Questions to Ask When Shopping Auto Insurance

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Insurance is a complicated matter. As a consumer you need to be meticulous enough and clever in choosing the best auto insurance to save your money, effort and time. It’s much reliable to meet an insurance agent for you to discuss stuffs well than comprehending the written agreement on your own. It is necessary for you to sustain questions when shopping auto insurance to have the best guarantee that actually meet your needs as well. Not by far, auto insurances right now are widespread there are some who provide a low coverage rate while some offers higher percentage but the service is on high-class base too. Auto supply insurances offer the same services but there are specializations of assistance that are involved for them to catch more clients. They allocate some duties that are really trustworthy while some are just damping the consumer’s money in their pockets but doing nothing, you must also avoid Auto insurance scams.

Auto insurance agents will not give you coverage of all the details about their services unless you will ask questions, they will not offer you discounts or low rates if you only let your mouth open and hang without getting information’s. It’s a wiser choice if you prepare some list of questions before choosing and purchasing auto insurances. Knowing the answers ahead of time gives you the best deal. Consumers who meet their agents for deliberation usually receive better services.

Here are lists of questions that we would like to impart with you;

1. What are the discounts that are qualify for you?

Features in your automobile are given a primary importance, for your auto insurers to give the best credit and discounts that is suitable for you. These features are; anti-theft device, car alarm, and air bags.

2. How much your premiums will be?

You need to find out the exact premium best ensemble for you, what determined your premium is your age, the type of your automobile, and your address. Take note, if you pay lump sum, insurer will give you lower discount than monthly payments.

3. Does your policy cover original manufacturer parts?

Some parts of your automobile is not guaranteed original from the manufacturer, there are some instances that parts of your auto are not original often some are aftermarket parts only.

4. Are you getting all the discounts that your auto insurer offers?

You can get all auto insurance discounts if you meet these requirements;

• +If your car is Eco friendly
• +If you are a member of professional organization
• +If you don’t drive long distance
• +If you are other committed other insurance policy with the same company
• +If you are graduate of college
• +If you park on garage

5. Do you have collision Coverage?

It is a coverage regarding payments for hazard effect to your vehicle due to accident

6. Do you have comprehensive Coverage?

It is a coverage base on Natural phenomena (floods, tree bragging, earthquake etc.) as well as theft.

7. How much your insurance company will pay to cover the loss for your totaled Vehicle?

This is about the depreciation value of your car. You need to ask queries about what is the exact amount will you get if your car depreciates.

8. How much liability insurance car do you need?

The value of the asset you are protecting provokes the liability insurance that you need.

9. How car insurance Works?

You need to know the role of car insurance companies, in what way they can work for you, and what kind of service they may render on your behalf. More about auto insurance news you can visit autoclap.com.

Investing in Cars: 5 Money-Saving Tips for Buying a New Car

The mere thought of getting a brand new car causes some people to become filled with excitement. Although purchasing a new ride can be a wonderful experience, it will be much better if you strive to get the most value for your money. In some instances, you may have to make a few compromises when shopping for a new vehicle. Here are five money-saving tips for buying a new car.

Develop a budget

Before heading out to search for a new ride, you will first need to develop a reasonable budget. Being stuck with an expensive car that you can barely afford can be very frustrating. When establishing a budget, be sure to factor in the cost of insurance and the interest rate. Knowing your financial limits will give you more leverage when making a car deal.

Sell your current ride

Although you generally have the option of trading in your old ride, it is usually not as beneficial as selling it. The vast majority of car dealerships are unlikely to give you nearly the cash for your current vehicle on trade in that you could get for it otherwise. Selling your car on the open market is often a far better option if you want to get the most money from it. That money can then be used toward making a down payment on a new car.

Obtain the necessary funds beforehand

Waiting until you visit the dealership to seek a loan puts you in a very compromising position. Acquiring a pre-approved loan will eliminate the need to obtain a loan through the car dealership. Do not hesitate to get several quotes from a variety of lenders. This will help you to get the lowest interest rate available.

