Some states donât require auto insurance while others have expensive alternatives.
The post These States Do Not Require Car Insurance appeared first on The Simple Dollar.
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Category: Auto Page 1 of 2
These tips can get your bathroom sparkling with little time and no elbow grease.
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Reducing the time it takes to retire your mortgage may be to your advantage if you want to free up monthly income for other purposes.
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A lapse in coverage increases your risk and your rates. It may be harder to find suitable and affordable car insurance and may mean that you need to make some sacrifices in order to keep those insurance premiums at an affordable level. But it’s not a complete disaster and is far from the worst thing you can have on your record.
What is a Gap in Coverage?
A lapse or gap in coverage is a period in which you were not insured. You owned a car during this period but you didn’t meet the state minimum insurance requirements.
In some cases, a gap in coverage can be the result of negligence on your part. You may have allowed your insurance policy to lapse without purchasing a new one or it may have been canceled because you failed to meet your payment obligations.
A lapse in auto insurance coverage can also occur when you are deployed, sent to prison or because you simply didn’t drive during that period.Â
If you fall into the first group, your insurer will notify the Department of Motor Vehicles (DMV), telling them that your car insurance policy has lapsed and you are no longer insured. This will expose you to fines and a host of other problems (see our guide on the penalties imposed on uninsured drivers).
As for members of the military, they can suspend their car insurance coverage when they are on active duty, thus avoiding any rate increases and other problems. The same applies to students studying abroad, although in their case, they will need to contact their DMV first.
What Happens Following a Car Insurance Lapse?
Many states require you to have continuous insurance, which means your auto insurance policy has not lapsed for any period of time. As soon as it lapses, your license and registration may be revoked, and you will need to pay a fee to have these reinstated. These fees, as they apply in each state, are listed below, but it’s worth noting that you may also be hit with additional court fees and fines if you are found to be driving without insurance:
- Alabama: Insurance Lapse Fee = $200 (first offense); $400 (second offense)
- Alaska: Insurance Lapse Fee = $100
- Arizona: Insurance Lapse Fee = $50
- Arkansas: Insurance Lapse Fee = $50
- California: Insurance Lapse Fee = $14
- Colorado: Insurance Lapse Fee = $40
- Connecticut: Insurance Lapse Fee = $200
- Delaware: Insurance Lapse Fee = $100 + $5 a day
- D.C.: Insurance Lapse Fee = $150 + $7 a day
- Florida: Insurance Lapse Fee = $150 (first offense); $250 (second offense); $500 (third offense)
- Georgia: Insurance Lapse Fee = $25
- Hawaii: Insurance Lapse Fee = $20+
- Idaho: Insurance Lapse Fee = $85
- Illinois: Insurance Lapse Fee = $100
- Indiana: Insurance Lapse Fee = $150 (first offense); $225 (second offense); $300 (third offense)
- Iowa: Insurance Lapse Fee = N/A
- Kansas: Insurance Lapse Fee = $100 (first offense); $300 (second offense)
- Kentucky: Insurance Lapse Fee = $40
- Louisiana: Insurance Lapse Fee = $125 to $525 (depending on length of gap)
- Maine: Insurance Lapse Fee = Up to $115
- Maryland: Insurance Lapse Fee = $150 + $7 per day
- Massachusetts: Insurance Lapse Fee = $500
- Michigan: Insurance Lapse Fee = $75
- Minnesota: Insurance Lapse Fee = $30
- Mississippi: Insurance Lapse Fee = $30
- Missouri: Insurance Lapse Fee = $20 (first offense); $200 (second offense); $400 (third offense)
- Montana: Insurance Lapse Fee = N/A
- Nebraska: Insurance Lapse Fee = $500
- Nevada: Insurance Lapse Fee = $251 to $1,000 (depending on length of gap)
- New Hampshire: Insurance Lapse Fee = N/A
- New Jersey: Insurance Lapse Fee = $100
- New Mexico: Insurance Lapse Fee = $30
- New York: Insurance Lapse Fee = $8 to $12 per day
- North Carolina: Insurance Lapse Fee = $50 (first offense); $100 (second offense); $150 (third offense)
- North Dakota: Insurance Lapse Fee = N/A
- Ohio: Insurance Lapse Fee = $160 (first offense); $360 (second offense); $660 (third offense)
- Oklahoma: Insurance Lapse Fee = $400
- Oregon: Insurance Lapse Fee = $75
- Pennsylvania: Insurance Lapse Fee = $88
- Rhode Island: Insurance Lapse Fee = $30 to $50
- South Carolina: Insurance Lapse Fee = $550 + $5 per day
- South Dakota: Insurance Lapse Fee = $78 to $228
- Tennessee: Insurance Lapse Fee = $115
- Texas: Insurance Lapse Fee = $100
- Utah: Insurance Lapse Fee = $100
- Vermont: Insurance Lapse Fee = $71
- Virginia: Insurance Lapse Fee = $145
- Washington: Insurance Lapse Fee = $75
- West Virginia: Insurance Lapse Fee = $100
- Wisconsin: Insurance Lapse Fee = $60
- Wyoming: Insurance Lapse Fee = $50
Will My Car Insurance Rates Increase Following a Gap in Coverage?
