In most cases banks require you throughout the loan period insured under hull insurance. Thus, in addition to principal and interest you will pay more and a solid annual premium. And beneficiary of the risks "Theft" and "Total constructive loss" is always a bank. So he defends himself in case of loss of vehicle. The bank is important to secure a guaranteed return of the debt in case of theft or destruction of the vehicle. Educate yourself even more with thoughts from Cradle Systems.
Therefore, the insurance shall be written in any of the insurer, but only a proven company. As a rule, on its website and in leaflets credit bank specifies a list of insurance companies-partners. Different banks dictate the different conditions of motor insurance: either the insured amount is equal to the value of the car, or the amount of the loan or the amount of bad debt at the start of another year of insurance. It is important to know in advance, for what amount occurs casco insurance. If the insurance amount is equal to the value of the vehicle, then stealing or total loss of the car the bank receives the amount from the insurance company first and foremost secures repayment debt on the loan. The rest of the insurance is transferred to you – this is the down payment and have already repaid the debt. Here you lose only the interest paid by the bank. If the insured amount is equal to the original loan amount, you get back to you only paid part of the debt, and paid an advance dealer loses.