The subject of payday loans has received a lot of attentions and speculations but one notable thing is that aging citizens are turning to using these loan facilities. According to report released by Center for Responsible Lending, it shows that about 25% of consumers opting for cash advance credit offered by banks are using their social security funds. You may be wondering if banks are offering these high interest loans but the truth is that they are indeed offering such loans but under different names.
The banks refer to these loans as fast cash, cash advance, and so forth. However, the latest statistics on short term loans with high interest rates seem to be impacting the seniors at an age where these older people should be refraining from debt. The fact that a significant number of bank payday loan borrowers fall under the seniors who are using their social security resource may not be a welcomed thing.
Banks are said to be offering short term loans which attract interests as high as 250 to 300 percent in APRs. Although most of the payday loans require that you have a source of income such as employment, for the seniors, they are using their social security benefits to qualify for these loans. In that study released by CRL, it also showed that in 2011, the average bank payday loan customer took close to 19 loans in a year.
As the payday lending industry continues to defend itself, perhaps for the senior consumer, this may not be the right option. At an old age, there are many uncertainties that may strike and need emergency cash but opting for high interest rates may not be a good solution. In old age people tend to suffer from health conditions because of the reduced immune systems and poor circulation of blood.
You may have frequent visits to the doctor as well as numerous treatments that take substantial amount of money. Nevertheless, this does not mean that the best way to get cash to meet these financial needs is to go for these loans. For one, these loans are easy to obtain and you will not have headaches when applying for them. There may be no credit check when getting approval for the loans. This perhaps is one reason, which entices the old to opt for these loans especially those with bad credit score.
But there are better options such are credit unions or even peer to peer lending. Banks may also provide personal loans at a very competitive rate. The question is; whether you as a senior, you will get approval for the low interest loans when you are in bad credit. The fact that over a quarter of payday loan borrowers are social credit recipients, it means that seniors may be carrying more debt, which locks them out from acquiring low interest loans issued by banks or other financial institutions. This is perhaps another reason why they opt for the payday cash advances.
The major problem is that they are borrowing at a time when they should keenly be watching their debt burden. This is a time when they can actually ill afford such financial burdens and they need to refrain from taking these loans and search for other better financial solutions. And, as an associate state director for advocacy for AARP noted, seniors are getting their social security benefits in the bank electronically and as soon as it is deposited there, the payday lenders are scraping it up.
This is certainly “swindling” the social security benefits of the seniors, a scenario that may lead to huge debt burden. Although banks seem to reject the label payday loans, they offer these credit facilities under different names like Fast Loan for Bank of Oklahoma, Easy advance for Guaranty Bank, and Direct deposit advance for Wells Fargo Bank, among other similar names.
Monday, November 18, 2013
What Are the Benefits of Computers to the Society?
When you talk about computers, it may not only refer to a mouse, PC, monitor and your keyboard; any devices that can compute as well as execute instructions or commands through designed programs or software may be referred to as a computer. Therefore, technically, the definition of a computer may extend to include other electronic devices like tablets, PDAs, laptops, smartphones and other high-tech devices. The evolution of computers from the 1936 Konrad Zuse-Z1 computer to the modern day tablet PCs and ultrabooks, has been a huge development for the society.
It is certain that computer devices have revolutionalized the way in which the society interacts. However, no matter how the community sees computers as beneficial, there is another group of neo-luddites who oppose the innovations of the computer age. Luddites were a group of persons who greatly opposed the industrial revolution in Britain and it seems that in the technological world, we also have other “luddites” now termed as neo-luddites.
Neo-luddites are today’s critics of computerization and the modern technology including the internet. They claim that people use computers because they are there and not because they make people’s lives easier. Whether this is true or false, this remains to be an aspect to be debated upon. Putting aside the thinking and mediocrity of the neo-luddites, it may be argued that computers have changed the way in which people communicate, access resources, study or even work.
Virtually, in every sphere of life, technology makes some contributions. In the aspect of research, computers have helped researchers make breakthroughs such as in satellites and telescopes. Another field which has received extensive developments is medical research. There are high-end machines used in laboratories, diagnosing, and curing diseases. Surgical procedures have become more precise and accurate with use computer technology.
