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April 23, 2015

Things you must know about vehicle financing

vehicle financing optionsVehicles have become a necessity and so many people own vehicles. Vehicles are relatively expensive hence most people consider financing or leasing when getting a vehicle. There are important things that you must know when financing your vehicle and they are discussed below.

Financing options

There are two main types of financing for vehicles and they are direct-lending and dealership-financing. Direct-lending is where you get a loan from a bank or any other financing institution such as a credit union and you make an agreement to pay over a period of time. Once you have decided on a vehicle to buy and the dealer to buy it from then you can pay with the direct loan you received. Dealership financing is where you pay for your vehicle through the dealership. The dealer gives you a vehicle and you make an agreement to pay for a period of time but you also pay for the finance charge. In this case, you must have an assignee such as a bank. Before choosing a financing option, you must do your research and shop around for the best options before making a decision on whether to buy or lease. You can do this on the internet by just a click on the computer.

Before buying or leasing a vehicle

Before you buy or lease a vehicle, you must consider the federal or state laws that govern financing and leasing of vehicles. These laws will ensure you lease or buy a vehicle legally and also give information to make the process simpler and easier. You must also determine how much you can afford. Before making a purchase or taking up a lease, you must assess your financial situation and make sure that your income is able to cover the payment for the vehicle as well as your living expenses. You can get information about our financial situation online with just a click. It is also advisable to shop around for a financing deal that is comfortable for you. You should not strain financially after taking up financing for a vehicle.

When applying for financing

When you are applying for financing you should talk to the finance and insurance department of several dealerships to determine the financing options that they have and the cost to be paid monthly. Talking to several dealerships will help you determine the best dealership that fits your needs. You must also be ready to share your financial information such as your current financial situation as well as past and current credit obligations so that the dealerships can determine what amount of financing you can qualify and determine the vehicle that you can buy with your current situation. The dealerships also require your financial information so that they can take it to the consignee. When you are considering leasing a vehicle, you must know that you can only use it for a particular period and for a number of miles. Leasing payments are usually lower than fi9nancing payments but freedom of using the vehicle is limited. Some creditors may need you to have a co-signer especially when your financial situation is shaky so that they can take up responsibility in case you default to pay the loan.

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August 15, 2014

Ways to Boost Your Auto Insurance Business

Auto insurance for allAutomobile insurance business is among the most sustainable in the present world. Government regulation of making insurance compulsory for all motorized vehicles contributes to the success of this business. This business of covering automobiles against damages could be owned privately, by public sector undertakings, or by joint stock companies. In a country like USA auto insurance business is controlled by public limited companies. The level of competition among these companies is not stiff as the number of entities is less. Further each of these companies is tied up strategically with separate car manufacturers and their dealers for insuring new vehicles.

Insurance for vehicles is done on sale but before the concerned automobile hits the roads. The coverage amount depends on vehicle type, its use, its engine capacity, and seat capacity. If these are same across manufacturers then insurance cost remains same for similar category vehicles. For instance, the cost of insurance for a 4-seated petrol car of 1200 cc of two different makes would be same. Similarly the cost of insurance for trucks of same capacity and type but different brands would be the same.

With the parameters of calculating premium remaining constant there is not much of variation in insurance cost among companies. Further, there is not much of publicity for auto insurance as it is mandatory for all vehicles. Anything which is compulsorily procured or bought does not require too much of a marketing, particularly when service providers are limited. However, in a globalised economy the entrance of more companies in this trade is expected to increase competition. With increased competition it becomes important to devise new tools for attracting more customers. More information on these topics is found in this author’s website.

