Home » Auto
Category Archives: Auto
Plymouth Rock Assurance Review

Founded in 1982, Plymouth Rock Assurance provides a selection of property insurance and bodily injury insurance products to customers across the states of New York, New Jersey, Pennsylvania, Massachusetts, Connecticut, New Hampshire.
In this Plymouth Rock Assurance review, we’ll compare this provider to other regional and national insurance carriers, helping you find the best insurance policy for your needs.
Plymouth Rock Car Insurance Coverage
Plymouth Rock Assurance offers a host of car insurance coverage options, allowing you to meet the minimum requirements in your state and go above and beyond those requirements when needed,
Bodily Injury Coverage:Â Limited to a fixed amount of money per person and per accident, bodily injury insurance covers the harm done to other people in an accident. It is designed to help them with their medical bills and other payments resulting from an accident.
Property Damage Coverage:Â Also fixed to a specific sum, property damage insurance is designed to cover the other driver’s vehicle in an accident, as well as other property that you damage.
Collision Coverage:Â A type of insurance that covers you for damages done to your own car. With collision insurance, you will be covered regardless of who caused the accident and you’ll also get cover if the accident involves an obstacle (tree, guardrail, wall, fence) as opposed to another vehicle. You will not, however, be covered if you hit a deer. One of the quirks of this coverage option is that you’re only covered for animal collisions if you swerve and hit a wall/tree.
Comprehensive Coverage:Â With comprehensive coverage, you’re generally covered for the things that collision insurance can’t reach. It covers deer collisions and other accidents involving animal strikes and it also covers damage caused by weather and vandalism.
Personal Injury Protection (PIP):Â This coverage option works like bodily injury coverage, only instead of protecting the other driver and their passengers, it protects you, covering you for lost wages and medical bills.
Medical Payments:Â A type of insurance specifically designed to cover your medical bills. Unlike PIP, medical payments coverage will not give you money lost as a result of missed work.
Underinsured/Uninsured Motorist Coverage: When the other driver’s insurance cannot cover your claims, either because they don’t have enough or they don’t have any, uninsured/underinsured motorist insurance will step in.
Plymouth Rock Assurance Auto Insurance Features
Plymouth Rock Assurance has three different levels of auto insurance: Plus, Preferred, and Premier.  There are different coverage options available at each of these levels and you can upgrade if you feel that those options will serve you well.
Some of the features offered at these different levels, along with the additional coverage offered to all policyholders, include:
- Door to Door Valet Claim Service: Plymouth Rock auto insurance customers can arrange for their cars to be picked up from their homes and taken to a nearby repair shop. Once it has been fixed, it will be returned at a time that is convenient to the policyholder.
- Guaranteed Repairs: If performed at a listed repair shop, all repairs will be guaranteed by Plymouth Rock.
- Comprehensive Claim Forgiveness:Â Plymouth Rock promises that your insurance premiums will not increase just because you make a claim about a stolen or weather-damaged vehicle.
- Get Home Safe: If, for whatever reason, you don’t feel safe to drive home, Plymouth Rock will cover your taxi ride. This can happen one time per year as part of most Plymouth Rock car insurance policies.
- Glass Coverage:Â Plymouth Rock offers several coverage options and policy features related to windshield repair and glass repair. This includes a $100 glass deductible and a waived glass deductible repair.
- New Car Replacement:Â If you have a new car that gets totaled within a specific timeframe, Plymouth Rock will replace it completely.
- Crashbusters: Plymouth Rock will send a Crashbusters team to your location at your request. They will assess the damage done to your vehicle and can help you to file a claim.
- Pet Injury: In the event that your pet gets injured during a car accident, some Plymouth Rock policyholders can claim a small portion of the vet fees. After all, your dog or cat needs cover too!
- Roadside Assistance: With the Plymouth Rock roadside assistance program, you’ll be covered for some of the services charged on broken down vehicles at the roadside, including towing, tire changes, fuel delivery, and more.Â
- Key Replacement:Â Lost your key? With the right cover from Plymouth Rock, you can get a replacement set.
Plymouth Rock Car Insurance Discounts
Plymouth Rock discounts differ from state to state and from user to user. The biggest of these are multi-policy discounts, which are offered when you purchase multiple policies, and prepay discounts, which are offered when you pay your insurance premiums upfront.Â
Other available discounts include:
- Paperless Filing:Â Go paperless and do your bit for the environment while helping to reduce waste and saving a few cents in the process.
