You heard that it is difficult to get an auto loan approved if you have bad credit history, and yet, you believe that there must be some ways to help you get auto loans for bad credit. Someone truly said, if there is will, there is a way. The fact remains that though most lenders are reluctant to approve car loans, there are some auto loan providers that help you get car loans approved.These lenders help you get auto credit loans even if you have a bad credit score or no credit history at all. Let me tell you how these providers guarantee to get you approved loans. I’m also going to tell you the tricks to help you choose the best and most reliable lenders of auto credit loans.Lenders who offer auto loans despite your bad credit history or no credit score at all need not necessarily be banks or financial businesses. Rather, if you approach banks or other financial organizations for auto loans for bad credit, there are high chances that you will be refused. The prime reason why your loan application is not approved is that they are not convinced about your ability to pay the loan back in time. Since you have bad credit, you really have no ground to prove your reliability.Now if you approach a reputed loan approval company, the trick’s done. The loan approval service providers have a worldwide network of various financial organizations. When you make the approach, your application for a car loan may get rejected. But when these loan approval companies approach them for your car loan, they are easily convinced. It is due to their persuasion that your car loan application gets sanctioned. They convince the lender on your behalf that your financial ability is not what your credit history reveals, and that you are able to pay the loan back in time.Now that you understand why loan approval service providers are essential for getting auto loans for bad credit, you should start finding one, if you are planning to buy a new car on loan. It is not at difficult at all. All you have to do is to search for ‘auto loans for bad credit’ on Google and you will find websites of lots of providers who help you get auto credit loans. Making the right choice is, of course, your task.You really have to be very careful when you choose the service provider who gets your loan approved. There are individual service providers and organizations as well. I’d suggest you to go for the organizations. Since it is a matter of faith and reputation that works as the key factors in convincing the lenders, a reputed and authorized organization is always preferred by the lenders. You should also check out for the online reputation of the service provider. This will help you filter your search and help you find the best and most reputed service provider for guaranteeing auto loans for bad credit.
You had an auto accident and feel that the other party is completely responsible and you know that the auto insurance companies will see it the same. But what if there is something that you are forgetting about, something that makes it possible for the auto insurance company to place a fraction of blame on you? What kinds of defenses against negligence are there for someone who seems to be at blame for an auto accident?One of the most obvious defenses of negligence in an auto accident that auto insurance companies like to look at is the assumption of risk. What type of risk did you know was involved before you entered the possibility for the accident? For instance, you may believe that the other party is 100% responsible for an accident where they ran a red light, but what if the other party was going 100 mph trying to make it through a red light? Even though the light is green, you still have a responsibility to make sure the intersection is clear before entering the intersection.Who had the last clear chance to avoid the accident? If an auto insurance company sees that you had an accident while entering the interstate from an on ramp and the other party had nobody in the lane next to them, that party could have some responsibility for the accident. Even though they had the right of way to be in that lane, they also have the responsibility to avoid the accident as they had the “last clear chance” to do so.After the negligence is determined based on considering both of the above then the auto insurance company won’t necessarily pay for everything that has happened to your car. Make sure that you are mitigating your damages immediately after your accident, if your car is making a noise that is only getting worse, stop driving it! Auto insurance companies will only repair those things that were directly caused by the accident, not after the accident.
Imagine getting ready to leave your house and you open your door and the rain is pouring down. Now you start to frantically look for your umbrella…. ah, there it is! You step outside, open your umbrella, and you are now protected from that pouring rain. If it were a bright sunny day with no rain in sight you probably would not even care about where your umbrella is or if you even had one! The same is true about insurance. Until you need it, do you really care about it? Unfortunately, too many people realize that they have insufficient coverage only when an unexpected incident occurs and they have to place a claim with their insurance company.So, a logical starting point to determine if you have proper insurance coverage is to understand the basics. To ensure that you do have the proper coverage, you first need to acquire a good understanding of the basics of auto, home, personal umbrella, and life insurance coverage. For this article, we will focus on auto insurance coverage.Auto Insurance basically covers you for liability and property damage as it relates to your motor vehicle. There are other optional areas of coverage as well, but for our discussion let’s stay focused on the basics, which are the most important anyway. Your auto insurance policy’s first and/or second pages are the declaration pages of your auto insurance policy. The declarations pages describe your auto coverage limits in numeric dollar values.Here is a sample of what you may see on your auto insurance policy’s declaration pages:-Bodily Injury/Property (BIPD) 250/500/100
-Limited or Unlimited
-Medical (Med) $5,000
-Personal Injury Protection (PIP) 250 w/250 Ded
-Uninsured/Underinsured (UM/UIM) 250/500/100
-Collision $500 (Coll) Deductible
-Comprehensive (Comp) $500 Deductible
