5 ms·

I thought full insurance would be an unwaivable requirement in those cases of leasing. How could they be in debt for accidents?

by pzh 9y ago

buro9 9y ago
In the UK a new car purchase/lease requires comprehensive insurance for the duration of the lease. Only after the lease has expired and you've purchased could you opt for 3rd party, fire and theft insurance. The maximum exposure during the period of a lease is whatever the excess on the policy is. The GP comment can't be applicable to the UK.
- Pica_soO 9y ago
  Most people dont know, but insurances regularly wriggle themselves out of anti-debt-insurance that are usually sold with leasing contracts.
  - buro9 9y ago
    In the UK this does not happen. You are required to get your own fully comprehensive insurance, and can select from the whole market. The vehicle will not be released to you from the car dealership without proof that you possess such insurance. Please declare which country you are talking about, as the article described the UK and your claims are not true with regard to the UK.
    - sugarrush 9y ago
      There are many UK car dealers that will sell you a 7 day insurance certificate to 'drive away today'. This is quite convenient usually as it allows them to tax the car as well for you, so it becomes road legal.
- sugarrush 9y ago
  I never take a loan to buy a car or motorcycle, but I have written off a few vehicles (all my fault, and none involving other people. One amusing-in-distant-hindsight-only case was when I spilled paint all over the interior of a car, written off by the insurance company as beyond economic repair). In each case I only got the value of that vehicle as per the lowest price the insurance adjustor could find, taking the mileage and age into account. That was never enough to buy something of equal value to me, and I assume totally inadequate to pay off the outstanding loan amount.
TrickyRick 9y ago
Perhaps the insurance only covers the current car value, not all future interest payments and as such there is still quite a bit left even after insurance claims.

I thought full insurance would be an unwaivable requirement in those cases of leasing. How could they be in debt for accidents?

by pzh 9y ago

I thought full insurance would be an unwaivable requirement in those cases of leasing. How could they be in debt for accidents?

buro9 9y ago

In the UK a new car purchase/lease requires comprehensive insurance for the duration of the lease. Only after the lease has expired and you've purchased could you opt for 3rd party, fire and theft insurance. The maximum exposure during the period of a lease is whatever the excess on the policy is. The GP comment can't be applicable to the UK.

Pica_soO 9y ago
Most people dont know, but insurances regularly wriggle themselves out of anti-debt-insurance that are usually sold with leasing contracts.
- buro9 9y ago
  In the UK this does not happen. You are required to get your own fully comprehensive insurance, and can select from the whole market. The vehicle will not be released to you from the car dealership without proof that you possess such insurance. Please declare which country you are talking about, as the article described the UK and your claims are not true with regard to the UK.
  - sugarrush 9y ago
    There are many UK car dealers that will sell you a 7 day insurance certificate to 'drive away today'. This is quite convenient usually as it allows them to tax the car as well for you, so it becomes road legal.
sugarrush 9y ago
I never take a loan to buy a car or motorcycle, but I have written off a few vehicles (all my fault, and none involving other people. One amusing-in-distant-hindsight-only case was when I spilled paint all over the interior of a car, written off by the insurance company as beyond economic repair). In each case I only got the value of that vehicle as per the lowest price the insurance adjustor could find, taking the mileage and age into account. That was never enough to buy something of equal value to me, and I assume totally inadequate to pay off the outstanding loan amount.

TrickyRick 9y ago

Perhaps the insurance only covers the current car value, not all future interest payments and as such there is still quite a bit left even after insurance claims.