How to Retain Your Car’s Value

Just like any other prized possession of yours, your car needs some touch-ups from time to time. We need it in order to appreciate its value since it is a long-term asset. Unfortunately, people usually care about their cars’ value only at the time of selling, which is not a good way to be thinking! Surely, cars depreciate over time but this does not mean you stop taking care of it during the time it is under your use.

Here are some of the best ways to retain your car’s value. These tips should be a part of your day-to-day car care routine.

Keep your car covered and park it in the garage:

One of the most common mistakes people tend to make is parking their car outside their garage. For some reason, the main garage is only used as a second basement and the car is hardly seen parked inside. This can easily damage your car’s value, as you cannot protect it from the environment while parked outside. Be it the bright sunshine or cool evening, your car can never be safe outside. Make it a priority to park it in the garage.

Get it checked on a regular basis:

Your car needs regular maintenance. It is always better to get it checked before any long trip because it helps in overcoming any kind of issues your car might be facing. A few things you can do yourself. For instance, make it a habit to regularly check the engine’s oil, coolant, transmission fluid, brake fluid, battery, washer fluid, and tires. For highway driving, the tires must be in top shape. Know how to check tires.

Clean up the inside as well as the outside of your car almost daily:

Yes, your car demands your love and care in order to stay in shape. You should clean its interior almost every day. Same goes for the exterior which should be taken care of on a daily basis. If other family members also use your car, then ask them to maintain your car’s hygiene as well.  Don’t leave bird poop, dead bugs, and stuff on the outside of your car.  It can definitely damage the paint if not cleaned off routinely!

Car’s engine oil requires regular changing:

Changing the engine oil is a relatively inexpensive thing to do and goes a long way to keep your engine strong. The regular oil change will not only upgrade your car’s performance but will also save you from the major problems that arise due to deteriorated oil.

Get your car waxed at least twice a year:

Make sure to wax your car at least twice a year because the polish protects your car’s surface and gives it a long-lasting glow. This is healthy for your car’s body and the vehicle’s color stays vibrant for a long time. However, ensure that you pick a high-quality wax that lasts longer.

Last but not least, drive safely:

Do your car a favor and stop driving like a ruthless maniac. It could land you in trouble where you have to consult with the best Traffic Law attorney like Marsh Blom. Your car will only better maintain its value if you drive like a mature adult. If you are someone who avoids harsh turns, sudden breaks, and rapid acceleration, your vehicle will not get old quickly. Safe driving is important if you want to get rid of high maintenance costs, frequent wear and tear, and dangerous accidents.

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What to Do Immediately Following a Car Accident

If you were injured in a car accident today or tomorrow, would you know what to do? Would you know what to say, what not to say, who to seek help from and what steps you should take? While you might have a general idea of what to do, when you’re amid a traumatic event it can be hard to think. As frantic as you might be, when your car accident involves injuries, taking every step with attention to detail is necessary. One missed step or missed detail could result in you losing your claim and having to pay for the costs yourself.

9 Steps to Take After a Car Accident

1. Notify the Police

No matter where the car accident occurred or what the other driver may be telling you, you should always contact the police. Even if you’re dealing with a minor injury or the at-fault driver is trying to make other arrangements to pay you, you still need to make the call. A police report is necessary when filing an insurance claim. So, get somewhere safe and contact the authorities.

2. Exchange Driver Information (If You Can)

If you’re not too badly injured, you and the other driver need to exchange contact and insurance information so that you may file a claim. If they don’t have insurance, still ask to see their driver’s license or photo ID. Write down an address and full name and try to get a contact number if they’re being cooperative.

3. Take Photos

If you’re able to, take pictures of the damage to your car, the crime scene and the other driver’s car. This will help to put the pieces of the scene back together later which can ultimately help determine fault or how the accident occurred.

4. Listen for Admission but Don’t Admit Fault

As you’re waiting for the police and possibly paramedics to arrive you may hear a lot of conversation either between the other driver and their passengers, witnesses, or someone they’re speaking with on the phone. While it is okay to listen for the driver’s admission of guilt, you should not tell anyone you believe you’re at fault (even if you do). If you get into a car accident in Denver for example, a good car accident attorney in Colorado will tell you there are a lot of reasons for accidents – including speeding, texting, cell phone usage, reckless driving, and more. There could be a number of reasons this happened, but you don’t want to speak to anyone about your part in it until you’ve had the chance to meet with an attorney.