- Membership Organization Discounts:Â Make big savings when you are a member of specific organizations.
- Senior Discount: Drivers above a certain age can apply.
- Good Student Discount: Offered to young drivers who obtain at least a B average.
- Safety Features and Anti-Theft Devices: If your car contains key features like trackers, alarms, airbags, seatbelts, and anti-lock brakes, these discounts will be available to you.
- Driver Training:Â Complete driver training courses to prove your skills, show your commitment, and make some savings.
- Low Mileage:Â Drive less and you could pay less.
Other Plymouth Rock Insurance Products
In addition to car insurance, the Plymouth Rock Assurance Corporation offers a wealth of insurance products. These are also confined to a very small part of the United States and include:
Home Insurance
Plymouth Rock offers comprehensive insurance quotes for all homeowners. These policies will cover you for the breakdown of key appliances, loss of personal items, identity theft protection, and even protection against hacks and cybercrime.
You can apply for Plymouth Rock home insurance directly if you live in New Jersey, New York, New Hampshire, Pennsylvania, and Connecticut.
Renters Insurance
Renters insurance will cover you for personal losses in the home, as well as providing liability protection for anyone who gets injured in your home. Plymouth Rock renters insurance is available in the same states as Plymouth Rock home insurance.
Life Insurance
Plymouth Rock life insurance policies are only available in the state of New Jersey. Both term life insurance and variable life insurance policies are available, of which term life is arguably the better choice.
Policyholders can opt for a term of between 10 and 30 years, with the insurance premiums and payouts dependent on your age, health, medical history, and other key factors.
Umbrella Insurance
An umbrella insurance policy essentially increases your liability limits, going the extra mile to protect you. It is a supplemental insurance policy, designed to be added onto car insurance or homeowners insurance and to protect you and your family in the event that a claim is made against you.
Plymouth Rock Customer Satisfaction and Claims Satisfaction
Plymouth Rock has good ratings from customers and experts. It has an A- rating from AM Best, which isn’t the highest possible rating but is a great effort from a relatively small company (when compared to giants like GEICO and State Farm).
The insurance claims process is quick and easy, and while there are a number of bad reviews and complaints out there, Plymouth Rock seems committed to remedying these as quickly and completely as possible.
Furthermore, if you have a bad experience with Plymouth Rock, make your discontent clear and they will make a donation to a charity of your choice. This proves that Plymouth Rock is committed to keeping customers happy and willing to do whatever it takes.
Bottom Line: Car Insurance in New England
Plymouth Rock is a very highly-rated insurance company offering a selection of products directly and through insurance agents. It has accident forgiveness and claims forgiveness; offers a multitude of ways to pay your premiums, and the support team is available around the clock.Â
If you reside in one of the states where Plymouth Rock operates, visit PlymouthRock.com, get a quote, and start comparing. If not, don’t worry, as there are many other great insurance company reviews to check out, including The General, Progressive, and Esurance.
Plymouth Rock Assurance Review is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
What Is High-risk Auto Insurance? Â

Insurance companies determine risk when calculating rates and offering coverage. If the company determines that your accident risk is higher than average, you’ll have to purchase high-risk auto insurance. Since companies base rates on risk, you can expect to pay more for coverage if you need high-risk insurance.Â
Find out why you might need high-risk insurance, how you can lower your premiums, and more. Then you’ll be ready to shop for high-risk auto insurance if necessary.Â
Â
Reasons for High-risk Auto Insurance
Insurance companies look at various factors when determining risk. You might need high-risk insurance if you:
- Have lots of at-fault accidents on your recordÂ
- Have a large number of speeding ticketsÂ
- Have reckless driving or racing violations
- Have been convicted of driving under the influence
- Are a young, inexperienced driver, or are over 65 years oldÂ
- Have bad creditÂ
- Use the vehicle for a ridesharing service or another high-risk activityÂ
- Drive a high value or specialized car
- Had your license suspended or revoked
- Let your insurance lapseÂ
Â
Lowering Your Risk
If you’ve been flagged as a high-risk driver, there are some things you can do to reduce your risk in the eyes of the insurance company. Reducing your risk can lead to lower premiums.
First, if you are high risk due to moving violations, take a defensive driving course. Speak with your insurance agent before taking a class to ensure it’s approved, though.Â
Also, practice safer driving behaviors while on the road. Follow the speed limit and obey all laws. After you hit the three-year mark without any tickets, your premium should decrease.
