What is a car lease?
Buying and leasing are car are different. When you buy a car, you become responsible for the entire cost of the car, no matter how long you keep it or how often or far you drive it. When you obtain a new car lease, you only pay for a portion of the car—that is, the portion you “use” while you are driving it. And, unlike buying, leasing doesn’t usually require a down-payment; although you may be responsible for paying certain fees and a security deposit. There are also penalties for terminating the car lease early. But whether buying or leasing is best depends upon your individual needs and circumstance. And if you do decide to lease, it doesn’t necessarily mean you’re stuck with that car for the duration of the lease term.

 
What is a lease assumption?
A lease assumption happens when you allow someone else to take over your lease in order to get out of your contract without incurring penalties. For instance, you’ve been driving your leased car for awhile now and want to exchange it for something different. Or perhaps you’ve found a car you’d really like to buy, but you can’t afford both car payments and lease payments. The problem is you’ve still got 12 months left to go on your lease. If you end it now, it’s going to cost you. Cue your brother, who thinks your car is quite nice and wouldn’t mind driving it himself. Since his credit is good enough, your brother can assume your lease, releasing you from your contractual obligations while avoiding any penalties. Now, you’re able to buy the car of your dreams—well, today’s dream anyway. There are a few benefits to a lease assumption. For the one assuming the lease, there is the shorter-term commitment and lack of money-down requirements. For the one getting out of the lease, there are no penalties incurred and they are free to move on.

 
What is a lease swap?
A lease swap is a lease assumption that goes both ways. Someone takes over your lease while you take over theirs or someone else’s. Basically, you’re swapping one lease for another, with no need to start over with a full-term lease contract.

 
Why are lease swaps attractive?
Lease swaps are an attractive way to exchange cars because by swapping your lease you can 1) get out of your original lease without penalties, 2) save thousands on unnecessary lease obligations, and 3) end up with a much shorter-term lease agreement than otherwise possible. Thus, if you decide to swap a lease you have much to gain and little to lose.

 
For people who enjoy changing cars ever few years, or even every few months, lease swaps are the way to go. But remember, whether leasing for the first time, assuming a lease, or swapping one, once you signed on the dotted line you become responsible for the remaining lease term and amount. So, as with any contractual obligation, make sure to read the fine print before you commit.

 
If you’re interested in lease swaps, check out these two companies who may be able to help you (both names are clickable): Swap-a-lease and LeaseTrader. Each offers different leasing conditions so you might as well check both.

When you are in search of an auto insurance company for your vehicles, you may be overwhelmed with the many options available. How can you know that the company you are selecting is financially sound? What about if they will provide you with excellent customer service? And of course, are you being offered the best insurance rate for the type of coverage you require? One of the best ways to answer these questions is to review ratings information from two of the top organizations: J.D. Power and A.M. Best. This information can enable you to dig a little deeper into the auto insurance companies before selecting a policy, allowing you to make the best financial decision for you and your household.

 
J.D. Power
J.D. Power, one of the most widely respected ratings organizations, recently released the ratings for top auto insurance companies. Below are the top 5 winners in the primary categories. As a global marketing company, J.D. Power conducts unbiased and independent surveys of product quality, customer satisfaction, and buyer behaviour. With regards to auto insurance companies, the results for their 2008 survey are noted below for overall experience, policy offerings, pricing and billing/payment.

 
Overall Experience

• Amica Mutual
• Automobile Club of Southern California
• State Farm
• Erie
• USAA

 
Policy Offerings

• Allstate
• Amica Mutual
• Automobile Club Group (ACSG)
• State Farm
• USAA

 
Pricing

• 21st Century
• Amica Mutual
• Automobile Club of Southern California (ACSG)
• Erie
• USAA

 
Billing and Payment

• USAA
• State Farm
• Amica Mutual
• California State Automobile Association
• GEICO

 
A.M. Best
A.M. Best is one of the leading, worldwide ratings and financial data companies in the world. When evaluating auto insurance companies, A.M. Best works as a great resource for review of a company’s financial strength. Consumers and institutions look to A.M. best for information about the top insurance companies in the world, looking to determine the company’s credit worthiness and financial strength.