Purchase aftermarket upgrades

Often times, optional car features will add thousands of dollars to the total cost of a vehicle. If you desire to save some money, you can opt to purchase your own aftermarket upgrades. For example, you may be seeking a high-performance set of tires. Instead of paying the expensive premium demanded by the car dealership, you can save money by shopping at discounted online vendors such as http://simpletire.com or others.

Have patience

When searching for a new vehicle, it is critical that you exude patience. Do not settle for a vehicle that you really do not even like. Veteran car salesmen can smell a desperate car buyer from a mile away. Always be prepared to walk away from a deal that seems too expensive.

Buying a new car does not have to be a financial burden. You can find an amazing deal by taking the proper steps.

This article was written by Rianne Hunter with assistance from Rhett Stone. Rianne is a mother of three and an avid finance, auto, and family blogger.

The Cost of Cars: Is it All Getting Too Much?

We all like to have the little luxuries in life, but getting them is something that is becoming increasingly harder to do as the cost of living rises. There is little room for manoeuvre in financial terms as money is restricted not allowing for the things we love to indulge in. 

Cars are a luxury and in most cases a necessity, but the expense that surrounds them often makes them difficult to afford and to maintain. It is not simply the cost of the car itself that makes expenses begin to build - the running costs and maintenance and fuel prices combined make it something that is now a luxury for most and simply unaffordable for others. 

There are ways to attempt to bring the costs down; diesel cars, a budget direct quote for insurance, smaller engines, and older cars are all factors that play a part in reducing the costs.
Brand new cars have dramatically increased in price over the years; they have risen with the cost of living and in an attempt to be profitable in the time of economic crisis. Parts are more expensive as is labour, which significantly raises the cost of the car and any work that may need to be done to it. There are a higher number of accidents as the world has entered into a ‘suing culture’. 

There are drivers on the road that are looking for the opportunity to make an insurance claim for even the most minor of incidents - they are claiming mainly for personal injuries as a result of an accident which sees them being compensated with thousands of pounds for something that may or may not exist. This has had a direct impact on the cost of insurance premiums, which means drivers are finding it more expensive to insure their cars and even keep them on the road.
It is not just the suing culture that has added to the increased cost of an insurance policy, but the fact that insurance is now equal. There are no longer lower rates for women or older drivers. For cheaper rates, people have to earn a high no claims bonus and be considered a low risk driver, it takes time and can be relatively hard to do, as there are many accidents, which occur that, simply are not the fault of the driver. At the same time, there are more driving offences that have been introduced and will see premium costs rise.
The cost of repairs has increased at the same time as the cost of a vehicle. Parts are expensive, time and labour are costly and its just another area that adds to the expense of car ownership. Insurers are more than aware of this and the higher premiums are a reflection of the cost required to get a car back on the road after an incident. 
Finance tends to be the only option for those that are looking to own a car but cannot pay for it outright. The monthly instalments are spread over a number of years and make a car affordable, provided the financial arrangement contains no hidden terms. 

Often the interest that is added on top of the price of the car means you are paying back far more than initially borrowed, it could even run into the thousands. Car finance is a big commitment and something, which has to be paid every month regardless of the financial situation you are in, the car, will be reclaimed by the finance company if payments are not fulfilled.
It is incredibly difficult to be able to afford the things you want and the things that you need. There are means and measures that can reduce the costs of car ownership, but overall it is an expensive luxury but something that is more than worth it. It provides you with freedom and independence and makes everyday tasks significantly easier.

Understanding the Basics of Vehicle Financing

Purchasing a new vehicle can be a very daunting task. The average vehicle today costs anywhere from $15,000 for a used model and almost $30,000 and up for a new vehicle. Because of this increased cost, most consumers have to have some type of financing. The financing will help with the vehicle purchase by setting up payments per month. It is important for consumers to understand the financing process before shopping for a vehicle. Understanding the lingo and how financing works allows for consumers to get the best deal. Below is a simple guide to understanding vehicle financing. 