If you’re high-risk because of a DUI conviction, speak to your insurance company about installing an interlock ignition device. While most companies will not reduce the rates, some will, so it’s worth exploring.Â
Improving your credit score can also lower your premiums. Some insurance companies charge more for bad credit scores, so make your payments on time and reduce your credit-to-debt ratio. Â
Â
SR-22 Certificate and High-risk Insurance
If you require high-risk auto insurance because your policy lapsed, or your license was suspended or revoked, you might need an SR-22 certificate. This certificate is not insurance. Instead, it is proof that you have the required liability insurance. Your insurance company will issue the certificate and send it to the necessary state office on your behalf.Â
Â
High-risk Insurance Restrictions
Some high-risk policies include restrictions. For example, you might be the only person protected when driving your vehicle. If someone else drives your car, he or she won’t be covered. Also, if you are in an accident and the court assesses punitive damages, your policy might not cover it. Finally, the company might review your driving history annually and increase your rates if you have any infractions.Â
Because of these restrictions and the high cost of coverage, work hard to reduce your risk, so you can get a standard policy soon.Â
Â
Getting High-risk Insurance
Finding high-risk auto insurance is a bit harder than purchasing a standard policy. Some major insurance providers offer high-risk coverage, so you can begin shopping there. However, you might have to use a company that specializes in these policies. When you choose such a company, you’re less likely to get turned down for insurance.Â
Â
Compare Quotes
As with any insurance policy, you should compare quotes before purchasing high-risk coverage. Companies use different formulas for assessing risk. One company might see you as extremely high risk, while another might view your risk at a moderate level, meaning you’ll pay less. After you compare quotes, you can purchase your policy and hit the road once again.
What Is High-risk Auto Insurance?  is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
The Worst Cities to Own a Car
The number of Americans driving to work alone is on the rise, according to data from the U.S. Census Bureau. With the increase in drivers comes traffic, which means more time and money spent idling in cars. Some cities are better equipped to deal with the mass of drivers, managing to keep traffic delays and congestion to a minimum. Other cities are equipped with walkable streets and reliable mass transit options, making car ownership less necessary.
Check out mortgage rates in your area.
We considered these and other factors to find the worst cities to own a car. Specifically, we looked at hours spent in traffic per year for the average driver, the annual cost of traffic for the average driver, the rate of motor vehicle theft, the number of repair shops and parking garages per driver, the commuter stress index and the non-driving options a resident has for getting around. To understand where we got our data and how we put it together to create our final ranking, see the data and methodology section below.
Key Findings
- Cities on the coasts â The entire top 10 is comprised of cities on or close to the coasts. This makes sense as many of the largest cities in the country are located on the coasts. Plus, on the East Coast in particular, these cities tend to be older which means they were not built to handle car traffic.
- Grin and bear it â Traffic can get pretty bad. However, in some cities getting around by car is just about the only option you have if you want to leave your house. Thus some cities with really bad traffic like Los Angeles or Long Beach didnât quite crack the top 10.
1. Newark, New Jersey
Brick City tops our ranking of the worst cities to own a car. Whatâs tough about being a car owner in Newark is the traffic. Itâs part of the New York City metro area which has 19 million people, 5 million of whom drive to work. Newark is stuck right in the middle of this bumper-to-bumper traffic. Plus, if youâre a car owner in Newark, the risk of having your car stolen is much higher than it is in other cities. Newark ranks eighth in the country for motor vehicle thefts per 1,000 residents.
Related Article: The States With the Worst Drivers
2. San Francisco, California
The City in the Bay grabs the second spot for worst places to own a car. Being stuck in traffic costs the average commuter in San Francisco $1,600 per year. That cost includes both the value of the time spent in traffic and the cost of gas. SF is also one of the 10 worst cities for motor vehicle thefts per resident, another reason to forgo car ownership.
3. Washington, D.C.
The District and the surrounding metro area sees some of the worst traffic in the country. The average D.C. commuter spends 82 hours per year in traffic. Depending on how you slice it, thatâs either two working weeks or almost three-and-a-half days of doing nothing but shaking your fist at your fellow drivers. That traffic is equal to an annual cost of $1,834 per commuter.