Magnetic resonance imaging and other scans like CT scan make use of these high tech computing devices. Surgical procedures like laparoscopic surgery require the use of computers. Today, doctors can treat people remotely through web conferencing. Education is key to succeeding in life and today, thank you to the computer technology and internet as students are able to undertake distance learning through online study programs.
This makes education to be more available to people who are limited to relocating or pursuing the studies abroad. It is costly to undertake a degree program or masters degree by going to the country where the college is physically situated. However, this gap has been bridged by use of correspondence studies. In the business world, things even look better as business persons can initiate transactions through their mobile devices.
The banking sector, through the so-called internet banking has eased the way in which people contact their banking activities from request for payment to ordering and making payment for goods and services delivered. In security matters, computer-aided cameras are installed in vantage points where they can capture and store images of persons and movement of people and vehicles.
In major cities, crime activities can be monitored through use of CCTV cameras installed in busy streets. Last but not least, computers have connected the remote parts of the world with the big cities and countries. A person in a remote part of Botswana’s Kalahari Desert can communicate with a person in New York in real time. In essence, the development of computers cannot be underestimated because it has really changed the world and how people interrelate.
It is certain that computer devices have revolutionalized the way in which the society interacts. However, no matter how the community sees computers as beneficial, there is another group of neo-luddites who oppose the innovations of the computer age. Luddites were a group of persons who greatly opposed the industrial revolution in Britain and it seems that in the technological world, we also have other “luddites” now termed as neo-luddites.
Neo-luddites are today’s critics of computerization and the modern technology including the internet. They claim that people use computers because they are there and not because they make people’s lives easier. Whether this is true or false, this remains to be an aspect to be debated upon. Putting aside the thinking and mediocrity of the neo-luddites, it may be argued that computers have changed the way in which people communicate, access resources, study or even work.
Virtually, in every sphere of life, technology makes some contributions. In the aspect of research, computers have helped researchers make breakthroughs such as in satellites and telescopes. Another field which has received extensive developments is medical research. There are high-end machines used in laboratories, diagnosing, and curing diseases. Surgical procedures have become more precise and accurate with use computer technology.
Magnetic resonance imaging and other scans like CT scan make use of these high tech computing devices. Surgical procedures like laparoscopic surgery require the use of computers. Today, doctors can treat people remotely through web conferencing. Education is key to succeeding in life and today, thank you to the computer technology and internet as students are able to undertake distance learning through online study programs.
This makes education to be more available to people who are limited to relocating or pursuing the studies abroad. It is costly to undertake a degree program or masters degree by going to the country where the college is physically situated. However, this gap has been bridged by use of correspondence studies. In the business world, things even look better as business persons can initiate transactions through their mobile devices.
The banking sector, through the so-called internet banking has eased the way in which people contact their banking activities from request for payment to ordering and making payment for goods and services delivered. In security matters, computer-aided cameras are installed in vantage points where they can capture and store images of persons and movement of people and vehicles.
In major cities, crime activities can be monitored through use of CCTV cameras installed in busy streets. Last but not least, computers have connected the remote parts of the world with the big cities and countries. A person in a remote part of Botswana’s Kalahari Desert can communicate with a person in New York in real time. In essence, the development of computers cannot be underestimated because it has really changed the world and how people interrelate.
Another Blow to Giant Automobile Makers... as Close to 3.4 Million Cars are Recalled
As giant automobile makers battle it out to gain supremacy in the market, their efforts are shadowed by the never ending car recalls, which are not only costly but also taint the reputation of the companies on quality assurance to consumers. It has been revealed that Japanese automakers including Nissan, Toyota, Mazda, and Honda are in the process of recalling close to 3.4 million units from defects found in airbags.
According to Hong Kong CNNmoney, the latest of the recalls are those from Toyota-TM in which more than 1.7 million cars are said to be recalled owing to airbag defects. An airbag is essential in that it minimizes the magnitude of an injury whenever a crash occurs. However, any defects in this crucial safety device in cars could lead to serious injuries if a crash occurred.
