Payment Protection Insurance

ji9 · ‎05-11-2012

I've heard that some lenders offer payment protection insurance. This insurance would cover your montly payment for a certain amount of time if you were to become disabled or laid off from your job. Does anyone know of lenders that offer this type of coverage? It's been a while since we've had to purchase a new vehicle and are surprised at the prices. We've worked hard to rebuild our credit and want to make sure we cover all the bases if we take on any sort of debt. Thank you.

Starting Score: 608 (TU) 612 (EQ)
Current Score: 679 (TU) 679 (EQ)
Goal: 760 on all

cdtotten · ‎05-11-2012

It is a rip-off. I would never purchase it. You would be purchasing insurance to protect you against 1 payment. If you really want something, purchase short-term disability insurance that would replace some of your income.

Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU

Take the FICO Fitness Challenge

StartingOver10 · ‎05-11-2012

@cdtotten wrote:
It is a rip-off. I would never purchase it. You would be purchasing insurance to protect you against 1 payment. If you really want something, purchase short-term disability insurance that would replace some of your income.

+100 Well said cdtotten.

Another way to feel safe is to have a savings account or CD set aside for 6 months worth of payments....