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.
Funding to Aid Your Business
It is no secret that on average female small business owners have been getting less financing than their male counterparts. Luckily, the public has realized this and there are more and more funding resources for women who own small businesses. Among these resources include grant programs for female-led businesses.
Is a Grant Right for Your Business?
Small businesses have various financing options, ranging in size and time-frame. These options include:
- Credit cards and small business loans
- Larger bank loans
- Financing from friends and family
- Private equity and venture capital funding
The above funding options will normally require you to pay back the loan with interest or other related costs.
A grant, on the other hand, does not need to be paid back at all. Instead, the related costs of these programs usually include the work involved to apply for one.
Small Business Grant Programs for Women
Grants are often introduced as a way to encourage certain innovations, industries and, in our case, women-owned businesses.
The following programs support female business owners:
- Cartier Women’s Initiative Awards ($30,000 to $100,000)
- Eileen Fisher Women’s Business Grant (Various)
- Amber Grant for Women Business Owners ($2,000 to $25,000)
- Girlboss Foundation ($15,000)
- Startup Runway ($5,000 to $10,000)
- Tory Burch Foundation ($5,000)
- Open Meadows Award (up to $2,000)
Other small business grants for women are listed on general grant sites such as a grants.gov.
How to Apply for a Small Business Grant for Women
Small business grants are listed publicly and can amass thousands of applicants. As of 2018, four in ten American businesses are women-owned. That is why opting for a small business grant specifically geared toward women can drastically improve your chances of success.
1. Check Your Eligibility
Aside from being a female-led business, there can be additional requirements depending on the grant. Among other requirements, the Cartier Women’s Initiative Award requires your business to be:
- For-profit, early-stage
- Revenue-generating
- Aligned to the United Nations’ Sustainable Development Goal
The Girlboss Foundation grant will only select a small business that is in the design, fashion, music or arts industry.
Some programs do have strict eligibility requirements, requiring a full business plan. Others, such as the Amber Grant for Women Business Owners, only ask that you are passionate about your business, which you most likely are!
2. Understand What You Need for the Grant Application
Each grant has a unique application process. Usually, the higher the award, the more work is required. Most of the organizations will publish the application outline as a separate file or allow you to save your progress as you complete it.
The application process for small business grants will commonly include the following.
Product or Service Overview
The judge should be informed of what your business offers within the first 30 seconds of reading your grant application. This section may come in the form of a general question, such as, "Tell us about your business," or may ask for a detailed overview of your product offerings.
Market Analysis
A market analysis should describe how attractive the market (your industry) is, who your competitors are, and how you intend to make your product successful. It is key to convince the judge that the market is large enough for good commercial success.
You will also need to describe why your product or service will offer consumers something different and more valuable than what is already on the market.
Financials
Grants should only be one element of your total financing strategy alongside future revenue and other funding. You should be able to illustrate the costs and revenue of your small business for the next three to five years.
Your financial model should be realistic and based on the market research you have done. Your financial model will continue to develop over time. Therefore, you should use available information to build an optimistic, but still research-backed, prediction.
Traction
Traction means proof that consumers will purchase your product or service. Inform the judge of how the market has responded to your small business. Have you made any sales yet? If not, have you conducted market studies and surveys to gauge the interest of your target customers?
3. Perfect Your Application as Needed
Grants are competitive to get, like with any other type of funding. Perhaps even more so, since it is "free" money. So how do you stand out from the crowd? By submitted an application that:
- Is relevant to the grant's requirements and mission
- Effectively highlights the problem, how your small business solves that problem and why people will pay for that solution
- Highlights the passion and drive you and your diverse team have
Depending on the grant, applications can end up being a lot of work to create. If you are a sole founder, make sure you dedicate enough time to perfect your application. Otherwise, it would only end up as a waste of time to apply with a generic submission.
If you have a team, it may be wise to have someone dedicated to writing the applications.
4. Making the Most of Your Small Business Grant
If you are able to secure a small business grant for your female-led venture, congratulations! Since there is a funding gap for female-run small businesses, you might be able to get increased media attention.
Have material ready that describes your small business, the grant you were awarded and how this grant will help you grow your business. If your story gets picked up by the press, this will help you get brand exposure and effectively free marketing.
5. Spreading the Word to Your Fellow Female Founders
Finally, pass it forward! Help other female founders get small business grants by spreading the word. Inform others of how you found the right grant, along with application tips and advice.