 
While auto insurance rates are always a factor for consumers making their decision about which auto insurance carrier to select, financial strength plays an important role in ensuring that the company will be there in the event that the consumer needs to file a claim. To review A.M. best credit ratings, visit their home page online which is regularly updated. You will be able to search for insurance companies by their name, or their state to review information. You can also search by the particular type of insurance; auto, life, home, health and disability.

 
Armed with information about which auto insurance companies are best, you will be able to make a well informed decision about which company and which policy to choose. Note: If you are concerned with your present insurance, you can receive multiple quotes in seconds by using this link to get a free insurance quote (this form only requires filling 2 pages of relevant details, and afterwards you will get a quote).

As many experiments have demonstrated, anything offered at a huge discount is hard to resist. The same holds true for auto insurance. There are numerous companies who try to undercut the big insurance companies by offering insurance at highly discounted rates. Customers choose the company because of the attractive rates and are usually unaware of the dangers of getting auto insurance that is simply too cheap. That is, until they file a claim…

 
When companies offer a really cheap service – whether they are auto insurance related or not – usually the discount comes at a price. In this case, companies who offer really cheap rates often save money by employing a smaller number of employees than necessary. Consequently, when a claim is filed, it may sit unprocessed for months before someone is able to handle it. Not only does this mean that it will be a long while before are reimbursed for the claim and can start repair work, but this also means months of inconvenience caused by lack of transportation for you and your family.

 
On top of that, there are states in which inspection of the vehicle occurs only after repairs have taken place. Thus, if your claim is significantly delayed, then it is quite possible the vehicle will simply not be ready in time for the inspection; this means even more wasted time in which the car remains unutilized.

 
Unfortunately, there is no law requiring insurance companies to process claims in a given amount of time, and this allows certain unscrupulous companies to exploit this fact on the expense of their customers.

 
In addition, very cheap auto insurance plans tend to offer only the basic and minimum legal coverage (you get what you pay for). However, if you ask for extensive coverage, your premium will be substantially be more expensive – and consequently, you may find that you have paid much more than you’d have paid for a ’standard’ auto insurance.

 
An additional aspect to keep in mind is that a known company which has a reputation to maintain will aim to maintain this reputation. The way to achieve this is by giving fair insurance deals and customer service (I would not use the word ‘top quality’ since here too, you get what you pay for). Moreover, it is likely this type of company have an adequately sized staff which is well trained in managing and processing claims. It has been estimated that a reputable auto insurance company processes a claim in roughly a fourth of the time that a company offering really cheap insurance would.

 
Another aspect to consider: cheap insurance companies are highly automated in order to cut costs. As a result, the customer will rarely get to talk to a live person if he has an issue with the company. This is one of the prevailing reasons why these companies are likely to be making more mistakes. Mistakes you will end up paying for (if not in money, then in time and aggravation).

 
In conclusion, going for a cheap deal does not always give you the best value for your money, and at times, you may end up losing much more than what you would have invested had you obtained a more expensive plan. Avoid very cheap insurance offers as they are literally dangerous. Pay a little more to comfortably enjoy the services of a well reputed insurance company. When the time comes, you will thank yourself.

 
Note: If you are concerned with your present insurance, you can receive multiple quotes in seconds by using this link to get a free insurance quote (this form only requires filling 2 pages of relevant details, and afterwards you will get a quote).

After buying a new vehicle, there’s always a recurring dilemma that’s hard to ignore: how much auto insurance coverage should you get. On one hand, being prepared for the worst, that is, taking the most comprehensive auto insurance is smart – but costly. On the other hand, getting an insufficient coverage, and paying lower amounts of premium, may cause us to later pay dearly (literally speaking).

 
If you are like me, many times you pick the easy road, and just take the default option, or the most popular one. But that is not the right way.