4. Look for Witnesses

If there were witnesses to the accident, you’ll want to try and record their information and/or ask them to stick around until the police arrive to provide their statement in the report. This will help your claim and assist the authorities in determining which driver is at fault.

6. Request a Copy of the Police Report

Once the authorities have come and asked questions, surveyed and taken pictures of the scene and grabbed the statement of both drivers and the witnesses be sure to ask for a service or reference number so that you can retrieve a copy of the report.

7. Seek Medical Attention

If you or someone involved in the accident has been injured enough to need emergency medical assistance, make sure that you wait for the paramedics to arrive on the scene. If you’d prefer to skip the ambulance ride, still see to it that you see a medical professional the same day. The sooner they can get your injuries on record, the better. You want to make sure you can prove those injuries were a direct result of the car accident. Even if you don’t feel hurt, there are some injuries that can show themselves later so going to the doctor as a precaution is advised.  

8. File an Insurance Claim

Contact your insurance company and notify them of the accident. Do not admit fault, simply provide facts about the incident.

9. Hire an Attorney

If injuries were involved, contacting a personal injury attorney is ideal. Not only can attorneys be instrumental in helping the insurance claim process to go faster, but they are also skilled in helping clients to get paid for damages, pain and suffering, lost wages, and more.

Final Thoughts about What to Do After a Car Accident

Accidents happen all the time. From major to minor accidents, the costs and consequences add up. Whenever you’ve been involved in an accident, it’s important that you follow the above-mentioned steps to ensure that your claim is processed without a hitch. Remember, if you’ve been injured, consult with a personal injury attorney to determine if you’re entitled to more compensation.

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How to Save Big on Your Car Insurance

Car insurance is required by law, but that does not mean you should have to pay an arm and a leg to be protected. Numerous factors are reviewed and compiled when an agency offers you a quote.  It can be difficult to determine what kind of rates you can get. Things like the type of vehicle you drive and the state you live in can drastically alter your rates! Fortunately, there are ways you can increase your chances of getting a good deal on car insurance without having to sacrifice any essential protections.

Maintain a Good Credit Score

Many insurance agencies look at your credit rating to determine what kind of deductibles you qualify for. Therefore, it is pertinent to increase your score and preferably keep it over 700. You can increase your rating by paying off your credit card bills on time and in full. One thing to bear in mind is that some states prohibit auto insurance agencies from looking at clients’ credit scores. Those states include Massachusetts, Hawaii, and California.

Conduct Annual Rate Checks

Even if you already have insurance, you should routinely check in with your provider to see if you can get any deductions. In the event your current provider cannot offer anything, it would be a good idea to shop around to see what you can get elsewhere. This can be tough for people who have been with the same insurance provider for years, but ultimately, it is best to invest some time to see what rates are out there. You never know until you look.

Look Into Discounts

Each agency has its own discounts available, but you should ask about them to see if there is anything you are missing out on. For example, you can get discounts for having a safe driving record. You may also get a discount if you take a defensive driving course. These classes generally cost a little money, but the amount you save in the long run could make it a worthwhile investment. If you are the parent of a student, you might be able to get a discount for your child’s car if he or she gets good grades.

Ask About Usage-Based Insurance

People who work from home or are retired may not drive as often as the average person. It seems silly that people who drive less should have to pay the same amount for insurance as everyone else. That is why some agencies offer usage-based insurance policies. This is where your mileage is tracked, and if you rarely drive, you can get a reduced rate. Not all agencies have adopted this policy, so you will have to do research to find one.

Opt for a Higher Deductible

Many drivers are hesitant to go for this option, but it can be worth it if you are a safe driver. Many insurance companies will offer you lower premiums if you get a higher deductible. The premium is what you pay once a month to maintain your insurance policy. The deductible is what you pay out of pocket after the insurance kicks in after an accident. Although a higher deductible may not seem ideal, having lower monthly payments can work in your favor if you never have to use your deductible.

Compare Rates Before You Get a Car

Most people are excited about buying a new car and consider insurance to be an afterthought. However, you should be thinking about insurance before making a purchase. If there are a few different vehicles you are considering, you can get insurance quotes on all of them and compare so that you know which one will be the most affordable to insure. You can make this easy on yourself by using a site like carinsurancecheap.net to compare rates before settling on one.

