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Old 02-27-2015, 04:25 PM   #1
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High Deductible and Funding

I paid up front 50% for this coach and Progressive Ins. gave me a $5,000 deductible to keep rates down. I have earned the disappearing deductible so if I needed to file a claim I am free of it but they advised me to then change back to a lower one afterwards if I ever needed to make a claim. The bank now will not fund the balance of the loan because of my high deductible and they want me to lower it. I told them I will not do so as it will raise my rates $200 a year. We are now at a stand off. Why would the bank even care what my deductible is as long as the coach is insured? This is USA Bank and I have not made a payment in 2 months.
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Old 02-27-2015, 04:30 PM   #2
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as a fulltimer and an insurance agent I can tell you that no matter what you paid up front, your lender has Maximum Deductible requirements in place for every loan, and it doesnt matter the value of your vehicle - it protects them more if you have a lower deductible in the event they repo a damaged vehicle.
they will probably force place their own insurance with a lower deductible and charge you for it, even if you still have your own policy
more than likely you signed an agreement at closing thet requires a $1,000 or less Deducltble during tour loan term

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Old 02-27-2015, 04:41 PM   #3
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as a fulltimer and an insurance agent I can tell you that no matter what you paid up front, your lender has Maximum Deductible requirements in place for every loan, and it doesnt matter the value of your vehicle - it protects them more if you have a lower deductible in the event they repo a damaged vehicle.
they will probably force place their own insurance with a lower deductible and charge you for it, even if you still have your own policy
more than likely you signed an agreement at closing thet requires a $1,000 or less Deducltble during tour loan term

: (
I will review the paper work but I do not recall this ever being discussed or signing such a document. Thanks for the input.
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Old 02-27-2015, 04:56 PM   #4
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Not paying the loan is a good way to not have to worry about the insurance at all (when they repo it). If your loan requires insurance, check the paperwork to see if it gives any specifics on the coverage. If there's a blanket statement like "meeting the lender's requirements", then you need to get the insurance they require or (as another poster said), they'll get it themselves and add it to your loan balance.
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Old 02-27-2015, 05:10 PM   #5
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You can also get the wording from your Insurance Company stating at the present time you are eligible for no deductible due to your driving record, and in the event you have an at fault accident it would go back to $5000 deductible, and provide that to the lender. But I agree why would you not pay your MH payment, that will affect your credit and could lead to a repossession. The banks would love to repossess a MH that is 50% paid for rather than one that is upside down. After re-reading your post did they fund the loan or not, did you actually take possession of the MH. The bank can also force their own insurance and rates on you until you comply with their requirements for insurance, this is included on anything you finance, homes, boats, cars, MH's ect.
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Old 02-27-2015, 05:40 PM   #6
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Not paying the loan is a good way to not have to worry about the insurance at all (when they repo it). If your loan requires insurance, check the paperwork to see if it gives any specifics on the coverage. If there's a blanket statement like "meeting the lender's requirements", then you need to get the insurance they require or (as another poster said), they'll get it themselves and add it to your loan balance.
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You can also get the wording from your Insurance Company stating at the present time you are eligible for no deductible due to your driving record, and in the event you have an at fault accident it would go back to $5000 deductible, and provide that to the lender. But I agree why would you not pay your MH payment, that will affect your credit and could lead to a repossession. The banks would love to repossess a MH that is 50% paid for rather than one that is upside down. After re-reading your post did they fund the loan or not, did you actually take possession of the MH. The bank can also force their own insurance and rates on you until you comply with their requirements for insurance, this is included on anything you finance, homes, boats, cars, MH's ect.
I am working with the finance guy at the dealer to get the insurance company to explain the no deductible part and still waiting. When I mention I have made no payments, that is because I have never received anything to make a payment with, no statements, no booklet, not anything to write a check to. I have had the coach for two months now and still no funding. The dealer is dragging their feet on this along with other things that were supposed to be taken care of. Not really a happy customer at this time.
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Old 02-27-2015, 05:51 PM   #7
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The lender won't care why you haven't paid, they will just mark your account delinquent. I would call them right away and get the payments going. Otherwise you may damage your credit or lose your RV!
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Old 02-27-2015, 05:59 PM   #8
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Ok makes sense now, I would try and contact the lender and let them know you are ready and willing to make the payments, but have no way of doing that due to the dealers lagging. I'm surprised the dealer let the MH go without full payment. I wouldn't be happy either, I don't like lose ends like that. We insured ours thru State Farm with a full replacement policy for the first 5 years so our insurance is based on the MSRP not what we really paid, we have a $1000 deductible, and ours is $900 per year.
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Old 02-27-2015, 06:14 PM   #9
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Sounds to me like the dealer has not yet been paid by the lender and the loan has not "closed". Since the dealer is originating the loan (either on behalf of the lender or selling the paper to the lender) the dealer has to deliver a product meeting the lenders specifications before the lender coughs up the money. I'd call my bank and see what they can do, might get a better deal that way.
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Old 02-27-2015, 10:20 PM   #10
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Ok makes sense now, I would try and contact the lender and let them know you are ready and willing to make the payments, but have no way of doing that due to the dealers lagging. I'm surprised the dealer let the MH go without full payment. I wouldn't be happy either, I don't like lose ends like that. We insured ours thru State Farm with a full replacement policy for the first 5 years so our insurance is based on the MSRP not what we really paid, we have a $1000 deductible, and ours is $900 per year.
I am puzzled because I have all my cars, motorcycles and home insured by State Farm but they tell me they do not insure motorhomes. I also have the full replacement for 5 years and my rate for the year is just about the same as yours.

No where in the documents does it mention the deductible amount I need. The dealer called me and said the bank will fund if I go with the $2,500 deductible now. This is just crazy. Stay tuned for the follow up.
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Old 02-28-2015, 12:01 AM   #11
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Keep in mind you are dealing with their logic, which is to protect their investment. Be proactive and seek out catching up on those payments,it can only help your cause.
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Old 02-28-2015, 08:51 AM   #12
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The lender's insurance requirement is pretty straight-forward: they want the loan paid off (if the RV is totaled) or the RV repaired to original condition if not totaled. Either way, they want protection for the value of the load. They know from experience that a very high deductible is likely to interfere with that. In the event of a total loss, they check they get from the insurer is lower by the amount of the deductible. If not totaled, you may delay or avoid repairs because you may not have the money to pay the deductible. Either way, they lose.
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Old 02-28-2015, 09:50 AM   #13
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Quote:
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I paid up front 50% for this coach and Progressive Ins. gave me a $5,000 deductible to keep rates down. I have earned the disappearing deductible so if I needed to file a claim I am free of it but they advised me to then change back to a lower one afterwards if I ever needed to make a claim. The bank now will not fund the balance of the loan because of my high deductible and they want me to lower it. I told them I will not do so as it will raise my rates $200 a year. We are now at a stand off. Why would the bank even care what my deductible is as long as the coach is insured? This is USA Bank and I have not made a payment in 2 months.
I think I would pay the $200.00 a year or $16.00 a month get everything straighten out with the bank then deal with getting a cheaper rate.
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Old 02-28-2015, 09:58 AM   #14
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I am puzzled because I have all my cars, motorcycles and home insured by State Farm but they tell me they do not insure motorhomes. I also have the full replacement for 5 years and my rate for the year is just about the same as yours.

No where in the documents does it mention the deductible amount I need. The dealer called me and said the bank will fund if I go with the $2,500 deductible now. This is just crazy. Stay tuned for the follow up.
Might want to check back with state farm. They have my house ,cars,and coach. 800 year on coach. 1000 deductible
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