Is There Insurance In Car Loans In Case You Become Disabled?

Are you planning to buy a car but worried about what will happen if you become disabled and are unable to make your monthly payments? Don’t fret! In this blog post, we’ll explore whether there is insurance available in car loans that can protect you in such an event. Read on as we dive into the details of disability insurance and how it can benefit car owners who face unforeseen circumstances that impact their ability to pay off their vehicle loan.

What is disability insurance?

There are a few different types of insurance that could potentially cover you if you become disabled and are unable to work, but it depends on the type of loan you have. If you have a government-backed loan, like an FHA or VA loan, there is disability insurance available to make your payments for you if you can’t work.

However, this insurance is only available if you become disabled before the loan is paid off. If you have a private loan, there is no such insurance available and you would be responsible for making your payments even if you can’t work.

Do you need disability insurance?

If you have a car loan, you may be wondering if there is any insurance in case you become disabled. The answer is maybe. Some lenders do offer disability insurance, but it is not required. If your lender does not offer this type of coverage, you may be able to purchase it from a private company.

If you become disable and are unable to work, disability insurance can help make sure your car loan payments are covered. This can give you peace of mind knowing that even if you cannot work, you will still be able to keep your car.

Before purchasing disability insurance, be sure to compare different policies and coverage levels to find the one that best meets your needs. You will also want to make sure that the policy covers disabilities that could prevent you from working and making car loan payments.

How much does disability insurance cost?

There is no one-size-fits-all answer to this question, as the cost of disability insurance depends on a number of factors, including your age, health, and occupation. However, as a general rule of thumb, you can expect to pay 1-3% of your annual income for a disability insurance policy. So, if you earn $50,000 per year, your policy would likely cost between $500 and $1,500 per year.

How to get disability insurance

There are a few things to consider when attempting to get disability insurance on a car loan. The first is whether the lender offers such a thing. Some do and some don’t, so it’s important to ask. If they don’t offer it, you may be able to purchase a policy from another source and add it to your loan.

The second thing to consider is whether you actually need the coverage. If you have other forms of insurance that would cover a disability, then you may not need it on your car loan. However, if you feel like you need the extra coverage, it’s worth considering.

The last thing to think about is the cost of the coverage. This will vary depending on the lender and the policy itself, so make sure to get quotes from multiple sources before making a decision.

Disability insurance can be a great way to protect yourself in case you become disabled and can no longer work. If you think you need it, make sure to shop around for the best rates and coverage options.


In conclusion, having an insurance policy in place when taking out a car loan is essential to protect yourself from potential financial hardship if you become disabled. Insurance policies such as disability income insurance can provide peace of mind for both the borrower and lender by covering your payments if something happens that prevents you from making them. Remember to do your research and talk to experts before making any decisions about taking out a car loan or purchasing additional insurance coverage.