Buyer Question: What is Credit Disability Insurance?

Comment: Credit Disability Insurance makes your loan payments (up to the policy maximum) if you become disabled by a covered sickness or accident which persists beyond the policy waiting period.

Buyer Question: Should I buy Disability 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 become disabled and unable to work verse the cost of buying Disability Insurance.  The good news is Disability Insurance is relatively cheap.

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 Disability 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 Disability Insurance
2. Determine if you will feel more financially secure having Credit Disability Insurance.
3. If you are required to have or want Credit Disability Insurance obtain quotes from reputable insurance sources e.g. insurance agents, insurance companies, insurance Internet sites.
4. Determine the best Credit Disability Insurance policy by obtaining the following information from your insurance source:
   1. Can both you and your spouse be covered by the same policy?
   2. Must you and your spouse be working full-time to be covered?
   3. Are there any age limitations?
   4. Credit Disability coverage limits?
   5. When does coverage begin?
   6. Length of coverage available?
   7. Policy Cost?
   8. Policy payment terms e.g. lump sum, semiannual, other?
   9. 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 Disability Insurance.”

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

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

Comment: Determine if your financing source requires Credit Disability 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.”

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