insurance deductibles and bank loans

[kneale at coslink.net]

Lenders are trying to lessen their liability in the event of your
crash/bankruptcy, etc., so they want a smaller deductible.  It's the new
economy.  Next they'll want an escrow for your deductible.

Original Message:

I just had a nasty surprise at my bank, closing out a loan.  They
handed my statement of coverage back to me and said "we'll cut you the
check, but you need to have a $500 deductible, not a $1k deductible."

This is going to drive up even more the already stupidly expensive MA
insurance (thank you SDIP- never had an at-fault collision in my
life), and a)I wasn't told about it before showing up to close, b)I've
never heard of such a requirement.



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