 
The right way to determine the amount of auto insurance coverage

First, you must remember that the amount of car insurance, quite obviously, should be customized to the requirements of you and your family.

 
Second, you want to avoid paying too much every month, and yet you need to be prepared for the most likely – statistically speaking – scenarios. The trick is in striking a balance between choosing the most important aspects in the insurance and paying a reasonable amount.

 
Third, you must keep in mind that auto insurance rates are also affected by various factors out of your control such as gender, credit rating and age. The location of your residence also plays a major role for two reasons, both because are some neighbourhoods are more dangerous than others (again, statistically speaking), and the second reason, is because auto insurance criteria in every state are governed by a different set of standards and rules.

 
A good starting point would be to start with the minimum coverage you need to buy in your particular step, and the range of protection offered by this coverage. Once you do this, you need to find out other options and how much they would could.

 
For example, if you do live in a bad neighbourhood, it might not be a bad idea to go with a comprehensive coverage plan, which covers your primary vehicle and any other vehicle you own, and protects you against losses that may be incurred for many different reasons, including collisions – and also protects you if your car is damaged or stolen.

 
If you drive a lot, you should probably get collision coverage, which offers coverage for the damage caused to your vehicle in case of an accident – all the repair costs minus the deductibles are covered under this scheme. That being said, if your car is pretty old, then this scheme may not help you as the amount of coverage depends directly on the value of your car – in this case, you probably want to skip this type of insurance.

 
Additionally, if you drive a lot in the city, you may want to opt for medical coverage, which protects you against medical expenses for you or anyone hurt in case of an accident – you may even be covered (depending on the plan) if you, while being a pedestrian, are injured in an accident regardless of whose fault this is.

 
Uninsured motorist coverage is highly recommended as well, as it will protect you in case your vehicle is hit by an uninsured driver.

 
In conclusion, you need to weigh your personal circumstances and factor those in. Once you see things from this perspective, making the decisions of the amount of coverage – and options to choose from – should be much easier.

One day car insurance is an affordable insurance coverage that protects a person effectively for a short term against any loss incurred in cases such as being involved in car accidents. This type of car insurance coverage is often taken by those who drive a car while traveling.

 
As is always the case when shopping for car insurance, this can be a daunting process; going through the numerous offers and deciding on the right insurance package can take days or weeks of research. However, it is important to compare multiple quotes. As mentioned in other articles, this can be easily done online.

 
Why do people obtain one day insurance?

Living in certain big cities, such as New York, often results in people not using their cars frequently. As a result, often it is very tempting to avoid getting insurance – after all, why pay the premium if you’re not using your car? However, it is crucial that a car is covered adequately when it is used, even for short trips both in terms of distance as well as time. Not only because this is the law, but also to avoid facing any unexpected problems such as huge expenses in the unfortunate event of becoming involved in a car accident without possessing any form of insurance. Remember Murphy’s laws – the unexpected will happen when you least expect it.

 
There are two scenarios when one may wish to get one day car insurance.

 
In the first scenario, people who get one day car insurance simply don’t possess a car and only require insurance for short amounts of time when using a rental car or a friend’s car. In this case, this is really the best alternative.

 
In the second scenario, people simply do not want to spend money on huge premiums for long durations when they rarely use their cars. This can be the case when simply not using the car (as per the example above), or when possessing more than one car, in which the second car is not used frequently (i.e. when a teenage son goes to college, suddenly the car he used is no longer used).

 
In both cases, it might be wise – financially speaking – to enroll in a one day car insurance whenever the car is required rather than pay a yearly premium. However, if a car is used frequently then this is certainly not the best alternative, and another type of auto insurance would undoubtedly be more appropriate.

The state of New York, as is the case in any other American state, has a lot of people looking for the best car loan deals. Today, almost everyone goes in for an auto loan when they decide to buy a vehicle.

