Insurance For Your Car:
Many
people, myself included refers to Car
Insurance as a necessary evil. We all need
insurance today for our own financial well being. Besides the
fact that many states require
some type of basic automobile Insurance coverage. When you
purchase and finance your
vehicle the lender will require you to have insurance that
protects their collateral, your
car.
Where your benefit is concerned, what would happen if you
got in an accident and had to pay in FULL to repair your car
and pay for a rental car while your car is being repaired. Even
a minor accident today can cost thousands in repairs. How would
a hit like that on your budget feel?
Some of the products that we
sell you at the dealership are Loan Insurance, Gap Insurance
and Vehicle Insurance. These are all potentially great products
that have their place, but you need to know about their costs
and benefits.
Gap Insurance: This is a very popular
seller these days. Gap Insurance is the Insurance that protects
you when your vehicle is stolen or totaled in an accident and
the current value that your insurance provider determines your
car is worth is less than the amount you owe on the car. (the
Gap) This situation is not uncommon today, especially when
buyers have negative equity on
their Trade-ins
and/or they do not put a
Down Payment on their purchase. Back to owing more on
your car than the Insurance company says it is worth. You
are responsible for that "Gap" or deficiency, maybe
3,4 or $5000.00. Talk about a budget buster. Gap
Insurance pays the difference.
Dealers have not cornered the market on Gap Insurance.
Talk to your insurance carrier or agent to see what it would
cost you to add it on to your policy. I have heard insurance
companies only charging $2.00 or $3.00 a month. Some people
have it on their policies already and don't even know they have
it. Check with your insurance carrier. I have seen dealers
charging $400.00 and more per term.
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Loan
Insurance: Many dealers offer protection for your
auto
loan. Some policies will make
your monthly payment if you lose your job or pay off your loan
if you die. If this type of insurance is important to you, I
would talk to my insurance agent and see what similar products
they have and get quotes that you can use to compare what the
dealer is offering.
Finally the actual Insurance on your vehicle. If you do not
have "Full Coverage" insurance when you are purchasing
and financing your
vehicle you can not take delivery of your new
car. If you have not made
arrangements with an insurance carrier before purchasing, the
dealer can sell you an insurance policy. So check with your
agent or carrier before going to the dealer to make sure you
are getting the proper coverage for a reasonable price.
We have provided some links on the website of some Top
Notch Insurance Companies to get quotes and coverage while
doing your homework.
Auto insurance is generally composed of
six different types of coverage. Some may be required
by law depending on the state,
and others are optional.
These coverages include:
*Bodily injury liability,
for injuries the policyholder causes to someone
else.
*Medical payments or Personal
Injury Protection (PIP), for treatment of injuries to the
driver and passengers of the policyholder's car.
*Property damage liability, for
damage the policyholder causes to someone else's
property.
*Collision, for damage to the
policyholder's car from a collision.
*Comprehensive, for damage to the
policyholder's car not involving a collision with another car
(including damage from fire, explosions, earthquakes, floods,
and riots), and theft.
*Uninsured motorists coverage,
for costs resulting from an accident involving a hit-and-run
driver or a driver who does not have
insurance.
The
Best Deal on Car Insurance
Joe
SLick
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