How to Budget for a New Car

After a house and maybe a family vacation, purchasing a car is one of the most expensive purchases that many of us will ever make. Even a second-hand car can set you back several thousands of dollars.

When you decide to upgrade your car, you have two finance options. You can either purchase it outright and pay the total price of the vehicle on the day of purchase or you can choose a monthly repayment plan.

Regardless of which finance option you choose, you will still need to budget effectively. As long as you have chosen a car that is within your financial reach, creating a budget will ensure you are never short on money in the future.

Here are some top tips to help you budget for a new car.

Use An Online Car Payment Calculator

Using an online calculator to estimate the total costs and monthly repayments of your new car makes it easier to create a budget. You can break down your expenses to see how much you’re going to spend each month on your vehicle.

Vehicle prices, insurance premiums, and road tax costs vary depending on where you live so you will need to find a car payment calculator that is relevant to your area of residency. For example, if you live in Salt Lake City, use a Car Payment Calculator in Utah so you can get accurate financial estimates.

Check Insurance Prices

Insurance policies are one of the most expensive ongoing costs of being a driver. Take a look at the average price of insurance for the model of vehicle that you are purchasing.

Compare the prices of multiple different providers to get an average. Depending on the level of experience that you have as a driver, your age, and whether or not you have had a previous claim, the insurance might vary. However, comparing different insurance policy prices will enable you to budget more effectively for your new vehicle.

Consider Fuel Economy

Different vehicles have different fuel economies, meaning they use varying amounts of fuel to run. When buying a new car, consider the fuel economy so that you can estimate how much you’re going to spend on filling up the tank each month.

Whether the vehicle has a petrol or diesel engine will impact its fuel consumption, as well as the size of the engine and your driving technique.

Servicing

Most of us expect a new car to be fully functioning and fault-free. No matter how much you properly care for your car, it will still need to be serviced on a yearly basis to check for damage or hidden safety hazards.

The price of a car service varies depending on the model of the car, the garage that you go to, and whether or not anything needs fixing in the vehicle. This is something that you will need to include in your budget alongside the price of the car and your annual insurance premium.

The post How to Budget for a New Car appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

How To Properly Care For Your Car

The golden rule of treating others how you want to be treated not only applies to your personal relationships, but it also applies to your car. Cars are amazing machines that get people from place to place, and for the most part, they do it with little maintenance or issue. Because cars work so well these days, it’s extremely common for people to kind of forget about keeping them clean or to take them in for routine maintenance.

The problem with letting these things fall by the wayside is that these little things over time can lead to more serious issues if left unattended to.

Car Care Tips

While the average person isn’t mechanically inclined enough to replace breaks, change oil, or fix a squeaky belt, they can however clean their vehicle. Patrick James of Trico group suggests cleaning your vehicle routinely a few times a month. This includes washing the exterior of the car and removing any debris that may have accumulated during your travels such as tar, bugs, and dirt. Keeping the outside of your car clean not only make it look better, but it has several other advantages as well.

The first advantage is safety. When a car is clean, it’s safer to drive because other drivers will be able to notice your car as it goes by. When brake lights and headlights are clean, they can also help you to drive the car more safely as well as those around you.

Second, a clean car helps with better aerodynamics, which means better mpg in most cases. The dirtier your car is, the more drag it will create when it drives, thus reducing your overall miles per gallon and making it more expensive to drive.

When it comes to interior care, the simplest thing to do is to keep the car vacuumed. Not only can this help your car to look much nicer when picking up a passenger, but it also comes with a safety benefit as well. Making sure your floor mats are clean, especially the ones under the pedals, is good practice as you don’t want debris to cause your feet to slip when taking your foot off and on the pedals. Also, debris on seats can cause damage when people sit on the debris as it causes friction and can wear out vehicle fabrics faster.

Cleaning the vinyl and plastic in your car is also good practice as the UV rays that come through the window can degrade and break down plastics and types of vinyl causing them to crack and look damaged. Putting protectants on vinyl and plastic can help to extend the life and look for many years to come.

Proper Car Care Final Thoughts

As you can see, taking care of your car will help your car to take better care of you when it comes to safety and longevity. The last thing you want is for serious car repairs, so by keeping things clean and maintained, you can help to avoid these serious types of breakdowns.

The post How To Properly Care For Your Car appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

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.

The post How to Retain Your Car’s Value appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

Your Complete Guide to Buying a Car

So, you’ve saved up a nice little chunk of change and you can’t stand driving your old car anymore—but how do you go about buying a new one? If you want to make sure you get the best deal on a reliable car, you need to do your due diligence.

Before buying a car, you should do plenty of research and carefully determine your budget. When shopping, be sure to find out everything you can about your potential car. Here are some other tips for making sure you get the best car next time you shop.

Car Needs and Budget

The first step to shopping for a car is determining what you actually need and how much you can spend. If you’re looking for a vehicle that has some hauling capability and is good for manual labor, you’re probably in the market for a truck or a van. If gas mileage is your primary concern, a simple sedan is going to be your best bet.

