Insurance

Apache is functioning normally

Apache is functioning normally

According to a report prepared by the Congressional Research Service (CRS) earlier this month, there would be several immediate impacts following the program’s expiration.

“The authority to provide new flood insurance contracts will expire,” the CRS report said. “Flood insurance contracts entered into before the expiration would continue until the end of their policy term of one year.”

The borrowing authority of NFIP from the U.S. Treasury would also be reduced from $30.245 billion to $1 billion. Flood mitigation assistance grants would still be available, but “the expiration of the key authorities listed above would have potentially significant impacts on the remaining NFIP activities,” the CRS explained.

There would also be a chilling effect on the mortgage industry, according to experts and lawmakers.

“By law or regulation, federal agencies, federally regulated lending institutions and government-sponsored enterprises must require certain property owners to purchase flood insurance as a condition of any mortgage that these entities make, guarantee, or purchase,” the CRS report said.

Without NFIP, mortgage activity would be seriously diminished, as Sen. John Kennedy (R-Louisiana) stated.

“If for some reason the flood insurance program expires, existing policies are still in effect until their expiration date, and claims will continue to be paid as long as FEMA has money,” Kennedy said on the Senate floor on September 13. “However, the federal requirement that you have to purchase flood insurance under certain circumstances to get a mortgage would be suspended, which means that many mortgage companies would not loan the money to homeowners.”

In previous instances when NFIP lapsed, mortgage activity was temporarily halted. However, according to the CRS report, Congress eventually moved to reauthorize the program retroactively.

“In past NFIP lapses, borrowers were not able to obtain flood insurance to close, renew, or increase loans secured by property in [a Special Flood Hazard Area (SFHA)] until the NFIP was reauthorized,” the report said. “During the lapse in June 2010, estimates suggest over 1,400 home sale closings were canceled or delayed each day, representing over 40,000 sales per month. These figures applied to residential properties, but commercial properties were also affected by the NFIP lapse.”

The National Association of Realtors (NAR) has prepared an FAQ document to advise members of the potential impacts an NFIP lapse would have on the housing industry. They specify that a currently debated continuing resolution (CR) that would fund the federal government after September 30 includes an NFIP extension. Still, political observers and some in Washington are preparing for government funding to lapse.

The White House on Friday instructed federal agencies to prepare for a shutdown, according to reporting from the Associated Press.

“With the October 1 start of a new fiscal year and no funding in place, the Biden administration’s Office of Management and Budget began to advise federal agencies to review and update their shutdown plans, according to an OMB official,” the AP report said. “The start of this process suggests that federal employees could be informed next week if they’re to be furloughed.”

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

This article originally appeared on RickOrford.com and has been republished here with permission.

Car owners throughout the U.S. almost always need to have a car insurance policy. With the financial considerations involved and the risks drivers face on the road, it’s important to weigh the cost of car insurance carefully. Do you think your car insurance is too high? If so, you can find cheap car insurance by shopping around. 

In certain ways, your car insurance costs may be a reflection of you and your driving habits. Auto insurance providers often base the rates they charge on important factors. Some of these include your credit score, where you live, your driving record, and the type of car you drive. Therefore, if your premiums recently shot up or seem too high, you need to determine the possible reasons for it. 

Reason #1: You Have Bad Credit

In most states, auto insurance companies use your credit score when calculating your car insurance premiums. Therefore, if you have a poor credit score, you may end up having to pay higher insurance premiums. However, the cost increase may depend on the auto insurance provider you choose and where you live. 

According to the Insurance Information Institute, credit-based insurance scores are confidential ratings based on the insured individual’s credit information. Many insurance providers use credit scores in combination with other factors to help determine premiums. This is typically the case for insurance lines such as personal car insurance. 

Reason #2: Poor Driving Record

Before giving you a car insurance policy, all insurance providers will want to know your complete driving record. This includes your traffic violations and accidents you had in the past. Even if the handful of accidents you had did not happen recently, you might still have to pay higher insurance premiums. The same applies to traffic violations. 

However, if you have a clean driving record, you should enjoy lower insurance premiums. When it comes time to renew your policy, your insurance provider will check your driving record for DUIs, accidents, speeding tickets, and other traffic violations. 

Your premiums may increase by as much as 20% after a speeding ticket. A DWI or DUI will cost you significantly more. You will also have to pay steep fines and attorney fees, in addition to an average premium increase of up to $800. 

The reason for this difference in rates is that drivers with poor records are more likely to make more claims in the future. 

Reason #3: Coverage Levels and Types

The type of coverage you choose and the level of insurance you have can greatly influence your insurance rates. Every state decides its own rules and requirements for minimum coverage requirements on any type of policy. 

For example, some states have basic minimum requirements for property damage and bodily injury coverage. Others require additional coverages such as underinsured and/or uninsured motorists and personal injury protection or medical payments coverage. 

A state like South Carolina, for instance, requires drivers to carry the following:

  • A minimum coverage of $25,000 per person for bodily injury
  • $50,000 per accident
  • $25,000 in uninsured motorists’ coverage and property damage coverage within the same limits

Since the minimum requirements for drivers differ by state, you may start with different rates and coverages just on a basic liability insurance policy alone. Furthermore, if your car has a lien, you may need to have additional coverage or higher limits, which would affect your annual rates. 

The answer to the question “Why is my car insurance so high?” may lie in the type of coverage you have. Generally, the more coverage your car has, the more you should expect to pay.

For example, do you have a full coverage insurance policy, which includes collision and comprehensive coverage? If so, it may cost you about 170%  more in premiums than a policy with liability coverage only. 

Reason #4: Your Claim History

Even if you only have a couple of accidents on your driving record, the resulting payouts will impact your insurance premiums. Of course, a driver with a couple of minor fender benders is a significantly lower risk than one who previously totaled several cars. 

Whether the accidents were your fault or not, the number of claims you file will have an impact on your insurance rates. A no-fault accident can lead to a 10% increase in your premium and remain on your record for up to three years. 

However, some states do not allow insurance providers to increase premiums after a no-fault accident. However, filing a claim for such an accident will still count towards your total number of claims. 

Related read: How an Accident Can Affect Your Credit Score

Reason #5: Your Car

When setting premium rates, car insurance providers consider the type of car to be insured. Some types of cars are more likely than others to keep occupants protected in the case of an accident. This results in lower insurance rates.

However, drivers of high-powered cars such as sports cars are statistically more likely to drive recklessly. This makes these drivers more likely to cause accidents, resulting in higher insurance rates. 

According to some studies, safer and bigger cars, such as small SUVs and minivans, tend to have the most reasonable rates of insurance. Smaller cars, on the other hand, have surprisingly high rates. One reason for this could be because they tend to sustain more extensive damage in a crash. 

Reason 6: Where You Live

Car insurance costs vary widely across the United States. If you reside in Michigan, one of the most expensive states for auto insurance, you can expect to pay several times more than people living in Maine, for example. 

Various factors affect insurance rates in each state. These include the number of uninsured drivers, condition of the road network, minimum coverage amounts, and more. That said, you need to understand that insurance rates can vary within a state or city as well. 

For example, if you live in an area with narrow roads that frequently lead to accidents, you may have to pay more for insurance than you would if you lived elsewhere. Those who live in areas with high rates of auto thefts tend to pay more for car insurance as well. 

Reason #7: Your Age or Gender

“Why is my car insurance so high?” This is a question many younger drivers tend to ask. According to the Insurance Information Institute, mature drivers tend to have fewer accidents than less experienced drivers, especially teenagers. This is the reason less experienced drivers pay more for car insurance. 