While Toyota was recalling 1.7 million units, with popular models like Camry, Matrix, and Corolla among the cars being recalled, on the other side, Honda is recalling 1.1 million vehicles, Nissan 480,000 autos, and Mazda 45,000. Insurance companies have been rallying for quality assurance on automobile manufacturer because this was causing great economic losses in term of road accident injuries compensations, which could otherwise be averted.
However, the most hit is the consumer who is placed in a risky situation of sustaining injuries, if not death, when an accident occurred due to malfunctioning airbags and other motor vehicle functionalities. In addition, the consumer was likely to pay high automobile premiums and this means that it is double tragedy for the innocent consumer. The recalls are not only on Toyota cars. Other mainstream companies in the automobile market have also found themselves in the same cutting sword.
Honda, Mazda, and Nissan have also been hit by this quality assurance blow. Honda-HMC is recalling more than 1.1 million cars. Honda automobile manufacturer said that the recall was necessary in order to replace defective passenger front airbag inflators. The company expressed concerns that it was possible that front airbag inflators in the vehicles affected would deploy with too much pressure.
Such pressure could cause the inflators casing to burst, something that could cause injuries. Most of the Honda cars, which are expected to be recalled, are those from the models between 2001 and 2003. Honda confirmed that it was aware of one incident where the inflator of the passenger front airbag had ruptured because of too much pressure.
Nonetheless, the company said that it was not aware of any deaths or injuries owing to the defects. According to Shino Yamada, Toyota spokeswoman, the airbags that are believed to have the defect were manufactured by a Japan-based supplier, Takata Corp. From the announcement of the recall, the shares of Takata sunk deeply and it was seen that at some point they had fallen by more than 15 percent.
However, the shares recovered to close down at 9 percent. In the US, the recall has brought some effects. Toyota’s largest cars recall was witnessed in 2009 and 2010 were it was estimated that 8 million cars were recalled for having a potential risk that involved the accelerator pedals. The latest recall hit the company, which is now trying to heal and restore its reputation for quality after that massive recall. In that previous recall, motor dealers were asked to suspend sales of close to eight models of cars and many other models were stopped for some time.
Sources:
http://money.cnn.com/2013/04/11/news/toyota-honda-airbag-recall/index.html
According to Hong Kong CNNmoney, the latest of the recalls are those from Toyota-TM in which more than 1.7 million cars are said to be recalled owing to airbag defects. An airbag is essential in that it minimizes the magnitude of an injury whenever a crash occurs. However, any defects in this crucial safety device in cars could lead to serious injuries if a crash occurred.
While Toyota was recalling 1.7 million units, with popular models like Camry, Matrix, and Corolla among the cars being recalled, on the other side, Honda is recalling 1.1 million vehicles, Nissan 480,000 autos, and Mazda 45,000. Insurance companies have been rallying for quality assurance on automobile manufacturer because this was causing great economic losses in term of road accident injuries compensations, which could otherwise be averted.
However, the most hit is the consumer who is placed in a risky situation of sustaining injuries, if not death, when an accident occurred due to malfunctioning airbags and other motor vehicle functionalities. In addition, the consumer was likely to pay high automobile premiums and this means that it is double tragedy for the innocent consumer. The recalls are not only on Toyota cars. Other mainstream companies in the automobile market have also found themselves in the same cutting sword.
Honda, Mazda, and Nissan have also been hit by this quality assurance blow. Honda-HMC is recalling more than 1.1 million cars. Honda automobile manufacturer said that the recall was necessary in order to replace defective passenger front airbag inflators. The company expressed concerns that it was possible that front airbag inflators in the vehicles affected would deploy with too much pressure.
Such pressure could cause the inflators casing to burst, something that could cause injuries. Most of the Honda cars, which are expected to be recalled, are those from the models between 2001 and 2003. Honda confirmed that it was aware of one incident where the inflator of the passenger front airbag had ruptured because of too much pressure.
Nonetheless, the company said that it was not aware of any deaths or injuries owing to the defects. According to Shino Yamada, Toyota spokeswoman, the airbags that are believed to have the defect were manufactured by a Japan-based supplier, Takata Corp. From the announcement of the recall, the shares of Takata sunk deeply and it was seen that at some point they had fallen by more than 15 percent.
