My girlfriend came home the other day with a $9700 car loan (5yrs) from a local credit union. Her father co-signed for her and the credit union demanded that she have both life and disability insurance included in the loan. Her father also ended up with a life insurance policy for the duration of the loan. Now, I can understand the credit union wanting some security through these policies, but the premiums seem rather excessive:
Disability insurance: $1037
Life insurance: $677
Granted, she'll get some of that back as she plans to make extra payments, but the premiums inflate the size of the loan principle by nearly 18%!! Is this normal?