4. Oakland, California
One argument against car ownership in Oakland is the crime. There were almost 6,400 motor vehicle thefts in the city of Oakland or 15 auto thefts per 1,000 residents. Thatâs the highest rate in the country. The average Oakland driver can also expect to spend 78 hours per year in traffic. On the plus side, if something goes wrong with your wheels in Oakland, it shouldnât be too difficult to get it fixed. There are more than six repair shops per 10,000 drivers in Oakland â the highest rate in the top 10.
5. Arlington, Virginia
As previously mentioned, the Washington, D.C. metro area has the worst traffic in the country. Unfortunately for the residents of Arlington, they are a part of that metro area. They face the same brutal 82 hours per year spent in traffic, on average. It costs Arlington residents $1,834 per year, on average, waiting in that traffic. For residents of Arlington, a car is more of a necessity than it is for people living in D.C., which is why it ranks lower in our study.
6. Portland, Oregon
Of all the cities in our top 10, Portland is the least onerous for the driving commuter. Commuters driving around the Portland metro area can be thankful that, on average, they spent only 52 hours per year in traffic. That traffic still costs each driver about $1,200. However, drivers in Portland looking for a parking garage may be out of luck. Portland has the second-lowest number of parking garages per driver in our study, and if you are looking to get your car fixed, Portland ranks in the bottom 13 for repair shops per capita.
7. Anaheim, California
Anaheim commuters are well-acquainted with traffic. Anaheim (and the rest of the Los Angeles metro area) ranks third in average hours per year spent in traffic, first for commuter stress index and fifth for annual cost of idling in traffic. Anaheim only ranks seventh because Walkability.com gives the city a 46 out of 100 for non-driving options. Thatâs the lowest score in our top 10 meaning, while owning a car here is a pain, not owning one makes getting around a true struggle.
8. New York, New York
New York is the rare American city where public transportation is usually your best bet for getting from point A to point B. All that accessibility makes car ownership unnecessary here. For New Yorkers who do drive, the traffic is not pleasant. New York drivers spend $1,700 per year, on average, waiting in traffic. Thatâs the third-highest cost in our study.
Not sure if youâre ready to buy in NYC? Check out our rent vs. buy calculator.
9. Seattle, Washington
Seattle has pretty bad traffic. Commuters here probably arenât surprised to hear the average driver spends 63 hours per year in traffic. And coupled with the traffic is the high number of motor vehicle thefts. Seattle has the fourth-highest rate of motor vehicle thefts per 1,000 residents in the country.
10. Boston, Massachusetts
Boston ranked well in our study on the most livable cities in the U.S. partially based on how easy it is to get around without a car. After New York and San Francisco, Boston is the most walkable city in the country, making the cost of having a car one expense which Bostonians can possibly go without. Although occasionally maligned, the Massachusetts Bay Transit Authority is a great option for commuters who want to avoid the 64 hours per year Boston drivers spend in traffic.
Data and Methodology
In order to rank the worst cities to own a car, we looked at data on the 100 largest cities in the country. Specifically we looked at these seven factors:
- Average total hours commuters spend in traffic per year. Data comes from the Texas A&M Transportation Institute 2014 Mobility Score Card.
- Cost of time spent in traffic per person. This measures the value of extra travel time and the extra fuel consumed by vehicles in traffic. Travel time is calculated at a value of $17.67 per hour per person. Fuel cost per gallon is the average price for each state. Data comes from the Texas A&M Transportation Institute 2014 Mobility Score Card.
- Commuter stress index. This metric is developed by the Texas A&M Transportation Institute 2014 Mobility Score Card. It measures the difference in travel time during peak congestion and during no congestion. A higher ratio equals a larger difference.
- Non-driving options. This metric measures the necessity of owning a car in each city by considering the cityâs walk score, bike score and transit score. We found the average of those three scores for each city. Higher scores mean residents are less reliant on cars. Data comes from Walkability.com.
- Motor vehicle thefts per 1,000 residents. Data on population and motor vehicle thefts comes from the FBIâs 2015 Uniform Crime Reporting Program and from local police department and city websites. We used the most up to date data available for cities where 2015 data was not available.
- Number of repair shops per 10,000 drivers. Data on drivers comes from Texas A&M Transportation Institute 2014 Mobility Score Card. Data on repair shops comes from the U.S. Census Bureauâs 2014 Business Patterns Survey.
- Parking garages per 10,000 drivers. Data on drivers comes from Texas A&M Transportation Institute 2014 Mobility Score Card. Data on parking garages comes from the U.S. Census Bureauâs 2014 Business Patterns Survey.
