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Few buyers can purchase a new vehicle without financing it. The good news is, financing your vehicle does not directly affect your auto insurance rate, meaning you are not penalized for taking out an auto loan instead of buying the car outright.
However, you may end up paying a higher premium than someone who has not financed their vehicle, simply because the lender has specific requirements. If you make payments on your vehicle, your lender requires you to have comprehensive and collision coverage on top of the state minimum requirements. But typically, if you buy a new car, you would add these coverages on yourself. It’s not as obvious when the vehicle in question is older and the value is much lower.
After you sign all those papers and get the keys to your new vehicle, you think of it as yours. However, your lender has a different perspective. As far as they’re concerned, they paid for the vehicle, and until you pay off the car loan completely, it’s still theirs. Therefore, it’s in their best interest to ensure that if the car is totaled in an accident, they won’t suffer a loss.
If you get into an accident with only state minimum coverage, your auto insurance policy covers damages to the other driver’s vehicle. However, your vehicle wouldn’t be covered by your policy. This means that if your car is totaled (the cost to repair the vehicle is greater than the vehicle’s value), your lender would be out the money.
To protect their investment, lenders require that you have comprehensive and collision coverage. This ensures that if your vehicle is damaged, your auto insurance company will pay for repairs, or if it’s totaled, the lender would receive the money needed to pay off the loan.
Letting your auto insurance coverage lapse is never a good idea, and more importantly, it’s also illegal. If you get into an accident with lapsed coverage, you could end up paying thousands of dollars out of your own pocket to cover damages to your vehicle, the vehicle you hit, and any injuries that resulted. Once you get coverage again, you’ll probably pay a higher premium.
When you have an auto loan, coverage lapses cause an even bigger hassle. Once again, your lender wants to make sure that your vehicle is in good condition and can be returned to pre-loss condition if it’s in an accident. If you make changes to your auto insurance coverage, such as if you add or drop optional coverage or raise or lower your policy limits, your auto insurance carrier notifies your lender.
Your lender is also notified if you skip your auto insurance payment. If that happens, they can place a third-party auto insurance policy on your vehicle. Worst case scenario, they can legally take back your vehicle.
Purchasing a new vehicle is a big deal. Aside from a home loan, an auto loan is the biggest chunk of money that most people will borrow at one time. However, not all auto loans are the same; interest rates and payment terms vary widely and have a big impact on how much your vehicle actually ends up costing you. Understanding how a few factors affect how much of a loan you can get (and how long it takes to pay back), before you set foot on a car lot, can help you make a decision that you won’t regret.
Most people have never heard of association health plans; however, these health insurance plans have been around for decades. Association Health Plans may have fewer benefits but will most likely have lower premiums, making them an attractive option for those who are young, healthy, and on a budget.
According to a recent study, health insurance premiums could increase for individual plans on the ACA marketplace between 35 and 94 percent by 2021. Concern over health care is nothing new; in fact, this is the fifth consecutive year that Americans have ranked health care as a top concern.
At least for now, many aspects of ACA are still in place. Currently, an insurer can’t turn you away for a pre-existing condition, and long-term health insurance plans still have to provide coverage for ACA’s 10 essential health care benefits. Prior to 2010, private health insurance usually did not cover maternity, or preventative like it does now, and mental health was generally non-existent.
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Purchasing a new vehicle is a big deal. Aside from a home loan, an auto loan is the biggest chunk of money that most people will borrow at one time. However, not all auto loans are the same; interest rates and payment terms vary widely and have a big impact on how much your vehicle actually ends up costing you. Understanding how a few factors affect how much of a loan you can get (and how long it takes to pay back), before you set foot on a car lot, can help you make a decision that you won’t regret.
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If you have a high credit score (800 or above), you can expect a really low interest rate. However, if you have less-than-stellar credit, you’ll typically have a higher interest rate and higher monthly payments. In this case, you may want to consider delaying your car purchase to see if you can raise your credit score or see if you can pull together more money for a bigger down payment to lessen your loan amount.
To lower monthly payments, some buyers opt for long loan payment plans. While an 84-month plan may have significantly lower payments than a 36-month plan, over the lifetime of the loan, you’ll end up paying more in interest. If possible, opt for the highest monthly payment that you can comfortably afford.
In some cases, dealers may run specials where they give incentives for purchasing a vehicle. You may have the option of getting a very low interest rate or a cash rebate. To find out which option saves you the most money, find an online calculator that lets you compare the cash rebate option to the low interest rate.
For a more pleasant car buying experiences with fewer surprises, don’t wait until you’re sitting in front of the loan officer to explore your auto loan options. Shopping around for an auto loan and getting pre-approved by a lender beforehand can give you a clear picture of what you can afford. It’ll also help you negotiate the vehicle’s price.
If you get into a bad car accident a month after you purchase your vehicle and you total your car, you’re still responsible for paying back the car loan. Unfortunately, depending on the age of your vehicle, it may have depreciated in value quite a bit since you purchased it. Adding GAP insurance to your policy covers the gap between what your vehicle is worth versus what you owe on it.
If you have a new vehicle payment, it can be intimidating to think about paying a higher premium for auto insurance. Our agents can help you understand what your lender requires, what discounts you qualify for, and which auto insurance company offers the best coverage at the best price.
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We HIGHLY recommend you double check that your physician will take the Nevada Health COOP plan you are enrolling into.
Those who gained coverage made 40 percent more visits to the emergency room than their uninsured counterparts during their first 18 months with health insurance
Anyone who can show that their individual or family policy has been cancelled, will be eligible to buy a “catastrophic” plan through the Nevada Health Link.
Changes to the way medical billing works will be coming on Oct. 1, 2014. The health care medical billing system will change over to a new computerized system.
We HIGHLY recommend you double check that your physician will take the Nevada Health COOP plan you are enrolling into.
Those who gained coverage made 40 percent more visits to the emergency room than their uninsured counterparts during their first 18 months with health insurance
Anyone who can show that their individual or family policy has been cancelled, will be eligible to buy a “catastrophic” plan through the Nevada Health Link.
Changes to the way medical billing works will be coming on Oct. 1, 2014. The health care medical billing system will change over to a new computerized system.