Final Thoughts

Car insurance might seem like an annoying thing you have to pay for every month, but if you ever end up in a collision, you will be grateful you have it. As you are comparing prices, do not forget to also look at the protections each policy offers. Some will be more comprehensive than others, so it may be worth it to invest in a more expensive policy if it provides additional protection. No matter what, do not be afraid to shop around to see what you can get.

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What Kind of Car Insurance Coverage Do I Need?

Buying car insurance is something of a balancing act. On the one hand, you want to make sure that you purchase enough coverage to protect yourself. If you buy too little coverage and then get in an accident, however, you could end up spending way more money than you would have if you had just invested in a good insurance policy. After all, the costs of repairing or replacing your car, covering your medical expenses, paying for damage and injuries to other parties, or weathering legal woes related to the accident can add up quickly.

On the other hand, you also don’t want to buy more insurance coverage than you really need. Auto insurance is an investment, and you need to balance your risk and your budget to find the policy that is right for you. Otherwise, you could end up paying out thousands and thousands of dollars in insurance bills and never get a dime of it back.

Different Kinds of Car Insurance

There are a lot of things you can do to get cheaper car insurance coverage. However, perhaps no tactic is quite as important as doing your homework and understanding the coverage you need. Read on for a rundown of the different types of car insurance—as well as advice on whether or not to lay down your hard earned cash to pay for them.

Liability Coverage

Liability coverage is arguably the most important part of your car insurance policy, and required in almost every state.. This coverage will pay for damage and injuries caused by you when you get into an accident. How much coverage you buy will depend on 1) the state you live in and the minimum levels of coverage required by law, and 2) your financial situation. Generally, if you have more to lose from a potential lawsuit—a house, a loaded savings account, etc.—you should have higher liability coverage amounts than the legal minimums to protect yourself.

Collision Coverage

This type of coverage becomes less important the older your car gets. Early on, when you are paying off a car loan or have a car that is worth a considerable amount of money, having collision coverage is a must. If you get in an accident, this type of coverage will take care of the damage to your car. However, for older cars that are worth less, collision policies can end up becoming more expensive than they are worth. Consider the age and condition of your car, your mileage, the value of your car, and your plans/ability to purchase a new vehicle before buying collision coverage. You should employ a similar strategy for comprehensive coverage.

PIP Coverage

Personal injury protection (PIP) is a mandatory coverage in some states and is often referred to as “no-fault” coverage. This is because the coverage can pay medical expenses, lost wages and more if you or your passenger is injured in a covered accident, regardless of fault. A major frustration with an accident is the time it can take for an insurance company to determine who’s at fault for an accident and make payments. With PIP coverage no blame needs to be determined. If the loss is covered, payments up to your coverage limits are made as soon as possible and you only need to deal with your insurance provider. Required coverage limits will vary by state that require PIP coverage, but if your state doesn’t, it’s usually an easy place to save money.

Medical Payments Coverage

Often referred to as Med Pay, medical payments coverage helps pay medical costs like ambulance and hospital bills as well as doctor visits and other necessary medical treatments for the driver and passengers of the insured vehicle that result from a covered loss. On the surface, Med Pay and PIP seem almost identical, however, PIP doesn’t always cover full medical expenses as it may have a deductible, and it doesn’t cover the insured due to injuries that could arise as a result of being a passenger in another vehicle or a pedestrian that is struck by a car. PIP coverage may include things like lost wages and services such as childcare that you may be unable to perform due to injuries from a covered accident, which are not included under Med Pay coverage. It doesn’t usually make sense to have both, PIP and Med Pay coverage so you’ll have to decide which coverage suits your needs best and add the necessary coverage to your auto policy.  If you frequently travel with your family or passengers in your car, if you don’t have health insurance, or if your health insurance deductible is exceptionally high, then both PIP and medical payments coverage might be worth considering.

Uninsured or Underinsured Motorist Coverage

You get in an accident where the other driver is at fault. You’re expecting their insurance to cover your injuries or property damage, but you learn that they don’t have car insurance (or don’t have enough coverage to cover your expenses). In such cases, uninsured/underinsured coverage would come into effect. If you live in a no-fault state, you probably won’t get much benefit out of this coverage and you’ll need to rely on your PIP or Med Pay coverage to pay for any injuries and use your collision coverage to get your car fixed. If you reside in a state where accident fault is considered, though, it’s a good idea to have this type of insurance which can reimburse your collision deductible or pay to get your car fixed and pay for any medical expenses suffered by you and your passengers as a result of the loss.

