Automobile Insurance 101

SR-22 – A document required by the court for individuals convicted of certain types of traffic violations that shows proof of financial responsibility.

Third party – In an insurance contract, a third party is anyone other than the policyholder and the family members covered under the insurance policy. The policyholder is the first party. The insurance company is the second party in the contract. Anyone else is a third party.

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By: MJ

Car leasing is increasingly becoming more popular these days. But what exactly does a car leasing entail?

Car leasing, in simpler terms, is just like renting an apartment. You pay to use it, but you don’t get to own it. However, the two are opposite in terms of value change over time. As time goes by and cities overcrowd, apartment spaces become more and more expensive. Meanwhile, cars depreciate in value as time goes by because newer and more efficient and price competitive cars are produced. However, this is the issue of the lessor, the company that leases the car, and a leaser should not worry about depreciating value or any other thing.

By: MJ

As with renting apartments, fixed periods come with leasing a car. Typically, the time period is 2-3 years. For the length of the contract, you’re obligated to pay monthly. A security deposit will have to be paid at the lease inception to pay for any damages to the vehicle once it is returned.

The thing with leasing cars is flexibility. Customers don’t have to worry about making a long term commitment since they can just bring the car back and walk away when the contract is over. Also, since it’s just a rented car, it’s none of your concern if the car depreciates in value since you paid for it anyway. Doing this makes it easy to switch to newer car models every few years.

By: MJ

a) You’re always driving a new set of wheels. Since they’re basically rented, you can always keep on renting a new one every few years and not have to worry about how the car will depreciate over time.

b) Since monthly payments are lower than loaning a car, you can afford to drive more expensive cars this way.

c) Total cash outlay should be lesser. Customers don’t have to make a large down payment as if they were buying the car. The extra money saved up between the lesser monthly payments and the lesser total cash outlay can be used for other things.

by: Djai Tanji

Buying car insurance online can save you money and time. First step is to make a list of necessary info about your car like your driver’s license number, history in driving, car’s model, etc and some personal info. Click the search engine to go to certain websites for car insurance companies. Choose the companies that seem familiar to you or that you know of. Decide the type of coverage you need because there are a lot of coverage options and types. Also, take a good look at the coverage policies. To get a free quote, enter the needed info in the computer. See if the website offers to give you free online quote. With the prices of the policies and coverage you have gathered, compare each of them and then select an insurance provider. Use your credit card in buying the insurance policy.

By: MJ

a) There can be no tangible evidence to show for your money at the end of the contract. 2 years of payments will all be for naught once the contract ends.

b) One opting for car lease must start from scratch every time while a person who owns a car already has equity. Even though this asset of his depreciates over time, he still benefits the services it provides once the five year loan is over and he enjoys longer “free transportation”.

c) Cars for lease have a mileage limit. Car owners can drive their cars for as long as they like. They can also have a stained seat, door dings, and dents while not worrying about anything in the end since it is their property whilst leasers have to pay for every little damage that they do unto the car.

by: Djai Tanji

When the vehicle insurers decide on whether to insure an individual or not, and determine what insurance premium to settle on, that is called an Auto Insurance Risk Selection. The insurance premium can either be decided on by the insurance company in agreement to an outline of regulations set by the government or it can be authorized by the government itself. It depends on the jurisdiction. Most of the time, it is the insurer who have more liberty to set the price on the coverage for the physical damage than on mandatory coverage by liability. An actuary calculates the statistical data if the premium is not authorized by the government.

by: Djai Tanji

Buy a car that has a lower rating category because there are certain types of car that the rate is too high. Also, include in your list a car that has several safety features. To make the security agency feel more secure towards you, try to have a good credit history. Your rate is more likely to go higher if a lot of debts show in your credit history. With a good driving record and fewer claims also, you can have a lower premium. You can also ask your agent about discounts. There are certain bases that you will be given discounts like if your record shows you are a good driver, if you have anti-theft devices and so on. Shopping around for insurance is also a good way to have a lower rate.

t the nearest dealer, as the cash for clunkers program has passed and is well on its way to helping you get the new car you’ve always wanted. The drive by the federal government to get people to swap their old inefficient cars is a landmark bill that aims to help the auto industry and auto owners themselves who may not be able to purchase new cars in exchange for better ones.
Hybrids even carry more help in terms of tax discounts as people go to dealers, exchange their old cars (that get recycled) for new energy efficient ones, getting tax discounts, what ore can auto owners ask for, it’s a win-win situation.

Drinking and driving does not mix yet each and every year, thousands die form alcohol related auto accidents as people continue to engage in the illegal act. Adding to the danger already faced by drunk drivers is the reality that most of these cases are also related to drugs use which results in violent crashes and even assured death to any victims involved.
Law enforcement are always out for these drunkards who prey on the innocent, sending the ones they manage to catch before they do cause accidents to the slammer saving their own as well as the lives of others on the roads they may encounter. Life is safer but please don’t drink and drive, the life you can save may be your own.