1. As you are researching insurance companies to purchase auto insurance from, make sure that your first educate yourself on your driving record. To get an initial estimate, insurance companies will ask you to remember the number of tickets and accidents you have had in the last x-number of years. The number of years that an insurance company looks back changes from company to company. Therefore, if you have a poor driving record five years ago, but in the last three years you have improved, look for a company that adjusts rates according to a three-year record. Also, companies use a CLUE (Comprehensive Loss Underwriting Exchange) report from Equifax to determine your rates. You can purchase one, and you might consider it as you are shopping around for insurance companies.
2. Purchasing a car brings up many questions about how your insurance will be affected. If you are using a loan, most lending institutions require that you purchase both comprehensive and collision. Insurance companies take a vehicle’s safety features and the cost of repair into consideration when they are setting insurance premiums. Generally, the vehicle that has the most safety features and that would be the least expensive to fix would be the car with the lowest premium. Using this criteria, exotic cars would be the most expensive to insure because of the cost of repairs if the car was damaged. However, sedans would be the least expensive because they are reasonable to fix and have many safety features.
3. When you get married, think about combining all of your cars and your spouse’s cars onto one policy. Holding one policy may be less expensive than holding two separate ones because of the discounts that could be available. Check with your carrier to see whether they offer discounts if you insure multiple cars with them. Some insurance companies also lower insurance premiums for males under the age of twenty-five who are married (males generally are not as aggressive when they are married, and less aggressiveness results in fewer accidents and speeding tickets).
4. The theft of a car is a traumatic experience. In case of theft, you should keep copies of your license, registration, and insurance in your home. Also, if you have updated your car (adding stereo equipment, new tires, etc.), you should keep receipts of those purchases. You should also have some sort of security system on your cars (most new cars come with these systems installed; such systems also lower insurance premiums). If your car is ever stolen, you should contact the police first and then your insurance company. Your insurance company should work quickly to get you into a rental car while the police are investigating.
5. Personal injury protection is coverage that pays for the medical or funeral expenses of you or your family if you are injured in an auto accident. Personal injury protection is a smart addition if you have poor health and life insurance. However, if you have health and life insurance policies that would offer sufficient coverage in the event of a fatality, personal injury protection is an additional coverage that is not needed. If you are looking at reducing your rates and you already have medical coverage from another source, you could reduce the amount of personal injury coverage on your auto insurance policy.
6. Uninsured and underinsured motorists protection is essential to your insurance policy. Uninsured motorists insurance is required in several states, and it covers bodily injury when an accident occurs with an uninsured driver or a driver of a stolen car. It also covers hit-and-run accidents. Underinsured motorists coverage pays the balance of medical costs up to the policy limit when the at-fault motorist’s insurance is insufficient to pay for all of the costs. Because of the prevalence of uninsured and underinsured motorists, you should purchase a high limit of uninsured and underinsured protection as it will, in the end, cost much less if an accident occurs.
7. Adding teenage drivers to your insurance is an expensive proposition. As you are considering purchasing insurance, consider a few factors: first, females generally cost less than males to insure; second, shop around for insurance companies that offer discounts for driver’s education classes, good grades, and driving logs; third, as you are insuring teenage drivers, your premiums will be lower if the drivers are occasional drivers; fourth, teenagers have a high accident rate, so consider purchasing high liability coverage and lower comprehensive coverage; and fourth, the type of car teenagers drive—whether it is new, sporty, or exotic—will also determine the premiums.
8. When you are purchasing auto insurance, consider paying the complete premium when you sign up. Insurance companies generally offer discounts for those that pay the premium up front opposed to over a period of months. Paying in full at the beginning of the insurance period reduces an insurance company’s administrative costs in processing and checking your payments on a monthly basis. Paying up front is the most economical option.