What Kind of Car Insurance Coverage Do I Need? – Final Thoughts

These are the basic rules of thumb to think about when you are buying car insurance. Ultimately, though, the answer to the question posed by the title of this article (“What kind of car insurance do I need?”) will vary from person to person and state to state.  

At the end of the day, your best bet is to use the advice provided above to sketch out a basic plan and then speak with a car insurance provider to get a second opinion. Calling a leader in the auto insurance in your state (be it California, Florida, or Texas) will help you put together an affordable car insurance policy that includes all the coverage you need.

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4 Ways to Save Money During the First Year of College

Starting college is an exciting and sometimes daunting experience for new students and their parents.  One of the many factors students have to consider during that important first year is how to maintain a viable budget. Whether the family has saved for college or has taken out student loans, every dollar counts! If your son or daughter is heading to college soon, there are several ways you can help them save money and set them on the right path to managing their budget on their own.  Check out these 4 ways to save money during the first year of college so that you don’t break the bank!

1.     Shop Conservatively for the Dorm Room

While your new college student might get excited about dorm room décor they see on Pinterest or in store ads, you might want to remind them that as a freshman, he or she will not have a private room and may even be sharing one with two other people. As a result, personal space will be quite limited and will not be able to accommodate a lot of furniture or appliances. Limit dorm supplies to a few sets of bedsheets, some desk supplies, and a few small decorative items to save money and space during your freshman’s first year.

2.     Review Meal Plans

Most large colleges offer incoming freshmen a meal plan where they can pay for their meals on a monthly basis or use a debit card that you can reload when necessary. While a meal plan may sound like a viable way to save money, the savings are contingent on how often your child actually eats in the school cafeteria.

Many students find that they are on the go much more than they anticipated and do not have time to visit the cafeteria.  Review your coed’s schedule and project the cost of a meal plan versus giving him or her a monthly food allotment on a pre-paid debit card. If your student’s schedule is packed with classes and activities, a debit card may be the better option.  I know for me, I wasted a small fortune on meal plans when I was a freshman.  You think you’ll go to the cafeteria 17 times a week and only end up going 3 – doh!

3.     Encourage Carpooling

Many larger colleges have every convenience within walking distance, so there is little need for the added expense of a car.  If your student does decide to bring there car, there are still ways to save.  If your freshman is taking his or her own car to college, you might want to encourage carpooling. Not only will this help save money on gas, it may also qualify your young driver for a few discounts, depending on who your insurance carrier is.  Just as a random example, if your freshman is attending college in Colorado, check with your Denver auto insurance representative.  You can ask if your child can qualify for a low mileage discount if they drive less often or if they will need any kind of additional insurance if they drive others around campus on a daily basis.

4.     Minimize Student Loan Debt Early

One of the most common causes of student debt is the accumulation of student loans. While you may not be able to avoid taking advantage of them in order to pay for tuition, it is important to use them wisely and only borrow what you need. While a monetary windfall each year might be fun for your freshman, student loan debt can mount up quickly and turn into a big problem once graduation has come and gone!

4 Ways to Save Money During the First Year of College – Final Thoughts

Planning ahead, careful budgeting, and knowing exactly what your co-ed will require for his or her first year of college can help you avoid wasting money and financial stress. The sooner he or she learns how to maintain a budget, the more it will benefit your child in the long term.

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Driverless Cars and Their Impending Collision with the Auto Insurance Industry

In any futuristic movie you watch, the lead character “drives” around in an autonomous vehicle. Without having to worry about actually driving the car or getting stuck in traffic, the character has time to figure out how to diffuse the bomb and save the girl. Roll credits.

All of these films predicted that we (society) would have a self-driving vehicle within the first 100 years of the 21st century—and they were right. The Institute of Electrical and Electronics Engineers (IEEE) has predicted that by 2040, at least 75 percent of all vehicles on the road will be self-driving. Like Tom Cruise in Minority Report, we’re going to be going hands-free.

When Are Driverless Cars Going to Be Available?

When can we expect this shift to happen to driverless cars to occur? Well, Audi has promised that in 2017, the Next Generation Audi A8 will be fully capable of autonomous driving—that is literally next year! For those of us with a spotty driving record and issues with parallel parking, this is pretty awesome news. And for those of us on a budget, other (and more affordable) autonomous vehicles will enter the market by 2020.