We ranked each city across each factor, giving double weight to non-driving options and half weight to motor vehicle thefts per driver, repair shops per driver and parking garages per driver. All other factors received single weight. We then found the average ranking across each city. Finally we gave each city a score based on their average ranking. The city with the highest average received a score of 100 and the city with the lowest average received a score of 0.
Questions about our study? Contact us at press@smartasset.com.
Photo credit: ©iStock.com/seb_ra
The post The Worst Cities to Own a Car appeared first on SmartAsset Blog.
Source: smartasset.com
VA Cash-Out Refinance: Is It a Good Idea? | Rates & Guidelines 2021
The VA cash-out refinance program enables veterans and active-duty service members to tap into their homeâs equity and, depending on current refinance interest rates, lower their interest rate at the same time.
The idea of getting cash out of your home is appealing, but is it a good idea for you? Below, weâll dive into some of the situations when a VA cash-out refinance might be a good fit â and when it might not.
Check your eligibility for a VA cash-out refinance loan today.
Reasons veterans get a VA cash-out refinance
Veterans use the VA cash-out refinance for plenty of reasons â the biggest being that they want to get cash. The cash comes from home equity. So, if you have a mortgage for $200,000 and youâve paid off $50,000, you can get up to $50,000 back in cash, while also potentially lowering your mortgage rate.
Veterans arenât required to take out the full amount possible, though. A homeowner in the same situation could take out $10,000 to fund a small kitchen remodel, to buy a new car, or pay for a vacation, for example.
The most common reasons to get cash from a cash-out refinance is to fund remodels, renovations, and repairs to your home â or to use the cash to pay off other debts. (It may be financially responsible to use a cash-out refinance to pay off credit card debt if the rate on the other debt is significantly higher than the new rate youâll get from a cash-out refinance.)
But, there are other potential benefits to a VA cash-out refinance. You may be able to lower your interest rate and monthly mortgage payment. And, if you have an FHA or conventional loan with mortgage insurance, you could remove that extra monthly cost by refinancing into a VA loan.
Reasons to avoid a cash-out refinance
While itâs a good decision for many homeowners, refinancing isnât the best option for everyone. You should only refinance if you can gain something from the new loan. When determining whether youâre benefitting from a cash-out refinance, itâs important to consider your whole financial situation and your goals.
It could increase your mortgage rate.
When veterans apply for a VA cash-out refinance, theyâll need to supply their credit score. If your credit score is lower than it was when you first applied for your mortgage, then thereâs a good chance that the refinance could increase your mortgage rate.
The clock restarts on your mortgage.
Itâs also important to remember that a cash-out refinance restarts the clock on your mortgage â youâre opening up a new loan with new terms, likely 30-years. This means additional interest costs. Because of this, itâs best to use a VA cash-out refinance for things that will improve your financial situation, and, in turn, improve your ability to repay the loan.
Riskier than other loan types.
VA cash-out finances are often used for home improvements that increase the overall value of the investment, education expenses to increase earning potential, new business ventures, or debt consolidation. Still, all of these options can represent a financial risk. Before proceeding with a cash-out refinance, itâs worth investigating other funding options such as personal loans, specialized loans (like student loans or small business loans) or second mortgages.
Finally, if youâre using cash from a VA cash-out refinance to pay off credit card debt, itâs important to remember that youâre paying off unsecured debt with secured debt â in other words, you risk foreclosure on your home if you are unable to make your mortgage payments for any reason.
VA cash-out refinance rates
VA cash-out refinance rates are currently low. According to Ellie Maeâs Ocober 2020 Origination Report, interest rates for VA loans hovered at an average of 2.75% â 0.26% lower than interest rates for 30-year, fixed-rate conventional loans.
Read more: Current VA Refinance Rates
With rates projected to remain low, Veterans who purchased a home within the last few years should check to see if a refinance could reduce their interest rate and monthly mortgage payment. Your potential savings are dependent on your unique situation â remember to comparison shop with multiple lenders to see who can offer you the best deal.