 
There are various companies in New York offering car loans. If you are wondering how does one get a car loan in New York State and the various challenges and pitfalls involved in the process, then read on to know a little on this subject.

 
It is possible to find a car loan financier through various resources in New York. The first and the best option is to ask around your friends and relatives. This is the most reliable source as they are likely to be more familiar with person involved, possibly even know someone who has used his services – or they have – and will be able to guide you on the challenges you may expect to face during this process. They will also be able to tell you through experience which in their opinion is the best finance option.

 
Another resource in your efforts to locate a car loan financier in New York is online. Shopping online is much faster and an effective option. In fact, this website offers several resources for obtaining car loans. You can check every one of the alternatives and compare their rates and products. After a careful analysis, you can now narrow down to the best company and contact them. They will send an executive to meet you or you can walk into their offices to discuss your requirements. Most often you can even apply online for your loan.

 
It is a good idea to do you research on basic eligibility requirements. First, you should attempt to obtain a car loan only if you earn a minimum of $2,000 a month, otherwise it may be difficult for you to repay your installments. Furthermore, you must be above the age of 18 and must have a history of employment and residence. If you qualify in all these respects, then there you should expect to receive a a car loan without any difficulties.

 
Before you are asked to pay, try and bargain on the down payment. This varies from each lender and you should always be ready to let them know you can go to another agency if you are eligible for a loan. Usually lenders charge about ten percent of the vehicle price or $1,000: whichever is lesser, as the down payment.

 
You can also effectively negotiate on the rate of interest as you shop for car loan in New York State. With a good skill for negotiation and with a good credit history, you may be lucky enough to get a loan at an extremely low interest rate (though as my father says: you make your own luck. Try until you get a low interest rate. Certainly worked for a friend of mine!).

 
In conclusion, as you attempt getting a car loan, ensure you are aware of various options that are available. This way you will be able to strike the best deal possible. Most importantly, make sure you finalize the auto loan before looking for a car. This way you will be able to go with a fixed budget in mind and can avoid frustration and disappointment – or even worse, getting stuck with a car you cannot afford.

Although not directly applicable to auto insurance, we believe this article is of relevance to the content of this website for reasons that will become shortly apparent.

 
Hybrid cars are a type of car that reduces the consumption of fossil fuels and thus, also reduces the pollution in the air we breathe. It’s been demonstrated that Hybrid cars produce 80% less harmful pollutants than their gasoline ‘ordinary’ counterparts. Standard engines, such as those found in the average car on the street, release a significantly higher amount of these gases on a daily basis.

 
The technology that enables these impressive results is the unique engines of hybrid cars, which use a combination of gasoline-electric engines that emit less pollution than their larger versions. That being said, these engines generally produce only around 60 to 90 horsepower on their own, so to compensate for this lower horsepower Hybrid cars are constructed with ultra lightweight materials.

 
For some time now, many states have been offering incentives for people who purchase ecologically friendly vehicles such as hybrid cars: both cash as well as other privileges. The following states are included: California, Colorado, Connecticut, Florida, Georgia, Maine, Maryland, New Mexico, New York, Oregon, Pennsylvania, Utah.

 
More recently, thanks to president Obama’s stimulus tax bill, if you buy a hybrid car you can get up to $3,400 refund, based on the amount of gas saved and weight of the car. We felt this is important to mention in this site which largely aims to help you save money on your car (mainly with regards to car insurance advice but not limited to that).

 
Note that the following guides can help you utilize the stimulus package to the maximum:

1. The Government is giving away free money: This guide will show you how you can take advantage of the new government stimulus programs available now: it will help you locate grants, apply and eventually receive them. Click Here!.
   
    

2. YourGrantResource: Obtain instant access to a “data-bank” of the best government grant and private foundation grant opportunities found. Click here!.

Something a lot of people don’t think about when renting a car is the car insurance they will need to get. Many people choose the wrong rental car insurance for what they actually require. Others choose more than what they need, or just do not get not enough coverage.

