Q. well im 16 right now. planning to save up till 18 and buy a car. my first question is, how does car insurance work? i know you have to pay monthly and depending on each car its different but would car insurance be cheaper when the car is leased? or when its bought?
also i know each car depreciates alot every year. at first i was thinking of leasing it but now im not sure. can someone tell me what would be a better choice on the long run?
also i know each car depreciates alot every year. at first i was thinking of leasing it but now im not sure. can someone tell me what would be a better choice on the long run?
A. Insurance companies have the data on millions of miles of travel for millions of people of all ages; using this data, they know exactly how likely you are to get into an accident and how much it will cost. Using this data, they bill you ahead of time for your accidents in monthly increments (actually, this is a gross simplification but you get the idea).
Do not lease a car!
Leasing is total fail - the only way leasing works in your favor is when your company pays for it (or you are able to deduct the payments from your taxes). The leasing company figures out how much you will drive over the life of the lease, how much the car will depreciate, and what they will be able to sell the car for when - they add all this up and divide it by the number of months of the lease. Then they add in their profit. You have to pay a couple thousand dollars to begin the lease and when the lease is over, they will bill you for any mileage over what they calculated and bill you for any loss when they sell the car. Most leases are bogged down with so much fine print (and BS) that you have no real idea of the cost you only know what the monthly payments are -- remember that you have to pay a lump sum at the beginning and another at the end.
Leasing is for losers - if you can work the lease so your company is the loser, good for you.
Do not lease a car!
Leasing is total fail - the only way leasing works in your favor is when your company pays for it (or you are able to deduct the payments from your taxes). The leasing company figures out how much you will drive over the life of the lease, how much the car will depreciate, and what they will be able to sell the car for when - they add all this up and divide it by the number of months of the lease. Then they add in their profit. You have to pay a couple thousand dollars to begin the lease and when the lease is over, they will bill you for any mileage over what they calculated and bill you for any loss when they sell the car. Most leases are bogged down with so much fine print (and BS) that you have no real idea of the cost you only know what the monthly payments are -- remember that you have to pay a lump sum at the beginning and another at the end.
Leasing is for losers - if you can work the lease so your company is the loser, good for you.
Is car insurance absolutely needed for a car?
Q. I will be purchasing my first car sometime this year. I don't know anything about insurance and I'm really not knowledgeable when it comes to things like this. So my question is, is car insurance a requirement when owning a car? Do you need it? Is it expensive and how does the process work?
Cause I'll be getting my first car soon and I don't really know insurance plays a role in all of this.
Cause I'll be getting my first car soon and I don't really know insurance plays a role in all of this.
A. If you are in the USA, yes, car insurance is required by law in every state but NH. If you are leasing or borrowing money to buy a car, the leasing company or lender will require full coverage insurance to protect their investment.
Do car insurance companies know when you receive a moving violation?
Q. When you ask for a new car insurance quote from your current or a new provider they always ask the question if you have been involved in an accident or have been pulled over recently etc, etc. My question is, do they already know this info and are they maybe testing me or do they really don't know? I've had two moving violations within the past 5 years and I'm wondering how to answer these questions when I shop for insurance on a new vehicle.
A. if you have gotten a ticket or two or three, i would stay with the same company and not make too much noise. unless you get in an accident, the likelihood of the insruance company running your driving record is almost zero. they won't know. if you try to go to another company - they will run your driving record - bank on it. and, the ticket(s) will show up and their quote will be higher as a result. Your current company does not know about it. Stay w them and don't make any noise.
Question about paying different types of house bills Chicago IL?
Q. Ok so basically my girlfriend an I want to move into a studio apartment together in Chicago, IL. Rent with free heat comes to 500 a month. Now we will both together be making 1.1 grand to 1.8 grand while going to college. Question is without car insurance and about 80 to spend on gas a month, what other bills do I have and will I be able to cover it? We only eat about 100-150 whorth of food a month.
A. I don't know...what about electricity, water, medical expenses, incidentals, clothing, personal care products etc etc...Haveing no insurance is just stupid.
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