What is auto insurance , and why do I need it
What is auto insurance?
An auto insurance policy is a contract between you and an insurance company. You pay a premium,
and in exchange, the insurance company promises to pay for specific car-related financial losses
during the term of the policy.
Why do I need auto insurance?
In some states, to drive you must carry:
Liability coverage to pay for losses you cause others, or:
No-fault coverage to pay you and your passengers for medical and related expenses caused by
injuries from a car accident, regardless of fault, or both coverages.
Even in states where auto insurance coverage isn't required, drivers must, by law, be able to pay for
losses they may cause others. Having auto insurance is the simplest way for most people to comply.
Also, coverage for vehicle damage usually is necessary to finance a car.
Without insurance, you risk paying for the full cost of:
Any harm you cause others, or:
Repairing or replacing your car if it's damaged or stolen.
How much auto insurance do I need?
Questions to ask yourself and your auto insurance agent:
How high should my liability coverage limits be? No one can predict exactly how much you would
have to pay if you were to cause an accident. Ask yourself how you would pay for any damages
exceeding your coverage limits. The higher your limits are, the more likely your policy will be able to
pay all of the damages.
How high or low should my collision and comprehensive deductibles be? Higher deductibles lower
your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask
yourself how much you are willing to pay in order to save on premium.
Should I carry collision and comprehensive coverage? As your car's value decreases, you might
consider dropping these coverages and pocketing the savings on premiums. Consider, though, if the
savings are enough to offset the risk of footing the entire cost of repairing or replacing the vehicle.
Types of Auto Insurance
Liability Auto Insurance or No Fault Insurance
No-fault insurance is a system adopted in some states that essentially bypasses the conventional legal
procedure which finds fault in an accident. No-fault simply does away with the concept of one party
or the other being at fault.
If you are insured in a no-fault state and have an accident, you don't go after the other driver. You
contact your own insurer and file a claim. Your own insurance policy guarantees you immediate
compensation for damages etc.
Collision Auto Insurance
This type of insurance covers your vehicle during an accident.
Comprehensive Auto Insurance
This insurance covers your car for damage to the policyholder's car that doesn't involve a collision
with another car.
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5 Tips To Save Big On Your Next Car loan
If you think about it, the most grueling part of the car-buying process, after agreeing on a price, is acquiring the right kind of loan for your new or used car. Most consumers enter the car dealership completely unprepared for the loan application process, and that lack of knowledge and planning is costing them millions of dollars every year.
If you want to create a win-win situation for you and the car dealership you purchase your car from, there are five steps to take before you sit down at the negotiation table: get your credit report, surf before buying, go local, speak the language and be prepared to negotiate.
1.) Get Your Credit Report
You can’t pick up a personal finance article, magazine or book that does not refer to the importance of knowing what is on your credit report. Despite the fact that modern media has been beating us over the head with this advice for the past couple of decades, most people do not know their credit score or check their credit report on a regular basis. You can get a copy of your report by directly contacting the three credit bureaus: Equifax TransUnion and Experian (formerly TRW).
Not knowing your credit score and the details of your credit report before applying for a car loan is a monumental mistake. You want to have any blemishes on your report resolved before you apply for a car loan, because the results of your lender’s credit inquiry directly impact your interest rate.
Your credit report includes: basic information about you – name, address, social security number, etc.; your late payments, any outstanding debts you have, the amount of credit available to you; any public records on you such as judgments and bankruptcies; and inquiries into your credit from potential employers or lenders.
And just because you have caught up late payments, cleared outstanding debts or cleared up any judgments does not mean these blemishes are automatically removed from your credit report. Sometimes, you need to follow up with the creditors to make sure they report your reconciliation of debt to all three credit bureaus.
In addition, identity theft and/or fraud can result in false, unfavorable records on your credit report. In January 2006, the Federal Trade Commission reported that more than 686,000 people reported identity theft and fraud complaints in 2005. Stolen identity and fraud can result in major credit report issues.
2.) Surf Before Buying
You’ll be far less tempted to impulse buy, driving away from the car dealership with a car you can’t afford if you have established boundaries in your mind before you begin.
You can save big money on your car loan if you have a budget and type of car in mind before you go shopping. One easy way to accomplish this is to go online and check out different car dealership websites.
You can compare and contrast vehicle makes, models, styles, features and pricing.
3.) Go Local
There are many national auto websites, but did you know that many local car dealerships are now online as well? The advantage of working with a local car dealership can outweigh working with the manufacturer or a national website when you want the best in quality customer service, a relationship for the lifetime of your car and the best deal on your auto loan.
The advantages of getting a loan through a local dealership is similar to the reason every town in America has a locally-owned restaurant that has regulars: local businesses have a sincere investment in the community. That interest often leads to better customer service, a more customized approach to selling, and the ability to get you a better loan than you will receive from a lender who doesn’t know – or care – who you are.
Lastly, the local dealership may have more than one location, increasing your options for finding the car you need but offering the same uniform auto financing options. For example, a car dealer in Kansas, is also a Hutchinson car dealer and a Newton car dealer. So, if a customer goes to one dealership and does not find what they need, they can visit another location and expect the same quality customer service.
4.) Speak the Language
There’s nothing more frustrating than going through the entire car-buying process, thinking you have a good deal, and learning down the road that you were taken advantage of – simply because you had no idea what your sales rep was talking about.