-Rental Insurance (RI) 80%/1500Let’s take a look at each of these coverage definitions and amounts in more detail.The BIPD represents Bodily Injury (BI) / Property Damage (PD). Basically, in the example above, this individual policyholder has liability protection for $250,000 per individual or $500,000 maximum per incident, plus $100,000 in property damage to the other party’s vehicle in a collision. Liability coverage is protection for times when you have been deemed and proven negligent in an auto accident and you therefore become legally liable for the resulting compensatory and/or punitive damages to the other party or parties. The BI, of the BIPD, will cover you for negligence on your part that resulted in bodily injury to the other party or parties. BI also covers the cost of attorney fees associated with any litigation brought against you by the other party. In the above example, this person has $250,000 in coverage for all inclusive liability and attorney fees per individual injured or $500,000 for the entire incident.The PD, of the BIPD, covers the damage to the other party’s vehicle as a result of your negligence; thus, in the above example, up to $100,000 in property damage to the other party’s vehicle or property. Now, being cognizant of the litigious society that we live in, we ask if $250,000 per person or $500,000 per incident is enough BI coverage? This is a personal decision for every individual to make depending upon their current assets and net worth, and their knowledge of recent jury decisions and awards on BI cases. A major factor affecting this decision is an understanding that you are self-insured for any amounts awarded in excess of your BI coverage amount, should the jury award compensatory and punitive damages greater than your BI coverage amount. So, in this example, should the jury award $750,000 to the individual driving the other vehicle who suffered bodily injury because you collided with them as a result of your negligence, then you are self-insured for the amount in excess of $250,000 which in this case would be $500,000. If you do not have the $500,000 to settle the award, then the judge has many other options to ensure restitution to the injured party such as: garnishing your wages, selling off some of your assets, placing a lien on your property, etc. Now, you can get an umbrella policy to cover you up to a certain amount in excess of your underlying auto BI coverage. We will look at how an umbrella policy works in more detail in an upcoming article.Next, we have “limited right to sue” versus “unlimited right to sue” coverage. Basically, under the “limited” right to sue lawsuit option, you agree not to sue the person who caused the auto accident for your pain and suffering unless you sustain one of the permanent injuries listed below:-Loss of body part
-Significant disfigurement or scarring
-A displaced fracture
-Loss of a fetus
-DeathPlease note that choosing this option does not waive your right to sue for economic damages such as medical expenses and lost wages.Under the “Unlimited” right to sue lawsuit option, you retain the right to sue the person who caused an auto accident for pain and suffering for any injury. Most people will choose the “limited” option because it is far less costly and it provides the ability to sue the negligent party for most major and permanent injuries. However, many attorneys will usually choose the “unlimited option” for their own personal coverage and pay the significant extra cost because they want the right to sue for any injury.PIP coverage stands for Personal Injury Protection coverage. PIP is paid from your own policy. PIP covers medical expenses, and possibly lost wages and other damages. PIP is sometimes referred to as “no-fault” coverage, because the statutes that enacted it are generally known as no-fault laws. PIP is designed to be paid without regard to “fault,” or more properly, without regard to legal liability. PIP is also called “no-fault” because, by definition, a claimant’s, or insured’s, insurance premium should not increase due to a PIP claim. A PIP claim may be subrogated by your insurance against the other party’s insurance company if the other party was determined to be the neglligent party in the accident. PIP is a mandatory coverage in some states.Uninsured/Underinsured (UM/UIM) is coverage from your policy that may pay for injuries to you and your passengers, and possibly damage to your property, when as a result of an auto accident the other driver is both legally responsible for the accident and determined to be “uninsured” or “underinsured.”An uninsured driver is a person who has no auto insurance coverage, or had insurance that did not meet state-mandated minimum liability requirements, or whose insurance company denied their claim or was not financially able to pay it. In most states, a hit-and-run driver is also considered an uninsured driver as it pertains to paying for injuries to you or your passengers.An underinsured driver is a person who had insurance that met minimum legal requirements, but did not have high enough coverage limits to pay for the damage caused by the accident. In these situations, UIM coverage can pay you for your damages. It is important to note that uninsured and underinsured is separate coverage, although in many states they can or must be purchased together. Some states mandate purchase of UM/UIM, but many do not.Collision coverage insures you for damage to your vehicle. No matter if it is a collision between your car and another car, or your car and a stone wall. You are covered if your car sustains damage as a result of colliding into something or something colliding into it, whether you are at fault or not. Your deductible will usually apply. If you collide with another vehicle and the other party is at fault, then your insurance company may subrogate the claim against the at fault party’s insurance company to recover the claim amount.Comprehensive (Comp) basically covers what collision coverage does not. When your car sustains damage that did not result from colliding with another motor vehicle or object, the comprehensive portion of your policy will pay for the damages. If you do not have comprehensive coverage then you would have to pay out of your own pocket for any damage to your vehicle not related to a collision. Here are the perils typically covered by comprehensive auto insurance coverage: fire, theft, vandalism, broken or damaged glass, animal inflicted damage, falling objects, storms (hail, wind, etc.), and water damage. Your deductible will usually apply.Rental Insurance (RI) is coverage for you to rent a car while your vehicle is being repaired because of a covered incident. In the above example of declaration page values, the 80%/1500 means that you have coverage for $80 per day and $1,500 maximum total cost to rent a car while your vehicle is being repaired. This is an optional coverage that many people take, but some do not.Well, that is it! That is the basics of understanding your auto insurance coverage. Not so bad, right? Now that you understand the basics of auto insurance coverage you can review and analyze your personal auto insurance policy’s declaration page coverage information while taking into consideration your personal financials to determine whether or not you have sufficient coverage.Stay tuned for future articles that will explain the basics of understanding homeowner’s, personal umbrella, and life insurance coverage. You never know when it is going to rain!Joseph Rubino, Agent
NJ Licensed Property & Casualty, Health, and Life