Also, your insurer will charge you more if you let teenagers and young adults below 25 drive your car. If you have young drivers on your insurance policy, you may end up paying higher premiums.

Your gender may also affect how much you pay for car insurance. Statistically, men tend to get into more accidents and have more DUI-related accidents. Furthermore, they tend to have more serious accidents than women. These are the reasons why women tend to pay less for car insurance than men. 

Young men are likely to pay a lot more for auto insurance. A 20-year-old man, for example, may have to pay about 16% more on his insurance premium than a woman of the same age.

However, as drivers age, the difference in rates tends to even out. Often, older women pay slightly more for car insurance than men of the same age. However, in this case, the difference in rates is quite small. 

Reason #8: Your Insurance Company

Your car insurance may be expensive because your insurance provider charges higher rates. Rates vary dramatically among different insurance providers. Therefore, you could be paying significantly more than necessary. 

According to one study, among the top ten auto insurance providers nationwide, the average price of basic coverage for a good driver is about $440 for six months. However, that same driver could be paying just $309 from one company or as much as $625 from another of the top companies.

Therefore, if you have a good driving record, you could save up to 51% in insurance savings by switching companies. 

Reason #9: Your Driving Patterns

Simply put, you and your insurance provider are at higher risk the more often you’re on the road and the further you drive. If you travel great distances to and from work, driving your car may eliminate some of the inconvenience. You just listen to your favorite music or podcasts to pass the time as you drive to work every day. 

However, you may be paying a higher insurance premium for that convenience. When you apply for insurance coverage, your insurance provider will want to know where you work and where you live. This will help them have a better idea of how far you drive regularly. 

Reason #10: You Have Low Deductibles

When buying car insurance, car owners typically choose a deductible. This is the amount they would need to pay before the insurance provider picks up the tab in the event of theft, an accident, or any other type of vehicle damage. 

Depending on the type of policy you choose, your deductibles may range from $250 to $1,000. However, there’s a catch. Generally, the lower your deductibles are, the higher your annual insurance premium is. 

Reason 11: You Pay for Coverage You Don’t Need

If you think your car insurance is too costly, you need to take a closer look at your policy. Do you need to pay for things such as car rental coverage and roadside assistance? Although such coverage can provide some convenience, they are not the most important things to pay for. 

Reason #12: You Have Gaps in Your Car Insurance

Many auto insurance companies consider the continuity of a car owner’s auto insurance. If you’ve had lapses or gaps in your car insurance history, you may be pegged as a high-risk car owner. As a result, your premium rates may increase by as much as 8% per year. The rate increase goes up to 35% if the coverage lapse extends beyond 30 days.

These penalties may also vary depending on your auto insurance provider. Make sure you ask your provider about how an insurance lapse would affect your premium rates.

The Bottom Line

To find out why your insurance rates seem to be expensive, you must first understand how auto insurance companies determine your rates. Fortunately, in most cases, you can do something about your unnecessarily high car insurance premiums. This may involve adjusting your driving habits or filing fewer claims, if possible.

In addition to shopping around for the best auto insurance rates and the right policy, you should look for discounts as well. These discounts may be applicable to drivers with good records, student drivers, and members of the military. Check your provider’s website to determine the types of discounts they offer. 

The more information you have, the easier you can identify the factors contributing to your car’s high insurance rates. 

Source: credit.com

Apache is functioning normally

Apache is functioning normally

In the United States, it’s illegal to drive a car without car insurance. Depending on the state you’re driving in, the consequences of doing so can range from a fine to a misdemeanor on your record. So, if you’re planning on hitting the road anytime soon, be sure to purchase car insurance to avoid penalties. 

In this article, we’ve researched the average cost of car insurance by state to give you a better idea of how much to budget.  

Key findings: 

  • According to AAA, the national average cost of car insurance for a full-coverage policy was $1,588 in 2022.
  • On average, the cheapest states for full coverage car insurance are Ohio, Maine and Idaho, while the most expensive states are Florida, Louisiana and Michigan. 
  • USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico and Nationwide offer the cheapest full-coverage insurance. 
  • The average cost of car insurance tends to decrease with age, but starts to rise again around age 70. 
  • Individuals with high credit scores pay lower car insurance premiums on average compared to those with poor credit. 

How much is car insurance?

According to AAA, the national average cost of car insurance for a full-coverage policy was $1,588 in 2022. This figure is based on an under 65 years old driver who lives in the city or suburbs, has over six years of driving experience, and has not been involved in any accidents. 

Average cost of car insurance by state

When calculating the cost of car insurance, the state you live in plays a role in how much you can expect to pay. This is because factors like population density, climate, road conditions and crime rate in your area can play a part in the likelihood that you’ll file a claim.  

According to insurance.com, the cheapest states for car insurance if you’re looking for minimum coverage are Iowa, South Dakota and Wyoming costing an average of $263, $267, and $293, respectively. Meanwhile, the cheapest states for full coverage auto insurance are Ohio ($1,023), Maine ($1,116), and Idaho ($1,121). 

The most expensive states for car insurance in terms of minimum coverage are New Jersey, Florida, and New York where drivers pay an average of $989, $908 and $875, respectively. For full coverage insurance, drivers in Florida ($2,560), Louisiana ($2,546), and Delaware ($2,137) pay the most in the country on average. 

State

Minimum coverage

Full coverage

AK

$336

$1,359

AL

$420

$1,542

AR

$422

$1,597

AZ

$494

$1,617

CA

$582

$2,115

CO

$467

$1,940

CT

$773

$1,750

DE

$821

$2,137

FL

$908

$2,560

GA

$567

$1,647

HI

$389

$1,306

IA

$263

$1,321

ID

$326

$1,121

IL

$484

$1,578

IN

$384

$1,256

KS

$389

$1,594

KY

$717

$2,105

LA

$726

$2,546

MA

$523

$1,538

MD

$607

$1,640

ME

$330

$1,116

MI

$711

$2,133

MN

$479

$1,493

MO

$525

$2,104

MS

$434

$1,606

MT

$389

$1,692

NC

$396

$1,368

ND

$340

$1,419

NE

$350

$2,018

NH

$411

$1,307

NJ

$989

$1,901

NM

$376

$1,505

NV

$683

$2,023

NY

$875

$2,020

OH

$308

$1,023

OK

$352

$1,797

OR

$551

$1,244

PA

$398

$1,445

RI

$648

$1,845

SC

$628

$1,894

SD

$267

$1,581

TN

$368

$1,373

TX

$520

$1,875

UT

$526

$1,469

VA

$469

$1,321

VT

$306

$1,158

WA

$505

$1,371

WI

$375

$1,499

WV

$474

$1,610

WY

$293

$1,736

Average cost of insurance by company 

Another factor that’s going to influence how much you can expect to pay for car insurance is the specific company you purchase your plan through.  

According to U.S. News & World Report, USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico, and Nationwide offer the least-expensive full-coverage insurance. 

Farmers, Progressive, and Nationwide offer the most expensive minimum coverage rates while Allstate, Farmers, and Progressive offer the most expensive full coverage plans. 

Insurance company

Minimum coverage

Full coverage

Allstate

$1,961

$2,138

American Family

$1,327

$1,388

Farmers

$1,782

$2,059

Geico

$1,064

$1,238

Nationwide

$1,347

$1,338

Progressive

$1,440

$1,650

State Farm

$1,191

$1,348

Travelers

$1,290

$1,448

USAA

$948

$1,056

Average cost of insurance by age 

According to CarInsurance.com, the cost of both minimum and full coverage car insurance tends to decrease with age, as seen in the chart below. However, there is an uptick around age 70 where rates start to go back up.  

