Posted 2015-10-29 1:20 AM (#165227) Subject: Loan default insurance
Elite Veteran
Posts: 610 Location: Northern CA
So I am financing a Living Quarter trailer. Got financing through my bank (credit union) They are charging me $39.99 monthly (autopay) for default insurance. (In case I default on the loan) I have excellent credit. Is this normal?! That ends up being a total of $7,198.20 after 15 years!!!!
Just for this "loan default insurance". Anyone else getting stuck paying for this as well?? This is totally absurd. Are there any other options for me if this is a must have insurance? Wondering what others are paying for this same insurance and through what company?
Thanks all.
Posted 2015-10-29 2:40 AM (#165228 - in reply to #165227) Subject: RE: Loan default insurance
Expert
Posts: 3853 Location: Vermont
What percent are you financing? If it is 100%, then loan companies will tack on loan default insurance, because of depreciation of the trailer...if they have to sell it to recover their monies, they eat the depreciation in one LARGE BITE...
Posted 2015-10-29 3:53 PM (#165233 - in reply to #165227) Subject: RE: Loan default insurance
Veteran
Posts: 233 Location: Pataskala, Ohio
I have never heard of default insurance, is it gap insurance?I recommend getting disability insurance. I have been having troubles after I broke my neck and the disability insurance has has been making my payment for the past 3 years. Without it I would have lost the trailer.
Posted 2015-10-29 6:35 PM (#165234 - in reply to #165233) Subject: RE: Loan default insurance
Elite Veteran
Posts: 610 Location: Northern CA
Jeeppir,
No its not gap insurance. I have my trailer insured. They are protecting themselves just in case i default on the loan. I cant believe it costs so much though. Never heard of default insurance on a loan before.
Posted 2015-10-29 8:11 PM (#165235 - in reply to #165227) Subject: RE: Loan default insurance
Expert
Posts: 1989 Location: South Central OK
It's used for disability or unemployment, welcome to the Dodd-Frank style of banking! You must have loans from all types of customers, even the ones you know WILL NOT PAY THE LOAN BACK. So in turn they stick each good guy with an additional "fee" to cover the crap loans they are required to make.
Posted 2015-10-29 10:56 PM (#165237 - in reply to #165227) Subject: RE: Loan default insurance
Expert
Posts: 3853 Location: Vermont
Originally written by jackbrat on 2015-10-29 4:20 AM
I have excellent credit.
You may want to get a copy of your credit report just to make sure you are not a victim of identity theft...the latest identity theft trick is that they open a credit card based on YOUR CREDIT HISTORY!!!...and the credit bureaus blindly link it to your credit data...
Loan default insurance