9. Motorcycle insurance can either be purchased through a company that specializes in motorcycle insurance by creating another insurance policy, or it can be purchased through your auto insurance company. Many auto insurance companies offer motorcycle insurance. A miscellaneous category on the policy can insure motorcycles, mopeds, and motor homes. Adding motorcycles onto an existing policy can be more economical than creating a new policy. Also, if you do not ride your motorcycle in the winter, reduce your coverage for the motorcycle during that season. If you are not going to be riding it, why purchase expensive coverage?
10.If you have a child visiting for a period of time and that child would like to use your car, you should check with your insurance company about whether you should add your child back onto your insurance policy. Personal insurance policies cover you, your family, your friends, and any of your associates that drive your car and do so believing that you would have permitted them to drive it. In the case of a child using a car on a consistent basis over an extended period of time, you should check with your insurance company to see how many consecutive days a child would need to drive a car before adding that child onto your insurance.
Understand what automobile leasing is — and what it's not
The concept of leasing is fairly simple, yet many automotive consumers don't completely understand it and are often skeptical, even afraid of it. It is frequently misunderstood as a kind of "rent-to-own" scheme hatched up by clever dealers to separate good people from their money.
There are even well-meaning but misinformed "experts" who are quick to advise against leasing because "it's all a scam" or "it's the same as renting and you throw your money away" or "it's only good for businesses."
In fact, leasing is a well-respected and common financial concept that has been used in the commercial world for decades as a method of financing buildings, equipment, and vehicles — although it is still relatively new to most automotive consumers.
Car leasing is not renting, as many people mistakenly believe. Because many consumers still are not sufficiently informed, there have certainly been cases in which mistakes have been made and in which customers' lack of knowledge has been taken advantage of, sometimes fraudulently.
There are even well-meaning but misinformed "experts" who are quick to advise against leasing because "it's all a scam" or "it's the same as renting and you throw your money away" or "it's only good for businesses."
In fact, leasing is a well-respected and common financial concept that has been used in the commercial world for decades as a method of financing buildings, equipment, and vehicles — although it is still relatively new to most automotive consumers.
Car leasing is not renting, as many people mistakenly believe. Because many consumers still are not sufficiently informed, there have certainly been cases in which mistakes have been made and in which customers' lack of knowledge has been taken advantage of, sometimes fraudulently.
Understand how car leasing works
As with any business transaction, the key to successful and intelligent auto leasing is understanding how the process works, taking the time to properly prepare yourself before making decisions, and learning to use leasing to your benefit rather than to your disadvantage.
Without at least a basic understanding of leasing concepts, knowing how to get a good deal, and knowing how payments are figured; you expose yourself to the very real possibility of making mistakes, significantly overpaying, or worse, being cheated.
Leasing is a method of financing, similar to a loan. It would be a mistake to think that consumer car leasing is like apartment leasing, apartment renting, or car renting. It is not. The differences are so significant that any attempt to try to understand one by drawing on your knowledge of the other will only result in a serious misunderstanding.
Let's make an important statement here: You shouldn't consider leasing an automobile unless you have an understanding of car leasing fundamentals and how it works. Don't lease if you don't understand it. Understand how car leasing works and it can work for you.
That is what this Lease Guide is all about.
Without at least a basic understanding of leasing concepts, knowing how to get a good deal, and knowing how payments are figured; you expose yourself to the very real possibility of making mistakes, significantly overpaying, or worse, being cheated.
Leasing is a method of financing, similar to a loan. It would be a mistake to think that consumer car leasing is like apartment leasing, apartment renting, or car renting. It is not. The differences are so significant that any attempt to try to understand one by drawing on your knowledge of the other will only result in a serious misunderstanding.
Let's make an important statement here: You shouldn't consider leasing an automobile unless you have an understanding of car leasing fundamentals and how it works. Don't lease if you don't understand it. Understand how car leasing works and it can work for you.
That is what this Lease Guide is all about.
Why is car leasing popular?
Two factors helped cause the shift to leasing. First, the cost of new cars has rapidly spiraled upwards over the last few decades, often putting prices out of reach of average buyers. Second, federal tax law changes in the late 1980's eliminated finance interest deductions on automobile loans, which further increased ownership cost. The net effect is that people have become increasingly eager to find ways to make personal vehicles more affordable.