Financing

When it comes to purchasing a vehicle, consumers have two options: Direct Lending and Dealership Financing. With direct lending, the consumer is using a bank, credit union or finance company to obtain a loan. The financial establishment will need personal information to see if you qualify. If you do, you will then agree to a set amount for purchase, then an agreed finance charge which is paid over time. once a contract is in place for a new vehicle, the contract is signed and the amount is paid to the dealer. You are then responsible for a monthly payment on your new vehicle.

With dealership financing, you have the option of financing the vehicle directly from the dealer. You agree to the price of the vehicle and a finance amount, plus a charge which is set over time. In most cases, the dealership will retain a contract but sell the contract to a bank, credit union or finance company as an assignee. This group will then accept the payments on your loan. Most consumers find that dealership financing is best because it is convenient, there are more financing options and special programs can be found for saving additional funds during the purchase.

Your Credit

Before purchasing a new vehicle, it is also a good idea to check your credit report. you want to be sure that you have an up-to-date account of your credit. to obtain the best loan, you will need a score of 725 or higher. Always check your credit and work on any issues so that you do not have any problems when purchasing a new vehicle.

Consider a Co-Signer

When financing a new vehicle, you may be in need of a co-signer. A co-signer is someone who signs a loan agreement with you to assume an equal responsibility for the amount owed. You want to choose someone who has a good credit history and one that is willing to help you if you are in need. This is a major obligation and one that the purchaser of the vehicle must take very seriously.

Affordability

Consumers should always be aware of their finances. Take the time to go through your financial records and bills for each month to be able to determine the payment amount you can afford. You never want to spend more than you have or you may end up losing money and your new vehicle. Do a little budgeting and determine a set amount you have for a vehicle payment and stick to this amount. This will allow you to remain comfortable in your lifestyle despite a new vehicle purchase.

Overall it is important to learn the basics. Take the time to learn financial terms and even go so far as to speak with a loan officer to find out what you can afford as well as learn about the process. You will feel more comfortable with a new vehicle purchase by learning more about the process.

About the Author

Ashley Parker has vast experience with purchasing vehicles and likes to spread her knowledge about the financial aspects of a purchase. A great bonus tip is to search for a website of a car dealership so that you can take advantage of special deals and promotions.

Quick Loan Advice Pros and Cons of Log book Loans

If you don’t own property and you suffer with a poor credit rating it can often be very difficult to obtain credit. Some people choose to opt for payday loans or their doorstep alternative, but these solutions can leave the lendee with truly extortionate rates of interest. Thanks to a new wave of logbook loan companies, this is now becoming less of a problem. 
This guide will tell you all you need to know about logbook loans, including both their pros and cons retrospectively. 

So What Is A Logbook Loan Anyway?

Basically, a logbook loan covers any type of credit issued against the value of a motor vehicle. You can generally apply online and receive a decision in minutes, which certainly saves a considerable amount of precious time and effort. Mobile Moneys logbook loan service is currently the most popular option around, and many people choose to opt for it every month.

Tell Me About The Pros

With a logbook loan the benefits are endless. Usually credit checks are not performed, allowing people with less than desirable credit scores to receive the cash they need in troublesome times. Also, once an application has been processed and accepted, logbook loan companies will usually be in a position to release the money instantly, meaning you could have cash in your pocket on the very same day - a truly useful tool for those unforeseen emergencies.

Because logbook loan companies don’t usually perform credit checks, proof of employment is often needed to process a successful application, although even this can sometimes be avoided. Repayment schedules can also spread over a much longer time period than their payday or doorstep counterparts allow, meaning that monthly bills can work out to be considerably less.

Okay, So What About The Cons?

As with any form of credit, certain risks are involved with taking out a logbook loan - mainly the possibility of default. If you miss a payment with logbook loan companies, you risk losing your car, so this is something seriously worth bearing in mind. Although this is the worst case scenario, if you default, expect collectors to take this very seriously. Obviously most lenders will allow you some leeway, but if you’re not certain you can make the repayments, don’t take out the loan.

Interest rates can be well over 300%, so the more time it takes you to pay the loan off, the more money it will end up costing you, but if you have no other option, you really have no other choice. Be sure to read the contract carefully, paying special attention to the small print, and never take out any loan without first working out how much you will end up paying back.

