I have full coverage insurance. Great policy through Allstate. My lender is stating that I have to change my deductible from $1000 to $500 or they will buy a new policy and make me pay for it. They said that some customers can t afford a high deductible and they never get their cars fixed after an accident. What
I have full coverage insurance. Great policy through Allstate. My lender is stating that I have to change my deductible from $1000 to $500 or they will buy a new policy and make me pay for it. They said that some customers can t afford a high deductible and they never get their cars fixed after an accident. What does this have to do with me? Is is legal to force to me change my deductible?
That really sucks. This is the kind of thing that more and more of our citizens are dealing with. I understand, I really do. However, when the economy gets really bad, politicians use these types of issues to take advantage of people, and to play on deep seeded rears about other groups. There is of course no way for this person to know whether or not any of the people that she was dealing with were here illegally or not. She assumes so because they are speaking Spanish. We need to resist these types of feelings and remember why we are in this economic situation in the first place. The government is in bed with corporations, and they are giving them whatever they want. They outsource our jobs, pay no import tariffs on those imports, and pay no income tax. Why are they here if they do not help to pay for the society that they take advantage of? We have allowed this to happen. In the 60's the average worker made twice how much we make now. At the same time we have seen the rich get richer.
You can read your lease or finance contract, but generally yes, they can limit your deductible. Its the same with homeowners insurance and your mortgage; unless you are cashed up and they know it, most will not allow a high deductible on that coverage as well.
This is actually common, but you have a contract, which should dictate how this is handled in your specific situation.
When you borrowed the money for the car, you agreed to the deductible amount up front, in writing, on your contract. You have ALREADY agreed to this. The lender is allowed to enforce the agreement that YOU ALREADY AGREED TO.
So, yes. They can do this – because you already agreed to carry the lower deductible. Even if you didn't actually read or understand what you signed.
I would consult with an attorney over this. I have never heard this before. But I guess my question would be that unless the car is repossessed, how does this affect the car company adversely. Unless they are saying people can't afford to get the car repaired so they just stop paying for it.
Quite possibly they can. Read your financing agreement with the lender. It may well indicate the levels of collision insurance they require. They are the lienholders on the vehicle, and there may well be a requirement to insure at a certain level.
I have never heard of that and I don;t know why the lender would car what your deductible would be – do you have $1000 in a savings acct that you can show them to prove you can afford that large of a deductible? – I would hope you do or you might be proving them right
an insurance policy cannot be changed while its in force, it can only be changed on renewal
On renewal they can offer to renew on whatever terms they like (i.e they wont offer a high deductible)
you either accept their new terms or go someplace else.
Maybe. Read the contract you have with your lender.
Your feelings are *completely* irrelevant. What did you agree to do in the contract you signed?
Yes, they can – because they are the lienholder and you agreed to carry "full coverage" insurance as THEY define it. Your only option is to look for another insurer – or pay off the car loan.
it is your insurance and you should have the choice to make, I can't see how they are affected in any way as long as you have the correct coverage
find anther dealer