In the past couple of articles I have discussed the importance of the type of vehicle is when selecting auto insurance. One of the primary factors affecting the premium for your car insurance is the type of vehicle. you select. Sports cars, for example, are more expensive to insure than, lets say, a sedan. But, at any rate, this is not the point of this article. In this article, I am going to attempt to help you select the best possible automobile by providing you with some practical tips.
The first thing you have to do prior to going to your favorite car lot is to research the type of care you are thinking about purchasing. Check and see what is available in the area and then begin to price check . Also, read reviews on the type of car you want to purchase. Check to see the mpg and the maintenance record for the type of car you want to purchase. Also, it would, of course, be a good ideal to check and determine the cost of insurance for the vehicle you want to purchase. Once you have done your home work,you are ready to begin shopping. By doing your homework you will know what dealerships carry the automobile you interested in and of course check the reputation of the dealership.
Once on the lot, you will want to drive the vehicle but first you will want to thoroughly inspect the car. Walk around the entire car and check to be sure the body and paint job is in good shape. Check the tires and look under the car for rust. open the hood and see if the engine looks cleans. Also, look for leaks.If the car has been siting for awhile you may see oil under the car .Once you have completed your external inspection you will want to start the car. Get out and check the tailpipe and check to see if the smoke coming out of the exhaust is white, colorless or blue. White is not good as there may be condensation or water in the block. Blue is definitely not good as you may have problems with the piston rings and burning oil. Once you have checked the exhaust get in the care and take a ride. Be sure you take it up to 60 miles per hour and be sure there is not shimmy. Drive the car at various speeds to be sure it is smooth and of course be sure it has plenty of pep. Test your brakes and listen for a grinding noise when engaging the brakes. While you are in the automobile, check the radio, heater, ac, door locks and power or manual windows. Check the interior for wear as very worn interiors may indicate that the previous owners were hard on the car. Once you have driven the car completed your interior and exterior inspection it is time to talk “turkey” with the dealer.
When you sit down with the dealer, ask for a car fax and check for accidents and the number of previous owners. If it is one for two owner you are in good shape.Be sure the dealer knows you have done your homework and you have checked Nada. It is always good to go in at the end of the month as the dealership is usually trying to make their quotas and may be willing to deal. If you are going to finance, be sure you are getting a fair interest rate. Ask for a price for a service contract and see if it can be included in the financing package and be sure to consider gap insurance. Call your insurance agent and price insurance for the car. If you are still comfortable and you and the dealer can agree on terms – happy riding.
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When purchasing auto insurance you obviously know that certain factors such as age,driving record, credit score and even years of education could affect your
premium. Additionally, you will need to consider certain ancillary products when developing your auto insurance program. In addition to your standard auto
insurance ofpolicy you will need to consider both gap insuance and vehicle service constracts. This article will focus upon vehicle servcie contracts.
Vehicle service contracts, sometimes called warranties, comes in many different forms and their are many different warranty providers offering a myriad of
coverages. I urge you to carefully evaluagte the insurance carrier you select.
Vehicle service contacts usually take two forms namely named component and comprehensive. The named component policy will name exactly what is covered and
the comprehensive policy will cover all your vehiles mechanical and electrical parts. The named component policies are usually broken down into three
catagories. They include powertrain, standard and high-tech.
The powertrain policy covers engine, transmission, cooling, transfer case, fron and rear differential,electrical and seals and gaskets. Under these heading
very specific coverages are listed. For example, engine may include vrakshaft and bearings, oil pump, pistons, piston rings, connecting rods, etc. The
standard policy will include everything in the powertrain plus brakes electrical, fuel delivery, more comprhensive fdront and rear suspension, factory air
conditioning and heating, steering and more comprehensive seals and gaskets. High
High tech will cover everyting in powertrain, standard plus more comprehensive cooling, anti-lock brakes, more comprehensive electriccal, fuel delivery, more
advanced fron and rear suspension, more comprehensive factory air conditioning and heating, inerior and exterior and more comprehensive seals and gaskets.
Each level of coverage is correspondlently more expensive. Additonally, these policies are available in six, twelve, eighteen, twenty four, thirty six, forty
eight and sixty months. Also, you can get coverage for up to 60,000 miles and even more in some instances.
The comprehensive plan covers all of your vehicles mechanical and electrical parts except for those items that are listed on your contract under “what is not
covered”. These policies are typically the most expensive and also the most comprehensive.
Fianlly, you can also elect the wrap coverage option. Wrap coverages will wrap around your factory warranty. For example, a wrap policy will typically cover
all of your vehicles mechanical and electrical parts except those listed in your factory powertrain policy.
