At least they didn't take the insurance out to cover themselves and try and charge you for it. BTDT.

 

sounds like a lousy credit union if no insurance requirments are stated on the loan papers. this would be akin to having no interest rate stated on the paper work

 

I may be in this group! (but not the screaming part, I've been proved wrong before in life). I've never heard of a deductible stipulation, but then I've never had a deductible higher than $500 so I guess it's never come into play.
If I thought that raising from $500 to $1k would save $500 on the premium I might consider it. But I've never found the savings to be deep enough.
Like flanneljunkie I decided to take a look at my loan agreement. Deductible is not mentioned at all. Anywhere. Basically says that I'm responsible to have physical damage insurance sufficient to cover loss of or damage to the vehicle for the term of the contract. It goes on to say that if I don't have it, the lender may, if they choose, buy it and charge me for it. That insurance may cover the lender's interest or both my and their interest, whichever they choose to do. If they do that, they'll notify me which option they chose and what I owe them for it. And of course it they were to procure the insurance, a finance charge the same rate as the vehicle loan will be assessed.
What an education I got today. Glad I didn't have to change anything.

 

I'm starting to agree with that statement, i reread the loan papers and no mention of exact insurance requirements.
My reason for the higher deductible is it cost less, i can afford it and i don't have very many insurance claims.
This helps me obtain a 800+ credit rating so i don't pay 10% interest like i did in the 1980's!
If possible, i pay all loans off ahead of schedule and this makes future loans easier...

 

Living in one of the highest uninsured counties in the country, I refuse to have a $500 deductible. I will not pay for everyone else's lapse in judgement. All of my vehicles sit at a 2k for collision and save a boat load on my premiums.

 

I negotiated mine down on a vehicle I financed years ago. I have a good relationship with the number 2 guy at the CU and he took care of it. I carry 1k on all of my vehicles. Have known him for 30 years when he was just starting and I was a pretty young guy as well. It is pretty nice now if I want a vehicle I just call him and one of his loan folks let me know they are the contact and have the dealer send over the buyers order and they fund it. I get a contract electronically and can even sign it with my phone through the app. Just shows that it is to your advantage to maintain a relationship However, that is much tougher today because people jump around so much in that industry hell all industries for that matter. They run my credit report (am notified through a 3rd party service anytime that happens) and that is it except for my signature.

Some contracts will reference areas the detail of which is not included in the face page of the contract but by "reference" yes it is a challenge but with some phone calls an email or two depending on your relationship with the institution all things are negotiable just need to do it prior to contract execution. The devil is always in the detail as they say.

 

 

True enough. I had a friend that was a local bank branch manager for many years. It was always nice to just call him up and tell him what I wanted to do. When I arrived the paperwork and a check was waiting.
But in the ensuing years my relationship with that bank (but not with my friend) soured and I lost that. In the internet age it just becomes a search to see who's got the best rate and see if the dealer can beat it.

 

AMEN on the Umbrella Policy! I carry one a little larger and the piece of mine for exactly a scenario you pained above. In our Surface Use Agreements with producers and pipeline companies our ranch is named as a insured through a separate insurance policy that depending on who and what they are doing between 20 and 50 million dollars per occurrence. Have been involved am involved currently in litigation on our ranch (oil companies pollution) and professionally so it makes me pretty sensitive to these things. Specific words mean specific things in litigation.

Peace of mind. This is the Indemnification section from one of the produces SUA's I did a couple of years ago. Our agreements not including plats, attachments and referenced documents such as the U.S. Bureau of Labor Statistics Table N CPI Index for escalation provisions are 14 pages and very comprehensive.

"=justifya) Grantee shall be responsible for any and all damage to persons or property caused, in whole or in part, by operations conducted under this Agreement, or any rights granted hereunder. Grantee hereby releases and shall defend, indemnify, and hold harmless Grantor, Grantor’s tenants and agents, and Grantor’s heirs and assigns (collectively, the “Indemnified Parties”) from and against all liability, damages, losses, suits, claims, actions, or injury, death, penalties or fines, causes of action, costs and expenses of whatsoever nature (including reasonable attorney’s fees) (collectively, “Liability”) to persons or property that occur during the term of this Agreement and are caused by or arising out of or in connection with any of the Grantee’s drilling, injection, construction, operation, maintenance, inspection, repair, removal, replacement or alteration of equipment and related appurtenances, except to the extent resulting from the gross negligence or willful misconduct of the Indemnified Parties. This indemnity obligation shall survive the termination or expiration of this Agreement for a period of four (4) years (except as to environmental matters, in which case this indemnity obligation shall survive for a period of ten (10) years).=justifyb) Grantee shall maintain in effect at all times comprehensive general liability insurance covering operations on the property of Grantor in an amount not less than 30 Million Dollars ($ 30,000,000) per occurrence, and showing Grantor as an additional insured under such policy. Prior to commencement of any work contemplated by this Agreement, Grantee shall furnish to Grantor a copy of its liability policy showing Grantor as an additional insured under said policy.

 

We modified our coverage to a 1000 deductible and brod form collision. Lowered premiums substantially. If it's not noted in the loan docs, you should be able to negotiate it down. Make sure it's not in any disclosures either.
Make your CU provide the docs provided to you (at time of signing) that dictates their requirement. I still stand by.. Your membership/relationship will enable them to be flexible.

 

 

Bank is the 1st Lein Holder simple.. They protect their investment.

 

 

Troy it is obvious to me why a lienholder would want a lower deductible. Sorry you do not understand maybe someone could explain it. Maybe having damage to the vehicle and you are a poor guy who cannot or does not want to fork out a 1k deductible the vehicle remains in a state of disrepair possible causing more damage over time to the banks interest--i.e. your vehicle.

Very well known fact people buy more than they can handle and they want the cheapest insurance they can get! 1k deductible helps them do that but the lienholder is possibly at risk. If you do not understand that then someone else needs to give explaining this a shot.