In addition to the fines mentioned above, you can expect your auto insurance quotes to be a little higher than before, although this all depends on how long the gap in coverage was.
If it was less than 4 weeks, the rate increase may amount to a few extra dollars a month. If it was longer than 4 weeks, you could find yourself paying 20% to 50% more, depending on your chosen car insurance company.Â
The exact rate of increase will depend on the state, high-risk status, driving record, car insurance discounts, and age of the driver. Insurance is all about measuring risk and probable claims, and an insurance company will look at everything from marital status to DUI convictions when measuring your risk and underwriting your new policy.
Bottom Line: Getting Cheap Car Insurance Quotes After a Lapse
In our research, we found that Progressive, Esurance, and State Farm offered lower rates than GEICO, even though GEICO typically tops the charts when it comes to insurance costs. You should also get much lower auto insurance rates with providers like USAA, providing you qualify.
To save even more, maintain a high credit score, aim for those good driver discounts, and try to secure bundling discounts, which are provided when you combine multiple different insurance products, such as homeowners insurance and car insurance.
The car you drive is also key. A new car will generally lead to much higher rates than a car that is a few years old, as it will be more expensive to repair and replace.
However, a car that is a few decades old will cost more to insurance than one that is a few years old, as it may lack the safety features and anti-theft features needed to keep rates low.
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How Gaps in Coverage Affect Auto Insurance Rates is a post from Pocket Your Dollars.
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These days, it can take a long time to pay off a car loan. On average, car loans come with terms lasting for more than five years. Paying down a car loan isnât that different from paying down a mortgage. In both cases, a large percentage of your initial payments go toward paying interest. If you donât understand why, you might need a crash course on a concept called amortization.
Find out now: How much house can I afford?
Car Loan Amortization: The Basics
Amortization is just a fancy way of saying that youâre in the process of paying back the money you borrowed from your lender. In order to do that, youâre required to make a payment every month by a certain due date. With each payment, your money is split between paying off interest and paying off your principal balance (or the amount that your lender agreed to lend you).
What youâll soon discover is that your car payments â at least in the beginning â cover quite a bit of interest. Thatâs how amortization works. Over time, your lender will use a greater share of your car payments to reduce your principal loan balance (and a smaller percentage to pay for interest) until youâve completely paid off the vehicle you purchased.
Not all loans amortize. For example, applying for a credit card is akin to applying for a loan. While your credit card statement will include a minimum payment amount, thereâs no date set in advance for when that credit card debt has to be paid off.
With amortizing loans â like car loans and home loans â youâre expected to make payments on a regular basis according to something called an amortization schedule. Your lender determines in advance when your loan must be paid off, whether thatâs in five years or 30 years.
The Interest on Your Car Loan
Now letâs talk about interest. Youâre not going to be able to borrow money to finance a car purchase without paying a fee (interest). But thereâs a key difference between simple interest and compound interest.
When it comes to taking out a loan, simple interest is the amount of money thatâs charged on top of your principal. Compound interest, however, accounts for the fee that accrues on top of your principal balance and on any unpaid interest.
Related Article: How to Make Your First Car Purchase Happen
As of April 2016, 60-month new car loans have rates that are just above 3%, on average. Rates for used cars with 36-month terms are closer to 4%.
The majority of car loans have simple interest rates. As a borrower, thatâs good news. If your interest doesnât compound, you wonât have to turn as much money over to your lender. And the sooner you pay off your car loan, the less interest youâll pay overall. You can also speed up the process of eliminating your debt by making extra car payments (if thatâs affordable) and refinancing to a shorter loan term.
