Entries from April 2010 ↓

Insuring your car can be a costly endeavor if you don’t know the hidden stones of insurance shopping in your state. And many shoppers make the same mistake everywhere – they tend to think that insurance needs and requirements are equal in all states, and getting your auto insured in New Mexico is the same as insuring auto in Minnesota. Wrong! Each state has its peculiarities and individual requirements for insurance coverage on vehicles and they can differ a lot even within neighboring states. Even the regulations concerning vehicle insurance are quite different between states, as in one state you can drive your car without any insurance for a certain period of time after registration, while in another state that would result in a substantial fine or even custody! Continue reading →

The world of insurance is full of traps for the unwary. When you set off to buy your first policy, whether it’s for your vehicle, home, health or life, never assume you know anything. Always do some basic research to find out exactly what different types of cover are on offer, what they cost and whether they represent good value for money. Yes, it’s a real pain to go back to school but, if you walk blindly into a “standard” policy without reading it first, the odds are you will regret it later when it comes to making a claim. Unfortunately, insurance companies are for-profit and that means they want your money and the smallest possible risk of having to give you any of it back again. Protect yourself by getting the best value-for-money coverage you can.

As an example, let’s think about gap insurance. When most people are buying a new vehicle, they need finance. The cheapest deal is a bank overdraft, but they are hard to find these days. This forces you into a commercial loan. Read any loan agreement and there’s always a clause requiring you to buy comprehensive and collision coverage. Obviously, your shiny new vehicle is collateral for the loan. If you default, the lender will repossess and sell it to pay off a part of your debt. Should you damage it, the lender wants it repaired so it still has some resale value. Everything is alright unless you total the vehicle. Continue reading →