Age

Minimum coverage

Full coverage

20

$1,109

$3,532

30

$539

$1,785

40

$520

$1,682

50

$496

$1,581

60

$482

$1,511

70

$554

$1,661

Average cost of insurance for young drivers

Young drivers are the most expensive age group to insure. Although there are a few exceptions, insurance rates decrease with age among young drivers. 

Age

Minimum coverage

Full coverage

16

$2,402

$7,203

17

$1,971

$5,924

18

$1,706

$5,242

19

$1,234

$3,874

20

$1,109

$3,532

21

$884

$2,864

22

$794

$2,593

23

$736

$2,415

24

$690

$2,267

Average cost of insurance by credit score 

According to the Insurance Information Institute, your credit score is a good indicator of how many insurance claims you’ll file. As a result, insurance companies use credit scores to determine risk, and those with a good credit score pay cheaper premiums. The Zebra found that individuals with poor credit pay approximately 114% more than those with great credit. 

Credit score

Average annual rate

Very poor (300-579)

$2,887

Average (580-669)

$2,296

Good (670-739)

$1,912

Excellent (740-799)

$1,606

Exceptional (800-850)

$1,350

What factors affect your car insurance rate?

As you can see from the above charts, the cost of car insurance varies by the following factors: 

  • Age: Typically, young drivers under the age of 25 and senior drivers over the age of 65 are charged more for car insurance. 
  • State of residence: Since the minimum coverage required varies by state, your location is one of the factors that will influence the price. 
  • ZIP code: In addition to your state of residence, your ZIP code will also play a role in the cost of insurance since your vehicle is more likely to be damaged in certain areas, such as ZIP codes with high crime rates. Typically, the cost of car insurance will be greater in cities than in rural areas. 
  • Marital status: Statistically, married drivers are less risky than single drivers resulting in a lower insurance cost. 
  • Gender: Based on risk, male teenage drivers tend to have the highest cost of car insurance of any demographic. 
  • Credit history: Those with a low credit score tend to pay higher premiums than individuals with good credit. 
  • Driving record: Since car insurance premiums are based on risk, individuals with a good driving record can expect to pay lower premiums, while those with a poor driving record may experience increased rates. 
  • Car make and model: You may pay less if you drive a vehicle that insurance companies deem safe. On the other hand, you’re likely to pay more if you drive a small sports car since they pose a higher risk. 
  • Mileage: Higher annual mileage increases the risk you’ll get into an accident and will likely raise your premiums. 
  • High-risk violations: Driving under the influence and at-fault accidents are examples of violations that may result in you being considered a high-risk driver. 

What’s the difference between full and minimum coverage? 

Minimum coverage car insurance — liability coverage — is required in most states and is used if you’re at fault in an accident. This coverage will pay for damages and injuries of the other party when you’re responsible for the incident. 

On the other hand, full coverage insurance, or collision coverage, includes liability coverage plus damage caused to your own vehicle. Keep in mind that lenders often require you to obtain full coverage insurance before you get an auto loan. 

FAQ

Below, we’ve answered some common questions regarding the cost of auto insurance. 

Can my driving record affect my car insurance rate? 

Your driving record is one of the factors that affects your car insurance rate. As a result, those with traffic violations or accidents on their record can expect to pay higher premiums. 

Does your car insurance cost go down after you pay off your car?

Your care insurance cost doesn’t typically go down after your pay off your car. However, you do have the option to decrease the amount of coverage on your vehicle once it’s paid off. 

Which car insurance company is the cheapest?

As mentioned above, insurance companies that offer the cheapest plans include Geico, Auto-Owners, USAA and Erie.

Does car insurance decrease annually? 

For young drivers in particular, car insurance rates decrease each year you renew your policy without filing a claim. You can expect to see the biggest drop in price at age 25. 

The average cost of car insurance varies by factors including state, age, insurance company and credit score. Some factors, such as your age, are beyond your control, but other factors, such as your credit score, can be improved. 

Check your credit score for free today to see if it’s a reason your car insurance is high. 

Source: credit.com

Apache is functioning normally

You’ve done your research, checked your credit reports to make sure they’re accurate, and you’re ready to get serious about buying a car. You feel more than ready to sign on the dotted line and drive home in your new ride.

It could happen. Or, you could drive home in your old vehicle, kicking yourself for having forgotten one of the documents you need to finalize the purchase. Here’s how to lay the groundwork for getting the deal done on the day you’re ready to buy.

Four Steps to Prepare to Buy a Car

Step 1:

You’ll want to talk to your insurance agent about what it will cost to insure the make and model you are considering buying. You don’t want that figure to be a surprise, and you also want to find out how soon you will need to notify your insurer you have the new vehicle.

Step 2:

Talk to your bank or credit union and get pre-approved for the loan you’ll need—and do this close to your planned purchase date. You may get something resembling a blank check (up to a certain maximum) that must be signed by you and the dealer. By getting pre-approved, you will know the total loan amount and interest rate you qualify for. Even if you plan to finance at the dealer, it can’t hurt to come in with a pre-approval; you are far less likely to agree to a longer term or higher interest rate because you really want to drive that new car home today. It can also help you stay within your budget by serving as a solid reminder of how much you planned to spend and how long you were willing to make payments — before the showroom floor made it so hard to remember.

Get matched with a personal
loan that’s right for you today.

Learn
more

Step 3:

Make sure you have your driver’s license and proof of auto insurance with you. You shouldn’t be driving without these documents anyway.

Step 4:

Obvious as this seems, be sure you have a way of funding your down payment. If it’s not cash, make sure the dealer accepts the form of payment you’re planning to use. (If you forget to do this, you would not be the first, but that would be little consolation.)

Expert Tip: Be cautious about having your credit pulled unnecessarily. Each inquiry made for the purpose of extending credit can cause a small, temporary decrease in your credit score. And while inquiries for the purpose of getting a car loan made in a two-week period should count as only one entry, we’ve heard from consumers who have told us their credit scores dropped as the result of multiple auto loan inquiries. Some dealerships now ask customers to fill out a credit application even before a test drive, and there are reports that some have checked credit without customer consent. It can help to keep an eye on your credit through this process for this reason. Hard inquiries into your credit require permission, and it can be illegal for your credit to be pulled without your approval in this manner. You can get a credit report summary and two credit scores, updated monthly for free on Credit.com, to track your standing.

Can You Purchase a Car with a Credit Card?

Speaking of your down payment, you may have wondered if this can be charged to a credit card — or if the entire car can be paid that way. The answer is yes and no. It is possible that the dealership will not accept a credit card payment for the car, as this can come with large merchant fees that lower their profits. However, if your credit is in good standing, then it is still possible.

A better option would be to use your credit card for just the down payment. Not only is this better for your credit, since using all of your available $10,000–$15,000 credit limit can damage your credit score, but it’s more likely to be accepted by the dealer.

Finally, you’ll want to use a credit card that has excellent benefits. An appropriate credit card can earn you big rewards on your car purchase or other auto-related purchases. We have given you a couple examples of worthy rewards cards below.

Planning to Trade In Your Car? Don’t Forget These Items for the Dealership

If you plan to trade in a car, you have a bit more to do.

You will need to bring the following items to the dealership:

  • Your car’s certificate of title (If it has gone missing, your state department of motor vehicles can tell you how to get it replaced.)
  • The car’s current registration
  • Your car keys and the owner’s manual
  • Your account number or a payment stub if you still have a car loan (We’re going to hope that if this is the case, your car is worth more than you owe.)
  • A clean car, paying special attention to areas out of sight but convenient for stashing things: under seats, over the visors, in the glovebox and in every corner of the trunk

Besides a new car, expect to come home with a good bit of paperwork. Pay special attention to the purchase and sale agreement. You will need the information there to get or update your insurance — and you might even need it at tax time next year if you bought a car that qualifies for a tax credit.

