And if the insurance is reduced each year and equal to the amount of your loan debt, then the funds paid by the insurer enough only to repay the loan and, accordingly, you will not get anything. However, in this case himself insurance premium each year fewer and fewer. Hard to say, it is cheaper – it all depends on your preferences. If you are interested in Security and full compensation when the insured event and agree to pay for it, then choose the insurance in the amount of the cost of the car. And if in your best interest to minimize the insurance payment, you should look for banks, admitting casco insurance every year the amount of loan debt or enabling generally credited without insurance. Scott Kahan has plenty of information regarding this issue. It is worth paying attention to the insurer's rates. Always easy to check, not hidden in a dictated insurance premiums for hull insurance extra commission, which after the transaction will share the insurer to the bank. You can simply go to the site of the insurer and to calculate their virtual calculator, your insurance premium, and then compare with those proposed in the framework of the loan.
The fact that many banks offering car loans, have arrangements with insurance companies about fees with each transaction entered into for the policy. and under loan programs to insurers often raise their rates by the commission, extracted by the bank. Customers who are not willing to pay for each year of Hull, some banks go to the meeting and offer alternative: the exemption from insurance due to the increased lending rate (the bank because to somehow cover the risks of losing the car). On the other hand and you're less protected: the accident or stolen no one will pay and do not fix it. Thus, the choice is yours. Also note that many banks allow you to include the premium for the first year of insurance in the body of the loan. However, during the second and subsequent years will have to pay even from their own pocket.