So there you go, thats the lowdown on logbook loans. Depending on your personal financial situation, this solution could be perfect for you, but be careful as some lenders will purposely avoid telling you the final repayment amount, and if you haven’t worked it out for yourself, you could well be in for a nasty shock come payday.

Get the Latest Car Insurance Policies from Santam

The automobile was one of the best inventions created by man; however one thing that we as automobile lovers don’t like is the automotive insurance that is required to own one. Depending upon the country you live in you are most likely required to have insurance on your vehicle. The good thing about today’s technology is you are able to get motor insurance quotes online and never have to leave your house looking for them like you used to.

Get a Quote Online

The internet brings many good things and one of those is the ability to find automobile insurance from the comfort of our own home. There are many popular companies out there today with websites and allow you to go online and put in your VIN number and a bit of personal information and they can craft you up a quote within minutes.

What’s even better about this whole process is, is you can not only get a quote but you can purchase the policy directly online and print out temporary insurance cards immediately. You don’t have to wait for them to come in the mail before you can start driving.

Multiple Types of Insurance Policies

Companies provide multiple types of policies and coverage’s and many may give you a discount if you purchase multiple policies through them. Most of the companies offer policies over the following types of property:

• Vehicle
• Boat
• RV
• Home
• Motorcycle

Discounts on Services

As mentioned above many companies may be willing to give you discounts on your rates if you purchase multiple policies on different types of property. However, companies may also have their very own discount programs available if you ask them.

For example some insurance companies provide you a better rate on your children’s coverage if they are making above a 3.0 GPA (Grade Point Average) in school. Other major companies also give you a bonus payment if you don’t have an accident in a certain period of time. One of the most popular discount services out there is a “Plug-N-Play” discount where you plug in a device and you get discounts based on your driving style, and that is pretty neat.

The good thing about capitalism is there are tons of choices for the consumer to pick from. So go online and check out all the companies out there that are competing for your business, and just remember when companies compete like that do, you are the one that gets the best results and best prices.

Car Financing Options for Retired People

English: Car Dealer, Eastern Avenue, Gants Hill (Photo credit: Wikipedia)

Most seniors who have been through car buying experiences in the past feel that some types of torture could be preferable to going through this process again. If the old clunker appears to be gasping out its last breath, however, it may be time to think through the financing options available and prepare for the car buying process in advance in order to make it easier. Basically, seniors have three options from which to choose if they have need of a new vehicle: buying with cash, financing the cost, or signing a lease agreement. The following information may be helpful to those trying to make the best decision concerning these choices: 

Paying the Entire Amount 

Seniors who have savings stashed back for a rainy day may find that using these funds to pay for a new car is actually cost effective. Interest rates are at record lows so the money saved from buying a car outright and not paying any interest could actually be more than the interest rate paid on any some savings accounts. Of course, if the dealership is offering deals that include payments with no interest added, it may be better to keep the money in savings and take a bit longer to pay for the car. 

Financing the Price 

Most retired people, concerned about keeping enough in their nest egg for emergencies or health problems, choose to make payments on a new car. When choosing this option, it is important to negotiate not only the price of the car, but also the terms of the loan. Seniors with a great credit score should get the best interest rates on the market so always know these rates before going to the dealership. It is also wise to check other financing options before signing on the dotted line. Sometimes credit unions and banks can beat the interest rates offered by the dealership, and people who negotiate with available cash often get a better bargain on the price of the vehicle. 

Signing a Lease 

Although leasing sometimes gets a bad rap, it may actually be the best choice for many seniors, especially those who are retired and live near family. Leasing takes away the need to worry about repairs because the car is always under warranty. Most cars can be leased with very little cash exchanged upfront, and most leasing agreements give the driver at least 12,000 miles per year before any penalties apply. Monthly payments on a leased vehicle, compared to those that must be made when the car is purchased, are almost always lower. 

It is important to know that whether a car is bought with cash or financed for several years, the owner will actually have some equity in the vehicle when he decides to upgrade to a newer model. This is not true of leased vehicles; however, many retired people will find the ease and convenience of leasing a car more than makes up for the resulting lack of equity. Impulse buying may be fun for some seniors, but when it comes to obtaining a new vehicle, planning and information can sweeten any deal. 