Car Loan Amortization Schedules
An amortization schedule is a table that specifies just how much of each loan payment will cover the interest owed and how much will cover the principal balance. If you agreed to pay back the money you borrowed to buy a car in five years, your auto loan amortization schedule will include all 60 payments that youâll need to make. Beside each payment, youâll likely see the total amount of paid interest and whatâs left of your car loanâs principal balance.
While the ratio of whatâs applied towards interest versus the principal will change as your final payment deadline draws nearer, your car payments will probably stay the same from month to month. To view your amortization schedule, you can use an online calculator thatâll do the math for you. But if youâre feeling ambitious, you can easily make an auto loan amortization schedule by creating an Excel spreadsheet.
To determine the percentage of your initial car payment thatâll pay for your interest, just multiply the principal balance by the periodic interest rate (your annual interest rate divided by 12). Then youâll calculate whatâs going toward the principal by subtracting the interest amount from the total payment amount.
For example, if you have a $25,000 five-year car loan with an annual interest rate of 3%, your first payment might be $449. Out of that payment, youâll pay $62.50 in interest and reduce your principal balance by $386.50 ($449 â $62.50). Now you only have a remaining balance of $24,613.50 to pay off, and you can continue your calculations until you get to the point where you donât owe your lender anything.
Related Article: The Best Cities for Electric Cars
Final Word
Auto loan amortization isnât nearly as complicated as it might sound. It requires car owners to make regular payments until their loans are paid off. Since lenders arenât required to hand out auto amortization schedules, it might be a good idea to ask for one or use a calculator before taking out a loan. That way, youâll know how your lender will break down your payments.
Update: Have more financial questions? SmartAsset can help. So many people reached out to us looking for tax and long-term financial planning help, we started our own matching service to help you find a financial advisor. The SmartAdvisor matching tool can help you find a person to work with to meet your needs. First youâll answer a series of questions about your situation and goals. Then the program will narrow down your options from thousands of advisors to three fiduciaries who suit your needs. You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. This allows you to find a good fit while the program does much of the hard work for you.
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The post All About Car Loan Amortization appeared first on SmartAsset Blog.
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Wholesale clubs might have great deals, but these mistakes will cost you.
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These metropolitan areas have the highest millennial homeownership rates.
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Shelter Insurance is a mutual insurance company that was founded in 1946 and operates out of Columbia, Missouri. This highly-rated, award-winning insurance company offers a wealth of insurance products across the states of Colorado, Iowa, Arkansas, Kansas, Kentucky, Indiana, Illinois, Mississippi, Missouri, Nebraska, Ohio, Nevada, Oklahoma, Tennessee, and Louisiana.
In this Shelter Insurance review, we’ll look at insurance policies, coverage options, customer satisfaction, liability cover, and more, before seeing how Shelter compares to other leading insurance companies.
Shelter Car Insurance Coverage Options
Shelter is a leading auto insurance company in Missouri and other serviced states. It isn’t always the cheapest (more on that below) but it does provide a wealth of coverage options, including:
Liability Coverage
Liability coverage is the most basic, bare-bones insurance type and one that is required in most states. Liability insurance covers bodily insurance (per person and per accident) and property damage. It essentially covers you for the damage you do to another driver and their property during a car accident.
Collision Coverage
An optional form of auto insurance that covers you for damage done to your own vehicle, regardless of who was at fault. If you have collision coverage on your auto policy, you will get a payout when you hit a guardrail, wall, tree or building.
However, it’s one of the most expensive add-ons and a lot of the damage you do to your own vehicle may not be severe enough to warrant paying the deductible.
Comprehensive Coverage
With comprehensive coverage, you will be covered for many of the things that collision insurance doesn’t cover. For instance, it provides protection against vandalism and damage from extreme weather events. It also covers you in the event of an animal collision, which is surprisingly not covered by collision insurance.
Personal Injury Protection
With PIP insurance, you will be covered for some of the personal losses you incur due to an injury sustained in a car accident. For instance, if you’re hit by another driver and suffer severe injuries that cause you to miss work, PIP will pay for the money you lose. It will also cover the money needed to cover traveling for doctor and hospital appointments, as well as childcare costs.
Medical Payments
By adding medical payments cover onto your policy you will be protected against hefty medical bills resulting from a car accident. This option is required in just a few states but the coverage limits are often set very low.
Underinsured and Uninsured Motorist Coverage
Uninsured motorists are a growing problem on America’s roads. If you’re hit by one of these drivers and don’t have collision insurance, you could be left severely out of pocket. But not if you have underinsured/uninsured motorist insurance.
