Affording Your First Car

Posted by on May 18, 2012 No comments

The first car you buy is an incredibly special moment and one that you will likely remember for the rest of your life. In fact many people become very attached to that first car and I know for one that it was rather difficult for me when the time came to part with it.

The unfortunate drawback of all this though is that it’s also an incredibly expensive time, and in fact many people are forced to put off getting their first car simply because they can’t afford it. There are many costs to buying a car, but when you buy your first car these are somewhat multiplied. Here we will look at how you can get around these objects and afford your first car nevertheless.

Choose a Cheap Car

This might sound obvious, but actually there are many different reasons why it’s so important to pick an affordable car. First of all, choosing a cheap car will mean that you pay less up front of course, but at the same time it will also mean that you pay a lot less on insurance.

Choose a Small Engine

At the same time for cheap insurance you also need to choose a car that isn’t overly powerful and that has a small engine size. Cars with big engines are a little more dangerous because they start quicker and have a faster top speed making it more likely that you will pull out in front of a car or speed. At the same time though, insurers also look at young people buying cars with large engines as ‘boy racers’ and assume that they are going to be reckless with those vehicles – whether or not this is necessarily fair.

As such it is very advisable that you buy a small engine size so that you can avoid high insurance, and on top of this you might also find that it also reduces the cost of your tax.

Go Third Party

Getting third party insurance as opposed to fully comprehensive will greatly reduce the cost of insurance because you won’t be paying for protection against damage to your own vehicle. Third party only covers the damage you cause to other vehicles and property and that means you pay a lot less. This is another reason to get a cheap car – as otherwise third party only can be too much of a gamble.

Shop Around for Insurance

You should also shop around for your car insurance to make sure you get the best deal and you should do everything you can to lower the insurance – for instance taking more lessons if possible to demonstrate driving savvy.

Choose Your Car Wisely

So you’re buying second hand – that’s no reason not to be careful when you choose your car and there are many factors that can make your car more or less expensive over its lifespan. For instance read reviews of the car and make sure to look at the number of previous owners/the service history. Both these things can tell you whether your car is prone to breaking down and if it is then that will mean it costs you a lot more in terms of servicing and replacement parts.

Furthermore you should look at the efficiency of your car and how much fuel you’re going to be forking out for on a regular basis.

Consider Loans

Can’t afford your car still? Well then consider a loan or buying on finance. Either way you can reduce the upfront cost and instead mean you’re only paying a small monthly amount. Note though that buying on finance is less flexible than getting an autoloan and you won’t be able to do loan restructuring if you struggle in that case.

Chris writes on topics related to insurance on his blog to help folks with insurance problems. You can compare car insurance quotes online on his blog.

Homeowners Insurance Policy Fraud

Posted by on May 16, 2012 No comments

Insurance fraud is a very serious topic across all types of insurance. Homeowners insurance fraud has far reaching effects because any fraud that takes has the possibility to affect the rates that other individuals are quoted who are applying for insurance coverage. Essentially, others have to pay for your insurance fraud.

Homeowners insurance fraud is really pretty simple, it happens anytime a policy holder intentionally submits a bogus claim to their insurance provider. Typically, the claim is for an amount greater than the actual loss. The most common ways of committing insurance fraud are to: submit fake or doctored receipts, submit fake or misleading repair estimates, and giving the insurance company fake photos or damage. Just participating in a fraudulent scheme such as this is illegal, it does not matter what the insurance company does regarding the specific claim.

The potential fallout from insurance fraud is pretty massive for the perpetrator. The homeowner will likely lose their insurance leaving their home uninsured. If you have a mortgage on the house, expect issues with the bank that holds the note. They loaned you the money for the house but they are still ultimately responsible for the property and if you lose your homeowners coverage, expect to hear from the bank. The other issue is that once you’ve committed insurance fraud you’re likely to be ‘blackballed’. It will be very difficult to find an insurance provider to cover your property if you’ve previously committed fraud. Even if you do find a company willing to insure you, the premiums will likely be through the roof. This is all assuming that you’ll still have a house to live in once you have any criminal charges cleared up. Recently, in Arizona there has been a rash of insurance fraud cases and Phoenix Criminal Lawyers all agree that a strong criminal defense can go a long way.

Most people think that they are ripping off an insurance company when they commit any type of insurance fraud. This is not the case; you’re actually increasing the rates of your fellow citizens because the insurance companies got smart long ago and pass on most fraud related losses onto their customers in the form of higher premiums. Think twice before committing any type of fraud against insurance companies because you’re really hurting the little guy.