Auto manufacturers and finance companies have come to the rescue in a big way with consumer car leasing programs. These programs are simply a modified version of business leasing that have been around for years. This helps explain much of the strange language and confusing concepts associated with consumer leasing today.
In a nutshell, leasing has become popular because it offers people a way to drive the vehicles they want — often better vehicles than they could buy — for less money and less hassle. Low monthly payments are the big attraction, although we'll soon find out why it's important to look at other factors before deciding to lease.
Auto manufacturers and finance companies have come to the rescue in a big way with consumer car leasing programs. These programs are simply a modified version of business leasing that have been around for years. This helps explain much of the strange language and confusing concepts associated with consumer leasing today.
In a nutshell, leasing has become popular because it offers people a way to drive the vehicles they want — often better vehicles than they could buy — for less money and less hassle. Low monthly payments are the big attraction, although we'll soon find out why it's important to look at other factors before deciding to lease.
Auto Insurance - Companies Or Broker, Which is Better?
A number of people engaged in obtaining auto insurance are really not aware whether they are dealing with an insurance company or an insurance broker. This has happened because a number of insurance brokers advertise themselves as the company in spite of restrictions imposed by the government. Consumers are led astray many times and even end up getting cheated.
You could easily identify the insurance brokerage firms by identifying the suffix in their names such as services, brokerage or agency. If your state does not allow such differentiation you can get in touch with the local authorities to get more information. You should never ever avoid this step while obtaining insurance.
Internet has brought in tremendous benefits to a number of companies including insurance companies. Take complete advantage of the internet and find as such details as possible about the company you are dealing with on the net. You can also avail of a number of benefits the companies offer for internet customers which your insurance broker may not offer.
The days have gone where you used to make repeated calls to your insurance broker and kept chasing him/her to obtain that insurance you badly needed for your car. Today with the internet you can just obtain a quote online in the comfort of your home after filling in the required information. You won't be surprised at the number of mails reaching your mailbox. They will come with a number of benefits and you will need to spend time thinking on which company to choose. Finally you must choose a company which is reputed and offers you a rate which you can comfortably pay. As a warning don't just go for the cheapest company.
You will realize that although the insurance brokers are a better alternative and you could obtain insurance after a couple of calls you will not get the benefits offered by the insurance companies. This does not in any way mean that there are no good insurance brokers out there. You will find a number of brokers who take care of the customer's interest and they provide cheap quotes which will delight their customers. The advice that they provide can be invaluable.
In the end it is finally up to you to make that choice whether to go for a broker or approach the company directly.
You could easily identify the insurance brokerage firms by identifying the suffix in their names such as services, brokerage or agency. If your state does not allow such differentiation you can get in touch with the local authorities to get more information. You should never ever avoid this step while obtaining insurance.
Internet has brought in tremendous benefits to a number of companies including insurance companies. Take complete advantage of the internet and find as such details as possible about the company you are dealing with on the net. You can also avail of a number of benefits the companies offer for internet customers which your insurance broker may not offer.
The days have gone where you used to make repeated calls to your insurance broker and kept chasing him/her to obtain that insurance you badly needed for your car. Today with the internet you can just obtain a quote online in the comfort of your home after filling in the required information. You won't be surprised at the number of mails reaching your mailbox. They will come with a number of benefits and you will need to spend time thinking on which company to choose. Finally you must choose a company which is reputed and offers you a rate which you can comfortably pay. As a warning don't just go for the cheapest company.
You will realize that although the insurance brokers are a better alternative and you could obtain insurance after a couple of calls you will not get the benefits offered by the insurance companies. This does not in any way mean that there are no good insurance brokers out there. You will find a number of brokers who take care of the customer's interest and they provide cheap quotes which will delight their customers. The advice that they provide can be invaluable.
In the end it is finally up to you to make that choice whether to go for a broker or approach the company directly.
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