Have a questions for those who know the answers :-D?

Okay, I am trying to get a car and i will finance it but the thing is that i don't want to pay 2 WAYS ON INSURANCE. I know if i finance it, 2 WAY INSURANCE IS A MUST - here is what i am thinking, If i am getting a Car Loan from Capital One, do i need to buy 2 Way insurance? **if i am getting a car loan from capital one, dat mean i'll pay off for the car but owe capitalone money.** I have decent score, my score should be around 720+ within the next 3 months because by that time, i'll pays off all my debt.

All right BlueJulie, did you paid off your car(s) or you financed?

What the HECK do you mean by two way insurance???

If you buy a car and finance it, you will have to have insurance with collision and comprehensive coverages, and deductibles no higher than $500.

If you are getting a loan from Capital One, if it's a personal loan (not likely) then you do NOT have to carry the collision and comprehensive coverages. But if they use the car as collateral, which is most likely (and, btw, gives you the lowest interest rate) then you have to carry C&C until the car is paid off. Paying off the car means, there isn't a loan on it.

Paying off the car and owing capital one money, only means the car is paid off IF YOU HAVE THE TITLE IN YOUR HAND WITH NO LEIN. If there's a LEIN on the car, you have NOT paid the car off.

What is 2 way insurance? I've bought many a car over the years, but no one ever mentioned 2 way insurance.

The last one I financed, but all I had was comprehensive coverage, which is what I always get.

Maybe it's just that I never heard the term. What IS 2 way insurance? I never had to get "GAP" insurance, if that's the same thing. The difference bewteen the loan amount and the value of the car after depreciation. Is that it? I always make a large downpayment, and finance as little as I can afford.

Gap insurance is really necessary if you don't make a huge downpayment on the car. You don't want to owe more than your car is worth if it gets totalled in an accident.

You buy insurance to protect yourself against a loss - it has nothing to do with financing a vehicle or not. When Capital One loans you money, they are part owner in the vehicle, and require you to cover "their" losses - it's risk mitigation. If you buy a $30,000 car and it's smashed in an accident on the way home, you are legally liable for the $30k, but you have no car, maybe you're in the hospital. Capital One knows that you would walk away, so they require that you buy insurance, so that even if you won't / can't pay, the insurance company will.

Then a week later, when someone who has no insurance smashes into your shiny new car and destroys it while it's parked on the street, you'll have paid the car off, not paid the loan off, and you'll have to bear the cost of replacing the car. Smart plan. Real smart! LOL