As you can see, there are many options when it comes to selecting a service contract.I normally purchase a service contract whenever I purchase a used
vehile.I personally believe that it makes sense considering the high cost of repairs. A transmission can, for example, cost upwards of $3,000 and electrical
problems can cost in the thousands. Vehicle service contracts cost anywhere from $300 to $3,000 and it can be well worth it. My only caution is, select your
warranty company carefully. There are many excellent companies that are reputable and honest and you can research them on the internet. Check with Better
Business bureau, and check somne of the comments and complaints about the company your are considering. I will not recomment a warranty company but it is
suffice to say their are plenty of good ones and plenty of bad ones. I hope this article will give you some guidance regarding the various service contract
options and their coverages. We at DRIV
I know that many people feel that the purchase of auto insurance is simple and straight forward. All you have to do is shop around to receive the best possible price. I must tell you this is the farthest from the truth. There are many things you need to consider including your credit score, driving record, the type of vehicle you drive and, of course, your age. Additonally, if you are financing your automobile you must consider gap insurance.
Most people, when purchasing a vehicle, finance all or a protion of the automobile. When this occurs, you need to seriously consider gap insuance. Gap insurance will protect you if your car is lost, stolen or if you are involved in a serious accident where your car is totaled. Let us consider an example. You purchased your automobile approximately three months ago and you financed most of the purchase price. Specificly, you put $1,000 down and financed $29,000 or for a purchase price of $30,000. Unfortunely, you were involved in a serious auto acccident where you vehicle was totaled and the insurance company valued your automobile at $24,000 which is a 20% reduction. This is actually very common. You have made three payments and, therfore you, owe $28,000 and since the car is valued at $24,000 the gap is $4,000. If you do not have gap insurance you will be responsible for paying the difference. Gap insuance will cover the $4,000 or the gap which is where is got its name.
Gap insurance is critical if you are financing a vehicle. Imagine where you would be with the above example if you did not have gap and your savings would not cover the difference. You would owe the lender $4,000 and you would not have a car. Not only would this adversely affect your credit rating it would affect your ability to finance a new car and possibly obtaining auto insurance. As you can see, this is insuance that you need. It is a must. As a matter of fact, many lenders will require you to have gap insurance as a part of your loan package. Also, many will offer gap with the loan. Before you agree to use the lenders gap policy, you need to shop around as you may find that your lender is charging a great deal more for the gap policy than you could get from another lender.
Your lender may require you to buy their gap but you can refuse and contract with a different insurance carrier.
The important point here is you must consider gap insurance as a portion of your insuance costs if you are financing your vehicle. You may also find that by securing gap insurance you will reduce your standard auto insurance policy cost, as well.
To conclude, when purchasing a vechile you need to factor in the cost of your auto insurance, service contract(if you select one) and, of course, the cost of gap insurance. These protections are necessary and will allow you to sleep at night knowing you are fully covered. If you do not have gap insurance and you have financed your automobile I strongly urge you to buy gap as soon as possible.
Automobile insurance is usually substantially higher for students than for most other segments of society. Students tend to pay more for auto insurance because of their age and inexperience. Also, rates will be higher depending upon what type of vehicle they drive and their driving history. Also, their education is important and, believe it or not,the GPA of the student is extremely important. Therefore, there are certain obvious steps a student can take to mitigate their auto insurance premiums.
First of all, the student should take a defensive driving course, Their are many available and the is will result in a 10-20% drop in insurance premiums. These courses usually take about four weeks and and are very effective in reducing the rates for students. They will also make the student a better driver.
A good driving record will also contribute to the reduction of premiums for student when seeking automobile insurance. The insurance companies penalize students for their inexperience but they will be rewarded for good driving. This means no speeding tickets and no accidents. If the student is a able to maintain such a record he or she should enjoy lower car insurance premiums.
Another way to substantially reduce the students auto insurance rates is to add them to your policy. There are significant discounts to be had by combining insurance policies. If the student has a good driving record this will result in 10-20% savings. It also can reduce your overall insurance premium.
When purchasing a vehicle the student should plan on buying a safe and late model car. Sports cars will increase the rate substantially. Students should think seriously about purchasing a safe sedan or even a family oriented type of car. These vehicles will result in 10-20%% lower premiums when compared to sports cars.
Another factor that will improve the students premiums is to get good grades. The insurance carriers reward students who earn good grades. Grade point averages in excess of 3.0 will result in lower premium for the student. A student that achieve good grades is an indication that he is responsible and mature which is extremely important to the insurance carrier when evaluating a student driver.
Although my children are no longer students I can remember when they became drivers and that was, to say, at the very least, a very scary moment. Having your child take a defensive driving course, coupled with good grades will give you a great deal of comfort. Also, if he is driving a safe car it will also allow you to sleep at night. Finally if your child maintains a good driving record he will contribute to your peace of mind and the reduction of insurance premiums as well.