What Do I Need to Apply for an Auto Loan?

While you won’t need to drive all the way to a dealership to get an auto loan (you can simply apply online), you will still need some important documents in front of you to easily fill out the application.

What do you need?

  • Proof of identity through an ID or passport
  • Your credit report, which the lender can pull using your name, address, date of birth and social security number
  • A valid state-issued driver’s license
  • Proof of monthly income through pay stubs or social security income receipts
  • Proof of residence through mortgage statements or utility bills
  • Contact information for personal references (note: this may not be required)
  • Vehicle make and model
  • Proof of car insurance
  • Payment type (cash, credit, debit, etc.)
  • Your car’s registration if you are trading in the vehicle

The list is rather long, but having each document will speed up the process and prevent you from going back and forth between your files.

Get Your Auto Loan and Car with the Help of Credit.com

Make sure that you can qualify for an auto loan by checking your free credit score, provided through Experian. From there, you can apply for your auto loan with confidence and compare credit cards that can help you finance your new car.

Frequently Asked Questions

Will my credit rating affect my auto insurance rates?

You should choose auto insurance coverage based on your credit rating and overall coverage needs. Check out Credit.com for car insurance quotes and to compare rates.

How can I find a credit card with a low interest rate to charge my car purchase?

We don’t recommend that you put your entire purchase onto your credit card, but there are cards with low APR or no APR for up to 15 months available to compare. If you can pay off the remaining balance during this period, then these credit cards may be for you.

How good should my credit be to get a credit card that is appropriate for a car purchase?

Many of the best rewards credit cards with high credit limits require good or excellent credit. A good credit score is considered 700–749 and anything over 750 is considered excellent.

You mentioned that hard inquiries can affect my credit score. What is a hard inquiry?

A hard inquiry is a credit check that indicates you have applied for credit, usually through a loan. Each time a hard inquiry is pulled from a different lender, your credit score can drop by up to 10 points, because it indicates that a lender has reviewed your credit and that you are trying to open up a new line of credit.

Note: At publishing time, the Chase Sapphire Preferred® Card and American Express Green card are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

More on Auto Loans:

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Source: credit.com

Apache is functioning normally

Apache is functioning normally

Nobody wants to think about dying, which is why many people actively avoid planning for their death. Creating a will, buying life insurance, making funeral arrangements—none of these are fun Friday night activities. Not only can it be unpleasant to think about, but life insurance can also be incredibly difficult to figure out. In fact, only 57% of Americans have life insurance.

Part of a new trend of online companies offering life insurance, Bestow breaks down a sometimes complicated topic so you can easily apply for term life insurance to better help your family plan for the future.

About Bestow

Bestow makes the life insurance
application process easy. You can get a quote in seconds—and coverage in
minutes—when you apply online.

It offers 10- and 20-year term life insurance policies with coverage from $50,000 up to $1 million. Premiums are as low as $8 per month—and they never change throughout the life of the policy, so you’ll always know what to budget for. One of the biggest benefits of Bestow is that it doesn’t require a medical exam as part of the application process.

Insurance companies can be notorious for being stuffy. Lucky for you,
Bestow is technically a life insurance agent: it acts as an intermediary
between you and the insurance provider. Bestow
works specifically with North American Company for Life and Health Insurance®, a well-established life insurance company. So even
though Bestow is new, you don’t have to worry about your policy. Bestow makes
the application process simple, while North American
Company for Life and Health Insurance® issues the policies, plus processes and pays claims.

Who Can Use Bestow

According to the website, you need to be
between 21 and 55 years old, have never had a felony charge, and be generally
in “good health” to qualify for a policy offered by Bestow.
It doesn’t clarify what “good health” means, but the application process asks
questions about your medical history, lifestyle and hobbies. Bestow also says they will
not be able to extend coverage if you have been diagnosed or treated for cancer
in the past ten years. As of publication, 20-year policies are only available
to individuals younger than 45.

Bestow is currently available in every state except New York.

Application Process

Bestow uses data points and artificial
intelligence to determine premiums and coverage. Unlike many other companies that offer life insurance, Bestow does not
require a medical exam for coverage.

The application process pulls available data about you—such as prescription and credit history, driving records, and prior insurance applications—to make a decision.

To start, you’ll need to provide your
name, gender, birth date, height, weight, and state, as well as whether you use
nicotine. That’s all you need to get your free quote! If you like what you see,
you can create an account and answer a few more in-depth questions about your
health and lifestyle, including citizenship, employment, HIV status, and
disability. After you provide your Social Security number and sign, you’ll get your approval and final premium. Your final
number may be higher than your quote based on your health and lifestyle.

You also get a 30-day free “look” period:
you can cancel for a full refund within the first 30 days of purchasing.
Coverage continues through a 60-day grace period from the date of your last
payment.

Making Claims

Your beneficiaries can start the claim
process simply online as well. After you initiate a claim with Bestow, the
claim is processed by its insurance provider, North American Company for Life and Health Insurance®.
The beneficiary will need to provide information about themselves as well as
information about the insured person—including the original policy number.
After that, you’ll receive a claimant’s packet and will be required to fill out
more paperwork. If there is no dispute, your claim should be processed within
ten days.

Term Life vs. Whole Life

Bestow offers only term life insurance
policies. If you’re interested in a whole life insurance policy, you’ll need to
look elsewhere.

Term life insurance lasts only as long as
the policy, making it a good choice for people who want to cover a specific
time in their life—the length of their mortgage, or while their children are
still dependents living at home, for example. Because these policies do not
last as long, they tend to be less expensive than whole life policies.

Benefits of Bestow

So you’ve spent your Friday night
deciding you want to get life insurance.
Congratulations! Why should you choose Bestow? Here are some reasons why you
might:

  • No medical exam required
  • Low premiums
  • Easy application

As with everything, though, there are
some downsides to getting a policy through Bestow:

  • No whole life policies available
  • Relatively low coverage capped at $1 million
  • Not available to people over 55

Why Get Life Insurance

If you have dependents—people who depend on your income, like your children, spouse, or older parents—life insurance is a way to help ensure that they will be covered should something happen to you. If you’re ready for a free quote from Bestow, check it out now!

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Car insurance can be confusing. First, there are all the policy considerations: Do you want a policy with comp and collision? How much liability should you carry? Do you need uninsured motorist coverage? Even once you make decisions on all these things, the bill that arrives can be difficult to understand—exactly what goes into the pricing for your car insurance premium? Here’s what car insurance companies don’t want you to know about premium pricing.

  • Your car insurance may not be tied to the driver.
  • The type of car you drive matters.
  • Prior claims and questions raise rates.
  • You can check your report for errors.
  • Your credit score impacts your car insurance costs.
  • Where you live impacts your premium account.
  • Your age affects your car insurance premium.
  • Gender, marital status, job and education level can affect premiums.
  • If you bought your car with a loan, your premium may be higher.
  • You can lower your insurance rates.
  • You have options if insurance denies your claim.

Is Car Insurance Tied to Car or Driver?

Technically, car insurance is tied to the car. That means if you let someone else drive your car, your insurance may kick in if there is an accident. Not all insurance policies cover all uses of your vehicle, though, so read the fine print on yours before you allow someone else to drive it. You may also be able to exclude drivers who live with you from your policy if you don’t ever want them driving your car and don’t want them impacting the cost of your policy.