Melanie Lewis writes for a site that offers advice on automobile loans and has tips on things to consider before purchasing a new vehicle.

How Does a Novated Lease Work?

A novated lease is a type of car lease that an employer gets on behalf of the employee. The employee, in turn, pays for this lease with their income before taxes are taken out. Novated leases are incredibly beneficial for both the employee and employer, though of course there are certain disadvantages there as well. For jobs that need a lot of on the job travel, a novated car lease is likely the best way that the payments can be handled. 

How Does A Novated Lease Help The Employee?

With a novated lease, the employee never has to worry about making their car payments. The car payments are automatically deducted from their paycheque pre-tax. Not only does this mean they don't have to track the lease payments, but it also means that they can get a better car for less money because they don't have to pay tax on the amount. Employers also tend to have deals with automobile companies to lease cars by volume. That means that the employee has more savings because of the company's better rates.

Rather than other types of employer lease, the employee does keep certain rights over the car because the employee is making the lease payments. The employee gets more choices of car than in a traditional employee lease agreement, and the employee gets use of the car when they are outside of work. The employee can even keep their vehicle if they leave the company by transferring it to another company. 

How Does The Novated Lease Help The Employer?

On the employer's behalf, though the lease is financed through the company the employee still makes the payments. This means very little out-of-pocket cost for the employer. All the employer has to do is secure the lease, and manage the payments from the employee's paycheques. Because the employee is saving money on the lease, the employer can consider the lease a perk that the employee gets, and so save money on salaries.

Employers that need to have their employees travel during office hours save significant funds over providing company cars. Company cars would need to be purchased and retained by the company and not leased, or leased at a higher amount. The novated lease, by contrast, incurs no more cost on the behalf of the business. 

What Are The Drawbacks To A Novated Lease?

Because a novated lease is still a lease, the standard problems with this type of lease still applies; at the end, neither party will own the vehicle, which means that the employees are purely paying an expense and not gaining an asset. This said most novated lease companies will offer easy paths to ownership which will still work out as more cost effective for the vast majority of customers. This normally involves paying a fee at the end of the lease to purchase the vehicle outright

This article was written by the team at Novated by Fleetcare, independent Australian novated lease providers with offices all around the country.

How the Car You Choose Affects The Kind of Finance Deal You Can Get

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Buying a second-hand car can be an excellent decision if you are trying to save a bit of money. However, one thing that you should remember if you want to buy a used car is that it may affect your financing options. Indeed, people are often surprised when they decide to buy a second-hand car only to find that they cannot get any access to financing. Here is a quick guide to the reasons behind this, and factors that you should consider when choosing a second-hand car if you want to get better access to finance. 

Used Cars Present a Greater Risk to Lenders

If you want to secure financing for a second-hand car, you may find that the lender has strict requirements about what they will lend you money for. For example, many lenders will not consider providing any financing for second-hand cars that have traveled over 100,000 miles, or for cars that are older than five years. 

The reason for this is that such loans are seen as higher risks by lenders. An old second-hand car, or one with many miles on it, is more likely to break down. If this happens, the person who borrowed the money may be more likely to stop paying back the loan. 

There is also the resale value of the car to consider. If you want to arrange a hire purchase agreement, the car is used as collateral. If the value of the car falls too low because it is too old, and you decide to stop paying for it, the lender will not be able to recoup their money. 

As a result, many lenders will not provide loans for buying second-hand cars. If they do agree to lend you the money, they will often insist on a much higher APR or a larger deposit. 

How to Choose a Used Car

It is not impossible to secure a good car financing deal when you buy a new car. However, to find the best deals, you should: 

• try to find a used car that is between six-months and five-years old. Although all lenders have their own specifications, you are more likely to get financing if the car is newer. 
• look for a car that has traveled less than 50,000 miles. The higher the mileage, the less chance you have of getting access to a good loan. 
• look for a make of car known for its reliability. If there is less chance that it will break down, a lender may be more likely to consider lending you money. 

