Do I Need Gap Protection For My Car Loan ?
Do you realize how much you are at risk financially if you wreck your car or it gets stolen? Your auto insurance policy might not provide all the financial protection you need, if the value of your car is less than the balance of your auto loan. Gap coverage is designed to cover the difference between the value of your car when it was lost and the balance of your car loan.
This is also called Negative Equity. Having to continue to pay off your car loan every month, when you don’t even have your car anymore is probably not what you had in mind when you bought it.
Let’s say you lost your car in a hurricane or other disaster, one year after you purchased your car: Now let’s say you still owe $20,000 on your auto loan and your deductible is $500. Let’s also say your car was worth $15,000 at the time you lost it. The insurance company pays you $14,500. Then your Negative Equity or Gap is $5,500.
Gap Protection isn’t really insurance, it’s a Debt Cancellation Agreement. You could call it a waiver of the part of your auto loan contract that requires you to pay the difference between the value of your car and the amount still owed on your car loan. There are a few states that do consider Gap Protection a form of insurance, but most states do not.
Is Gap Protection for you? Talk to the person considering your auto loan. Car buyers who are putting little or no money down on a car may need Gap Protection. If you are transferring the balance of previous car loans into the current car loan or taking out an extended car loan like a 60 month loan you may need the extra protection. Any car buyer who will owe more than their car is worth needs Gap Protection.
You have to take figure out the expected depreciation on the car you are buying and the rate of equity accumulation through your auto loan. This will help you figure how big a gap you’ll have and for how long.
Some lenders or leasing companies include the coverage in the agreement for the their own protection. This is common in lease contracts. The decision to buy gap coverage is easy. Deciding who to buy it from is much more difficult.
You can get Gap Coverage for your car loan from your Credit Union or another lender, online sellers of gap protection, or your auto insurance company. Each option is different, so read on before you decide on an option.
On the Internet, it’s easy to explore these options. You can do a search for the information there or go to your favorite search engine like google or yahoo and use the keywords “gap protection” or “auto loan gap coverage”. Make sure that you check out any company you find on the web before you give them your credit card information. You don’t want to end up with a provider that won’t be there to help you cover the gap in your car loan if something happens.
Your Auto Insurance Carrier: Not all insurance companies carry gap protection for your car loan. Check with your agent. Check to see if they already included gap protection in your car loan and how much coverage they gave you. You may need more than they offer. The cost of gap protection is relative to the value of your car. The more expensive the car, the more it will cost, and the more coverage you need.
Also, very important to keep in mind. Your insurance company or other provider will continue to bill you for gap protection every month. It’s up to you to calculate and decide when you no longer need it. In other words you need to know when you will be out of the hole. You need to know when there is no longer a gap between the value of your car and the amount you owe on your car loan.
The Automobile Dealer or whoever gave you your car loan is another source for buying gap protection. This is done at the time you get your car loan so bring it up right away if you choose this option. Some lenders may let you purchase it later, but it’s best if you buy it when getting your loan. As soon as you drive the car off the lot, it becomes a used car.
The cost is normally a one-time charge, typically the same set price for all customers buying the same coverage. Buyers may roll the fee into the total loan amount and include it in the monthly loan payments. Dealerships usually do not have the best rate for gap protection. You may want to choose another option. The average price for gap protection through auto dealers is about $500. You may be able to get the same protection for your car loan through your credit union or bank for as low as $250.
Make sure your gap protection also covers the deductible. Look for other features such as automobile replacement or money towards a new car in the event something happens. So don’t let just price be your guide when choosing who to buy gap protection from.
Greg Lucas
http://www.articlesbase.com/automotive-articles/do-i-need-gap-protection-for-my-car-loan–106498.html
Car Insurance – Understand What You Pay for
It is easy for any car owner to get the best and ideal car insurance that suits his pocket spending power. Even if you are going to extremely use the automobile, you will get an insurance cover that will suit you; the difference will be noticed in the rates you pay eventually. Your rates will soar if your car usage is seen as extreme and you will pay low rates if you are termed a low risk.