>> Find Car Insurance Quotes. 

Does It Matter What Kind of Car You Drive?

The total value of your car, what type of vehicle it is and what type of safety rating it has all factor into the cost of your policy. Other factors can include how many miles you drive each year, where you park your car, and how many expensive extra features your car has.

Does Your Driving Record Affect Your Insurance?

Every claim you make—and even if you ask an insurance agent about making a claim—gets entered into a database that your current and future insurance carriers can access. If you have had any recent accidents or traffic violations, you may be more expensive to insure than someone with a clean driving record. If you’ve made any recent claims, your insurance premiums will likely go up. And if you shop around for a new company, they’ll have access to your records and will take your driving record into consideration.

Can You Check Your Insurance Reports?

Your insurance companies share information with two databases: the Comprehensive Loss Underwriting Exchange (CLUE) and the Automated Property Loss Underwriting System (A-PLUS). These databases are run by outside agencies—LexisNexis runs CLUE and Verisk Analytics runs A-PLUS—and any claims you make stay in your report for five to seven years, depending on the database.

The Fair Credit Reporting Act entitles you to one free copy of your report every 12 months. You can dispute inaccurate or incomplete information on your report. You are also entitled to notice about any negative decisions based on information in your report. Requesting your reports does not affect your credit score.

  • Request your CLUE report from LexisNexis online or call 866-312-8076.
  • Request your A-PLUS report from Verisk by calling 800-627-3487.

Does Credit Score Impact Your Car Insurance Cost?

In most states, your credit score can impact the cost of your car insurance. The only states that don’t allow car insurance companies to use credit score as a factor in pricing are California, Massachusetts and Hawaii. Statistical studies from the Federal Trade Commission and other research organizations show a correlation between credit score and how much a person is likely to cost a car insurance company. In short, someone with a poor credit score is seen as a greater risk, so the insurance company may charge more for the insurance to help cover expenses related to future claims.

Does Where You Live Impact Your Premium Amount?

Where you live can impact your car insurance cost. In 2018, for example, the average car insurance premium in Michigan was 64% higher than the national average. Other states with car insurance premium averages on the high end included Louisiana, Florida, Rhode Island and Connecticut. States with the least expensive average car insurance premiums included Vermont, Ohio, Virginia, Idaho and Iowa.

Does Age Impact Your Premium?

When it comes to what car insurance companies don’t want you to know, this one isn’t super secret. Age does impact your premiums, with the youngest and oldest drivers typically paying the most on average.

The youngest drivers pay the most for insurance. Premiums are highest at the age of 18 and decline steadily until the driver turns 25. In the eyes of carriers, drivers then enter adulthood, during which time premiums stay pretty flat for the next 30 years or so, until the age 55. Premiums inch up slowly between ages 55 and 65 before jumping way up around the age of 75.

In addition to your age, your gender, marital status, education level and even your job can affect your insurance rates.

If You Bought Your Car Via a Loan, Is Your Insurance Cost Higher?

If you don’t own your vehicle outright, then you may pay more to insure it. If you own a vehicle outright, you’re only required to carry liability on it. Liability is the part of your insurance policy that kicks in to cover damage caused to other people’s cars or property in an accident you’re at fault in.

When you have a loan, the bank is concerned about protecting its investment. That means it may require you to carry comp and collision as well. This is the part of an auto policy that covers damage to your car in an accident you’re at fault in. A policy with this added coverage is more expensive than one without it.

How Can You Lower Your Car Insurance Costs?

No matter your age, gender, or location, you can potentially lower your car insurance via a variety of methods. Here are some tips your car insurance company doesn’t want you to know to put into action to save on premiums.

  • Drive carefully. Not only does driving carefully help you avoid rate-raising accidents, but many companies also provide good driver bonuses when you haven’t had an accident or filed any claims for a certain amount of time.
  • Pay your bills on time. Paying your bills on time goes a long way toward improving your credit score, which can improve your rate depending on where you live. Paying your bills on time also demonstrates trustworthiness to your insurance company, which means you may be able to negotiate for a lower rate.
  • Ask for discounts. When it comes to your insurance rates, it doesn’t pay to be shy. Ask your insurance company about discounts, including multi-driver or multi-car discounts, good student discounts or safe driver discounts. You may be able to score a large portion off your premium because you’re a good student or you follow all the traffic laws.
  • Review your credit report. Know what’s on your credit report and what you can do to drive up your score. Once you’ve improved your score, ask for a new quote for car insurance.

>> Need to review your credit report? Sign up for the free Credit Report Card.

  • Consider a higher deductible. Look carefully at your coverage and consider whether you can tweak anything in your policy. If you can afford to cover $2,000 in damages if you get in an accident, consider changing your deductible from $500 to $2,000 to save on your monthly premium.
  • Shop around for a better rate with other insurance companies. The insurance market is highly competitive, and you may find a better rate with an online company or through a broker that works with multiple companies. If you find a better rate, go back to your current company to see if they’ll match or beat the offer.
  • Choose your next vehicle carefully. Because the type of car you drive affects your insurance rates, do your research before your next purchase. Look for a car with plenty of safety features (but without too many other bells and whistles) that will get you a lower rate.

What Happens When Car Insurance Denies a Claim?

Of course, you don’t just pay for car insurance for the fun of it. If you get into an accident, you expect the insurance to step in and help cover the expenses. If your insurance company denies your claim, you have some options for appealing the claim.

  • Contact the insurer. After you’ve reviewed your claim denial, reach out to the insurance company directly. You may be able to explain your claim better or gather additional information to help you understand the reason for the denial.
  • File an official appeal. Most insurance companies will have an appeals process clearly set out online. You’ll want to write a clear, direct letter that explains why the evidence you originally gathered and submitted with your claim contradicts the insurance company’s decision to deny the claim.
  • Talk to a legal professional. If you feel that your insurance company is denying your claim in bad faith, talk to a legal professional about your options.

Bringing Down the Total Cost of Car Ownership

Car ownership is expensive. Make sure you pay attention to all the potential expenses to get the best possible deal overall—and don’t forget to shop around for the best rates before locking yourself in.

>> Ready to buy? Find your rates.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

When you buy a pet insurance plan, coverage doesn’t begin immediately. Instead, a waiting period applies before you can make any claims. Pet insurance companies set their own waiting periods, so they’re not the same across the board.

In rare cases, you may be able to get pet insurance with no waiting period, but it still won’t be instant. You’ll have to wait a few days while the company reviews your pet’s medical records and makes a decision.

What are pet insurance waiting periods?

A pet insurance waiting period is the time between when you buy a policy and when coverage begins. If your pet needs to visit the vet during the waiting period, you’ll have to pay for those expenses out of pocket.

🤓Nerdy Tip

Waiting periods generally apply to new policies or those reinstated after a lapse in coverage. If you renew your policy continuously, you usually won’t have to go through another waiting period.

Do any pet insurance companies have no waiting periods?

Most pet insurance companies have waiting periods, but the best ones don’t make you wait long. For example, MetLife’s accident coverage begins immediately, and illness coverage starts after 14 days.

One of the only pet insurance companies without a waiting period is Companion Protect. But you’re eligible only if you adopt a pet from one of its partner shelters, and coverage isn’t instant. There’s usually a delay between sign-up and policy activation while the company reviews your pet’s medical records. Also, a vet visit may be required if your pet hasn’t had one in the past 12 months. This delay acts as an unofficial waiting period.

How long do waiting periods last?

Pet insurance waiting periods may vary depending on where you live and the plan you choose. Below are typical waiting periods for some of the best pet insurance companies.

