• Test drive a vehicle
• Shifting of your house – a friend drives your family members to the new place
• Trip to attend a conference or meeting
• Car under repair and you need friend’s car on emergency
• Share an extra driver while on long drive
Short term auto insurance protects a temporary driver, for a short period of time, roughly 1 to 28 days. In case, you have to go on a long drive and can’t drive it alone, you can have your friend or spouse as an extra driver. Add him on to your current insurance policy under a day’s cover.
On an emergency situation, where in you need to attend a conference to your neighbouring town and your car is under repair, you can opt for one day cover or a temporary cover. Always check other insurance companies and compare the different quotes. Opt for an insurance provider with cheaper premiums. Availing a no obligation quote online helps you compare your quotes online. Car insurance experts can also help you get the required information on short term insurance policy. Protect your self from any untoward incident. Secure your life with a suitable cover, pay lesser insurance premiums.
Complete package with a comprehensive cover.
No obligation quote – compare online
Get your insurance for car in a short time
Insurance plans for family, big or small business
An affordable insurance cover
Even a family member or close friend can be covered if he or she drives your vehicle for a day or two.
Need for short insurance cover arises when you consider travelling short distance. An additional driver needs to be covered fro an emergency situation and online option gives you the scope of availing insurance immediately. Hence, short term auto insurance covers you for a short period. If you wish to take your friend’s car, and still get protected, you can do so by availing auto loan one day insurance.
By: Kirthy Shetty
Posts Tagged ‘Auto Loan’
Short Term Auto Insurance – A Day Cover!
December 30th, 20095 Reasons GAP Insurance is a Must For Long Term Auto Loans
December 26th, 2009
Vehicles are getting more and more expensive, but customers are still expecting, wanting or even needing the lowest monthly payments possible. Outside of negotiating the best possible deal and putting significant money down, consumers are left with one option to keep those payments low and that is extending their terms to 60, 72, or even 84 month auto loans.
What some consumers are not aware of is the rude awakening they might be in for if they don’t have Auto GAP Insurance to protect themselves.
Auto GAP Insurance is quickly becoming one of the most popular forms of protection for customers that choose to finance their vehicles. GAP stands for Guaranteed Asset Protection and can become a financial life saver in the event your vehicle is declared a total loss, due to collision, fire, flood or theft, by your insurance company.
Auto GAP Insurance is designed to pay any difference between your insurance companies settlement and what is still owed on your negative equity auto loan. Your insurance company will figure a settlement based on the Actual Cash Value (ACV) of your vehicle and not based on what is owed to the lender.
As many people are learning these days, they owe more to the lender then what their vehicle is worth. This is where GAP Insurance comes into play. GAP will cover that deficiency (your negative equity) and usually your insurance deductible as well. This “GAP” between the settlement and what is owed can easily be thousands of dollars.
Long term financing will affect the amount of negative equity in your auto loan and your vehicle, as well as the length of time you will have that “negative equity.”
The top 5 factors affecting your negative equity are:
1) Depreciation
Once you drive the vehicle off the lot…Wham! You instantly lose value. In addition, the longer your loan term the more time there is for the vehicle to depreciate. There are very few vehicles that go up in value as they get older.
2) Amount of miles on the vehicle
The longer you own the vehicle the more miles you will rack up; therefore, causing even more depreciation.
3) Finance charges
Not only will you be paying more in finance charges due to the longer term, but you will pay a higher interest rate due to lender risk. The longer the term of the loan the higher the risk for the lender and that translates into higher interest rates, even if you have excellent credit.
4) Little money down
If you put little or no money down, you are now, not only paying finance charges on the purchase price of the vehicle, but potentially on the tax, title and license.
5) You rolled over negative equity from a trade in
This is a bad one and can put you in a very deep negative equity situation.
My suggestion would be to not finance a vehicle long term. The longest term I would suggest is 48 months with a 30% down payment. I know this is not possible for most consumers with the price of vehicles these days, but if you can afford the monthly payments it is the best way to go. For those of you forced to finance long term with little money down, Auto GAP insurance is a must.
By: Justin Reynolds