Automobile Insurance 101

by: Djai Tanji

Vehicle insurance which is also known as car insurance, auto insurance, or motor insurance is obtained for vehicles to be used to cover and in providing protection against losses that has resulted from traffic accidents and against legal responsibility that could be acquired in an accident or disaster. Different policies state the incidents under which each item is covered. Like for instance, a car can be independently insured against fire and accident damage or against theft. A vehicle insurance covers all or some of the insured party, the insured vehicle and the third parties which, is the car and people.

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: 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

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.

GM, one of the US Auto Industry’s big 3 has done the inevitable, filed for bankruptcy protection to get help from the government while they iron out differences with the French auto maker Fiat with the government getting control of a majority of their company’s stocks. They have been in talks with Fiat for quite sometime but previous efforts to get a working deal that should have prevented this were denied by the US government that funded the firm while they were on the negotiating table. Read the rest of this entry »

Considering that since gas prices went skyrocketing and the recession took hold last year, fewer and fewer people are using their cars even with gas prices normalizing this year. Oil is dirty and people have been forced to notice with the recession getting them to re-think their transport needs and balancing it with the need to look after the environment. One idea that came out of the insurance industry is the “pay-as-you-drive” type of package which would have pro-rated premiums depending on your driving habits. Read the rest of this entry »

There comes a time when we all face the same dilemma, satisfaction with current services and rates have become so high they are not being receptive to your needs. As we all know, the recession is biting hard yet we always love bargains and insurance companies are not always on the negotiating side if you get the picture. Changing providers or insurance companies is an option but you’d have to time your shift to within a few weeks of your current policy’s expiry date due to the waste of double policies. Read the rest of this entry »

With gas prices going down, you may be considering buying a new car for you or your family. But since times are still hard, and it never hurt anyone to save a few bucks of car insurance premiums, here are some tips for getting lower insurance premiums when buying a new car.

1. Buy economical
Car insurance companies are more inclined to give higher premiums for more expensive cars. So when you buy a more practical car, you not only save on the actual price but on the premiums you’ll be paying for it in the future.

2. Repair and maintenance fees
Companies also look at the projected costs of maintenance and repair fees, as well as the cost of spare parts – which depend on the car you buy – so you should take these things into consideration before making a final purchase.