However, the shares recovered to close down at 9 percent. In the US, the recall has brought some effects. Toyota’s largest cars recall was witnessed in 2009 and 2010 were it was estimated that 8 million cars were recalled for having a potential risk that involved the accelerator pedals. The latest recall hit the company, which is now trying to heal and restore its reputation for quality after that massive recall. In that previous recall, motor dealers were asked to suspend sales of close to eight models of cars and many other models were stopped for some time.
Sources:
http://money.cnn.com/2013/04/11/news/toyota-honda-airbag-recall/index.html
Your Car Modifications Are Likely to Increase the Cost of Auto Insurance Premiums
If you are that type of personality who wants to pumper his or her ride, you will most likely make some car modifications. You may fit some new alloy wheels, add some extra headlights or modify your car engine to improve performance. It is essential to consider that any modifications you do in your may have an effect on the cost of your auto insurance. Vehicle modifications in most cases increase the cost of car coverage. There are mainly two factors that are examined when insurer assess how car modifications could affect the insurance policy.
One, the risks of accident is looked at based on the modifications done on a vehicle. Changing the appearance and performance of a car is viewed by insurers as an increased accident risk. Some of these changes may include engine modifications, body kits, sport seats and spoilers. One thing you will be asked when filling your car insurance policy form is whether your vehicle has undergone any modifications.
If you do modify a car to increase its power such as change of the exhaust system, it means that you have to drive fast and from the insurers’ point of view, the faster you tend to drive, the more you are likely to get involved in an accident. The other risk that is examined on a modified car is risk of theft. If you install accessories like phone kits, entertainment systems and other features, this means that you are adding value to your car.
This could be interpreted as potentially susceptible to theft. Your car may be broken into or even stolen. Insurance companies do not want to bear that risk and they substantially pass over the burden of risk on to your premiums by increasing the rates. Probably, a third argument could consider the aspect of adding value to your car through modifications, which means that the vehicle is expensive and you will increase your claims in the event of any damages or theft.
Therefore, modifying your car to increase its value would attract high premium rates. According to an analysis on car modifications and how they affects the insurance cost, MoneySupermarket released a price guide that shows how car insurance will change following a modification on specification parts or accessories.
For example, from the guide, a turbo-charging, nitrous oxide, and supercharging have been noted to produce the biggest impact on the prices of vehicle insurance. These changes can increase the policy cost by up to 90 percent averagely, and this is twice as much as any other kind of changes that you may make in your car.
Some changes that are done to enhance the aesthetic look of a vehicle are considered more benign and therefore may not cause any significant increase in cost of insurance. Things like tinted windows and fitting of alloy wheels are considered low risk.
Apparently, some of the functional modifications could actually lower the insurance premiums for example, when you install parking sensors; it means that you are less likely to bump into another vehicle when reversing. In essence, you need to evaluate the kind of car modifications you are doing on your vehicle and how they will affect your insurance policy costs.
One, the risks of accident is looked at based on the modifications done on a vehicle. Changing the appearance and performance of a car is viewed by insurers as an increased accident risk. Some of these changes may include engine modifications, body kits, sport seats and spoilers. One thing you will be asked when filling your car insurance policy form is whether your vehicle has undergone any modifications.
If you do modify a car to increase its power such as change of the exhaust system, it means that you have to drive fast and from the insurers’ point of view, the faster you tend to drive, the more you are likely to get involved in an accident. The other risk that is examined on a modified car is risk of theft. If you install accessories like phone kits, entertainment systems and other features, this means that you are adding value to your car.
This could be interpreted as potentially susceptible to theft. Your car may be broken into or even stolen. Insurance companies do not want to bear that risk and they substantially pass over the burden of risk on to your premiums by increasing the rates. Probably, a third argument could consider the aspect of adding value to your car through modifications, which means that the vehicle is expensive and you will increase your claims in the event of any damages or theft.
Therefore, modifying your car to increase its value would attract high premium rates. According to an analysis on car modifications and how they affects the insurance cost, MoneySupermarket released a price guide that shows how car insurance will change following a modification on specification parts or accessories.
