loan, either the balance remaining or the policy maximum, whichever is less.

Buyer Question: Should I buy Credit Life Insurance? 

Comment: It is an individual decision based on weighting the financial risk and hardship of paying off the amount of your vehicle loan, which can be several thousand dollars, should you die verse the cost of buying Credit Insurance.  The good news is Credit Life Insurance is relatively cheap but do you really need the additional expense. 

If you are a young single adult do you really care how your vehicle is paid off should you die prematurely?  If you have a family or are a senior citizen, with little or no life insurance, you might not want to have your family or spouse burdened with the vehicle loan payments after you die.

Buyer Tip: If you are concerned about the burden of vehicle loan payments on your spouse or family, you should consider Term Life Insurance. Term Life Insurance is usually much less expensive than Credit Life Insurance.

Comment: Absolutely … If the dealership offers a better deal, take it and save some additional money. Just be aware dealerships have a reputation for charging significant premiums for Credit Life Insurance. The same or more coverage can usually be obtained from your insurance agent or over the Internet for significantly less.

The following steps take approximately one hour. 

1. Determine if your financing source requires you to carry Credit Life Insurance.
2. Determine if you will feel more financially secure having Credit Life Insurance.
3. If you are required to have or want Credit Life Insurance obtain quotes from reputable insurance sources e.g. insurance agents, insurance companies, insurance Internet sites.
4. Determine the best Credit Life Insurance policy by obtaining the following information from your insurance agent and  the Internet sites
   1. Can both you and your spouse by covered by the same policy?
   2. Are there any age limitations?
   3. When does coverage begin?
   4. Length of coverage available
   5. Policy Cost
   6. Policy payment terms e.g. lump sum, semiannual, other
   7. AM Best rating of your insurance company
5. Include the best quotes and policy term and conditions in your Buyer Information Folder.

Classic Dealership One-Liners.

“Your Bank/Credit Union/Internet financing source always requires Credit Life Insurance.”

Comment: Determine if your financing source requires Credit Life Insurance before going to the dealership. See Step #1 above.

 “You can’t drive your vehicle off the lot without Credit Life Insurance.”

Comment: Determine if your financing source requires Credit Life Insurance before going to the dealership. See Step #1 above.

“Your insurance source (agent, company, Internet site) has a poor reputation for paying their claims.”

Comment: Always check your insurance company’s rating during your insurance research. See Step #4 (g) above.

Insurance Disclaimer

The purpose of website eAutoAdvantage.com is to provide the user with general information about the subject matter presented.  Website eAutoAdvantage.com is not intended, nor should the user of website eAutoAdvantage.com consider it, to be insurance advice applicable to the user’s specific situation.  The user is solely responsible for the use of website eAutoAdvantage.com.  If the user has any question about a specific insurance situation, they should seek counsel from an insurance agent registered to do business in their state. Also see our general disclaimer.

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