You’ll also need to think about what you want in your vehicle. There are tons of different makes and models of vehicles, each offering different things when it comes to looks, features and strengths and weaknesses. Chances are you’re going to be driving this car for quite a while, so it’s important to find something you actually enjoy driving.

Your budget is the biggest factor in shopping for a car. No matter what kind of car you want, you can only spend as much as you have or have access to. Before you go looking at lots and talking with salespeople, make sure you get an idea of what you can spend, whether it’s in the form of a lump sum of cash or a preapproval for a loan.  Check out my guide to buying a used car if you’re sure a used car is for you.  If you are not sure, it is always good to leave your options open.

Car Loan Tips

Unless you’re only spending a few thousand on a car and you have the money in cash, you’re going to need to take out a loan to pay for your car. This means providing information for a bank or dealership to run a credit check and putting money down. The good news is, these loans allow you to increase your car budget without paying a fortune in interest since the rates are relatively low.

If you happen to live in Canada, then when looking for Ontario auto loans, it’s important to make sure the loan you apply for has a fair interest rate and monthly payments. You will spend the next few years paying this loan off, so the last thing you want is a payment schedule or amount that you can’t work with!

While dealerships do offer loans, it’s best to apply for an auto loan with a bank with whom you already have plenty of history. This is doubly true if you bank with a local credit union since they often have the best interest rates.

Due Diligence When Car Shopping

Whether you’re testing out a new car at the lot or meeting up with a private seller to learn more about the vehicle you’re interested in, it’s important to ask plenty of questions and take your time to determine what, if anything, is wrong with the car you’re considering buying. Many private sellers sell cars that need something minor replaced, such as tires or one of the gauges. Make sure you ask about any problems like this when you’re looking at a car.

Test driving is also a good way to determine the worth of a car. Even cars that look very nice may have problems exposed by a simple test drive. The key to a successful test drive is making sure you take the car through a range of different conditions. You should drive the car both fast and slow, up and down hills, and make sure you turn left and right. Also take this time to check any other functions of the car, including lights and turn signals, windshield wipers and washer fluid, and heating and air conditioning.

If something is broken in the car you’re looking at, it’s best to be aware of that fact before you decide to make the purchase. This is why it’s important to do plenty of your own research without jumping the gun.

Final Thoughts for Buying a Car

No matter what you do, buying a car is a bit of gamble. However, taking the right steps before buying is the best way to make sure you get a good deal on a good car.  Take your time so that you don’t let your emotions make this large financial decision for you.

The post Your Complete Guide to Buying a Car appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

6 Steps To Getting A Car Loan For the First Time

Shopping for your first car can certainly be exhilarating and exciting. It can also invoke feelings of fear and anxiety, particularly if you are uncertain about how to pay for it. Getting a car is considered a rite of passage of sorts, but it also comes with certain responsibilities that must be taken into consideration. Since many car buyers will seek out financing options to get into the car best suited to them, it is important to consider all of your options before making your final selection. While it is always a good idea to buy a car with cash, not everyone has the discipline to save up enough money.  With that in mind, consider the following five steps meant to help you as you apply for a car loan for the first time.

Set Your Budget

Before you set out to purchase a new car, it is important to consider how much you can realistically afford to pay. If you are planning to finance the car, you will want to consider your monthly payments into that equation. The more you can pay down as a deposit on the car, the better, as you will then enjoy lower overall monthly payments and finance charges. There are many types of car loans for first-time buyers, so shop wisely.

Decide Between New and Used

A big decision to be made is whether or not you want, or even need, a new car. While there are advantages to going with a new car, such as an extensive warranty and perhaps better reliability, it comes with the caveat of being much more expensive as well. There are some great used cars out there that offer exceptional value for your money. Check out my guide for how to get a good deal on a used car for help.  It really comes down to what you, as a first time car buyer, are comfortable with. Assess your needs, such as how often you will be driving the vehicle and under what conditions, and then decide from there.

Choose a Lender

If you are like many first time car buyers, you will be financing your purchase. However, you will want to carefully consider your choice of lender before you sign on the dotted line for any vehicle. If you have good to great credit, you will be in the position of being able to shop around for your car loan. Make sure you take advantage of this, and do not feel that you need to select the first lender that makes you an offer. You want to look for the lowest possible interest rate that you can get in order to get the best possible deal on the vehicle. This will also help you to stretch your budget even further.

Negotiate the Price

Shopping for a vehicle is really similar to some other purchasing activities. Generally speaking, you are able to negotiate the price and terms of many vehicles. Keep that in mind as you try to find a way to afford the car of your dreams, as it might be more within your reach than you realized. You might also want to do your car shopping during major holiday seasons, as this tends to be a time when dealerships are offering their best promotions. Another strategy is to wait until a new model year comes out, and then work to negotiate a great deal on the previous year’s vehicles. You will not notice that much of a difference, and you could save a noticeable amount of money in the end!

