: Friday, September 04, 2009

Auto Insurance! It's a must!

Automobiles and cars are not just luxury, but it is also a necessity. Who would not love to go from and to a certain place with the convenience of using a car? We all love it, right?! But the law of every State says that all vehicles that are on the road must be equipped with at least the states minimum amount of coverage or insurance.

What is an auto insurance? It is an insurance purchased by the owner of a vehicle to cover losses due to traffic accidents or theft (source: en.wiktionary.org/wiki/auto_insurance). It is the owner's protection through a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.

Is it really necessary? The answer is a big YES! Not only that it is required by all, but it is for your own benefit. Once you have an auto insurance, there is nothing to lose, but all to gain.

Types of Auto Insurance Coverages:

1) Auto Insurance Comprehensive Coverage - covers damages to your car that are not caused by other motorists or drivers. These damages include, fire, theft (of the whole car, or parts of it i.e. Stereo, Rims), damage from acts of God or nature, such as ice storms, tornados, hail and floods. Lastly it covers if you hit an animal on the road, or if your vehicle gets vandalized.

This type of coverage is optional and should only be purchased if your vehicle is worth more then $1000.

2) Auto Insurance Collision Coverage- Collision coverage covers your own car, when you encounter physical damage to it, as a result of a collision into another car or on an object such as a light post or road barrier.

3) Auto Insurance Liability Coverage - Required by law. Motorists must purchase and have a minimum amount of insurance to protect themselves and other co-drivers. Whenever you drive a car, you are capable of causing damage, to property or to other persons. Since most people don't have the money to cover these damages, governments require drivers to have liability insurance that will cover any losses that you cause on anyone or their property.

You can purchased any of the above insurance, depending on your capability to pay a specific amount for a specific coverage.

Companies that offer Auto Insurance:
USAA
STATE FARM
GEICO
NATIONWIDE
ALLSTATE

credit given to: http://www.auto-insurance-knowledge.com/auto-insurance-comprehensive-coverage.html

How to be debt free?

Its payday, and you got nothing? Most people are experiencing scarcity of money, specially now, that recession is everywhere. Some, may opt for a financial loan, just to be temporarily financially stable again. However, don't you think borrowing an amount of money, can sometimes lead into another financial devastation again? We'll, maybe not for all, but I guess most people do. Applying for a loan, is another way of putting a debt into your pocket instead of money. The golden rule would be, as much as possible, do not tempt yourself to borrow money from a lending company or apply for a financial loan, not unless, otherwise you are really in need, and there is nothing left to sustain your necessities.

Some, may say, "but my salary is low?!" The answer would be, to cut your expenses down. Be wise in spending your money. Do not buy things that are not necessary at all. Let's say, your cellphone can still be use, then do not buy another one just so you will have the latest unit in town. As for foods, eat only three meals a day, and mind you, those are the most important ones (breakfast, lunch, dinner). Snacks won't be necessary if you have feed yourself at a proper time and of course with only healthy foods. For clothes, I'm sure you got tons of it on your closet. Check it out one time, and you'll see you still got the best. Cars? One is enough, not unless you got a big family or your wife needs her own so she can go to work safely and conveniently.

The truth is, there is no such thing as a low salary if only you know how to handle your finances well. I suggest you keep maybe three to five empty jars in your house. Label each jar according to your needs. One could be for your bills, another one for the things you want to buy, one for travel, and one for savings. You need to set a realistic goal for yourself, and set a certain percentage for each jar. Let's say, 50% of your salary will go to the jar for bills, 10% for travel, 20% for savings and 10% for other things. All you need is a little discipline and you got a long way to go! Little did you know you will wake up debt free!