Probable tips

  • Depreciation – Under normal circumstances premium for any automobile is increased every year because of depreciation. As the chances of wear and tear of a used machine increases with its usage so does its coverage cost. Keeping insurance costs unchanged in spite of depreciation is one way of making insurance packages more attractive.
  •  Discounts – Usually automobile insurance providers offer accidental or loss coverage for a period of one year at a time, to be renewed in successive year. In the event of ‘no claims’ (when there are no accidental damages) during a year, the cost of insurance is discounted for the subsequent term. This discount rate varies from one service provider to another and is a determining factor of attracting more customers.
  •  Claim settlements – Time required for claim settlement is another vital aspect in boosting auto insurance business. For a car owner the time spent in receiving the settlement amount from the time of notifying damages is crucial. Often companies take a long time in making settlement payments and that too after repeated requests. Lengthy settlement period is a huge turn-off for car owners. To make automobile insurance services more tempting, settlements should ideally be made before a damaged car leaves a garage.
  •  Simplicity – Formality involved in lodging a complaint is another vital issue determining the acceptability of a motor vehicle insurance provider. The greater the formalities, lesser is the acceptability of an insurance service provider. It is advisable to have a simple and convenient process of lodging a complaint or claim.
  •  Accessibility – Accessibility is another important determinant of an insurance company’s popularity. Companies with more offices or contact points are naturally more acceptable to end-users. It is common human tendency to approach a service provider which has more visibility.
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April 25, 2012

Growing Trend of Insurance Automation

The insurance industry is dynamic and changing every day, and with advancements in technology, many insurance companies are improving their level of efficiency. Instead of relying on manual systems to handle business operations, many insurance companies are instead relying on insurance automation to do the job for them. With current insurance market trends, more and more insurance companies are starting to automate many of the processes that they engage in on a regular basis.

What is Insurance Automation?

Insurance automation is a process that involves leaving some regular functions up to automated systems. Instead of having employees engage in these activities, they have automated computer systems that handle the functions. This makes it possible for employees to focus on other areas of business and allow the automation systems to handle the rest.

Claim Processing

One area in which many insurance companies rely on automation is in claim processing. When an insured has some kind of damage that he needs to be reimbursed for, he must file a claim. While some insurance companies still have call centres and agents that file claims, others set up automated systems to handle this task. With these automated systems, customers can file a claim on the insurance company’s website or call into a phone number. If a customer calls the phone line, you will talk to an automated system that will ask them for information such as his policy number and details about the claim. At that point, the information will be entered into the claim tracking system so that an adjuster can be assigned to the claim and begin working on it. This cuts down the amount of labour that it takes to run the insurance claims coming in.

Follow Up

In addition to handling claims in this manner; many insurance companies also lead to follow a process through an automated system. For example, when a claim has been handled, the insurance company may want to check back with the customer to make sure that all of his problems were handled in a professional manner. An automated system can mail out a survey or send one via email to all of the appropriate customers at the right time. Sometimes, an automated phone system can be used to call all of the customers in a particular area. This makes it possible to check back with customers on a regular basis to make sure that they are being taken care of in a timely manner.

Considerations

When it comes to using insurance automation, insurance companies can use a number of different systems and tools to make their jobs easier. They can cut down on costs by eliminating some jobs that employees traditionally had to do. Because of the improvements in technology, it is possible to save money on labour costs and get things done more efficiently. Insurance companies have to walk a delicate line to make sure that they don’t try to automate too much so that they seem like they are getting away from a customer-centred position. Otherwise, automation can play a valuable role in the industry.

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March 30, 2012

5 Ways to Lower Your Car Insurance Premiums

Car insurance rates shouldn’t be a mystery. Carriers always look at the same binary metrics when quoting a rate. They can’t ask certain personal questions — like your medical history or financial holdings — but they can home in on other data points that traditionally give them a strong idea of your risk profile.

By knowing exactly what the insurance carriers are looking for, you can position yourself beforehand in order to save money on your policy.

Clean up your credit. Credit scores are a big part of your risk profile. Remember, FICO scores, while helpful to consumers, were originally designed as a tool created by banks to assess your likelihood of defaulting on a loan. The score can also be used more broadly (and subjectively) to determine whether or not you’re a high-risk driver, and therefore more pricey to indemnify.

Look into a group policy.The most common is a collective policy with your spouse and/or your children. Covering three people under one policy is much less expensive than it would be to take out three individual policies. The carriers know that the more customers the merrier, and are happy to give a rate cut to accommodate your group. Group policies can also cover you and your same-sex partner, your roommates, friends, etc. For somewhat old-school industry members, car insurance carriers are pretty open-minded about what constitutes a group for a policy.