(function() { var options = {“display_percent”:””,”instance_v2″:””,”instance”:”5cafcc3c12ba81297829b806″}; options.element = document.getElementById(‘click_table_5ffe10dcd9221’); // We might need these options to be accessible by the Dynamic Click Table POC code. // So we share a global reference to it if (typeof window.clickTableOptions === ‘undefined’) { window.clickTableOptions = {} } window.clickTableOptions[‘click_table_5ffe10dcd9221’] = options; if (window.ClickTable) { window.ClickTable.mount(options); } window.addEventListener(‘click-table-loaded’, function(){ window.ClickTable.mount(options); }) // This is for dynamic click tables window.addEventListener(‘click-table-reloaded’, function(e){ options.instance = e.id window.ClickTable.mount(options); }); })();
When a VA streamline refinance is right instead
If you donât need cash, thereâs no reason to get a cash-out refinance. In these situations, a VA streamline refinance (also known as an interest rate reduction refinance loan or IRRRL) makes more sense. The rates associated with the IRRRL tend to be lower, so you could save more money with that type of refinance.
If youâre looking to take out cash for energy-efficiency improvements to your home, the IRRRL allows homeowners to finance up to $6,000 in improvements that will save money over time, including programmable thermostats, insulation, solar heating, and caulking/weather stripping.
VA streamline refinance vs. VA cash-out refinance
If youâre looking to lower your interest rate and monthly payment, donât need cash out and already have a VA loan, an IRRRL is the easier, quicker, and just plain better option. In fact, streamline refinances require that Veterans lower their mortgage rate to qualify for the loan (also called a net tangible benefit). Thatâs not a requirement with the cash-out refinance.
If you are looking to get cash for an expense like a remodel or debt consolidation, then a VA cash-out loan is likely the better option. Itâs also a good option for Veterans with a non-VA loan requiring mortgage insurance. VA loans donât require mortgage insurance, so refinancing into one, could remove that monthly expense.
How to apply for a VA cash-out refinance
The application and approval process for a VA cash-out refinance is very similar to the loan application process for a home purchase, including:
- Youâll likely need a VA appraisal, especially if your existing loan is a non-VA loan. This establishes the current value of your home and helps determine the amount of cash you can take out.
- Youâll need a credit check and income verification to verify that youâre able to make the new VA loan payments.
- Youâll need to establish eligibility with minimum service requirements, especially if you currently have a non-VA loan.
Also, shop around with multiple lenders to compare rates and terms. This can save you lots of money over the life of the loan and allow you to negotiate better terms.
Check your eligibility for a VA cash-out refinance loan today.
Source: militaryvaloan.com
How To Get The Most Out Of Your Auto Insurance Coverage

Recent data suggests that the average driver will spend close to $100,000 on car insurance over their lifetime. That’s a staggering sum of money, especially when you consider estimates that suggest Americans will pay over $500,000 in that time just to own, operate, and maintain a car.
$100,000 is a lot of money to spend on something that you may never benefit from, something that you’re only buying because your state authorities told you too. But while car insurance policies are essential, the amount that the average consumer spends on them is not.
In this guide, we’ll look at the ways you can save money on auto insurance premiums and get the most value out of this necessary expense.
Build Your Credit Report
Never underestimate the value of a high credit score and a clean credit report. Not only can it help when applying for a car loan, increasing the value of the car you can purchase and decreasing the interest rates you’re charged, but it will also reduce your car insurance rates.
There is no easy and quick way to turn a bad credit report into a good credit report, but there are a few simple changes you can make that could increase your score enough to make a difference. These include:
- Stop applying for new lines of credit.
- Become an authorized user on a respectable user’s credit card.
- Increase credit limits on your active credit cards.
- Pay off as much debt as you can, focusing on credit cards and personal loans first.
- Don’t close your credit card accounts after clearing them.
If you don’t have any credit at all, which is true for many teen drivers getting behind the wheel for the first time, try the following options:
- Credit builder loans
- Secured credit cards
- Lending circles
Choose Your Car Carefully
A new car is a great way to get a high-tech, customized vehicle, but it’s not ideal if you’re looking to save on insurance costs.
New vehicles cost more to insure because they are a greater liability, with more expensive parts and greater overall value. If you want to save on your auto insurance coverage, look for a car that is at least a few years old, has a number of safety features and a high safety rating.
The cheaper, the better, but only to a point. You want something that won’t leave you in complete financial ruin if it’s wrecked in a car accident and you don’t have the insurance to cover it, but something that won’t breakdown every few miles and leave you stranded and broke every other week.
Drive Safely and Prove Your Worth
Your driving record is just as important as your credit report, if not more so. The more at-fault accidents, traffic tickets, and insurance claims you have, the higher your car insurance rates will be.
A single conviction won’t last forever and the impact will eventually dissipate, so even if you have a few blemishes on your record now, just keep driving safely and you’ll be able to reap the benefits before long.
