AUTO INSURANCE ARTICLE

Auto Manufacturers Offer Car Payment Insurance for Unemployed Buyers

By: coppeneur

As U.S. car makers need bail-outs to remain afloat, most of them are now pooling their best minds to at least maintain their sales, pre-bankruptcy. However, as most potential buyers are also barely holding on to their jobs, not sure if tomorrow they would still be at their desks, there is much hesitation to invest in a new car.

But the car market seems to have factored this in too. It seems that this period, crunch time notwithstanding, is actually a car buyer's dream. Taking note of the consumer jitters, Ford and General Motors have come up with their own car payment insurance programs, after Hyundai’s successful assurance plan for car owners who lose jobs while on with their monthly auto amortizations.

So are you in need of buying a car but nervous about a possible change in your employment situation? Or perhaps you are sure about your job and income flow but you just wanted to know the best offer in town? Here is a comparison of the car payment insurance offers from your preferred automakers.

Hyundai Assurance

With the Assurance Plus program pioneered by Korean maker Hyundai, the company offers to cover your payments for three months, if you lose your income. If within this time period, your income flow remains to be tight, you can return your car without damaging your credit.

The Assurance Plus program is offered for a limited period only, in fact, only until the end of April. This applies to any new Hyundai model financed or leased through any credit union, bank, or Hyundai Motor Finance Company, for up to one year after you bought the car, and provided that you’ve turn in at least two monthly installments.

Who’s qualified? If you’re involuntary unemployed or disabled, if you declare self-employment bankruptcy, if you’re transferred to work outside of the country and in certain other conditions.

GM Payment Protection

General Motors’ offer is a generous $500/month for nine months payment coverage if you lose your job involuntarily due to economic reasons. It also applies retroactively, not only after you have purchased your car. Your payment coverage applies if you lost your job during the first two years you owned your 2008, 2009 or 2010 model GM vehicle.

GM’s Payment Protection Program qualifies you if you have been employed for at least 30 hours per week for 90 days after you initially bought or leased the vehicle and for 12 consecutive weeks prior to unemployment. You also need to be unemployed for at 30 days to qualify for this payment insurance program. Other conditions apply such as: you’re not disabled due to sickness or accidental bodily injury, you’re not self employed and you don’t own more than 10% of the company that you’re employed by. You don’t qualify if you knew of impending layoffs when you bought your car.

Ford Advantage

Through Ford Motor Credit, The Ford Advantage Plan, provides 0% financing on Ford vehicles and offers payments of up to $700 a month for up to 12 months for Ford car buyers who lose their jobs. The Ford Advantage Plan is available until June 1, and includes all Ford, Lincoln and Mercury vehicles.

Be sure to consult your dealer for details and other fine print. At all times, invest your money well.