In addition to the above, you may want to spend some time looking around for lenders that specialize in higher-risk loans. Alternatively, consider a different form of loan such as a secured loan. With this you will be able to use the money for any purpose, but remember that you risk losing your property if you fail to keep up with your payments. 

Find Financing for Your Used Car

Buying a used car can make a lot of sense if you need a vehicle but you cannot afford to buy a new one. However, take the above information into consideration to improve your chances of finding a suitable financing deal. Alternatively, do not completely rule out buying a new car. With the excellent financing deals that are available these days, and the fact that a new car will require less maintenance, it may still prove to be a better option in the long run. 

Neil Stelling has extensive experience in car sales and finance. In his spare time, he enjoys sharing his insights with others through blogging for a number of different websites. Click the car finance help link for more information.

How to Finance Your New Car

You may have waited; the recent years have not been the easiest from a financial standpoint and many people who felt they were in secure financial jobs for life found that was not the case. However economies have suffered the worst of the problems and now might be the time that your patience pays off. A new car is a sign of looking to the future. 

There can be many reasons for changing a car beyond necessity. It may be there is a deal that is too good to ignore. It may simply be that you feel you deserve to give yourself a treat. Whatever the reason it can be fairly easy to look at the financial implications and make a decision.

Internet

The World Wide Web has provided every business with a major marketing tool because people are increasingly going online for information. This applies in most sectors though car purchase is still a function that involves a showroom and a test drive.

When it comes to deciding on how to pay for your new car though, the Internet is an excellent place to look for competitive financing. 

Where to look?

A specialist dealing in vehicles is the best place to try, someone who can do much of the hard work for you and find the best APR available for you. There will be factors such as your credit history that will determine what you will be offered.

The Internet has allowed companies to interact with their customers; an online application process is both simple and effective. You will be able to get an idea of your financial commitment using an online calculator even before you make an application.

An online application system does not mean that the whole process is impersonal because there will be staff available to answer any questions.

Decisions on individual circumstances are done extremely quickly so that you can get approval to proceed without delay. You will be given details of the APR, the monthly repayments and the term of the loan so that you have all the information you need. There should be no restriction on where you buy your vehicle; finance can be sent to any dealership of your choice.

It is important to use a website that can show a good track record; examples of people who have used the website and been happy with the service that they received. There is no mystique about the Internet and it is perfectly safe; anyone providing finance is regulated whether the transactions are done online or not, but testimonials provide further evidence that you are dealing with a service orientated company.

You do not buy a new car every day so it is important to be sure that when you do you get the model you want at the price you want. There is likely to be some scope to negotiate because the new car sector has been suffering the same as everywhere else in recent years. The financing of the car is critical; ensure you understand all the details by getting an experienced provider that understands the meaning of service.

Steve Smith is a freelance writer who lives on the South West coast of Turkey in the small town of Dalyan, famous as a nesting site for the endangered loggerhead turtle. He writes on a range of topics from current affairs and economics to consumer affairs and car finance.

What are Your Car Finance Options?

With the new year in, many people will be looking to make some changes in their lives, and for some this might mean buying a new car. It can be one of the most expensive purchases you make, which is why you have to give it a lot of thought. If choosing the car wasn't hard enough, you've then also got to decide how to pay for it. There can be many different options, and finding the right one can save you quite a lot of money.

Outright Purchase – This is of course one of the best ways to buy a car. If you can afford to buy it without finance, then you won’t be paying any interest at all, making the vehicle cheaper. It might also be possible to negotiate discounts or extras on the car if the dealer knows you can pay there and then in cash.

Leasing – Leasing can be great value with relatively low costs, but the key is that you never actually own the car, unless you decide to pay a lump sum at the end of the agreement. There are lots of different options, depending on the length of the lease, the deposit you put down, and a variety of other factors. This is one of the best ways of combating depreciation however, so it’s worth a look.

Dealer Finance – Dealers often offer good rates of interest, and will have special deals from time to time. If you can take advantage of them, then do so, but be aware that you’ll often have to pay a large deposit.