Sign and Start Driving

Once you have successfully navigated the previous five steps, you will be ready to sign the purchasing contract and drive your new car off the lot. This will be an exciting day, but take some time to assess your situation and the responsibility that you are taking on. You want to make sure that you are able to easily pay for the vehicle, so keep that in mind before signing. Get some car insurance and make sure that you are protected throughout.

Final Thoughts

As a first time car buyer, there are many things to consider. These are just five steps that you want to consider focusing on. Take your time and get the vehicle that is right for you in the end.

The post 6 Steps To Getting A Car Loan For the First Time appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

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.

The post What to Do Immediately Following a Car Accident appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

Cyclical Sales Trends – The Best Time of Year to Buy Anything

If you’re a budget-conscious person, you likely want the best items for the least expensive price possible. Makes sense and cents, right? If you’ve budgeted for a new personal computer this year and have been surveying prices, you probably realize that the price can vary by several hundred dollars depending on when you’re looking.

Almost every item you can think of has a time of year when sales are best. The reasons vary.

In some industries, new models roll out at a particular time of year. Stores want to sell the old merchandise to make way for the new. They offer cuts in the usual prices to make it more appealing to customers and thus move the merchandise out quicker.

That’s why, when you’re watching television in August, you’ll see car dealerships literally tell you they’re making way for the new models, which will be arriving in the fall. August and September are a great time to buy a car, which is new but not as new as the latest model arriving in a few weeks will be.

In other industries, sales follow major holidays. Stores ramp up to sell chocolate around Valentine’s Day and Halloween, for example. But the day after, and as long as inventory lasts, they want to sell it to make way for the next holiday’s items. Cheaper prices are the incentive for more sales. If you’re looking to buy candy cheap, mark February 15 and November 1 on your calendar.

Other industries simply have a traditional time they have sales. White sales, for example, always happen in the winter months of January and February. If you’re looking for bedding and towels, white sales are your friend. Did the term start because linens were mostly white back in the day? Because January and February are white with snow? It doesn’t matter at this juncture, because “white sales” are synonymous with less expensive sheets, duvets and towels.

There are multiple other reasons too. Some business sectors have slow periods. They try to counteract slowness by offering deals. Other business sectors have busy periods, where inventory is greatest because stuff sells like hotcakes. They may promote deals then to spur sales even more.

Here’s a month-by-month look at what goes on sale when.

First Quarter Money Saving Sales

January

Head for anything slow in the cold months. Air conditioners and lawn furniture are likely to see steep discounts then. January is also a slow month for Broadway shows, which can be pricey. The best discounts will be found then.

February

Televisions are often heavily promoted for Super Bowl watching. Once it’s over, it’s your chance to pick up the latest and the biggest models for cheap.

March

Time to get that Valentine’s Day candy for rock bottom prices! Swimsuits may also be discounted, as it’s not yet time to think about summer and resort wear buying season is past.

Second Quarter Money Saving Sales

April

If you’ve wanted to go on a cruise, now is the time to look for inexpensive tickets. The season is nearly past, and cruise lines will be wanting to fill every available seat they have.

May

May is when the new model year begins for refrigerators, so it’s peak time to buy the past year’s model at a steep discount.

June

Many stores promote tools and lawn care items for Father’s Day. Once that’s over, the items remaining will likely be marked down.

Third Quarter Money Saving Sales

July

Back to school sales start now! The summer is therefore a great time to buy furniture, office supplies and anything one could use in a dorm. The furniture and supplies, of course, are also those that grace a home office! If you’ve been looking to buy hand-crafted hardwood furniture, summer is the time to browse the catalogs for sale items.

August

Back to school clothing is in heavy rotation. Stores actually do have sales for busy parents, so it’s a good time to fulfill clothing needs for the year for cheap.

September

Cars, remember? New models will be rolling out soon, so dealerships want to sell last year’s models. September is also a great time to buy airfare for the holiday season. The ticket prices will start to trend higher in October.

Fourth Quarter Money Saving Sales

October

Looking to stock up on notebooks and pens? Back to school sales are over, but might be followed by even steeper discounts on inventory. Summer items, like lawn furniture, start to go into heavy sales now also.

November

Hit that Halloween candy! Needless to say, Halloween decorations for next year can be obtained cheaply early in the month, too. Appliances, like refrigerators, are also on sale this month because new items are rolling out.

December

Many items might be more expensive this month because merchandisers are taking advantage of the holiday buying rush. But exceptions to price ramp-ups are readily available as well. If you’re in the market for a swimming pool, now is the time to find great discounts. If you want to ring in the New Year with a glass of bubbly, champagne manufacturers often offer genuine sales to make buying it more attractive.  You can also find great deals on Christmas decorations toward the end of the month after the holiday.

Final Thoughts

There you have it! Armed with a sense of what items go on sale when, you can make the most cost-effective purchase decisions possible. Good luck!

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.

The post Cyclical Sales Trends – The Best Time of Year to Buy Anything appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

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.

The post How to Save Big on Your Car Insurance appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

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.

The post What Kind of Car Insurance Coverage Do I Need? appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

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.

The post Driverless Cars and Their Impending Collision with the Auto Insurance Industry appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com