Is the Renewal Insurance Deposit for New Car Purchases Legal?
1 Answers
Buying a car with a renewal insurance deposit is not only unreasonable but also illegal. The renewal insurance deposit is a form of forced consumption, violating the principle of voluntary consumption, and consumers have the right to refuse it. The details are as follows: 1. Timely Insurance: When consumers buy a car through a loan from a financial company, the actual owner of the car before the loan is fully repaid is the financial company. If the consumer does not pay the renewal insurance deposit, it cannot be determined whether the consumer has insured the car. In case of an accident or other unforeseen events, the financial company would bear the corresponding losses and risks. The 4S store collects the renewal insurance deposit mainly to remind consumers to insure the car in a timely manner. 2. Renewal Insurance Deposit: When signing a car loan agreement, consumers must carefully review the terms related to the "deposit" and clarify the renewal insurance deposit. They should confirm whether the deposit paid is for future renewal insurance and whether the deposit can be refunded after the loan is fully repaid if the insurance is not purchased from the lender's designated provider. Typically, after the car loan is fully repaid, according to the relevant contract terms, the lender should promptly return the deposit paid by the borrower when purchasing the car on loan. It is unreasonable to require a renewal insurance deposit for installment car purchases, unless it is mutually agreed upon by both parties.