So what does this mean for the auto insurance industry? Will premiums rise, drop or be caput? How does this change the myriad auto insurance online quote comparison services out there?  Will certain coverage cease altogether while others pivot with the times?

If human error is not the cause of an accident, who is to blame and who is responsible for the damages?

Is It the End of the Auto Insurance Industry?

Luxury vehicles and select mid-priced cars already come equipped with some automated features including: automated parallel parking, lane-departure warnings, blind-spot monitoring, and forward-collision warnings. According to the Insurance Information Institute, (III) these automated features have already led to a lower fatality rate. Forbes Magazine concludes that because traffic accidents will decline (and as we’ve learned, they’re on the decline already) and because liability will transfer from the motorist to the automaker and their software, insurance rates are going to fall fast. Bloomberg estimates that insurance premiums will drop by 60 percent over a 15-year period.

To prepare for this, insurance agencies like State Farm have begun to recalibrate their insurance services. Forbes reports that State Farm is pushing for a rebranding of itself as “a life management company,” specializing in energy use, environmental conditions and security systems.

But is this enough? Are insurance giants like State Farm, Allstate and Progressive prepared to downsize? Allstate is a company that already specializes in insuring auto security systems, keeping track of client speed and braking through an attachment in the vehicle. But if the auto manufacturer and software company takes charge of that, what can Allstate do? Allstate’s Chief Executive Officer, Tom Wilson, has a plan. While he doesn’t get too specific in an interview with Bloomberg, he does share that the company has a group studying what they have termed the “connected car.” Instead of just simply insuring the vehicle (now that that will be taken out of their hands in the next decade) Allstate is looking into providing coverage for other types of smart devices, like the cell phone. The company is also considering providing their customers access to their driving data and offering them coupons if they drive past a certain restaurant or other such entity.

Driverless Cars and Their Impending Collision with the Auto Insurance Industry – Final Thoughts

So far, all of the other insurance companies are keeping quiet about their plans for the future. III points out that even though the number of crashes is expected to drop significantly once automated cars come to market, that doesn’t mean repair costs are going to drop. Issues skeptics take with the automated vehicle is its reliance on the software. What if the driver does get in a crash and it fries the car’s computer? How much will that cost to replace? Will thieves be able to hack into the system and steal private data? Will hackers be able to take control of a moving automated vehicle? These are all fair points. We’ll just have to wait and see.

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5 Tips to Help Jump Start Your Emergency Fund

You said the flood wouldn’t reach your basement, but it did. You thought you’d never get laid off from your job, but it just happened. You thought you could avoid car accidents for your whole life, but your car got totaled.

The world of finance can be a dark and uninviting place, but if there’s one thing that’s certain, it’s that good financial planning for the future will always benefit you. An essential part of financial planning is having an emergency fund.

An emergency fund is money that you save in order to help you through the tough breaks that life might hand you. It sits dormant until it’s ready to be used. While it may feel excruciating to put money away toward this fund, you’ll feel relieved in the long run when you know you have money to fall back on.

Just how can you go about establishing your own emergency fund? Here’s five important tips to get you started.

Set an Attainable Target

An emergency fund, when it all comes down to it, is basically built on setting a goal. Unfortunately, many people tend to bite off more than they can chew when it comes to goal-setting. Say you want to exercise more, so you decide to go to the gym every day for five hours. Sounds rigorous and a bit impossible, right?

Setting a high savings goal is the same way – you may want to accumulate enough to have a year’s worth of emergency savings, but it takes more time and commitment than you think. Set your first target low. Take small steps from there.

A good starting point is to have a fund of anywhere between $200 and $500. It’s a fund that can be reached within a matter of months, but would be enough to get you out of a sticky situation quickly.

Again, sky-high goals never work, so it’s best to break them down into smaller pieces. In order to get your initial emergency fund up to par, consider saving between $25 and $40 a week. To put it into perspective, putting away $25 would easily bring you more than $200 in 10 weeks.

Cut Out the Money Wasters

You probably don’t even think you have the money to start creating your emergency fund. However, you spend money more often than you think, and there’s several things you can do to snatch up that money flying out the window. So stop digging around in the couch cushions and looking under the furniture.

We all waste money on things we don’t need. It’s time to take a hard look at where you’re spending money each month. Once you figure out what is sucking up your precious earnings, you can decide what can stay and what needs to go for a while. Here’s a list of some common expenses, and what you can do to adjust them.