What makes your auto insurance cover ideal is determined by your income. Even if you are termed “high risk†because you are a stunt driver for sports and movies; we all know that stunt guys take home a lot of money at the end of each show. This type of job makes you rich so what the stunt guy sees as ideal is very different from that of the regular office worker who will only drive to work and drive back home when he is done with work for that day; and may be have a fun cruise with family on special days.
Your monthly wage and the use of the vehicle is really important for you to know your ideal auto insurance cover.
A rich superstar won’t bother paying high rates for his expensive high-end double performance automobile for the simple fact that it suits his budget.
For normal automobile drivers, the simplest way to enjoy lower rates and better cover deals for your car starts with you getting a car that suits your income. Do not buy the expensive sports cars if your monthly wage can not pay the high rates.
It is easy to get the service that suits your budget and most times getting this information is free.
Where To Start Online? Click Here: Cheap Auto Insurance
NDIMELE IKECUKWU PHELIM
http://www.articlesbase.com/insurance-articles/car-insurance-understand-what-you-pay-for-738105.html
Tennessee Car Insurance
Unlike most states, Tennessee car insurance is required not by all drivers to insure vehicles for use on roads and highways. However, you have to comply with financial responsibility laws, this means that your licenses can be suspended if you are not insured and get a violation or get into an accident causing more than $50 worth of damage. The first step in getting insurance would be to get a Tennessee car insurance quote, you can do that by contacting a car insurance agent or a insurance company provider directly. When contacting an agent or an insurance company request different coverages in order to see what coverages is the right one for you and your budget.
Insurance rates can be a financially nightmare but getting Tennessee Car insurance doesn’t have to be one also. The fact is that everyone has to pay for insurance but no one like to pay for it. So when getting a car insurance quote in Tennessee ask how you can reduce your rates, because everyone likes to save a little bit of money. When you have automobile insurance in Tennessee you have coverages for any accidents that can occur at anytime.
In Tennessee insurance is not required but being financial responsible is, this means that you must have some form of evidence, either proof of insurance (an insurance card or statement from an insurance company that does business in Tennessee) or proof from the Department of Safety, stating that you have placed a deposit or bond covering the requirements of financial responsibility.
Being financial responsible might mean that you purchase Tennessee car insurance, and the best way is to purchase the required minimum liability policy in the state. Any minimum liability policy on car insurance in Tennessee will include bodily injury coverage of at least $25,000 per injured person up to a total of $50,000 per total accident, and property damage liability coverage with a minimum limit of $10,000. Every insured in this state will have these limits of liability but there are also other coverages to think about such as collision & comprehensive and rental reimbursement.
Even though insurance is not required in this state, it’s a good idea to have and saving money on Tennessee car insurance and have a cheap car insurance is not that difficult. Doing a little bit of research is a great way to help you find the best auto insurance policy that is best suited for your needs. One example would be, go out and get as many quotes on car insurance in Tennessee as possible and then compare the quotes to whichever fits you. Remember to always find the best ways to save on insurance with the best coverages for your needs.
Thoran
http://www.articlesbase.com/automotive-articles/tennessee-car-insurance-741635.html
Driving Under The Influence (DUI) And Car Insurance Don’t Mix
Drinking and driving is obviously a mistake for many reasons. One of the effects of a ‘driving under the influence’ conviction that many people fail to realize – is just how severely your car insurance rates can be affected. If you’re covered by a policy at the time you’re convicted of a DUI, your rates may increase dramatically or your policy may be canceled. If you don’t have car insurance at the time of a DUI conviction, you may find it very difficult securing future coverage.
Below, you’ll learn more about how drunk driving can affect your car insurance policy and your rates. We’ll also describe the purpose of an SR-22 form, which may be a requirement if you are convicted of a DUI offense and wish to legally drive again. Also, we’ll offer a few tips that you can use to get car insurance in the event that you’re caught driving under the influence.