 
Rental car insurance should be thought about and decided on beforehand, so you’re not pressured into a last minute decision. The aim of this article is to help you prepare yourself when renting your next car, so that you know ahead of time what to do about your rental car’s insurance.

 
Before attempting to rent a car, it is important to mention that some states have a minimum age requirement for renting a car, which is ranges between 21 and 25. In addition, some companies check a potential renter’s driving record or credit history before they allow him to rent a car.

 

Perhaps you don’t need to buy insurance…

Before buying rental car insurance there are two things you can check, as you may not need to purchase one after all.

First, check your personal car insurance plan (assuming you have one) and find out whether the coverage and deductibles apply if you rent a car. In most cases it would. If there’s any doubt in your mind, we suggest calling your insurance company and finding out. Note that the type of car insurance you have may affect the rental car as well, i.e., if you don’t have comprehensive or collision car insurance, don’t expect to be covered if your rental car is stolen.

 
Second, many credit cards offer insurance benefits. Normally these only cover damage or loss of the rented car, and not for other cars (in case you are involved in a car accident and it is your fault). Furthermore, there may not be personal liability for bodily damage. However, this may be sufficient to your purposes. Again, if there’s any doubt – call your credit card company and find out. If you have more than one credit card, you should call each one to find out the insurance benefits they offer.

Note that if you decide to use this benefit as your rental car insurance, ask the credit card company to send their coverage information in writing.

 

If you do need to buy rental car insurance after all…

In the event the two above scenarios don’t work, and you do need to purchase rental car insurance, keep in mind that this is state regulated, the cost and coverages are different in every state.

 
There are several options to choose from when purchasing rental car insurance:

 
Personal accident insurance: this provides coverage from car accidents to you and any passengers that were present in your car at the time of the accident. The insurance will pay the cost of medical and ambulance bills.

 
Personal effects coverage: this provides coverage for items stolen from your rental car.

 
Loss Damage Waiver (LDW): if you possess this type of coverage, you are not held financially responsible if your rental car is damaged or stolen. However, if the damage resulted from speeding or driving while under the influence of alcohol, you will be held financially responsible. Keep this in mind!

 
Umbrella liability insurance: if you possess this type of coverage, this insurance policy acts as a liability policy in addition to the one you may get from your personal car insurance. In other words, it offers extra protection when you rent a car.

 
One final point: it might be a good idea for you to contact your travel agent if you are going to travel abroad in your rented car, to make sure you are properly insured while traveling.

 
Note that if you want to reserve a rental car at discount prices from various companies, check out our rental car section.

 
Insuring a teen driver has its own set of challenges for a variety of reasons. First, teenagers, being new drivers, have little or no driving experience, and as such, are more prone towards being involved with car accidents. Furthermore, male teenagers by nature can be more reckless – particularly when it comes to going over speed limits, which is yet another reason why they are more likely to get into accidents. In fact, teenager drivers are three times more likely to be involved in a car accident and die as a result.

 
Unfortunately, insurance companies are well aware of these facts, and once your teenage son or daughter is included in the policy, this will be reflected in the insurance cost. Amusingly, insurance companies are also factoring in the sex of the teenager: male teenagers included in a policy increase the cost twice as much as female teenagers.

 
How does one reduce these costs to their bare minimum?
 

