How Does Car Insurance Work

Many of us know we have to have car insurance(or car insurance northern ireland) in order to get our license and tags. However there are some that don't really understand the actual policy or how it works to protect us. There are also different requirements for having a loan or lease on a vehicle rather than just owning it out right. Insurance companies ask a lot about our daily lives such as how we use the car, where we park it, and other aspects of driving to ascertain the risk we might pose to the vehicle they are covering.

Car insurance works in that we choose a level of coverage whether it is just liability or includes comprehensive and collision. There is also a choice in the amount of actual coverage regarding motorist, uninsured motorist, and medical. The amounts and type of coverage you choose is what will determine the premium you will pay on a month to month, six month, or yearly basis depending on the terms of your policy.

The amounts you have chosen and the type of coverage will tell the car insurance company how much they will have to pay out in the event of an accident caused by you or another driver. In other words they cover the damage that affects the car. For certain damage like windshields you will have a deductible that you have to meet in order to process a claim. If you have damage to your car from a break in, a rock thrown at the windshield, or an accident that you have been in you have to report the issue to the company in order to get a payout. The car company is going to ask for full details regarding the claim, the information from the accident claim, such as any ticket given to you and of course any damage to the other car if you caused the accident. They will ask that the car be taken to one of their mechanics that they have in their company logs. The mechanic is then going to report the amount of damage and how much it will cost to fix it. The car insurance will then take the quote and all information. In some cases they may consider the car totaled and will not offer any settlement towards fixing the car.
Article Source: http://www.articlesbase.com/finance-articles/how-does-car-insurance-work-315908.html

First Car Buying Tips

I don't know about you, but when I bought my first car I didn't have a lot of information to go on for the process. I admit I had two cars previously to the first car I bought, but those deals were made by my father. He was the man with the money and he was paying for the cars outright. So when I decided to trade in my car for a different model and a newer vehicle I needed a little help from those who had bought cars before. I didn't want to make a mistake and get an unfair deal from a dealership or private owner. The great thing was I had my parents to help me find the information I needed to purchase that car. I even had my mom come help me make the deal. It took us a little over five hours and closing the joint, but I walked away with one of the best deals on a 2000 vehicle that I could have for my financial state as well as my credit history.

Car Buying Tips

What you need to know about buying your first car is quite simple. First you need to know all about the car you are interested in buying. You need to know what that car would cost new, what the used retail price is for a dealership as well as a private sale, and what condition the car is in. You also need to know if it has any bells and whistles added on to it as that will affect the price. Kelly Blue Book and other consumer reports will allow you to find out all of the information you need for a general search. Armed with this information you can negotiate a fair price. If you have a trade in you should also know the value on that for trading it in to a dealer as opposed to selling it privately.

You also need to know about your credit history. You need to know where your credit scores stand. You also want to know where you will stand regarding the dealership score. The look at your FICO score as well as a risk score that they calculate. They are basically looking to see if you can afford the car you are interested in buying. If you don't have a credit history that is very lengthy you can expect any car loan to be offered a little higher than seems fair. They are just trying to establish your risk and since you don't have much of a history they consider you more of a risk.

Once you know both the car facts and the financial situation you are in you are ready to deal. You let the dealerships know that you have done your homework. Also let them know you are willing to walk away if the deal isn't to your specifications, not there. There are several tactics they can use like saying, "We have to make some profit," or "I work on commissions." You have to be in control not the other way around.
Article Source: http://www.articlesbase.com/automotive-articles/first-car-buying-tips-314790.html