The Purpose Of An SR-22 After a DUI Offense
Driving under the influence carries significant consequences. If you’re caught and convicted of a DUI, you’ll likely be required to file an SR-22. In its simplest form, an SR-22 is a legal statement (document) that validates that you have adequate car insurance coverage. An offender’s suspended driver’s license is usually returned when this statement is filed.
Most states (there are a few exceptions) legally require drivers who have received a DUI conviction to file an SR-22 with their local Department of Motor Vehicles (DMV). Some car insurance carriers offer special SR-22 coverage for “high risk” drivers, charging much higher premiums. Other insurers won’t offer such coverage and will simply cancel a “high risk” driver’s policy.
An SR-22 form can be obtained from your auto insurance company (once they have decided to insure you) when purchasing your car insurance.
A DUI Can Remain Under The Radar – For a While
Occasionally there’s somewhat of a disconnect between the local court system and the local department of motor vehicles. DUI convictions are supposed to be delivered to the DMV that is located in the jurisdiction of the court. Sometimes, this fails to happen. When a DUI offense isn’t reported to a driver’s local DMV, that driver’s DUI offense may remain hidden, and that driver may be able to effectively avoid filing an SR-22, because their alcohol-related offense is not immediately discovered by their car insurance company. Though this does happen on occasion, insurance providers can eventually learn of a policyholder’s DUI – even years later, and act accordingly.
If You’ve Been Convicted, Don’t Wait To Shop Around For An SR-22 Insurance Policy
A common mistake among those who have been convicted of driving under the influence is waiting until their car insurance policy has been canceled before finding an alternative. If your current provider is canceling your policy, it’s likely because they know about your DUI from your driving record at the DMV. In that case, anticipate other providers discovering your DUI, too.
It’s much more difficult to find a carrier that is willing to offer an SR-22 insurance policy when you’re not already covered. Shop early while you still have coverage from your current carrier. If you find that the larger, established insurance carriers are unwilling to insure you, you may want to check with the independent agents in your area.
Picking Up The Pieces And Planning Ahead After a DUI
Driving under the influence can have a dramatic impact on your car insurance for several years. It can substantially increase your rates or cause your current provider to cancel your policy. In short, a DUI severely limits your options. But, if a DUI conviction is in your past, don’t let it dissuade you from shopping for car insurance. Assuming the DMV has recorded your DUI in their records, you’ll need to pay higher premiums for your policy, but, the alternative – driving without coverage – can lead to hefty penalties, financial loss and even jail time.
Remember, while a DUI conviction can stay on your record for a decade, car insurance companies will typically only use it for premium scoring for 3 years (sometimes less).
Obviously it’s in everyone’s best interest to just say no to drinking and driving. However, if you’re learning this lesson a bit late, it’s best to know your options, plan ahead and work diligently toward putting the experience behind you.
Kade Phillips
http://www.articlesbase.com/insurance-articles/driving-under-the-influence-dui-and-car-insurance-dont-mix-1087960.html
Filing Auto Insurance Claims
The auto insurance policy that you have purchased is useful only if you are familiar with the auto insurance claims. Filing an auto insurance claim is essential to cover the financial loses caused by accident, theft, vandalism, etc. People who are completely familiar with the auto insurance claims can deal with such situations in a better way. Here are some points that are essential to be considered while filing an auto insurance claim:
Find out the level of damage or injuries and call the police: Determine the extent of damage done to your car and see if anyone needs medical attention. It is recommended to call the police directly even if it is a minor accident as you would need a police report while filing the auto insurance claim.
Get information of the other driver involved in the accident: It is very important to get license plate number, contact information, vehicle identification number, and auto insurance information of the other person involved in the accident. Also give the same information of yours to the other driver. You can obtain the information like vehicle identification number, insurers’ telephone numbers, etc. from your insurance identification card.
