I’m thinking about buying a new car and will need a loan for that car. I usually only carry liability insurance on my vehicles, as I don’t drive a whole lot.
It makes sense to me that the bank would require me to carry more insurance, but was wondering if anyone knew for sure. Thanks!
Tags: buying a new car, insurance, liability insurance, whole lot
Yes, the bank would want you to own more. It’s to make sure they get paid. DON’T buy the insurance through the bank or dealership though. It’s junk. Buy individual term insurance instead. HEre are a few links that compare the differences:
http://www.cbc.ca/marketplace/.....rance.html
http://www.cbc.ca/marketplace/.....in_denial/ (mortgage insurance is the EXACT same type of insurance when bought through a bank…it’s just attached to a different debt is all)
http://asset-aid.com/bank_vs.html
Contact a local insurance broker and they can find you the best rates on term life insurance, and any other insurances you will need (like disability or Critical Illness)