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What type of insurance covers my car payments if I lose my job?
Written by:
Prachi Singh
Contributing Writer
Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.
Job loss insurance is a type of policy that will make loan payments like a car payment in specific circumstances.
Also known as payment protection insurance, some finance companies offer it when you take out a loan. Payment protection insurance makes loan payments on car loans, mortgages, or other loans if you become unemployed (through no fault of your own) or can’t work due to an accident or illness.
Payment protection is usually added to your loan payment. Not everyone is eligible for it; if you have a long-term illness or are self-employed, you may not qualify.
Some car manufacturers also offer job loss insurance. For example, Hyundai Assurance job loss protection provides three months of deferred payments and up to six months of payment relief to new car buyers.
It’s important to read the fine print before purchasing any sort of job loss insurance. There are often a lot of terms and exclusions, and the coverage only applies in specific circumstances. In many cases, it’s better to put money away in savings to be prepared for a change in employment status.
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Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.