About six months ago, I realized that I was having trouble figuring out what to do about my car. I drove regularly in the ice and snow, and I was constantly getting into accidents. I needed to protect my vehicle and my family, so I started looking into better auto insurance. After searching for a better policy, I was able to find an incredible company to work with. I learned a lot about auto insurance, and it made a world of difference. This blog is all about enjoying better auto insurance by choosing the right policy for you and your family.
When you have a teen that's managed to save up enough money to get themselves behind the wheel of their very own car, things can become complicated. Not only will you have to worry about what type of car your teen will choose, but you will also have to worry about how they will finance and insure it. Here, you'll find a bit of information that can help your kid get behind the wheel of their very own car without making detrimental mistakes.
A sizeable down payment will help the financing step in car ownership. That, coupled with a secure home address and a steady source of income, will help your kid find a financing option that won't rob them blind.
Make sure that your kid understands how loans and interest fees work. They may not fully grasp the fact that if they borrow 5 grand from a lender, they'll end up paying much more than that back to the lender due to the financing fees.
Gap coverage is typically offered through lenders—especially the higher interest lenders. This coverage helps to cover the difference between what's owed on the car and what the car is actually worth if it should get destroyed before it's paid off. Without this insurance, your teen could end up having to pay a substantial amount to the lender even after the auto insurance has paid out the claim for damage.
If your teen has been driving for less than 3 years, they will have a hefty insurance premium. In many cases, you can reduce the premium by keeping your kid on your auto insurance policy, but you may need to be co-titled on the car in order to qualify the car for coverage on your policy. This might require you to be named on the financing agreements as well.
Before you commit to anything, walk your teen through the process of getting multiple quotes from companies such as Hayes McDowell Insurance Agent. He or she might be quoted one amount from one company and a lot less from another. But, make sure that the coverage is equal. Look into the deductibles for collision, comprehensive and liability insurance, as well as the uninsured and underinsured motorist coverage. You don't want your teen paying for a policy that won't truly protect his or her investment.
It's a big step getting your own car, and your teen is probably pretty excited. Just help him or her to get through the process this first time without making any detrimental mistakes, and he or she will be on his or her way to becoming a responsible adult with great credit.Share