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Life and Disability Insurance Protection

When you finance a vehicle, one of the products a dealer or lender may try to upsell is life and disability insurance.

The life insurance will pay off the car in the event that you pass away during the loan period.

Disability insurance will make the payments in the event that you get injured and can't work.

For disability insurance to kick in, you usually have to be out of work anywhere between 15 to 30 days and show proof of disability through a physician's orders.

In order to qualify, you can not have an existing medical condition.

The life insurance portion is usually cheaper than disability insurance, but neither one can be negotiated because the rates are set by the state insurance commission.

If you currently have a good life insurance policy, or you're single with no assets or dependents, then you won't need the life insurance policy on the loan.

If you ARE interested, first check with your car insurance company and see if they can offer you the same products at a lower price.

My Recommendation for Car Shoppers

TrueCar No-Haggle and Edmunds Price Promise are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

Gregg Fidan

About: Gregg Fidan


Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

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