Can you get pet insurance retroactively?

You can’t buy pet insurance retroactively. If your pet shows signs of an illness or injury before you buy the policy or during the waiting period, it’s considered a pre-existing condition and typically won’t be covered.

🤓Nerdy Tip

If your pet insurance policy lapses, anything your pet has been diagnosed with up until that point can be considered a pre-existing condition and be excluded from coverage. Keep your policy active by paying your premiums on time and renewing before the expiration date.

Types of waiting periods

Pet insurance policies often have different waiting periods for different types of coverage. Here are some common waiting periods.

Accident waiting periods

Accident waiting periods typically last one to 14 days. They apply to accidental injuries like broken bones, fractured teeth, swallowed objects or bites from other animals.

Illness waiting periods

Illness waiting periods tend to be longer than accident waiting periods and can last from 14 to 30 days. They apply to illnesses like cancer, stomach issues, ear infections, heart conditions or allergies.

Waiting periods for orthopedic conditions

Some pet insurance plans have separate waiting periods for orthopedic conditions like hip dysplasia, patella luxation or ligament injuries. These waiting periods sometimes apply to dogs only and can be from 14 days to six months or longer.

For example, Embrace pet insurance coverage for orthopedic conditions in dogs begins after six months, but you can reduce it to 14 days by having your vet do an orthopedic exam. Healthy Paws’ hip dysplasia coverage begins after a 12-month waiting period and is available only to pets enrolled before age six.

Waiting periods for pre-existing conditions

There are two common types of pre-existing conditions: curable and incurable. Most pet insurance companies will cover curable pre-existing conditions that have been symptom-free for at least 180 days to 12 months.

Curable pre-existing conditions are temporary health issues that were treated and resolved before you bought insurance. They can include things like respiratory infections, urinary tract infections, vomiting and diarrhea.

Most pet insurance companies won’t cover incurable pre-existing conditions, but AKC is one exception. Once you’ve had your policy for 365 days, AKC may cover pre-existing conditions other companies may consider incurable, like allergies and chronic ear infections. (This coverage isn’t available in all states.)

Wellness plan waiting periods

Some pet insurance companies offer optional wellness plans to help cover routine services like check-ups, vaccinations and flea and tick prevention. Wellness plans often have no waiting periods.

Why do pet insurance companies have waiting periods?

Waiting periods protect insurance companies from people who sign up for coverage only after their pet gets sick or injured. Without waiting periods, pet owners could sign up for insurance as soon as an emergency happens, file a claim, then cancel their policy once they get a payout. This would increase risk for the pet insurance company and drive up premiums for everyone else. Waiting periods help lower this risk.

How to handle waiting periods

Waiting periods can be frustrating, especially if your pet needs medical attention during that time. Here are some tips for handling waiting periods.

Get insurance early

One way to minimize waiting periods and avoid pre-existing condition exclusions is to get pet insurance early in your pet’s life. The younger and healthier your pet is when you sign up for insurance, the less likely they are to have pre-existing conditions that could limit coverage.

🤓Nerdy Tip

If your pet already has pre-existing conditions, pet insurance may not be worth it. Think about your vet bills over the past few years. If most of them are related to incurable or chronic conditions that a new policy won’t cover, you may be better off creating an emergency fund for your pet.

Look for ways to limit out-of-pocket costs

If you need emergency pet care during a waiting period, there are things you can do to manage costs. Some veterinary clinics offer payment plans through third-party lenders. You can also look into CareCredit, a credit card for medical expenses.

If your pet needs expensive medications, ask your vet about generic alternatives or look into pet prescription discount programs from GoodRx or AARP.

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

This article originally appeared on The Financially Independent Millennial and was republished with permission.

When consumers purchase a car, there are several things to think about. While the primary process has been handled entirely with test drives and dealerships or private sellers, it’s up to you to continue further down the checklist to get the most out of a used car.

People might think that there’s nothing left to do after buying a car, but don’t forget to take the steps needed to keep a used car on track.

1. Get the Car Insured

When you buy a car, the first thing to always do is to get insurance before leaving the car lot. Getting into an accident just after leaving is a terrifying possibility after spending hard-earned money on a car, even if it’s a used car. Either way, it’s an investment, and buyers need to protect themselves.

It’s a good idea to call around before purchasing the car model you have in mind to get a quote. If that didn’t happen before, getting the best car insurance must be the top priority to get taken care of once a vehicle is purchased. Some dealerships require buyers to have insurance before leaving, so being ready with insurance is imperative for a good experience.

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2. Check for Existing Recalls

Recalls happen in brand-new and used vehicles as technology changes over time. Sometimes, manufacturers will send out information for a recall because of a necessary update, too. Certain recalls can also affect driver or passenger safety, so recalls cannot be ignored.

After the purchase is complete, buyers can find information about recalls from the National Highway Traffic Safety Administration. Get the vehicle identification number or VIN from the car to complete a search. It’s also a good idea to check for recalls multiple times a year because new recalls are released periodically. 

3. Transfer the Title

If a car is purchased from a dealership, the dealership typically handles the title transfer. The title is the official document that proves ownership, so if you buy privately, it’s critical to get this taken care of as soon as possible after purchase.

When purchasing from a private seller, buyers need to verify liens do not exist from the previous owner. If there are, those need to be handled immediately. Buyers need proof that the seller has documents that prove any loans have been paid as required. If a buyer has any questions about transferring a title, the DMV needs to be contacted for state-specific answers.

4. Get the Car Registered

Once a car has been purchased, it must be registered with the DMV soon after. Car dealers will typically handle getting the vehicle registered in the buyer’s name, but it’s different when working with a private seller. Private sellers should provide documentation to the buyer to show to the DMV to get the registration done.

Some of the documents needed include the bill of sale showing the purchase price, the title that has been signed over by the previous owner, the VIN, proof of insurance, odometer reading, sales tax if applicable, and evidence of passed inspections. Buyers also need to contact the local DMV to find out if any further documents are required.

5. Find a Trusted Mechanic

Finding a mechanic can be challenging, which is one reason that buyers may prefer to purchase from a well-respected dealership. Dealerships have mechanics on staff that are responsible for conducting an inspection and doing any preventative maintenance before the purchase.

Private sellers are different, and buyers need to be aware of getting a used car with issues. Ideally, the vehicle should be checked before purchase, but it needs to have a thorough inspection done when that’s not possible. When in need of a trusted mechanic, buyers should research reviews and request recommendations from local groups to get an idea of who to trust.

6. Schedule Any Necessary Repairs

Once the mechanic has had a chance to complete an inspection, it may be recommended to replace spark plugs, belts, or any frayed wires, along with any other issues. There may also be cosmetic issues that may need to be dealt with if the buyer deems these repairs are essential.

Some repairs may be more critical than others, so depending on what the mechanic says, there may be a list that needs to be followed. It’s possible that the new owner might need to prioritize repairs to get things done over time. If that turns out to be the case, working out a schedule with a trusted mechanic will be a great way to get things done.

7. Read the Owner’s Manual 

It’s a good idea to read the owner’s manual to get to know your newly purchased vehicle inside and out. It may not be full of entertaining reading, but knowing what the lights on the dashboard mean can be helpful should they come on. Buyers can also read about any potential existing warranties that might still apply to the car.

Getting to know more about the car is helpful because new owners can learn about what to expect regarding the engine and other internal components of the vehicle. It also gives the owner a chance to become familiar with some of the more specific details about different parts of the car.

8. Create a Maintenance Schedule

Using the manual, buyers can also get to know what the regular maintenance schedule is for the car. Each manual contains a suggested maintenance schedule, so a buyer knows what to expect and plan for in the future. Sticking with the recommended schedule can help in saving money over time, too.