It takes time to prove your worth to insurance companies, but there are a few things you can do to expedite this process. The first is to take a defensive driving course. In some states and for some demographics (mostly seniors and young drivers), you’ll be offered a discount for completing one of these courses.
The next step is to consider a usage-based program. These are offered by most major insurance companies and can track your driving habits to determine what kind of driver you are. If you’re driving safe and doing very low mileage, you could start seeing some noticeable changes in just a few months. The majority of providers will even give you a discount just for signing up.
Pay Everything Upfront
Most policyholders pay their premiums monthly and it may seem like thatâs the best thing to do. $100 a month seems infinitely more manageable than $1,200 a year.Â
It is an attitude that many people have, and itâs one that often leads to debt and poor decisions.
Millions of Americans have credit card debt because a $200 monthly payment seems more achievable than a $5,000 payoff, even though the former carries a phenomenal interest rate. It’s also why countless first-time buyers rush into getting mortgages with small down payments and high-interest rates, even though doing so could mean they are paying twice as much money over the term.
Whenever you can benefit from making an upfront payment, do it. This is true for your loan debt and credit card debt, and it’s also true for your car insurance premiums.
Many insurance providers offer you an upfront payment discount of up to 5%. It doesn’t sound like much, but every little helps. If you have a $3,000 car insurance policy, that 5% adds up to $150. Add a few more discounts and you can save even more money and make an even bigger dent in your insurance rates.
Combine Policies and Vehicles
Insurance companies that offer multiple types of insurance tend to offer discounts when you purchase several products from them.
Known as multi-policy discounts or “bundling”, these offers are common with homeowners insurance and auto insurance, but they are also offered with renters insurance and life insurance.
You can combine several vehicles onto the same auto insurance policy, as well, saving much more than if you were to purchase separate policies.
These discounts are essential for multi-car households, but they are not limited to cars. Many insurers will also let you add boats, ATVs, motorcycles, and other vehicles onto the same policy.
Shop Around
Before you settle on a single policy, shop around, compare as many car insurance quotes as you can, try multiple different insurance options (uninsured/underinsured motorist coverage, comprehensive coverage, collision coverage) and make sure you’re getting the lowest rates for the best cover.
Too many drivers make the mistake of going with the same provider their friends or parents have; the same provider they have used for a number of years. In doing so, they could be missing out on huge savings.Â
You could be forgiven for thinking that all providers offer similar rates and that the difference between them is minor. But regardless of your age, gender, and state, the difference between one provider and the next could be up to 200%!
Check if You’re Covered Elsewhere
Car insurance companies offer a number of add-ons and optional coverage options. These are enticing, as they cover you for numerous eventualities and some of them cost just a few dollars extra a month. But all of those dollars add up and could result in you paying much more than you need for cover you already have.
Roadside assistance is a great example of this. It will help you if you are stranded by the side of the road, assisting with services such as tire changes, fuel delivery, towing, and more. But if you have a premium credit card or are a member of an automobile club, you may already have that cover.
The same goes for rental car coverage, which is often purchased at the rental car counter. Although it has its uses, if you have an auto insurance policy, travel insurance, and a premium credit card, you’re probably already covered. In fact, many Visa credit cards offer this service completely free of charge when you use your Visa to pay the bill, but only if you reject the waivers sold by the rental car company.
Bottom Line: Best Auto Insurance Companies
âCar insurance coverage varies from state to state and provider to provider. There is no “best” company, as even the ones with consistently affordable rates will not be the best option in all states or for all demographics.
In our research, we found that GEICO was consistently one of the cheapest providers for good drivers, bad credit drivers, and even high risk drivers. GEICO also offers personal injury protection, collision insurance, medical payments, uninsured motorist coverage, and more, making them the most complete provider for the majority of drivers.
However, in some states, local farm bureaus come out on top, offering very cheap bodily injury liability coverage and property damage liability coverage, and giving policyholders a level of care and attention that they might not find with the bigger, national providers. USAA, which offers cheap car insurance to members of the military, also leads the way in the majority of states, but only for those who meet the criteria.
Simply put, there is no right insurance provider for you, just like there is no right coverage. That’s why it’s important to shop around, chop and change your coverage options, and don’t assume that any type of coverage or provider is right for you until you’ve looked at the numbers.