Personal Loan – If you don’t want to pay a deposit, then a loan is likely to be your best option, depending on circumstances. A personal loan is likely to cost the most in terms of interest, but offers the least risk. There are of course limits to personal loans, and in some cases it will be difficult to get a loan for an expensive vehicle without a deposit.

Secured Loan – Secured Nemo homeowner loans also offer another option. The minimum term is usually over 3 years, so this isn’t really a good option if you don’t plan on keeping the car for a long time, but otherwise it could save you a considerable amount of money in interest. However, because the cost is often spread over a longer term you might end up paying more in interest.

Pay As You Go Insurance: What It Is and Why It's Growing in Popularity

The high cost of insuring a vehicle continues to take a huge toll on the financial resources of many consumers. An increasing number of people have been driven to seek out and utilize innovative measures that will help them save on car insurance. The "Pay As You Go Insurance" plan is one of these options that is fast gaining popularity among vehicle owners. 

Pay As You Go Insurance 

Pay as you go insurance is a revolutionary payment system that some insurers have put in place to help their customers pay the insurance on their vehicles. It is a mileage discount program that calculates the auto insurance premiums using the number of miles you drove. More mileage results in higher payment so the less you drive the less you pay. This plan works well for drivers who do not use their cars all the time. Instead of paying a flat fee for a set period of time then have the car sitting there unused for a significant portion of that period, they only pay for the time the car was actually used. Other drivers who use their car more frequently can save more by driving less. The first telematics technology-driven Pay As You Go insurance discount program in the United States of America was implemented by GMAC Insurance and Onstar. 

Pay As You Go is the ideal insurance solution for those who would prefer to not commit themselves to a demanding insurance contract or having to pay high monthly fees. This payment method was popularly used to finance mobile phones and is now proving as an effective method to pay and save on car insurance. 

The Reason Pay As You Go Insurance has Gained Popularity 

Vehicle owners, depending on the state they live, have to pay as much as $600, $1000 and even $2500 for their insurance premium per annum. Those who will not be using their car for much of that year stand to lose money when they pay the full sum of the premium. Having the option of simply paying for the time you drive your vehicle is by far a more convenient and financially friendly solution. 

Drivers can also control the cost of their premium by paying attention to their driving details. For those who are on the plan, a small monitoring device is installed onto the vehicle to collect certain information. The device will record information such as when you drive, the distance you traveled, and the frequency or force with which you brake. This means that a driver's style of driving will ultimately determine the cost of his premium. Those who want to save on their insurance can tailor their driving habits to lessen their premium. 

Car insurance is a major expense for vehicle owners. Pay As You Go Insurance offers some relief to many people who find it difficult to meet the annual payments. The coverage is now offered by eight of the ten top insurers in the U.S.A. Both insurers and customers have realized the savings they enjoy when they pay their insurance as they go.

 
Andrew Macneil has a background in the auto insurance industry and enjoys writing on the subject. His articles appear on a number of personal finance and insurance blogs. Visit Cheap Insurance for more details.

Car Financing for the 50 Plus Driver

Getting a car at any age can leave a massive hole in your wallet. Getting a new car is often out of the question, especially when you’re over 50. So you should choose carefully. Even without the option of buying a new car, there are a lot of great used cars out there, which are practically waiting for you to get them. There are always ways to finance a car that will leave both your wallet and your retirement funds seem almost intact. In this article, we will look at different options to car finance. These should come in handy as you make the decision on purchasing your car.

Borrowing from friends

Borrowing money from a bank may not be the best option when you’re 50, not to mention the interest they charge you. It’s not really smart to pay interest for a car. But unlike banks and professional lenders, your friends can lend you money, without charging any interest. Also, a friend wouldn't mind if you were late with the monthly payment. But always make sure you can afford to pay them back before you borrow!

Be persistent

Even if you’re able to borrow from a professional lender, at 50 it becomes a tougher option. But don’t give up on getting a new car for yourself or your family just because one of them turned you down. Be persistent. As you wouldn't apply to just one job if you’re jobless you shouldn't apply to just one lender when it comes to car loans. You will have to fill a lot of loan applications, answering a lot of questions, about your income, employment history and expenses. But whatever you do, do not misstate any information you are stating in the application. All of those applications go through a verifying process, and not telling the truth may put you in real trouble.