Pick the right car. If your car has poor safety ratings and is susceptible to theft insurers are going to charge you more for coverage; Mercedes Benz and Jaguar vehicles often fall into this category. If you’re serious about saving on car insurance seek out safe cars that thieves will have no interest in stealing. The Honda Accord is usually a safe bet.

Shop around. While all insurance carriers look at the same metrics to arive at a quote, most weigh certain factors differently. Some might be extremely keen on your credit score, while others will focus on the type of car you drive. If you don’t like the rate someone quotes you, feel more than free to look around to get a sense of the market. Don’t accept the first offer you get; chances are someone can beat it.

Be female.This one is in jest of course. Nevertheless, women do pay less for car insurance because they traditionally make fewer and smaller claims to carriers. Men also tend to drive more aggressively and there less safely.

The process of arriving at an auto insurance quote is a science, not an art for the carriers. They know exactly which metrics cause a spike or decrease in the rates they will quote. Different carriers quote different prices only because they weigh factors differently. Nevertheless, these are the sacrosanct metrics by which you are judged and if you’re looking to spend up to $25 less each month on car insurance it’s best to focus on them now.

Larry Kuhns is a staff writer at CoverHound, where smart shoppers find insurance.

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March 18, 2012

Why You Should Review Your Auto Insurance Yearly

You ever get that nagging feeling that there is something you should remember to do, but you’re not sure what it is? This can apply to many things in life, but in this case we’re talking about auto insurance. According to Susan Combs, president of Combs & Company in New York City, people “tend to get complacent” with their auto insurance. Reviewing your auto insurance policy annually is a good way to make sure you’re getting the coverage you need at a price you can afford.

Circumstances Change Over Time

Even if you found a good deal on auto insurance when you first signed your policy, circumstances can change. If you overlooked something or made a few errors or omissions on your initial policy, those changes can carryover to the next year. Many insurance companies give you the opportunity to make changes in your coverage once a year. If you assume there is nothing wrong, however, you are not likely to change anything. Some changes that may affect your auto insurance needs include:

Car Insurance

• Purchase of new, fuel-efficient car that may make you eligible for certain discounts.
• Sale of a second vehicle that is still listed on your coverage, meaning you are paying for a vehicle you no longer have.
• Additional drivers on your policy may no longer need to be on your policy. This usually includes a former minor who now has his or her own policy.
• No longer driving your car as much as you once did. This could make you eligible for discounts for putting fewer hours on your vehicle.
• Purchase of a new car. If you update to a more recent model year, you could be eligible for discounts since new cars tend to have fewer maintenance issues.
• Discounts you weren’t eligible for at the time your policy started. This typically includes safe driver discounts that you may be eligible for if you had no accidents during the coverage year.

Too Much or Too Little Coverage

A common error people make on their auto insurance policy, according to Combs, is to have too much or too little coverage. If you get auto insurance coverage with the same company that provides your health and life insurance coverage, you’re likely duplicating some of your coverage. You may save money by combining all your policies with a single company. To determine if you have too much or too little coverage, take a look at the types of auto insurance you have and who is covered under your policy.

Coverage Options

Take a look at what type of coverage you have. Common types of auto insurance are: liability, collision, comprehensive, uninsured motorist and underinsured motorist. Additional options include rental reimbursement and emergency road service. When it comes time to consider changes to your policy, look at which coverage options you are using and which you are not. Granted, the purpose of insurance is to protect against the unexpected, but you still may be able to eliminate some coverage options. If you already get emergency road service from a AAA membership, for example, there is no need to have the same coverage with your auto insurance.

Who Is Covered

Auto insurance typically covers you and your spouse, legal drivers under the age of 18 and other licensed drivers who have permission to use your insured vehicle. If circumstances have changed, there is no reason you should be paying for drivers who no longer use your vehicle. Conversely, if you have a child who just turned 16 and is driving, you may want to add them to your coverage. This could save you money in the event of an accident while they are driving your car. Adjusting coverage as needed can reduce your premiums – and that makes for a happier driver.

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