From dealer holdback to Rule of 78s , make sure you have an understanding of some of the basic industry terms that could be thrown at you during your transaction. With this knowledge, you won’t misunderstand the details or find yourself being signing a contract or paperwork that you don’t understand.
5.) Be Prepared to Negotiate
If you’ve followed the four previous steps in this article, you will be armed with the necessary tools to negotiate the best rate possible for your car loan. There’s nothing wrong with shopping around and checking with other lenders to see what kind of rate they can offer you, but you must remember that numerous inquiries into your credit report may go against you.
And, when you go through the dealer for your auto loan, the sales rep wants a long-term relationship with you. This motivates them to work harder to get the best rate possible for you. In contrast, an online or off-site lender’s interests begin and end with the loan – but the car dealer wants you to: come back and have your car serviced, return when you want to purchase your next car, and tell your friends about them, further strengthening the dealership’s reputation in the community and increasing business.
Before you sit down to get your next auto loan, take the time to do a little homework so that you can feel confident about securing the best deal for your auto loan. Investing a little time and effort before making the deal can go a long way in creating a win-win situation for you and the car dealership
By Scot colin
Swinton Monsoon Motoring Mantra
Swinton warns motorists to acclimatise to monsoon conditions. Leading high street broker issues "Monsoon Motoring Mantra" to combat extreme weather dangers
Leading high street broker issues "Monsoon Motoring Mantra" to combat extreme weather dangers.
The increasing frequency of freak weather conditions in Britain has led to a rash of car accidents, and car insurance claims, caused by drivers failing to respond quickly to sudden downpours.
Leading high street car insurance broker, Swinton, is advising UK drivers, most of whom are not used to extreme weather conditions, to take extra care. The move comes as Swinton reports an 8 per cent rise in motor accident insurance claims during the recent round of deluges.
Monsoon-type rain is a particular problem, with sudden torrential downpours causing localised flooding and with it, a flood of claims. Gusting winds are also a problem at this time of year, bringing down trees and power lines.
Swinton believes that an increase in motor insurance claims is caused by motorists driving too quickly, and responding too slowly, to the sudden loss of visibility and the rapid build-up of road water during tropical downpours, resulting in minor accidents.
The Swinton warning echoes a similar call from researchers at Newcastle University in September, who said that extreme rainfall events have become more frequent and intense over a 40-year period in Britain. They said the examination of weather records from 1961-2000 proved further evidence of climate change occurring.
Swinton Marketing Director, Nick Bowyer, warned: "Monsoon rain conditions are now a reality in the UK. They can occur with frightening immediacy. Drivers must take more care when extreme weather conditions are forecast or occurring.
"We have seen a significant rise in minor accidents where we believe that the rain impaired stopping speeds and reaction times. The problem is that British drivers are not used to travelling in these sub-tropical conditions which unfortunately appear to be happening more frequently."
Swinton has now produced a "Monsoon Motoring Mantra", which it is advising drivers to adhere to:
:Switch on headlights
· Check wipers are effective front and back
· Avoid overtaking
· Slow down, using a lower gear if appropriate
· Keep wing mirrors clean so that rain water drips clear
· Keep your mobile phone to hand
· Listen to weather updates
· Pack water-proof clothes in case of breakdown
· Ensure inside windscreens are grease-free and so they don’t steam up
· Plan unfamiliar routes and identify places to pull over such as service stations
· Make sure tyres are regularly checked for tread and pressure
· Stop vehicle in very poor visibility and apply hazard lights
In the last month alone torrential rain and heavy thunderstorms raged across the UK. Extensive flash flooding was reported across the regions, with Devon, Cornwall, Somerset, Wales and the north west particularly badly hit. Two women had to be rescued from their cars after they became trapped in their vehicles because of flooding in east Devon.
By Swinton Corporation
Time To Analyze Your Insurance Policies
Time To Analyze Your Car & Cycle Insurance?
We are a restless bunch of citizens, and once we take care of errands, such as buying automotive insurance, we tend to forget about it and move on to the next errand. However, buying an automotive and cycle insurance policy only to neglect it could end up costing you more money in the long run, or even leaving you unprotected. There are times in our lives when we need to stop and appraise our present automotive insurance policies.
Think about your car and cycle insurance policy when you get hitched. When two persons get married, they can get an automotive and motorcycle coverage jointly, thus spending lower funds and maybe even getting extra discounts.
Think about your car and motorcycle insurance policies if you buy a new vehicle. If you've borrowed funds from a bank to buy your new vehicle, chances are your bank will want you to buy total coverage insurance. However if your bank doesn't, your state most likely will. If your automotive and motorcycle insurance only covers liability hence you own one of your cars, or the car you traded in, you need to augment the coverage of your automotive and cycle insurance policy.
Reflect on your automotive and cycle insurance needs if you relocate. If you currently reside in a sweet little country village that sees very little crime aside from the occasional cow-tipping, you probably don't have a very large amount of automotive insurance. Yet, if you're moving to a larger town with a greater crime rate, your vehicle will be more at risk and you should make sure you add the additional coverage.
Think about your vehicle insurance protection if you're getting old. A lot of insurance companies offer discounts to policyholders who are elderly - usually 55 years old. If this is you, give your agent a call and learn about discounts you may qualify for.
Remember, some tasks are worth finishing and forgetting. Taking out the garbage is one of them; buying car and motorcycle insurance is not.
Ray Taylor
Classic Cars Net
http://www.carsnet.com/Classic-Car-Insurance.html
By Ray Taylor