For example, from the guide, a turbo-charging, nitrous oxide, and supercharging have been noted to produce the biggest impact on the prices of vehicle insurance. These changes can increase the policy cost by up to 90 percent averagely, and this is twice as much as any other kind of changes that you may make in your car.
Some changes that are done to enhance the aesthetic look of a vehicle are considered more benign and therefore may not cause any significant increase in cost of insurance. Things like tinted windows and fitting of alloy wheels are considered low risk.
Apparently, some of the functional modifications could actually lower the insurance premiums for example, when you install parking sensors; it means that you are less likely to bump into another vehicle when reversing. In essence, you need to evaluate the kind of car modifications you are doing on your vehicle and how they will affect your insurance policy costs.
5 Important Steps to Choosing the Right Insurance Company
A vast majority of motorists consider premium rates as the major factor when they seek for auto insurance, but the reality is that choosing the right insurance company goes beyond the dollar. You can get a cheap premium rate but the claim process becomes an ordeal for you. It is important that you understand the ways in which you can get a hassle-free insurer who will offer good claim process when you need it. As two professionals in the insurance market points outs, there are several things you need to consider when investing in car insurance policy so that you get a trustworthy company that is able to pay your claim on time and in totality.
Dennis Howard, a former insurance adjuster and the director of Insurance Consumer Advocate Network, and Doug Heller, a consumer advocacy with a California’s Foundation for Taxpayer & Consumer Rights both give a chronology of aspects that you must put into consideration before you choose your auto insurer.
Below are 5 steps you can take when choosing the right insurance company as hinted by both Howard and Heller;
1. Check the department of insurance website in your state
Although it is most likely that you are not familiar with this aspect, every state has a department of insurance. Many departments give a consumer complaint ratio for all insurance companies including auto coverage firms like Geico, Allstate, and StateFarm and others. You should avoid companies with higher consumer complaint ratios. The ratios are given per the number of complaints received in 1000 claims that have been filed.
2. Examine the J.D. Power Ratings
J.D. Power and Associates is an instrumental resource that provides forecasts, performance improvements and customer satisfaction insights to consumers. You can get information about the best rated car insurance companies in terms of claim process experience satisfaction as well as the pricing and customer relationships. A few auto insurers which have remained on top of the list are Erie and Amica.
3. Seek the help of insurer body shops
Did you know that body repair shops deal with insurance companies more often because they repair bodies of vehicles that have been damaged? It is likely that they know something if not everything about these insurance companies. Therefore, they may be able to provide useful information. The body shop managers will give you information about bad experience they have gone through when dealing with the insurance companies. These managers also know which insurance companies have the smoothest claim procedure.
4. Examine the financial strength of the insurance firm
It is not a bad idea to check how the companies have performed financially. Financial performance can give a hint about the company’s ability to pay a claim. Insurance companies are likely to exploit the policyholder in order to meet financial challenges they are experiencing. This means that a financially healthy company is likely to execute good claim. You can check for financial rating of insurance companies from Standard & Poor's ratings and A.M. Best.
5. Consult an agent
Although agents will charge for their services, they are able to provide you with a choice of auto insurance companies that meets your insurance needs. They will not let you down because they want you to be a loyal customer. The agent will also guide you on how to get an appropriate policy for your car and where you can get discounts.
Dennis Howard, a former insurance adjuster and the director of Insurance Consumer Advocate Network, and Doug Heller, a consumer advocacy with a California’s Foundation for Taxpayer & Consumer Rights both give a chronology of aspects that you must put into consideration before you choose your auto insurer.
Below are 5 steps you can take when choosing the right insurance company as hinted by both Howard and Heller;
1. Check the department of insurance website in your state
Although it is most likely that you are not familiar with this aspect, every state has a department of insurance. Many departments give a consumer complaint ratio for all insurance companies including auto coverage firms like Geico, Allstate, and StateFarm and others. You should avoid companies with higher consumer complaint ratios. The ratios are given per the number of complaints received in 1000 claims that have been filed.
2. Examine the J.D. Power Ratings
J.D. Power and Associates is an instrumental resource that provides forecasts, performance improvements and customer satisfaction insights to consumers. You can get information about the best rated car insurance companies in terms of claim process experience satisfaction as well as the pricing and customer relationships. A few auto insurers which have remained on top of the list are Erie and Amica.