This coverage option will protect you against bodily injury and property damage resulting from an accident with an uninsured or underinsured driver.
Roadside Assistance
Shelter car insurance policies offer optional roadside assistance cover, which gives you up to $100 per claim and covers you for expenses accrued when you are stranded by the roadside.
Roadside assistance is an emergency service designed to help you get back on the road or to tow your car to a nearby garage. It includes everything from lost key replacement to fuel delivery and tire changes.
Rental Car Reimbursement
If your car is stolen or damaged so badly that it needs to spend several days or weeks in a repair shop, rental car reimbursement can help you to stay on the road. It will cover you for the money you spend on rental cars, which means you won’t miss a single important car journey.
Your coverage will be limited to a specific time period and you will not be covered for rentals that extend beyond this period.
Accidental Death
A form of life insurance that covers you for accidental deaths, such as car accidents. If you die in an accident, for example, your spouse or family members will receive a payout. There are many more restrictions than you get with term life insurance policies, but the premiums are also much lower.
Disability Income Coverage
PIP can cover you if you suffer serious bodily injuries and miss work as a result, but what happens if you’re forced to miss up to a year of work? That’s where Disability Income Coverage comes in. With Shelter, you will be paid a sum of money every week for up to a year.
GAP Insurance
If you bought your car on finance and wreck it soon after, the insurance payout may not be enough to cover the losses due to the interest payments and the rapid deprecation that new cars experience. With GAP insurance, you will be covered for that extra amount. As a result, this type of car insurance is often required by auto loan companies.
New Car Replacement
If you have a car that is less than a year old and has fewer than 15,000 miles on the clock, you can apply for the new car replacement program, which gives you a like-for-like replacement. This is an essential addition for anyone driving an expensive new vehicle as the losses could be catastrophic without it.
Other Shelter Insurance Options
Shelter offers multiple additional insurance options, many of which can be bought along with your car insurance, allowing you to save money with a multi-policy discount.
As with Shelter car insurance, we recommend comparing rates to other insurance companies, making sure you’re getting the best coverage for the lowest rates. There are a huge number of insurance companies in the United States offering the same coverage options found at Shelter, and many of them are cheaper:
Homeowners Insurance
A homeowners policy from Shelter will protect your property and everything in it. You can get cover for the dwelling, personal property, medical payments, personal liability, living expenses, and more.
Shelter also offers additional coverage options pertaining to electronics, sewer damage, earthquake damage, loss of farming equipment, and more.
Renters Insurance
If you rent your home, you won’t need property insurance, but you still need to protect your personal property and that’s where renter’s insurance comes. If your flat/house is burgled and you lose expensive items, including heirlooms, jewelry, artwork, and electronics, you will be covered.
Umbrella Insurance
With a minimum liability of $1 million, umbrella insurance will step in and provide cover above and beyond what you are offered elsewhere. If you have a lot of personal assets and are worried about being sued above what your liability insurance can pay, this is the policy for you.
Business Insurance
A business insurance policy from Shelter will protect your business against property loss, equipment damage, liability claims, and more. This is essential for all businesses and at Shelter you can choose a range of customization options to make sure the policy is perfectly suited to your needs.
Flood Insurance
Your home insurance policy doesn’t cover you for flood damage and this is true whether you’re with Shelter or not. However, you can add flood insurance to your Shelter insurance policy, with the rates dependent on where you live and how common floods are in your area.
Life Insurance
In addition to accidental death cover, Shelter also has term life and whole life insurance policies. These provide payouts to your loved ones in the event of your death.
Your age, activity, medical history, and health will dictate the size of your insurance premiums and your death benefit.
Shelter Car Insurance Cost
We ran some car insurance quotes and found that Shelter was consistently more expensive than providers like GEICO, Allstate, State Farm, and Progressive. In fact, when comparing quotes for young drivers, Shelter car insurance premiums were more than double those offered by GEICO and were also substantially higher than other major carriers.
In many states, including Kentucky and Louisiana, Shelter ranked as one of the most expensive providers. The rates were a little more promising in Missouri, but you’ll probably still get better offers elsewhere.
Regardless of what you think about Shelter Insurance and whether or not you have had good experiences with them in the past, we recommend getting quotes from other providers first.
Of course, it isn’t all about price, but it takes some incredibly impressive customer support and benefits for a $3,000 policy to take precedent over one that costs $1,500 or less, and we’re not convinced Shelter has that level of support or those benefits.
