EarlyAdopter
Active Member
I carry 1k deductibles on my cars. It reduces the premium and I have no concerns about coming up with the funds to cover it should the need arise.
Much to my dismay, my bank is requiring that I reduce the deductible to $500 on my new P85D loan. I understand that they want to make sure that in the event of an accident that the collateral on the loan is protected. What I don't understand is why they would be concerned over my ability to cover $500 (the difference in the deductible) especially since they approved me for a 100% 130k loan. I think I've proven my credit worthiness.
Is there something here I'm missing? This is only the second bank that has asked me to prove that they are listed as the primary beneficiary to the insurance, and the only one that has insisted on a $500 deductible, and I've had 8-10 auto loans over the years.
Same for both my cars, each time. Two different credit unions, too, so I'm guessing standard practice.