• Heating and cooling – To fix this, you can install a programmable thermostat that can be turned off when you’re sleeping or at work. This will cut your monthly bill by 20 to 30 percent.

• Groceries – Don’t go to the store hungry. Believe it or not, many grocery bills end up being more than we expected because we buy things we just don’t need.

• Driving – Gas may be getting cheaper, but you probably still fill up the car frequently. There are many ways to cut these costs. You could carpool, use public transportation or even ride a bike.

• Anything else – Be honest: How many times have you discovered you have money and decided to spend it on something right away? Instead of splurging on that takeout or that outfit, put it in the bank.

Automatic Is the Way to Go

What’s worse than spending found money is watching it sit on the table and knowing you can’t spend it. Want to know a quick fix for this? Set up a savings plan at your bank that has automatic deposit. That means any amount of money you choose gets transported from your checking to your savings account without you having to see it. It’s almost like magic!

If you really think you need to be kept away from that money, set up the savings plan at a different bank. That will make the money less tempting and convenient to get to, because you’ll have to sit at your computer, complete a transfer and wait a few days. As an added bonus, it might expose you to banks with good service and rates.

Remember your initial plan when deciding what amount to swipe from your checking account.

Celebrate Milestones

Knowing that you have money to fall back on is a relief. When you hit that first savings milestone, it will lift a weight off your shoulders. This is a proper time to congratulate yourself on a job well done!

For each milestone, reward yourself. It’s one of the best parts of setting a goal. You know you’ll have a reward down the line for each increment you complete. Just don’t pat yourself on the back too much – keep the rewards small. A new outfit, a night at a restaurant or a book are some good examples.

Stick to It!

What good is an emergency fund with only $50 in it? You have to stay serious about this. Remember, at any time, you could be in a tough spot where you’ll need cash quickly. Sticking to your plan is probably the toughest part of creating an emergency fund, but when you keep your goals attainable, it makes things much easier.

5 Tips to Help Jump Start Your Emergency Fund – Final Thoughts

Think of it in terms of something we can all relate to: food. We all have to eat and drink. This emergency fund will get you the necessary items you need to survive, should you find yourself in an unlucky bind – but you should at least have a place to stay, too.

Now go forth and save yourself with the power of saving!

Anum Yoon is a personal finance blogger and writer. She created and maintains her personal finance blog Current on Currency. You can subscribe to her blog newsletter right here for her weekly updates.

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How Much Does A Minor Car Accident Cost?

Do you have any big plans for the day? Maybe you’re meeting your future significant other on a coffee date. Perhaps you have a long list of errands to complete. Or is this going to be your spa day? One of the possible events you definitely didn’t plan on is having a car accident. However, for 27,000 of your fellow drivers that is exactly what will happen today. They’re going to get into an accident.

There will be some minor fender benders and more severe “total loss” of autos. Let’s stay positive and focus on the minor car accidents. It shouldn’t cost too much to pull out a dent or smooth out a scrape, right? Actually, wrong. Even a minor car accident can put a huge dent in your wallet. Here are the costs associated with an auto accident to be on the lookout for :

Insurance Rates Going Up

Many insurance companies offer “good driver discounts.” They want to reward you for keeping it safe out there. The reverse is also true. Even if you didn’t cause the accident, the moment you file a claim your premium costs could start ticking up. How much? That depends on where you live. According to a survey conducted by InsuranceQuotes, if you reside in Massachusetts, your rates could skyrocket up 76% and that’s just after one accident.

Paying for Repairs

You hope that your insurance company is going to pay for all your repairs. The thing to remember is that they’re not going to pay for repairs on a car that isn’t worth the value of those repairs. In other words, if the Kelley Blue Book price of your car comes in at three-thousand and the repairs are five thousand, then you’ll either get the three or be stuck with a total loss. Even on the minor accidents, you’ll still be responsible for the deductible.

Renting a Rental Car

While your car is in the shop getting worked on, you still need to get around. Some insurance policies will cover the cost of a rental car but not if it is a total loss. The good news is that many insurance companies have partnerships with rental car companies. That means you might be able to benefit from a corporate rate. You should still shop around though to make sure you’re getting the best deal especially if you have to stay in the rental beyond what the insurance company will pay.

Settling Your Car Loan

A minor car accident should have you back on the road in a few days. What happens if your car just isn’t the same? Maybe it will need additional repairs down the line. None of that matters to the finance company who lent you the money for the car. They still expect your payments on time whether you can drive the car or not. In the case of a total loss, the insurance company will pay out the value on the car. That might not be enough to satisfy the loan. Guess who gets stuck with that bill? Yes, even though your car might be headed for the scrap heap, you could still be paying it off.