Know your credit

It is best to check where you stand before you actually get a loan for a car. You might be able to put your hands on a car loan no matter whether your credit is good or bad. But the difference is that the worse your credit is, the more you will pay. Loaners and banks have the ability to easily repossess your car if you can’t pay for the loan.But, you will be “lucky” to get a car loan if your credit isn't shiny.

Money for Down Payments

This is the trickiest part of buying a car. But you do have a few options. Chances are, that at age 50, you have to dip into your retirement funds to get those approximately $1000 to put down as the down payment when buying your new car. But, that doesn't have to be the case. A better option would be that you try to trade in your old car for a down payment.However, trading in your car as a down payment may not always be worth it, and you will most probably get more cash if you sell your old car yourself. But sometimes, if you know your old car’s value and the trade amount is approximate to the car’s value, this could be the option that you use. Otherwise, like mentioned above, you could always borrow some money from your friends too so you raise the money required for the down payment.

Be there with cash

Please beware that many dealers may find a way to manipulate you, or get you to sign one of their high-interest loan deals. That’s why sometimes it is better to get a loan from a bank or a credit union. They will usually take lower interest, and offer you better deals than the average car dealers. Though, that is not always the case.

In case you are really tight with money, you can always turn to finance companies. Even with sky high rates and really bad terms, you can turn to them if you have no other choice.

But to avoid making such harsh deals, in the very worst situation, the best option for you would be to tap into your retirement funds so you can raise the cash for the down payment, and a small bank loan.

Car Insurance Driving You Mad? How to Reduce Your Premiums

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)

Insurance unlike satellite navigation and alloy wheels isn't something that’s an optional extra; it’s a legal requirement for anyone driving on the roads, whether you’re on a motorbike, driving a commercial vehicle or your own family car. However, as we’re all well aware, the prices of annual insurance can be rather substantial – actually pricing a lot of people off the roads in recent years, forcing them to sell their cars because they just can’t afford to drive them.

Cars are a lot of people’s pride and joy, giving them the freedom to come and go as they please, and to go to places that they wouldn't have access to if they couldn't drive, but when insurance companies price them off the roads it can be somewhat soul destroying. Take new drivers as an example, there is always a risk that they’ll be involved in accidents while learning or in the early stages after passing their test and therefore insurers are skeptical of insuring them for fear of regular payouts and the price goes up and up. But short of a miracle, what can you do about it? The easy answer is ‘nothing’, but the easiest answer isn't always the right one.

Here are just three top tips for reducing your car insurance and making payment simpler, without having to sell off your body parts! Obviously there are far more than three methods, so feel free to add your own:

Security. All cars come fitted with locks, this much is obvious, but the more safety features you have fitted, the more favorably the insurers will look upon you and your vehicle. For example, if you have a steering wheel lock and immobilizer fitted as standard – along with an alarm – you’re much more likely to be paying less than someone who has the same vehicle but without the security features. Where you leave it overnight is also key, as vehicles are more at risk when parked on the side of the road. If you have access to a locked garage, then storing it there will significantly reduce your premiums.

Reduce your mileage. When you make your application for insurance, you’re asked to fill in how many miles you think you travel annually. Obviously, the more you drive the more likely you are to be involved in an accident and that is taken into account. However, if you can find any way of cutting how many miles you drive, this price will come down. For example, if you've got a five-mile drive to work, could you get public transport or cycle instead?

Sensible cars. While they might be our pride and joy, some cars by their very nature are expensive to insure. For example, a 2-litre turbo diesel is going to cost more to insure than a 1.2-litre petrol hatchback. If you’re finding that your insurance is just too high but you could be insured for significantly less on a more sensible car, put your sensible hat on and sell your existing model for that one – bringing in some valuable money and saving you more each year on insurance.

This article was written by Matt Rawlings, a UK-based writer specializing in providing financial advice.

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