Look for witnesses and get their contact information: If there are any witnesses to the accident, try to obtain the names and phone numbers of those who are interested in telling what they saw. Your insurance company may ask for witness statements and they can prove to be very helpful to your auto insurance claim.
Inform your insurance agent about the accident: Inform your insurance agent about the accident as soon as possible. If possible, call your agent when you are with police as the police officer can provide more accurate information to your insurance company. This step can help you in saving additional time and hassles when you file your auto insurance claim later on.
File under another party’s insurance provider: If the accident did not happen because of your mistake, you can ask either your insurance company or other driver’s insurance company to recover the damage done to your car.
To get auto insurance quotes from the top insurance companies of your area, log on to http://www.2insure4less.com. Here you get free insurance information and low auto insurance quotes from best insurance providers.
Tom Evens
http://www.articlesbase.com/insurance-articles/filing-auto-insurance-claims-727920.html
What Level Of Auto Insurance Do You Need?
The level of auto insurance that someone might need depends on the financial circumstances of the individual concerned and the cost of the car involved. Take for example someone who has a brand new $50,000 motor, it would be sheer folly to do anything other than take out one of the best auto insurance policies available and the cost of the auto insurance is likely to be insignificant when considering the overall annual cost of the car.
However, if you have a car that is nearing the end of its life, have a low cost car and previous claims or are a new driver then the cost of the auto insurance versus the benefits you might receive need to be given greater consideration. Comprehensive auto insurance premiums are likely to be disproportionately high for older vehicles, new drivers with low cost autos or drivers with accident history.
Whatever your circumstances you are legally obliged to take out a basic level of auto insurance that will cover you against third party claims and given the level of damages awarded seem to be increasing out of control then my advice would be to get the best possible third party liability auto insurance cover that you can afford.
The legal requirements for auto insurance does vary from state to state so you’ll need to clarify the level of cover you require when taking out auto insurance but only insuring to the legal minimum isn’t necessarily the best choice to make.
If you have a lot of money sunk into your car or your auto is leased then you really should take out comprehensive and collision auto insurance to cover you for things such as fire, theft, acts of god or collisions that are your own fault.
If you live in an area where cars are regularly vandalised you might want to consider comprehensive auto insurance when perhaps you wouldn’t have otherwise done so. The cost of your auto insurance will generally be higher if you live in such an area but that is something you have to weigh up against the cost of repair.
Personal Injury Protection is something that everyone should consider as this element of your auto insurance will cover medical costs associated.
Despite legal requirements some people still persist in driving around without auto insurance leaving the others with a need to insure against the uninsured motorist. Uninsured auto insurance will cover you for damages in the event of an accident with an uninsured motorist. Again, insurance that everyone should give serious consideration to given an auto accident could leave you unable to work or your family without any means to earn.
If you want a more comprehensive auto insurance policy but want to limit the cost then you could look at opting for a higher level of deductibles. Deductibles are the amount you would have to pay before you could make a claim against your auto insurance policy and generally, the higher level you agree to the lower your auto insurance premiums.
Terry Ross
http://www.articlesbase.com/automotive-articles/what-level-of-auto-insurance-do-you-need-62121.html
Car Insurance – Understand What You Pay for
It is easy for any car owner to get the best and ideal car insurance that suits his pocket spending power. Even if you are going to extremely use the automobile, you will get an insurance cover that will suit you; the difference will be noticed in the rates you pay eventually. Your rates will soar if your car usage is seen as extreme and you will pay low rates if you are termed a low risk.
What makes your auto insurance cover ideal is determined by your income. Even if you are termed “high risk” because you are a stunt driver for sports and movies; we all know that stunt guys take home a lot of money at the end of each show. This type of job makes you rich so what the stunt guy sees as ideal is very different from that of the regular office worker who will only drive to work and drive back home when he is done with work for that day; and may be have a fun cruise with family on special days.
Your monthly wage and the use of the vehicle is really important for you to know your ideal auto insurance cover.
