Features of insurance auto loans.

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Features of insurance auto loans

Until recently all cars got on credit, were a subject to obligatory insurance, not only OSAGO, but also from stealing and damage, on all validity of credit contract. However insurance is one of most dear moments for borrower at purchase of credit auto, therefore banks, involving clients, try to smooth sharp corners of insurance.

Many credit organizations without fail demand insurance from stealing and damage that is quite explainable: auto is in mortgage at bank. credit organization should compensate risks: bank becomes first purchaser of benefit in case of stealing or full constructive destruction of machine. On risk "Damage" and a civil liability first purchaser of benefit is borrower.

However insurance is one of most dear moments for consumer at purchase of credit auto. To insure machine it is necessary every year, and interest rate under insurance undertakes from its initial cost. But in fact machine year from a year grows old, its real cost decreases. As a result of an overpayment on credit auto will average 300-400 dollars a year.

Tariff for insurance of credit car can be above, than at not credit as at insurance of last base insurance tariff can be reduced due to various discounts (for payment without installments, for accommodation of a sticker on car and so forth).

Insurance policy can be made out and on a place of purchase of car. Sum of insurance should be not less than cost of car. If credit organization works with several insurance companies, quite often bank demands, policies of obligatory and voluntary insurance have been issued in one insurance companies (SK).

Insurance of credit cars, as a rule, is carried out in companies recommended by bank. " bank chooses partners within limits of programs of crediting, being based on analysis of solvency of company, its operational experience by given kind of insurance and conditions of cooperation which should be not worse than conditions, to offered clients of SK in open market ", - Elena Galashova, chief of a department on work with insurance companies of bank " TRAST " tells.

Credit organizations for last year-two have considerably expanded list of accredited insurance companies which number can be more than 10. " Among our partners under auto loans program today - 12 companies, therefore client has a choice ", - emphasizes Emil of JUsupov, director of department of retail bank products Absolute of Bank, - " But to admit all insurance companies, means, it is essential to increase risks as consumer, and bank which establishes limits, proceeding from credit policy ". Many banks cooperate with such insurers as: "Ingosstrah", " Alpha Insurance ", "Rosgosstrakh", "ICE CRUST", "RESO Guarantee ", "ROSNO", Military-insurance company, "Standard-reserve".

As Mrs. Galashova marks, " it is more expedient to clients to insure risks in insurance companies accredited by bank which guarantee qualitative service to client at all stages of action of contract of insurance ". Otherwise, expert, " borrower, not always knowing all considers " reefs " insurance market, can To insure risks in any insurance company at price of below market and face problems at settlement of an insurance case ".

Today banks offer special program developed in common with insurers, - " Insurance on credit ". In this case client specifies in questionnaire, that insurance is paid due to credit. In many banks after approval of credit and conclusion of contract of sale and purchase of car with interior insurance policy which copy it is necessary to give in bank before delivery of credit together with documents on car is made out. Credit stands out uniform sum which part is listed in a motor show, a part - insurance company. Evgenie Agranovich, head of department of autocrediting of Moscow credit bank, approves: " Offers with inclusion of cost of insurance in sum of credit enjoy at us steady popularity, especially among young managers of an average part who already well earn, but have no greater accumulation ".

However today, aspiring to involve clients, banks offer credit for auto and without insurance. In this case, experts emphasize, special responsibility for own risks lays down on borrower. "If program "without insurance gets out ", it is necessary for borrower to analyse an opportunity of repayment of credit under condition of loss of a subject of mortgage, that is car, - Mrs. Galashova emphasizes. - And if there are doubts in an opportunity to extinguish credit independently, it is more expedient to To insure machine or in accredited by bank, or if there is an opportunity, in other insurance companies, in advance carefully having studied offered conditions of insurance ".

Source: Info Cash Loan (24.12.2006)

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