Maintenance is a crucial part of being a responsible car owner. That includes keeping an eye on the wear and tear of tires, keeping up with oil changes, and getting regular tune-ups. Finding a trusted mechanic is essential in keeping car maintenance from becoming overwhelming.

9. Consider an Extended Warranty

When purchasing a used car, buyers may also want to consider a used car warranty. There are many different options available for warranties that range from expensive repairs to bumper-to-bumper coverage. Buyers should still do research to figure out the best options available.

Keep in mind that some warranties appear to be scams, so researching is vital in making the best selection. Buyers should also check for any specific fine print regarding repairs and coverage. Some warranties are only effective at particular mechanics, so those might be ones to steer clear from.

10. Get Familiar with Features

Once the car is ready to go, buyers need to familiarize themselves with the car’s features. Learning what all of the buttons do is vital because the last thing anyone wants to deal with is trying to figure out how to open the gas tank at an inopportune time. Knowing how to program the dashboard is helpful, too, to enjoy driving to the perfect soundtrack.

Features go beyond the buttons, though, and include levers for seats and the position of latches if installing a car seat is an essential aspect of the car. Finding out where all of the power outlets are is also important so owners can charge their gadgets as needed.

A Few Last Words on What to Do after Purchasing a Used Car

There’s a lot to think about after purchasing a used car. Getting car insurance and title transfers are essential to getting started. Finding out about recalls is critical to keeping the car safe for drivers and passengers. Once registration is complete, it’s time to get the car inspected by a trusted mechanic.

After that, it’s all about creating a schedule for repairs or maintenance to get the most out of a newly purchased car. Getting familiar with the features is also essential to feel comfortable with a new car, even if it’s a used car, because it will be new to you.

Once all of the necessary tasks are done, it’s time to get down to the fun stuff, like finding the accessories that reflect your personality. Adding some exciting goodies to a vehicle should be a part of what it means to have a new car. Taking care of it with regular car washes and giving the car some character is the icing on the cake. When everything is squared away, it’s time to take a drive and enjoy your new car experience.

Source: credit.com

Apache is functioning normally

This post originally appeared on The Financially Independent Millennial and has been republished with permission.

Okay, so you’re tired of puttering along in that same 1996 Honda Civic with which you picked up your Homecoming date during your senior year of high school. How do you even begin? No doubt, you’ll have questions to ask when buying a used car. Well, first, you need to narrow it down to which car you want, what options you want/can live without, your budget, etc. Once you’ve gotten that down and have taken a few cards for a spin, it’s time to get down to business. 

I bought my first car just about ten years ago and have bought and sold seven cars within that time frame. Except for one, I made a profit off every single one of them. For example, My INFINITI G37 just stole my heart. I got such a good deal on it (I bought it for $4,700 under dealer internet price) that I made the conscious decision to take a loss by keeping it longer and thus having to deal with depreciation.

However, it never needed any maintenance for the six years I had it other than $40 oil changes periodically. So, considering all costs (parking, annual registration, gas, car insurance, and depreciation), the car probably cost me $150 per month over those six years. That’s well below what some friends spent on the luxury of ride-sharing.

What to Ask When Buying a New Car

When you’re ready to buy a used car, you want to come armed with questions. Ensure you’re informed, and then you come across as a knowledgeable buyer and ward off any unscrupulous sales tactics.

#7. When Is the Best Time to Buy a Used Car? 

We’ve all seen those charts on the best time to buy everything from winter apparel to laptops. But did you know there is a sweet spot for buying cars, as well? Buying towards the end of the month and even the end of the year is your best bet. Why? Because dealerships have quotas to meet, salespeople are hungry to get one last commission for their paycheck. 

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As far as the end of the month, most dealerships close the books, project that month’s sales amounts, and try to move inventory to keep the interest fresh. You may know that when new models come out and leases get returned, the used car market is usually more flexible, which means more selection and a better price for you. 

If you’re daring, go into the dealership on a Sunday evening during unpleasant weather when they’re hungry to meet quotas. If you’re paying cash, and you’re there with money in hand, they’re much more likely to get you a good deal. Make sure you come with evidence of comparable models elsewhere.

#6. Why Is Buying Used Better Than New? 

While many people justify their decision to buy new as having a more reliable vehicle and spending less on repairs than an older car, cars have markedly improved their dependability over the last 10-15 years. 

Plus, many online tools help you with price transparency, find service records, and owner/expert reviews. You’ll find anything you want to know about the car you’re considering over the last decade. 

According to a recent report, new cars lose up to 20% of their value after the first year. And then they depreciate more than HALF their value after five years. On a $32,000 car, that’s almost a $7,000 hit after just a year of driving! On the other hand, you can easily buy a car that’s just a few years old and let someone else take the depreciation hit. 

Besides houses, cars are generally the most expensive purchases you’ll make. Buying used enables you to strategically get a reliable vehicle that can last you years without breaking the bank. My neighbor once bought a 4-year-old Honda Accord for $12,000 and still drives it ten years and 90,000 miles on the odometer later!

#5. Why Is Buying Better Than Leasing?

According to Consumer Reports’ comparison for buying versus leasing, the average cost of a new car has now topped $38,000. You might think to yourself, “I don’t have $38,000 laying around!” Well, take a step back and a deep breath, realizing this is average. Meaning, you can easily find cars for less than this amount. Plus, just another reason to look at a mint used car! 

Leases can be appealing because they enable the consumer to drive a new car for a monthly lease payment. Lenders are happy to collect the interest! And then, you return the vehicle at the end of the lease without worrying about maintenance or repairs. Leasing is ideal for people who like to have the newest car (and can afford it) or deduct leasing expenses like realtors. And yes, if you’re wondering about this question, you can lease a used car as well. However, there are mileage limits, and if you lose your job or have a child, you typically can’t just hand the keys back without penalty.

Buying a car means you can drive it freely and have something of value that you can sell when the need arises. With leasing a vehicle, you typically have to either return it, have nothing at the end of the lease, or pay off the car at an agreed-upon amount when you lease the vehicle. For these reasons, buying a car is the best option for most people. 

#4. How Many Miles Should a Used Car Have?

Congratulations, we’ve convinced you to buy used! Well, hopefully, you’re empowered to ask questions and find and buy a quality used car, over lining the dealership’s pockets with a new one. Mileage is an essential factor to consider, and the lower mileage, the better. Think about it, cars don’t run forever. So, there’s a cap on mileage before the vehicle is pretty much worthless. (though if you want to see some impressive machines with millions, yes millions of miles, check out this car.)

Most people drive about 10-12,000 miles per year. And with ever-changing technology, it might be best to keep it under 100,000 if you plan to keep the car for a while. After 100,000 miles, more expensive servicing like timing belt change, transmission replacement, and electrical repairs come along. 

Consumers who question a used car’s value can turn to The Kelley blue book as an excellent resource when buying or selling. I have found that buying cars with low-mileage, i.e., under 30,000, is the sweet spot if you can snag a good deal because it still feels new. These cars usually come with the balance of a new or extended warranty and yet have decent value locked in. Bonus points if you flip it a year later for a profit as I did! 

#3. What Are the Benefits of Buying a Used Car from a Dealer?

You can compare buying a certified pre-owned (aka used car) from a dealer instead of a private party to purchasing a laptop from the store versus a seller on Amazon. You typically get more hand-holding and a concierge process with inspection of the car, service and registration assistance, etc. Yet, that comes with a price. 