Â
Â
How To Get The Most Out Of Your Auto Insurance Coverage is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
All About Car Loan Amortization
These days, it can take a long time to pay off a car loan. On average, car loans come with terms lasting for more than five years. Paying down a car loan isnât that different from paying down a mortgage. In both cases, a large percentage of your initial payments go toward paying interest. If you donât understand why, you might need a crash course on a concept called amortization.
Find out now: How much house can I afford?
Car Loan Amortization: The Basics
Amortization is just a fancy way of saying that youâre in the process of paying back the money you borrowed from your lender. In order to do that, youâre required to make a payment every month by a certain due date. With each payment, your money is split between paying off interest and paying off your principal balance (or the amount that your lender agreed to lend you).
What youâll soon discover is that your car payments â at least in the beginning â cover quite a bit of interest. Thatâs how amortization works. Over time, your lender will use a greater share of your car payments to reduce your principal loan balance (and a smaller percentage to pay for interest) until youâve completely paid off the vehicle you purchased.
Not all loans amortize. For example, applying for a credit card is akin to applying for a loan. While your credit card statement will include a minimum payment amount, thereâs no date set in advance for when that credit card debt has to be paid off.
With amortizing loans â like car loans and home loans â youâre expected to make payments on a regular basis according to something called an amortization schedule. Your lender determines in advance when your loan must be paid off, whether thatâs in five years or 30 years.
The Interest on Your Car Loan
Now letâs talk about interest. Youâre not going to be able to borrow money to finance a car purchase without paying a fee (interest). But thereâs a key difference between simple interest and compound interest.
When it comes to taking out a loan, simple interest is the amount of money thatâs charged on top of your principal. Compound interest, however, accounts for the fee that accrues on top of your principal balance and on any unpaid interest.
Related Article: How to Make Your First Car Purchase Happen
As of April 2016, 60-month new car loans have rates that are just above 3%, on average. Rates for used cars with 36-month terms are closer to 4%.
The majority of car loans have simple interest rates. As a borrower, thatâs good news. If your interest doesnât compound, you wonât have to turn as much money over to your lender. And the sooner you pay off your car loan, the less interest youâll pay overall. You can also speed up the process of eliminating your debt by making extra car payments (if thatâs affordable) and refinancing to a shorter loan term.
Car Loan Amortization Schedules
An amortization schedule is a table that specifies just how much of each loan payment will cover the interest owed and how much will cover the principal balance. If you agreed to pay back the money you borrowed to buy a car in five years, your auto loan amortization schedule will include all 60 payments that youâll need to make. Beside each payment, youâll likely see the total amount of paid interest and whatâs left of your car loanâs principal balance.
While the ratio of whatâs applied towards interest versus the principal will change as your final payment deadline draws nearer, your car payments will probably stay the same from month to month. To view your amortization schedule, you can use an online calculator thatâll do the math for you. But if youâre feeling ambitious, you can easily make an auto loan amortization schedule by creating an Excel spreadsheet.
To determine the percentage of your initial car payment thatâll pay for your interest, just multiply the principal balance by the periodic interest rate (your annual interest rate divided by 12). Then youâll calculate whatâs going toward the principal by subtracting the interest amount from the total payment amount.
For example, if you have a $25,000 five-year car loan with an annual interest rate of 3%, your first payment might be $449. Out of that payment, youâll pay $62.50 in interest and reduce your principal balance by $386.50 ($449 â $62.50). Now you only have a remaining balance of $24,613.50 to pay off, and you can continue your calculations until you get to the point where you donât owe your lender anything.
Related Article: The Best Cities for Electric Cars
Final Word
Auto loan amortization isnât nearly as complicated as it might sound. It requires car owners to make regular payments until their loans are paid off. Since lenders arenât required to hand out auto amortization schedules, it might be a good idea to ask for one or use a calculator before taking out a loan. That way, youâll know how your lender will break down your payments.
Update: Have more financial questions? SmartAsset can help. So many people reached out to us looking for tax and long-term financial planning help, we started our own matching service to help you find a financial advisor. The SmartAdvisor matching tool can help you find a person to work with to meet your needs. First youâll answer a series of questions about your situation and goals. Then the program will narrow down your options from thousands of advisors to three fiduciaries who suit your needs. You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. This allows you to find a good fit while the program does much of the hard work for you.
Photo credit: ©iStock.com/OSORIOartist, ©iStock.com/studio-pure, ©iStock.com/Wavebreakmedia
The post All About Car Loan Amortization appeared first on SmartAsset Blog.
Source: smartasset.com