Car Insurance - 5 Reasons You Should Obtain It
If you have an accident 2 months into owning the car, you have $1000 plus 2 monthly payments of the car in equity.(most of the two monthly payments is for interest) You will probably have $1200 in equity in your car. The blue book value of your car has gone down to $19,000. The insurance company will pay $19,000.00 for the lost car. You still owe $25,000 - 1200 = $23,800 on your car loan. This means that although you had full coverage on your new car, you are in the hole for $4,800.00 plus your deductible.
Next, average those three estimates and any newspaper prices to come up with your own estimate of your car's preaccident value. Then sit on it. When the adjuster makes you an offer, if it's equal to or greater than your average estimate, smile at your good fortune. If the offer is less than yours, pull out your information and insist that he either accept your number or, at the very least, average your number with his. If he balks at that, enlist the aid of your insurance agent.
But, in the second example, since this will be a comprehensive claim your rates should not see an increase at your renewal. Unless you have a long history of hitting deer then the people from PETA will be out to get you. Or if can you sue someone for totaling your parked car file a lot of small glass damage claims then your rates could be affected or you may have to pay a higher deductible for comprehensive in which case small glass damage will be less than your deductible and you will pay out of pocket.
Final offer, then cut the rental car (actually, they will cut the rental car the day they tell you have a vehicle total loss, some jurisdictions allow for three days after that), and tell you that if you do not settle, then they will deduct the value of the salvage of the car (the value your car is worth acraps), and send you whatever is left.
Pre-payment penalties are penalties that you are charged if you pay your loan balance off in a shorter time than originally negotiated. So, if you make monthly payments greater than what you're charged, or if you refinance your car loan, you will be charged a certain amount that was determined when you signed your contract.
If a car had a head-on collision but the rear is virtually untouched, the what happens if you total a financed car is sliced cross-wise along the middle of the side doors. Basically, the broken front half of the car will be sent to the recyclers, while the rear half will be stored in a warehouse.
Yes, you heard it right. Nowhere is it written that the value of your car will be equivalent to the value remaining on your auto loan, and as a result you could actually find yourself paying car payments to your lender even after insurance has totaled out your car. If you want to make sure you're really covered after you've been in an accident, make sure you include gap insurance in the list when you're hunting for cheap car insurance quotes online.
car totaled Collect your medical bills and medical history. The adjuster will likely present you with a Medical Authorization Form for your signature. READ THIS FORM VERY CAREFULLY!! Most times, the form is so vaguely worded that you give them permission to collect medical information for your entire lifetime.
I'm not saying that any of these products are bad, though. I believe in extended warranties. I'm just telling you to shop around first. If you find a cheap warranty, check out the company and make sure they will give the dealer a credit card over the phone immediately when in need of repairs in any state. All in all, I will say this-A manufacturers warranty is always better than an after-market warranty. Always. Just negotiate on it if you want it.