Protect Against Collisions and More If you drive a car in the United States, liability insurance must cover it. This type of policy pays for medical and property damage resulting from a vehicular accident. You can also purchase comprehensive and collision insurance to cover other costs. These additional coverages help protect the value of your car should it be damaged. If you are calculating how much it will cost to buy a car, you need to take into consideration the cost of insurance as well. In this article, we’ll review the basics of car insurance and the best auto insurance companies in America, including costs, pros and cons. This is a brief introduction to automobile coverage. Liability Coverage When an accident occurs, liability insurance covers you, household members and authorized drivers for the costs associated with property damage and bodily injury. It covers the cost to repair or replace property damage that you caused. [youmaylike] You are also covered if you cause the bodily harm or death to someone else while you are driving the car. This includes medical expenses, loss of income and specified legal defense costs. Collision Insurance If you are involved in a collision, this type of insurance will help pay for repairing or replacing your vehicle. If the collision is your fault, the coverage may extend to other damaged vehicles involved in the accident. States do not mandate that you buy collision insurance, but your lender or car dealer will if you finance or lease the car. Policies offer a range of deductibles, which is how much you’ll have to pay for repairs before the insurance kicks in. Larger deductibles lower the policy premiums but expose you to more out-of-pocket expenses if a collision occurs. Comprehensive Insurance Comprehensive insurance covers damage to your car that occurs for reasons other than a collision, including theft, fire, vandalism, weather and natural disasters. This coverage is often required if you finance your automobile. You can add riders to this insurance to provide coverage of additional costs, including auto towing, glass repair, daily rental while your car is in the shop and emergency roadside service. As with collision insurance, you can set the deductible on your comprehensive insurance policy to cut your premium costs. Gap Insurance If your car is severely damaged in an accident or other incident, you might find that your comprehensive and collision damage won’t provide enough coverage to pay off the amount you owe on the vehicle. Many policies pay only the fair market value of a totaled car, which might be only 80% of the amount you owe. You can buy additional insurance to plug this gap and ensure you can pay off the car loan in full if the vehicle is destroyed or stolen. Normally, car leases require you to buy gap insurance. If you pay cash or pay off your loan, you can save money by avoiding or dropping gap insurance when no longer needed. Top Five Auto Insurers These five insurers all offer full coverage policies and many additional services. Amica Amica is a superstar among car insurers, winning accolades from Consumer Reports and J.D. Powers. It’s known for handling the claims process smoothly. The average annual cost for full coverage: is $1,360. Pros You can have your car repaired at any body shop, without restrictions. Offers a premium package which, for an additional cost, provides full glass coverage, rental coverage, good driving rewards and identity fraud monitoring. Superior financial stability rating from A.M. Best. Cons Missing some discounts, such as military, low-mileage and prepay discounts. Must speak on the phone to get a quote. Sparse website when it comes to customer education. State Farm State Farm is the country’s largest multi-line insurance company. It excels in customer service and regularly garners high marks from customers. The average annual cost for full coverage: is $1,337. Pros Superior financial stability rating from A.M. Best. Excellent online quote tool, getting customers a quote in as little as five minutes. Easy claim handling and top service from its more than 18,000 agents and its easy-to-use mobile app. Cons Doesn’t offer coverage for new car replacements or uninsured motorists. Missing prepayment and automatic payment discounts. The Hartford While only 11th in size, The Hartford is big when it comes to policy options. It offers rates based on your actual driving as well as full replacement of new cars when destroyed shortly after purchase. Average annual cost for full coverage: N/A. Pros Solid benefits, including superior roadside assistance and towing programs. High marks from customers for their purchase experiences. One of the few insurers with mechanical breakdown coverage for out-of-warranty repairs. Cons Mediocre service interaction according to J.D. Power surveys. Sparse online learning materials. Geico Geico is the second-largest U.S. car insurer. It is a favorite among tech-savvy geeks who appreciate the insurer’s mobile app and excellent online service. The average annual cost for full coverage: is $1,627. Pros Geico offers plenty of ways to save, such as multi-vehicle, driving history and vehicle safety equipment discounts. Special savings for active and retired military members and federal employees. Full-featured mobile app for getting quotes, buying insurance, managing your policy, submitting claims, summoning roadside assistance and making payments. Cons Human help may be in short supply, as just about everything is handled online. No gap insurance is offered. USAA No insurer matches USAA for service to military members. Unfortunately, it's only available to active service members, their families and retired veterans. Average annual cost for full coverage: $896. Pros Superior financial stability rating from A.M. Best. Top-ranked purchase experience score from J.D. Power. Cons Missing gap coverage. Doesn’t offer interior vehicle coverage or new car replacement coverage. Limited availability. The Right One for You Competition in the insurance industry helps drive down prices and prompts insurers to offer money-saving features. For example, your carrier might reward you for a safe driving record and for having a long-term relationship with the insurer. The right insurer for you is highly rated for service, offers the exact coverage you want and does so at an unbeatable price. You should always gather multiple quotes before selecting an insurer, and make sure you get credit for all applicable discounts.