3. Seek the help of insurer body shops
Did you know that body repair shops deal with insurance companies more often because they repair bodies of vehicles that have been damaged? It is likely that they know something if not everything about these insurance companies. Therefore, they may be able to provide useful information. The body shop managers will give you information about bad experience they have gone through when dealing with the insurance companies. These managers also know which insurance companies have the smoothest claim procedure.
4. Examine the financial strength of the insurance firm
It is not a bad idea to check how the companies have performed financially. Financial performance can give a hint about the company’s ability to pay a claim. Insurance companies are likely to exploit the policyholder in order to meet financial challenges they are experiencing. This means that a financially healthy company is likely to execute good claim. You can check for financial rating of insurance companies from Standard & Poor's ratings and A.M. Best.
5. Consult an agent
Although agents will charge for their services, they are able to provide you with a choice of auto insurance companies that meets your insurance needs. They will not let you down because they want you to be a loyal customer. The agent will also guide you on how to get an appropriate policy for your car and where you can get discounts.
Car Insurance Trends...the Most Expensive and Costliest Cars to Insure in 2013
Car insurance is not the same for different models of vehicles and if you thought your insurance coverage is high, you may need to read this article on car insurance trends. The most costliest and expensive cars to insure may not necessarily be the most costly cars in the market. The type of vehicle being insured can affect insurance coverage premiums. The difference between the cheapest models of cars to insure and the costliest models to cover may amount to thousands of dollars in every year.
Based on standard mainstream cars, insurance costs are subject to the chances of the cars getting involved in accidents, the cost of repairing those cars, buying new vehicles as well as susceptibility to theft.
There are models which are more susceptible to car theft and it is important you understand these aspects. The pricier cars attract high premium rates and this is because the replacement of the vehicle or repairs of damages are certain costly. The cost of spare parts for the expensive models of cars is high and insurance companies put this factor into consideration when calculating the amount of premium to be allocated for these cars.
If the expensive models are damaged beyond repairs, replacing them may be very costly. 21st Century Insurance’s director of communications, Terrence Cahill explains that the expensive cars cost motorists a lot of money in repairs and this is because buying spare parts for these vehicles is pricey. The parts of the cars are made of expensive materials like aluminium and carbon fiber making them costly to repair.
Insurance companies also compile historical data of different car models. Those car models that historically record a big number of accidents are likely to attract high premium rates on insurance. From the manufacturers’ points of view, if certain models of cars have a history of causing accidents on the road, insurance companies will tend to allocate high premium. The design features of cars which make them vulnerable to getting involved in accidents will greatly contribute to the premium rates allocated to those models of cars.
In addition, the extent of damage or personal injuries which are likely to be caused by certain model of cars when they get involved in an accident is also another factor considered by insurance companies when allocating insurance premiums. On the list of the most expensive cars to insure, the highly priced luxurious and sporty models have topped the listing.
In 2012, The V10 powered Audi R8 remained at the top of the list for the costliest cars to insurance. The car fetches approximately $127,700 in the market and this is one aspect that made it to be on the top of the list. A survey that was conducted by Insure.com revealed that an owner of Audi R8 would end up paying more than $2,500 in a year above the owner of the cheapest car to insure in the market as described in the insure.com report. The cheapest car was named as the Toyota Sienna LE minivan, which was trading at $26,145 market price.
This is a big difference for insurance premium and could mean that if you are driving those costly cars, you also have to be prepared to meet the hefty insurance cost. Other models of cars that are on top of the list are the Mercedes Benz CL600 V12 and Jaguar XKR supercharged convertible.
In a difference report released by 4insure.com, it depicted that Mitsubishi Lancer Evolution was the most expensive car to insure however, the big question is that Mitsubishi Lancer does not feature anywhere in the most priciest cars. Certainly, the price of the car was not the factor in this case.
According to James Shaffer, the CEO 4insure.com, he said that the car has qualities that make it vulnerable to causing accidents. The fast acceleration and high speed features are some of the contributing factors to the high insurance premium. Many drivers who drive the car for the first time, and are not used to these features cause accidents.