• First, include your son or daughter in your policy, if possible, as this is bound to be cheaper than getting them their own auto insurance policy. Furthermore, if they have their own car, you can include it as well in your policy (under Multi-Vehicle discount – see our article on auto insurance discounts).
• Second, follow the standard guidelines of reducing costs as outlined in our article Ten Useful Tips For Making Your Car Insurance Cheaper. Most of which will be relevant here as well.
• Third, and this might be hardest one: but Be a Good Parent. This means:
  1. Acting as a positive role model: how would you expect your son to drive responsibly if you don’t?
  2. Explaining to them the dangers of drinking and driving, sleeping while tired, as well as the usage of cell phone usage while driving. Although they are likely to have heard these lectures a million times, coming from you may make the difference.
  3. Supervising them while driving at first: this way, you can see their style of driving as well as potential weaknesses, and you can comment on that. On the upside, if your son or daughter are really good drivers, this may also relieve some potential concerns you may experience.
• Fourth, encourage your son or daughter to get good grades. Many insurance providers give discounts (up to 25%!) to teenagers who maintain high grades (at least a B average), because these are perceived as better future risks.
• Fifth, anticipate potential trouble, so consider raising the liability coverage in your policy. This might be more expensive now, but cheaper in the long run.
• Sixth, encourage your son or daughter to get good grades as well as attend a driving training course. Also notify your insurance provider if your son is a student and is away more than 100 miles from home. These will qualify you to certain discounts (as outline in this article. Note that in this case, it might be a good idea to take them off your insurance completely: if they are not likely to be driving, perhaps the added costs are not worth it.
• Seventh, and this is just common sense: get a car that is considered to be a safe car. Not only this is safer for reckless driver, but will also affect your insurance premium.

 
Legally, every car owner in United States must be covered under some type of auto insurance as stated by the Department of Motor Vehicles or DMV. This protects the owner of the car against damage to himself or his car, as well as protects other people from damages he may inadvertently cause.

Auto Insurance Coverage includes several definitions. These definitions determine the responsibilities and obligations of the policy holder, as a car owner, in case of damage to one’s car, the theft of his car, or an involvement in a car accident.

 

Definitions:

Property Coverage: this term generally covers the damage made to a policy holder’s car by whatever means, and also includes the theft of his car. Clearly this is a necessity when it comes to insuring one’s car, and every car owner should be insured against property damage.

 
Liability Coverage: this term involves one’s legal responsibility for bodily injuries and for property damage caused by him. This assures the policy holder that whatever happens, the insurance company will protect him – to some extent – from bodily or property damages he has caused.

 
Medical Coverage: this term applies to the amount of money paid for the hospitalization and treatment of injuries incurred during an accident, as well as the costs of rehabilitation, and wages lost by the injured person during this time of incapacitation.

Standard policies:

There is a great variety of auto insurance policies which exist for the purpose of indemnifying the car owner in case of loss, injury or damage. These also can be classified into several types.

Third Party: this is the most basic insurance policy available and protects a policy holder in the event he accidentally damages someone or their property. It is also the cheapest car insurance available.

 
Fire and Theft: this type of policy offers more protection to the policy holder, and will cover the cost of a car that is burnt or is stolen. Note that it does not cover any damages incurred if involved in a car accident.

 
Collision: this type of policy covers the cost of repairs to a car when the policy holder is liable for the accident. Basically, if you cause the accident, you still get paid for repairs if covered by this type of insurance.

 
Personal Injury Protection (PIP) or Medical Payments (MedPay): this type of policy reimburses medical bills of the driver and his passenger regardless of who’s at fault for causing the accident. It also protects against lost wages while the injured person cannot work.

 
Comprehensive: this type of insurance offers the most protection to the policy holder, and covers everything from accidents, to auto theft, to fire damage, to “act of god” (vandalism, hurricane, flood). It can even cover the cost, at least partially, of medical expenses suffered during an accident and of items stolen from a car. Unsurprisingly, this is also the most expensive car insurance.

 

Specialized policies:

There are also specialized policies that suitable to some scenarios.
 
Classic car insurance: covers a car that is older than 25 years. In principle it is equivalent to a standard comprehensive car insurance, however, it may have a limitation on the number of miles the owner can drive per year.

 
Rental Reimbursement: this type of policy simply insures a policy holder in case his car is unavailable – he is given a replacement rental car for this period.

 
Regardless of the policy a car owner has, it is important for him to be familiar with his policy. Some auto insurance providers do not reimburse 100% of the value of a stolen or damaged car, but rather return only 80%, with the rationale being that this prevents frauds – accidents or thefts initiated by the owner of a car who simply don’t want them anymore.