Buying a used car from a dealer means there’s no question: they have to stand behind that car and not sell you a lemon because their reputation lies on that. So, peace of mind is a big plus when it comes to buying from a dealer. Also, you can typically find more variety in what you want and have someone reach out to you when they get something closer to what you’re looking for. You can also negotiate free service for a year, a multi-point inspection, printouts of service records, and things like replacing the tires at a reduced cost. Moreover, suppose haggling, negotiations, or dealing with salespeople make your stomach churn. In that case, you can always pay a slight premium for peace of mind by using a service like Carvana or Carmax.

Buying from a dealer can also help you make sure you get your title and tag done correctly. One thing to look out for is some dealerships charge a Dealer or “Document Preparation” fee, which can be hundreds of dollars in some states. Be sure to understand what value they’re providing for that fee and where it goes. Few waive them and even charge their employees that fee.

#2. What Are the Benefits of Buying a Used Car Privately?

How do you save the MOST amount of money when buying a car? Well, you buy a pre-owned vehicle that already got whacked with depreciation and cut out the middleman. By middleman, I mean the dealership. 

Now, you read about the perks of buying through a dealer and all the peace of mind it brings. So, why bother dealing with the hassle and uncertainty of a private party? Well, the significant cost savings, of course! There’s no dealer doc prep fee, no markups to pay for payroll or overhead, and no burdensome certification process. Buying a used car privately gives you the best chance of getting a great deal if you ask the right questions.

In simpler times, a handshake and trust were all we had to go off before things like CARFAX reports and AutoCheck. When you find a private seller, you can find out the vehicle history. For example, if they were the original owner, who drove the car, why they bought it, and how it’s been treated over the years. Also, you’ll have to make sure they have the title free and clear. Otherwise, you’ll want to go to the bank and have them call the company that holds the title to make sure the loan gets paid off before any other money changes hands.

 #1. What Are the Best Ways to Find a Used Car?

Now how do you go about finding a used car? There are many more online tools at our disposal than ever before. Do you remember the times when you would flip to the classified section of the newspaper to find boxes of 6 point font describing a car for sale? Or you saw a car parked on the road with a “For Sale” sign? How times have changed.

Now, you can easily find any car you want online, know everything about it, see high-resolution pictures of its every angle. And you don’t even have to limit yourself to your geographic area!  

The thing to know is most private-party sellers will usually try to sell their car for free or cheaply. So, be sure to start your search by scanning Craigslist, Cars.com, and Facebook Marketplace. 

Now, if you’re looking to expand your search across the state or nation, check out cars.com, Cargurus.com, and Truecar.com. All of these sites provide decent vehicle descriptions and history, such as accident reports. 

Cars.com has a very user-friendly interface and easy navigation filters for color, features, cloth/leather, etc. It also has a price analysis tool to let you know if that particular car is a “good” or “great price” as compared to other vehicles for sale.

CarGurus is also user-friendly and has a similar price comparison tool. Also, it’s got a cool little “negotiation” section in the description. It tells you how long the car has been on the market and its different price changes. It can give you a glimpse of how motivated the dealer is to get rid of the vehicle. I love CarGurus because it answers the most basic questions I’d ask about the used car I’m thinking about buying.

Finally, TrueCar has a unique pricing analytics report that will tell you what you can expect to pay based on what similar vehicles have sold for. They also can offer a unique “personalized offer” on a car, which might be lower than other sites, in exchange for inputting your contact information. It might be an easy trade to shave a few hundred off your car purchase!

Final Thoughts about Buying A Used Car

Consumers looking to buy a used car certainly have to ask a lot more questions than when buying new. But, the extra work will save them thousands in unnecessary depreciation. The key is to do your homework and get the car inspected. That way, you’ll come out ahead by knowing the car’s history. And don’t be afraid (ever) to walk away from a bad deal!

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Many believe that the policies of their landlords will cover them. Some also believe that tenant’s insurance is simply a waste of time and money.

It should be noted that a landlord’s policy will cover things like appliances, structural problems, as well as pipes. However, their policy likely won’t cover your most valuable assets, which may include money, gold, jewelry, and electronics. Damage to such items won’t be covered even in a natural disaster, such as a flood, fire, or earthquake. Your belongings will also not be covered if they’re stolen or vandalized.

The costs of displacement will also typically not be covered by your landlord’s insurance policy, nor will they be held liable if someone is injured in your apartment.

As can be seen, tenant insurance companies have many benefits that many renters are not aware of. Here are the ways tenant insurance helps keep you and your valuables safe and more reasons why it’s important for renters.

What Is Tenant Insurance?

Tenant insurance is also referred to as renter’s insurance. It intends to provide tenants with financial security if their property is destroyed or severely damaged due to an insurable event.

Examples include vandalism, theft, flooding, fires, hurricanes, tornadoes, and earthquakes.

What Does Tenant Insurance Cover?

Tenant insurance can be broken down into three distinct categories in terms of coverage. Each category provides its own set of protections against numerous perils.

  1. Personal property coverage: covers the costs required to replace your personal belongings. Examples include home appliances, computer accessories, electronic gadgets, furniture, and jewelry.

Basic tenant insurance provides personal property coverage in the event of steam or water leakage or overflow. It’ll also provide coverage in the event of lightning, explosions, fire, aircraft damage, hail, and windstorms.

  1. Personal liability coverage and medical expenses: you’re provided with personal liability coverage in the event that you accidentally damage or destroy something while at someone else’s home. Also, if someone accidentally slips and falls while at your apartment, their medical bills will be covered by your insurance, even if you’re deemed responsible. In sum, you’ll be protected, regardless of whether or not you’re the victim or the one responsible for the damage or injuries incurred.
  1. Loss of use coverage: if your home is inhabitable for a prolonged period of time due to extensive water or fire damage, the costs required to stay at a hotel will be covered by your tenant insurance. However, loss of use coverage is temporary, meaning it should only be seen as a short-term solution.

Key Reasons to Have Tenant Insurance

You won’t be legally obligated to have tenant’s insurance in most rental situations, but it’s highly recommended. Some renters mistakenly assume that they will be completely covered under their landlord’s policy or too expensive.

In truth, it should be one of your top priorities while you’re looking for a new apartment. When looking for a tenant’s policy, consider the following to find one that’ll cover you in these situations.

  1. Personal Property Coverage: under your landlord’s policy, only major appliances that came with the apartment will be covered along with the physical structure. As for tenant’s insurance, it’ll cover most, if not all, of your belongings, including clothes, furniture and electronics.
  1. Personal Property Coverage While Traveling: if your belongings are stolen or damaged while you’re away, they’ll be covered. They’ll also be covered if you travel with them and they’re stolen or damaged.
  1. Protection for damages that you cause to someone else’s property: if you damage someone else’s property with your car or accidentally start a fire in someone else’s apartment, you’ll be protected.
  1. Liability Coverage: if you accidentally injure someone while they’re on your property or they injure themselves (i.e., slip and fall on your snowy driveway), then you’ll be protected. You won’t have to worry about paying for any legal and/or medical expenses that arise from injuries to others.
  1. Additional Living Expenses Coverage: if your home is damaged in a flood or fire, then your insurance may cover food, lodging, and other expenses while you’re living in another temporary domicile.

Conclusion

It’s important to note that tenant insurance is usually not mandatory in most cases for those who wish to rent an apartment. However, landlords are legally obligated to obtain it from prospective tenants before an agreement is signed.

All tenant insurance policies are also not the same, so you may want to compare and contrast offers from different companies. The peace of mind and protection you’ll obtain from the ideal insurance package shouldn’t be taken for granted.

Source: credit.com