Based on standard mainstream cars, insurance costs are subject to the chances of the cars getting involved in accidents, the cost of repairing those cars, buying new vehicles as well as susceptibility to theft.
There are models which are more susceptible to car theft and it is important you understand these aspects. The pricier cars attract high premium rates and this is because the replacement of the vehicle or repairs of damages are certain costly. The cost of spare parts for the expensive models of cars is high and insurance companies put this factor into consideration when calculating the amount of premium to be allocated for these cars.
If the expensive models are damaged beyond repairs, replacing them may be very costly. 21st Century Insurance’s director of communications, Terrence Cahill explains that the expensive cars cost motorists a lot of money in repairs and this is because buying spare parts for these vehicles is pricey. The parts of the cars are made of expensive materials like aluminium and carbon fiber making them costly to repair.
Insurance companies also compile historical data of different car models. Those car models that historically record a big number of accidents are likely to attract high premium rates on insurance. From the manufacturers’ points of view, if certain models of cars have a history of causing accidents on the road, insurance companies will tend to allocate high premium. The design features of cars which make them vulnerable to getting involved in accidents will greatly contribute to the premium rates allocated to those models of cars.
In addition, the extent of damage or personal injuries which are likely to be caused by certain model of cars when they get involved in an accident is also another factor considered by insurance companies when allocating insurance premiums. On the list of the most expensive cars to insure, the highly priced luxurious and sporty models have topped the listing.
In 2012, The V10 powered Audi R8 remained at the top of the list for the costliest cars to insurance. The car fetches approximately $127,700 in the market and this is one aspect that made it to be on the top of the list. A survey that was conducted by Insure.com revealed that an owner of Audi R8 would end up paying more than $2,500 in a year above the owner of the cheapest car to insure in the market as described in the insure.com report. The cheapest car was named as the Toyota Sienna LE minivan, which was trading at $26,145 market price.
This is a big difference for insurance premium and could mean that if you are driving those costly cars, you also have to be prepared to meet the hefty insurance cost. Other models of cars that are on top of the list are the Mercedes Benz CL600 V12 and Jaguar XKR supercharged convertible.
In a difference report released by 4insure.com, it depicted that Mitsubishi Lancer Evolution was the most expensive car to insure however, the big question is that Mitsubishi Lancer does not feature anywhere in the most priciest cars. Certainly, the price of the car was not the factor in this case.
According to James Shaffer, the CEO 4insure.com, he said that the car has qualities that make it vulnerable to causing accidents. The fast acceleration and high speed features are some of the contributing factors to the high insurance premium. Many drivers who drive the car for the first time, and are not used to these features cause accidents.
Your Car Insurance Coverage could be Less than you Might Think... Find Out Why!
When you insure your vehicle, you expect that you will be able to get reimbursements for damages or injuries incurred after an accident. However, the amount you get from the insurance company may be less than what you think. It is essential that when you buy a policy, you understand the terms and conditions clearly and other aspects that can affect the amount you are reimbursed. It is good to know exactly what is covered in your insurance policy than wait to discover that the coverage is less than you expected when an accident occurs. Some of the aspects that could affect your insurance cover are step down provisions and underinsured coverage.
Step down provisions
The step down provisions are likely to lower the amount of insurance coverage you have. If you allow another driver to drive your car and is involved in an accident, this may lead to step use of step down provisions when compensating for the damages caused. Many companies lower the compensable amount to minimum liability insurance requirement by the state, which may be less than your coverage.
For example, liability coverage of 50/100/25 meaning $50,000 for bodily injury for one person, $100,000 for injuries of all passengers and $25,000 for property damages may be reduced to minimum state insurance requirements, which are lower than what you have already paid.
In Ohio, the liability insurance coverage is set at $12,500 for bodily injury of one person, $25,000 for injury of all passengers and $7,500 for damages on property after an accident. This means that in a step down provision, the insurance company may reduce your coverage to these lower state limits meaning that you get compensated lower amount than what you are actually entitled. It is therefore important to call your insurance company and inform them if you are going to allow your relative to use your car.