How Much Does A Minor Car Accident Cost? – Final Thoughts

What is the alternative? Obviously, don’t get into an accident!

Short of that, you might want to review your current auto insurance policy to make sure you have good coverage. That includes finding out what happens if the person you get into an accident with doesn’t have insurance. That might mean a trip to small claims court, which is yet another expense. On the bright side, you could end up on Judge Judy.

Anum Yoon is a personal finance blogger and writer. She created and maintains her personal finance blog Current on Currency. You can subscribe to her blog newsletter right here for her weekly updates.

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Maybe Insurance Companies Are Not So Bad?

I may have a bit of a change of heart here.  I was born and bread to believe that insurance companies were crooks, liars, and thieves.  My recent example that I wrote about around insurance company bait and switch tactics highlighted this.  Well, I’m here to admit that I might have been wrong in a small way

Background

As I mentioned earlier in that bait and switch article, I thought my current insurance carrier was trying to take me to the cleaners.  My car insurance policy price actually went down about nine whopping dollars, but my homeowners policy was going up quite a bit.  $266 to be specific.  This was an increase of 36%!!!

Those damn insurance people – always out trying to screw someone!  When I called up and questioned the large increase, they gave me a line about a large number of claims in my area and the rates going up across the board.  Naturally, I didn’t believe a word they were telling me.

Maybe Insurance Companies Are Not So Bad?

Well, I went back to the drawing board and researched prices at a couple different insurance companies.  The result?  The current company, Progressive, was still the pretty much the cheapest!  Geico was a little less, but they are pretty neck and neck.  It seems that with all the other companies rates really had gone up across the board.  The insurance representative on the phone was not just feeding me a line of crap.  Actual, factual information was coming out of their mouth!

Would you just look at that StateFarm price for home and auto combined?  Look at it!  It is almost twice as much!

Final Thoughts

What did I learn from the simple exercise of interacting with the insurance company?  A couple of things, actually.  The first thing when it comes to insurance rates is that you should always “trust but verify.”  I got it backwards in my case.  I verified, then came to trust them.  The second thing is that it is always important to shop around when it comes to home and auto insurance.  You never know how prices can shift each year.  The third thing I learned is that insurance companies sometimes do tell the truth

In the end I decided to stay with Progressive as the extra hassle to save $98 will not be worth it since I knew we were trying to relocate soon.  You can be sure that when we do relocate, I will shop around to a bunch of different insurance companies to get the best deal though.  I probably still will “verify then trust” when that time comes around

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Tips on Getting the Cheapest Car Insurance

Tips on Getting the Cheapest Car Insurance

Auto insurance is a necessity for every car owner. Although car insurance is a required expense, the cost can be kept to a minimum if the proper steps are taken. Here are some effective tips for getting the cheapest insurance for your car.

Select a low-risk vehicle

The cost of insurance will differ from one vehicle to the next. Vehicles that have an excellent safety rating are typically cheaper to insure. On the other hand, fast sports cars and high-end luxury vehicles will have a much more expensive insurance premium. The reliability rating of a vehicle also has a significant impact on the insurance rate. Before choosing a vehicle, do not forget to inquire about the cost of auto insurance.

Practice safe driving tactics

A person’s driving record will either increase or decrease the price of car insurance. The best approach is to drive defensively at all times. Staying alert while at the wheel decreases the likelihood of being involved in a car crash. Avoid speeding and never attempt to text while driving.

Reduce the level of coverage

Although driving without an adequate amount of insurance coverage is never a good idea, some car owners may actually benefit from reducing their level of coverage. Motorists who own a low-value vehicle may not need collision coverage. The cost of the insurance policy could actually exceed the value of the car.

Install a theft deterrent system

Each week, hundreds of vehicles are stolen. Insurance companies consider a theft deterrent system to be a very effective security feature. In an effort to encourage drivers to install a theft deterrent system, most insurance providers provide discounts to the drivers who install anti-theft devices.

Shop around

When it comes to purchasing car insurance, it is usually a good idea to shop around. However, keep in mind that all insurance companies are not reliable. Before selecting a policy, be sure to research the insurance company’s credentials. In the event that a motorist needs to file a claim, they need to be certain that their car insurance provider will be dependable.

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