Insurance Care

If you own a car, you and your friends no doubt very often complain to each other about the astronomical cost of car insurance. Especially if you have never had an accident, you might feel that you are subsidizing bad drivers with your high premiums. Perhaps it is time that you consider the different types of insurance available out there – you might be able to reduce your premiums markedly by switching to a different type of policy. Below is a basic auto insurance comparison.

Fully comprehensive car insurance

This is the most expensive type of car insurance available. If you, like most of us, had to use finance to buy your car the finance company would have required you to take out this type of insurance. It basically covers every type of mishap that can hit you as a car owner. You will be covered if you drive into a brick wall, or if you collide with another car while watching a pretty girl on the sidewalk.

You will also be covered if someone steals your vehicle, or if it inexplicably catches fire. Not only is your losses covered, but claims that other drivers can have against you after an accident will also be provided for.

Many insurance companies refuse to insure the full value of a vehicle though. According to them it encourages people to submit fraudulent claims. You might get tired of your old car for example, and simply drive it into a concrete wall, or set it alight. They often therefore only insure 80% of the value of the vehicle, and you still have to carry the risk for the other 20%.

Third party, fire and theft insurance

This type of insurance falls midway between comprehensive insurance and third party insurance. A very important aspect to remember with this kind of policy is that it only covers you in case you hit another vehicle and you are responsible for the accident. If you are not responsible, the insurance company will not pay out.

You will also be covered if your car is stolen, or if it should burn out. This does not include you setting it on fire though!

Third party vehicle insurance

This is the cheapest type of vehicle insurance. One will very often find that people owning a very old vehicle with little market value choose this option.

It does not cover you in case your car is stolen, or burns out. It does not cover you if someone else drives into your car – you will then have to sue the guilty party. It only covers you if you drive into someone else’s car. You therefore have to be the guilty party, otherwise no payment will ensue.

It does, however, cover you if you drive into the mayor’s Rolls Royce.

Now that you know the different types of vehicle insurance policies available, and you have studied the basic auto insurance comparison above, you should be in a better position to make a decision on how to decrease your monthly insurance cost.

Getting the right business funding is critical for business owners to establish, renovate or expand their business. One can have an array of choices for raising the capital necessary for running and growing a business. However not all loans are suitable for every business owner. The key then is to evaluate your business situation and then approach suitable lenders. If they are satisfied with your capability to pay back the loan, they would be willing to lend with a set of terms and conditions that should be acceptable to you as well.

However, you must pay attention to detail, as there are few options at your disposal when it comes to getting a loan. The foremost step is to take stock of your current financial position and ask yourself few important questions before approaching a lender.

1. You need to be sure about the amount you want for your business. Having a business plan with the financial model will be helpful in estimating the amount. If you are a business start-up then it is prudent to list all expenses you think you would incur in the initial months of your business operation.

2. Once you know the amount you actually need for your business, outline your spending plan for the lenders. Typical small business will use the money to hire employees, advertise, buy equipment, buy real estate, or to pay off an outstanding debt.

3. You also need to lay out a repayment plan. Your financial statements and cash flow projections will come in handy to prove that yours is a profitable business and you would be able to pay back the loan in a timely fashion.

4. There is a possibility that you will be denied the loan. What would you do then? You will have to accept rejection gracefully so that you come across as a determined personality and not be easily discouraged.

There are many avenues to get a loan. Some of them are as follows:

Small business loans: This remains the most common way to get funding for your business. You can get such a loan from various sources, such as, credit unions, banks, small business associations or even from an angel investor. To get a small business loan you will have to furnish the business plan, your credit history and other relevant information.

Business or Merchant cash advance: This loan is sanctioned based on potential credit card sales and is perfect for the small and midsized business who find it difficult to get a loan approved from leasing companies or banks. The requirement for this loan is a credit card processing agreement with the funding merchant.

Unsecured business loans: Financial institutions offer such loans without securing the borrowers asset and are provided in many packages such as credit card debt, personal loans, credit facilities, overdraft facilities, lines of credit and corporate bonds. Interest rates on such loans can be in double digits if your credit score is less than perfect.