Complexities of underinsured coverage
Another insurance coverage aspect that could affect your actual reimbursement after an accident is underinsured motorist coverage. Underinsured coverage pays for injuries caused when the motorist at-fault does not have sufficient liability cover. There are two coverages that cover against insufficient insurance or lack of insurance coverage by the other motorist and they are underinsured and uninsured coverage.
Uninsured coverage is applicable if the motorist at-fault does not have any coverage at all. The underinsured is applicable where the motorist has insufficient coverage. Whereas these two coverages work of similar concepts, the application of underinsured coverage may be quite complex than you may imagine. What makes the reimbursement of underinsured coverage complex is that the amount paid by the at-fault motorist is deducted from what you are entitled to claim against your own underinsured coverage.
For example, if you are injured in an accident caused by another motorist and the medical bill amounts to $30,000 and the motorist has $15,000 in bodily injury insurance and you have $15,000 in underinsured coverage, the payment from the underinsured driver is deducted based on what you are entitled to claim on top of your $15,000 of underinsured coverage. This is a complicated aspect because you are likely to get nothing if your underinsured coverage is less than that of the motorist at-fault in causing an accident.
In the above case, it means that your insurance company would not settle anything and you have to bear the extra $15,000 that is short of the total medical expenses because this is what can be paid from the insurance of the underinsured motorist. In order to for the insurance coverage to help you, you need to have your own underinsured coverage, which is higher than that of the motorist who caused the accident.
It is important you discuss these aspects with your insurance company and get information on how underinsured coverage is settled whenever an accident occurred. Otherwise you may be surprised to learn that you are not paid for injuries you have suffered.
Step down provisions
The step down provisions are likely to lower the amount of insurance coverage you have. If you allow another driver to drive your car and is involved in an accident, this may lead to step use of step down provisions when compensating for the damages caused. Many companies lower the compensable amount to minimum liability insurance requirement by the state, which may be less than your coverage.
For example, liability coverage of 50/100/25 meaning $50,000 for bodily injury for one person, $100,000 for injuries of all passengers and $25,000 for property damages may be reduced to minimum state insurance requirements, which are lower than what you have already paid.
In Ohio, the liability insurance coverage is set at $12,500 for bodily injury of one person, $25,000 for injury of all passengers and $7,500 for damages on property after an accident. This means that in a step down provision, the insurance company may reduce your coverage to these lower state limits meaning that you get compensated lower amount than what you are actually entitled. It is therefore important to call your insurance company and inform them if you are going to allow your relative to use your car.
Complexities of underinsured coverage
Another insurance coverage aspect that could affect your actual reimbursement after an accident is underinsured motorist coverage. Underinsured coverage pays for injuries caused when the motorist at-fault does not have sufficient liability cover. There are two coverages that cover against insufficient insurance or lack of insurance coverage by the other motorist and they are underinsured and uninsured coverage.
Uninsured coverage is applicable if the motorist at-fault does not have any coverage at all. The underinsured is applicable where the motorist has insufficient coverage. Whereas these two coverages work of similar concepts, the application of underinsured coverage may be quite complex than you may imagine. What makes the reimbursement of underinsured coverage complex is that the amount paid by the at-fault motorist is deducted from what you are entitled to claim against your own underinsured coverage.
For example, if you are injured in an accident caused by another motorist and the medical bill amounts to $30,000 and the motorist has $15,000 in bodily injury insurance and you have $15,000 in underinsured coverage, the payment from the underinsured driver is deducted based on what you are entitled to claim on top of your $15,000 of underinsured coverage. This is a complicated aspect because you are likely to get nothing if your underinsured coverage is less than that of the motorist at-fault in causing an accident.
In the above case, it means that your insurance company would not settle anything and you have to bear the extra $15,000 that is short of the total medical expenses because this is what can be paid from the insurance of the underinsured motorist. In order to for the insurance coverage to help you, you need to have your own underinsured coverage, which is higher than that of the motorist who caused the accident.
It is important you discuss these aspects with your insurance company and get information on how underinsured coverage is settled whenever an accident occurred. Otherwise you may be surprised to learn that you are not paid for injuries you have suffered.
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