A rich superstar won’t bother paying high rates for his expensive high-end double performance automobile for the simple fact that it suits his budget.
For normal automobile drivers, the simplest way to enjoy lower rates and better cover deals for your car starts with you getting a car that suits your income. Do not buy the expensive sports cars if your monthly wage can not pay the high rates.
It is easy to get the service that suits your budget and most times getting this information is free.
Where To Start Online? Click Here: Cheap Auto Insurance
NDIMELE IKECUKWU PHELIM
http://www.articlesbase.com/insurance-articles/car-insurance-understand-what-you-pay-for-738105.html
Car Insurance – Evaders are Targeted
A new ruling has said that soon it will not only be an offence to drive without car insurance but also to own a car that’s not insured. Motorists could be given a £1,000 fine and even have their vehicle taken from them thanks to a new database. The aim of this is to target the 6% of motorists who drive without insurance. The plan is that the new legislation will allow the Motor Insurance Bureau to cross-reference its records with the Driver Vehicle Licensing Agency so that they can easily find those who haven’t got their car insured. Transport Minister Jim Fitzpatrick told the BBC Radio 4 Today programme that the aim was to find drivers with no insurance who are endangering others on the roads and remove their cars so that they are unable to drive anywhere. Fitzpatrick continued to tell the Radio 4 Today programme that a total of 150,000 cars were seized by police last year and that if the legislation comes into power, that number will continue to grow. Plans will see uninsured vehicle owners issued with a letter asking why their car isn’t covered. For those people who may collect vintage cars or keep the cars for tinkering with in the garage will be exempt from the new plans but they must apply for a Statutory Off Road Notice (Sorn). If a person has no reasonable explanation as to why they have no car insurance then they would find themselves liable for a fixed penalty fine £100 which will rise to £1,000, and they could also face a possible court action to seize their vehicle. In order to find cheap car insurance quotes so that you won’t be receiving the letter in the post, the best thing to do is to search on the internet for different prices to compare.
The aim of a new policy is to take drivers off the road who have no insurance . If people don’t have reasonable explanations as to why they have no car insurance then they will receive a penalty fine. To find cheap car insurance quotes it’s best to search the internet.
Gill Critchley
http://www.articlesbase.com/insurance-articles/car-insurance-evaders-are-targeted-730119.html
Driving Under The Influence (DUI) And Car Insurance Don’t Mix
Drinking and driving is obviously a mistake for many reasons. One of the effects of a ‘driving under the influence’ conviction that many people fail to realize – is just how severely your car insurance rates can be affected. If you’re covered by a policy at the time you’re convicted of a DUI, your rates may increase dramatically or your policy may be canceled. If you don’t have car insurance at the time of a DUI conviction, you may find it very difficult securing future coverage.
Below, you’ll learn more about how drunk driving can affect your car insurance policy and your rates. We’ll also describe the purpose of an SR-22 form, which may be a requirement if you are convicted of a DUI offense and wish to legally drive again. Also, we’ll offer a few tips that you can use to get car insurance in the event that you’re caught driving under the influence.
The Purpose Of An SR-22 After a DUI Offense
Driving under the influence carries significant consequences. If you’re caught and convicted of a DUI, you’ll likely be required to file an SR-22. In its simplest form, an SR-22 is a legal statement (document) that validates that you have adequate car insurance coverage. An offender’s suspended driver’s license is usually returned when this statement is filed.
Most states (there are a few exceptions) legally require drivers who have received a DUI conviction to file an SR-22 with their local Department of Motor Vehicles (DMV). Some car insurance carriers offer special SR-22 coverage for “high risk” drivers, charging much higher premiums. Other insurers won’t offer such coverage and will simply cancel a “high risk” driver’s policy.
An SR-22 form can be obtained from your auto insurance company (once they have decided to insure you) when purchasing your car insurance.