Bottom Line: Shelter Insurance Review
Shelter is a dedicated, capable, and financially strong insurance provider that offers extensive coverage for both drivers and homeowners. It has good reviews from policyholders, has high ratings from AM Best, JD Power and the Better Business Bureau (BBB), and there are very few complaints when compared to other providers.
Shelter serves a number of states and if you reside in one of these, it’s worth getting a quote. Just don’t forget to check other providers and don’t assume Shelter will offer the best rates. In our experience, it’s more likely to be one of the most expensive providers in your state, but you won’t know until you check.
Visit www.ShelterInsurance.com to learn more and to discuss an auto policy and/or home insurance policy with one of their representatives.
Shelter Insurance Review: Car, Home, and More is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
Timing is everything and when it comes to buying a car, that saying couldnât be more true. Negotiating and haggling with car salesmen can reduce the price of what you have to pay for a new whip. But if you want to get the best deal on a car, youâll need to know when to show up to the dealership. Whether youâre buying a used vehicle or a brand new ride, weâll tell you the best time of year to buy a car. Being that the purchase of a car is rather pricey, consider meeting with a financial advisor in your area to discuss your finances beforehand.
When Is the Best Time to Buy a New Car?
If youâre on a budget, one of the best times to buy a new car is the end of a model season. New car models are often introduced each year between late summer and early fall. While you might miss out on some new features, buying a new car in August or early September may save you some money.
Waiting until the end of the year to buy a new car can work in your favor as well. Many car dealers offer year-end sales in an effort to get rid of older vehicles and make room for new inventory. Buying a new car on a holiday like Christmas Eve or New Yearâs Eve is another way to get a deep discount.
If you canât wait until December to get a new car, you might want to buy a car at the end of the month or the end of a quarter. If a salesperson hasnât sold very many vehicles in weeks, he or she might be willing to compromise and lower the price of the car you want to buy. Even if a salesman has managed to sell multiple cars throughout the month, he might want to close one last deal in order to meet a sales goal or score a bonus.
Shopping for a car at the end of the day may or may not be effective. If you stop by a dealership an hour before itâs set to close, a salesperson may be open to negotiating so that he or she can end the day on a high note. But if he or she is used to working long hours, your sales associate may not be that flexible.
The Best Time to Buy a Used Car
A recent study from iseecars.com ranked the best times to buy a used car. At the top of their list are holidays including Black Friday, Veterans Day, Thanksgiving and Columbus Day. The months of November and December are also considered good times to purchase a used car.
According to the study, the months of April, May and June are some of the worst times to buy a used car. Specifically, Easter, Motherâs Day and Fatherâs Day are bad days for used-car buyers. But the No. 1 worst day to purchase a used car is the Fourth of July.
When Not to Buy a New Car
Generally, one of the worst times to buy a new car is in the spring. During this time of year, youâll see more people on car lots looking to soak up some sun and cash in their tax refunds. Other bad times to shop for new cars are whenever a particular vehicle is popular among consumers and whenever a new car model has been released.
Some people seem to think that buying a car on a rainy day is a good idea. But that approach usually doesnât work. In fact, you can expect car dealerships to be filled with people when thereâs bad weather simply because people tend to believe that theyâll find great deals on rainy days.
Bottom Line
The best time of year to buy a car ultimately depends on your personal preferences and how much youâre willing to spend on a vehicle. If youâre rolling in dough and you want your car to have top-of-the-line features and amenities, you might want to buy a car as soon as a new model comes out. But if youâre trying to shave hundreds of dollars off your purchase price, experts say that itâs best to head to the dealership at the end of a period in the fall or winter, like the end of the month, quarter or year.
Our advice? When it comes to buying cars and getting your way at the dealership, it helps to know what youâre looking for. Doing plenty of research and knowing the make and model that you want your car to have can make it easier to figure out when to purchase your new vehicle.
Tips for Taking Care of Your Finances
- If you find yourself having some financial struggles, perhaps itâs time to have an outside resource step in to help you out. Financial advisors typically have extensive experience in a number of important areas of finance, like tax planning, retirement planning, budget planning and more. SmartAssetâs advisor matching tool can set you up with as many as three suitable advisors in just 5 minutes. Get started now.
- The best way to manage your money on both a short- and long-term scale is to create a firm budget. SmartAssetâs budget calculator can help you figure out exactly where youâre overspending.
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The post When Is the Best Time to Buy a Car? appeared first on SmartAsset Blog.
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From your attic to the beach, from your basement to the landfill, the trash you find may be someone elseâs treasure.
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