What to Know Before You Apply
When used properly, small business loans can be a great way to improve your business’s situation. They often have less stringent requirements than other kinds of loans, as well. Regardless, small business loans are worth looking into if you’re a small business owner looking to grow your business.
In this article we’ll go over how to get a small business loan and what to take into consideration.
What Is a Small Business Loan?
Small business loans are loans that provide one of several forms of business funding. These loans are typically used to start a business or to make major purchases of equipment, real estate or anything else meant to be used for business purposes.
One such example would be 7(a) loans regulated by the Small Business Administration agency of the American Government. 7(a) small business loans are all guaranteed by the Small Business Administration agency. This allows lenders to offer flexible terms and lower interest rates than what you’d receive with most other loans.
Because of the way small business loans are regulated and offered to businesses, small business loans offer a great option for business owners who want to stimulate their business without risking too much debt.
So, Why Would I Need One?
If you are looking to start a new business or expand an existing one, there are few ways to do it on your own. If you’re already wealthy, or you have assets you could sell, that would be one way to finance a new business. But even if you already did have the money you need, small business loans offer you an option with far less risk, even when compared to other kinds of loans.
What Do I Need to Apply for a Small Business Loan?
Specific requirements may vary depending on the lender, but you can expect to be asked for certain things regardless of where you’re trying to get your loan. You will typically need to bring:
- Photo ID
- Business licenses
- Personal and business income tax returns
- Personal and business bank statements
- Income statements
- Articles of incorporation
- Proof of relevant managerial or business experience
- Collateral
Some lenders will also ask for a financial plan for your business if they perceive you as having a limited operational capacity.
How Do I Apply for a Small Business Loan?
Applying for a small business loan is quite similar to applying for a normal one, just with more steps and more specific requirements. In any case, you’ll follow roughly the same process regardless of which lender you choose.
First, make sure you’re eligible for the specific loan you are looking to get. The lender you go to should have all of the necessary information listed on their site. If you want to make sure you know exactly what you need, give the lender a call.
After that, you need to choose where you’ll get the loan and which loan you’ll apply for. The Small Business Administration agency lists several kinds of loans, but in most cases, you’ll go for the standard 7(a).
Once you’ve chosen which kind of loan you want to apply for, you’ll need to choose your lender. The Small Business Administration doesn’t give out loans, they just work with lenders throughout the loan process. Each lender will have their own ideas and metrics that they’ll apply on you. While the Small Business Administration lists the basic requirements for small business loans, they don’t do much else.
Your choice in the lender will affect everything. You’ll need to find a lender that offers you the program you need, while also making sure you meet their credit score requirements. Some will charge you a down payment, while others don’t. Likewise, customer service, collateral requirements and waiting times vary greatly from lender to lender.
Once you’ve chosen your lender, you’ll need to gather all the necessary paperwork and fill out an application. From here, you can expect more paperwork, after which your application will be processed.
What Should I Expect from the Application Process?
If everything is in order with your paperwork, there shouldn’t be any major obstacles to receiving your loan. Of course, each lender will have varying opinions on you and your business. You should always expect a level of service that is typical of the lender you chose.
The main exceptions are cases where they don’t believe your business plan is rock solid. In this case, they may get you to do more paperwork (write a financial plan), but otherwise, it’s all just about following the same processes.
Of course, if you’re looking for less stringent loan requirements, you can look to places other than Small Business Administration loans. Just be warned that if you do, you can expect worse interest rates, worse terms and perhaps even down payments. Despite this, the upfront hassle will be easier to deal with.
How a Small Business Loan Can Help Your Business
Small business loans are a great way to give your small business the boost it needs. Whether you’re just starting out or looking to make the next big move, traditional loans just don’t offer you the peace of mind you can get through small business loans. Small business loans, with their protections and lower risk, allow you to pursue more for your business while not risking as much for yourself as you would with other means.