A DUI Can Remain Under The Radar – For a While
Occasionally there’s somewhat of a disconnect between the local court system and the local department of motor vehicles. DUI convictions are supposed to be delivered to the DMV that is located in the jurisdiction of the court. Sometimes, this fails to happen. When a DUI offense isn’t reported to a driver’s local DMV, that driver’s DUI offense may remain hidden, and that driver may be able to effectively avoid filing an SR-22, because their alcohol-related offense is not immediately discovered by their car insurance company. Though this does happen on occasion, insurance providers can eventually learn of a policyholder’s DUI – even years later, and act accordingly.
If You’ve Been Convicted, Don’t Wait To Shop Around For An SR-22 Insurance Policy
A common mistake among those who have been convicted of driving under the influence is waiting until their car insurance policy has been canceled before finding an alternative. If your current provider is canceling your policy, it’s likely because they know about your DUI from your driving record at the DMV. In that case, anticipate other providers discovering your DUI, too.
It’s much more difficult to find a carrier that is willing to offer an SR-22 insurance policy when you’re not already covered. Shop early while you still have coverage from your current carrier. If you find that the larger, established insurance carriers are unwilling to insure you, you may want to check with the independent agents in your area.
Picking Up The Pieces And Planning Ahead After a DUI
Driving under the influence can have a dramatic impact on your car insurance for several years. It can substantially increase your rates or cause your current provider to cancel your policy. In short, a DUI severely limits your options. But, if a DUI conviction is in your past, don’t let it dissuade you from shopping for car insurance. Assuming the DMV has recorded your DUI in their records, you’ll need to pay higher premiums for your policy, but, the alternative – driving without coverage – can lead to hefty penalties, financial loss and even jail time.
Remember, while a DUI conviction can stay on your record for a decade, car insurance companies will typically only use it for premium scoring for 3 years (sometimes less).
Obviously it’s in everyone’s best interest to just say no to drinking and driving. However, if you’re learning this lesson a bit late, it’s best to know your options, plan ahead and work diligently toward putting the experience behind you.
Kade Phillips
http://www.articlesbase.com/insurance-articles/driving-under-the-influence-dui-and-car-insurance-dont-mix-1087960.html
Discount Auto Insurance – Save $300 to $500 a Year!
You can find everything online these days, even car insurance. Here I’ll show you how to get discount auto insurance from top-rated companies quickly and easily.
Get Online Quotes
The only way to get the cheapest discount auto insurance is to comparison shop, and the easiest way to do that is to shop online.
All the top companies – American Family, State Farm, Allstate – maintain websites where you can get online quotes. But it can take all day going from site to site, filling out forms and talking to agents, in search of discount auto insurance.
Now, there’s a better way. There are comparison auto insurance websites that have A-rated companies all under one roof. All you need to do is spend a few minutes filling out a simple online questionnaire and you’ll receive a number of quotes from those companies.
Believe me, there’s no better way to find cheap auto insurance. It’s fast, it’s easy, and it’s free!
Get Maximum Discounts
Part of the form-filling process is to include the discounts you want so you can get your car insurance at the best possible price. Some of the discounts you may want to consider are:
* Combining your auto insurance with your homeowners insurance: 10% – 15% discount.
* Raising your deductible to $500 or $1,000: 10% – 50% discount.
* Insuring both your cars with the same company: 10% – 15% discount.
* Dropping your collision coverage if you drive an older car: 15% – 30% discount.
Bottom Line
A few minutes spent searching for discount auto insurance online can save you $300 to $500 or more on your car insurance premium. Why not give it a try and see how much you can save.
Visit http://www.LowerRateQuotes.com or click on the following link to receive free car insurance quotes from AAA-rated companies and get discount auto insurance rates. You can get more insurance tips by checking out their “Articles” section.
The author, Brian Stevens, is a former insurance agent and financial consultant who has written a number of articles on how to get discount auto insurance.
ryan@thesatellitetvguide.com
http://www.articlesbase.com/insurance-articles/discount-auto-insurance-save-300-to-500-a-year-108635.html