How to Make Car Payments While on Short Term Disability

Short-term disability insurance pays a percentage of your salary if you are unable to work for a short period of time because of illness, injury or pregnancy. Many companies and businesses offer this type of coverage to their employees for a small monthly fee, but you can obtain short-term disability insurance on your own. Short-term disability benefits can help cover your bills while you are temporarily disabled (typically up to six months), which is especially helpful if you have a large debt such as a car note.

Instructions

1

Speak to the insurance provider about your benefits. You will need to confirm the start date of your monthly benefits, the exact amount of your payments and the length of time your policy will allow you to receive short-term disability benefits.

2

Contact the auto lender to discuss your options. For instance, the lender may allow you to make partial or interest-only payments until you are financially able to make your regular scheduled payments. The lender may even allow you to defer your car payments for a short period of time. In addition, the lender may give you the option to refinance your current auto loan in order to lower your monthly payments. Please note the lender may require you to provide documentation of your disability in order to qualify for a deferment or new payment plan.

3

Get the agreement in writing. Once you work out a reasonable payment arrangement with the lender, ask for a confirmation letter. The letter should provide specific details about the arrangement, such as the amount of your monthly car payments and your scheduled due dates while you are temporarily disabled.

4

Submit your payments to the lender in a timely manner. It is important that you make your payments on time according to the agreement. If you fail to make the required payments by the due dates, the lender may withdraw the payment arrangement and demand payment in full from you. In addition, if you become delinquent on your account, the lender may attempt to repossess your car.