It is mandatory for all new car owners to get auto insurance. The Road Traffic Act stipulates that all motorists should be insured against liability and it declares driving a car without a minimum level of insurance is illegal. The violation can attract severe civil and criminal penalties. This can be easily avoided by securing a proper auto insurance cover for your vehicle as per your state’s demands. It is quite a simple process.Nowadays, there is so much dependence on vehicles that the best thing to do is to follow all stipulated guidelines religiously. Getting the right auto insurance cover is one of them.What Is Auto Insurance All About?Auto Insurance simply means a contract or an agreement between an auto owner and an insurance company. Under this contract, premium is paid to the insurer and in return he pays for any car related losses as detailed in the policy.Key Legal RequirementsIn order to get an insurance cover for your vehicle, you would need to fulfill the following requirements. It’s advisable to find out the requirements in your respective state since these may vary. However, these are the broad requirements for auto insurance.Firstly, you should be in possession of a valid driver’s license before you go in for registration or insuring your car. For your license you would need to approach your local DMV (Department of Motor Vehicles). This is the primary requirement.You will also need to have an auto title. It is a legal certificate of ownership that confirms that you own the car. Most of the paperwork is already done when you purchase a gar from a dealer. Licensed dealers are needed to transfer the title of the car in your name. The title will list the owner’s name, address, make of the car, model and year of the car and the date of sale. This should be retained by you.Next, you need to get your car registered. You can apply for registration at the local DMV. The requirements may vary from state to state. In order to register your vehicle, you will require a valid driving license, signed certificate of title for the car, address of residence and proof of your insurance.The law also stipulates that that a vehicle more than three years old should have a valid MOT certificate. It is not possible to tax a vehicle without MOT and certificate of insurance and driving without them is an offence.It is also vital to keep the insurance company informed in case of any vehicle modifications and fixed penalties. Failing to do so is an offense and may affect any claim that you make.You are also legally obliged to take the basic level of auto insurance that will cover you against third party claims. Since the legal requirements for auto insurance vary from state to state, you will need to clarify the level of cover that you require while taking auto insurance. Only insuring the legal minimum isn’t necessarily the best choice to make.As a proof of your auto insurance, the company issues you the following documents – A Certificate of insurance which will also be required for buying your road tax; A cover note that will act as a temporary policy and certificate until your new insurance policy has been set up; and Policy documents which gives a detail of all that you are covered for. Read the documents carefully to understand your rights and obligations under the policy.Insurance companies have set up claim help lines and accident emergency recovery hotlines for ensuring a smoother process. In case of any ambiguity in terms of insurance or legal requirements, get your doubts cleared by talking to the company.
Any auto insurance policy can be altered or changed to become a cheap car insurance policy. You first must understand that you are never told the whole story behind car insurance rates and how they were determined for you specifically. Did you know that where you live helps determine your car insurance rates? Well it’s true, due to the fact that depending on how many and how severe the accident frequency occurs in your local area, your insurance carrier will calculate a percentage and probability rating that they pass on to your area customers.Auto Insurance is not cheap, and to make matters worse, where you live can be even a harder pill to swallow when your agent tacks on the penalties that may not even apply to you. So how can you turn auto policy into cheap auto insurance?You’ve probably heard to old adage, fight fire with fire? Then that’s what you must do in order to offset the unfair insurance rate practice. Needless to say, I have no sympathy for insurance companies and their devious practices. A good driver, with a no accident history, should not have to pay a higher premium on with their polcy just because of where they live. Cheap auto insurance should be for everybody that has a clean driving record. They should reward good drivers, not punish the innocent.Cheap car insurance can be obtained without having to shop elsewhere outside of your current car insurance company. First, easy is always better, so call up you local agent and say; I am thinking of switching auto insurance carriers due to unfair and higher premiums. My neighbor has the same type car, no accidents or claims just like me, but he has a different company, and is paying far less for his premiums than I am. Could you help lower my rates or should I look elsewhere?If that doesn’t make your local car insurance agent jump to his feet and start offering to lower your auto insurance rates, then he or she is making too much money already. Each car insurance customer determines how well that insurance agent gets paid, so there is no doubt that they will be willing to find ways of lowering your car insurance premium, to avoid losing you as a customer.
Stock investing is the growth engine of your investment portfolio, but in 2014 and beyond your best investment strategy could be to cut your investment exposure in stocks (also called equities) and stock funds (also called equity funds). Face it: equities and some stock funds have run up 150% in the past four to five years and this run could be about over. Why invest money here (more money) now?Stock investing has been very profitable in the past few years. The truth of the matter is that stocks and stock funds have been the best investment for the average investor for questionable reasons. In this extremely low interest rate environment, who wants to invest money in bonds, bond funds or any other interest-paying investment vehicle? In the world of stock investing, investors want to see a growing economy, rising corporate profits and growth in corporate sales. In recent years corporate profits have been a product of cost cutting vs. increasing sales. Corporate America has been reluctant to hire employees.Our government has, by design, kept interest rates artificially low to stimulate the economy and bring unemployment down. They’ve done this by BUYING longer-term debt securities, like their own Treasury securities… to the tune of $85 billion a month in 2013. This made stock investing the best investment game in town, and kept interest rates low. In 2014, many economists expect that this will unwind and interest rates are likely to increase. At that point stock investing could be a whole new ball game. Equities might not be your best investment.Invest money in stocks or stock funds if you believe that our government’s efforts will create a new wave of growth in the economy, in jobs, and in corporate sales. Do not rush out to invest money (more money) if you think higher interest rates will follow and choke economic growth. Remember, higher interest rates can hurt sales as purchases bought on credit (cars, homes, credit card purchases in general) decline. Higher rates can also hurt corporate profits because they increase the cost of borrowing money. Corporations borrow a LOT of money.That’s one view of stocks for 2014 and beyond, based on a fundamental view of stock investing. The other approach is the technical viewpoint. With the stock market on a four to five year roll, near all-time highs and up 150%… it could be due for a correction. If you invest money in stocks or stock funds now, you could be arriving at the party late. This is not rocket science, but consider 2000-2002, and 2007-2009. These were brutal bear markets that handed investors losses in the neighborhood of 50%. Only after these bear markets ended were stock funds the best investment for the average investor (for about 5 years).Well, it’s been about 5 years now since the recession (financial crisis) was officially put to bed. High unemployment is still with us and economic activity and growth is nothing to write home about. The real dilemma for investors in 2014 and beyond is that there appears to be few (if any) good or best investment prospects on the horizon. The only cheap asset class around is CASH. To earn even 1% on a CD you must shop around. Why invest money in a money market fund when they pay virtually nothing in return?When investors look at the apparent lack of investment opportunities out there and see equities going up they tend to want to jump on the band wagon and invest money in stocks and equity funds. History tells us that stock investing in an inflated market can be dangerous to your financial health. Sometimes your best investment is a safe and boring one like a short-term CD, savings account or money market fund. In 2014 your best investment strategy may be to cut back on stock investing and opt for more safety.