Buying Gap Insurance for Your New Car

Also known as loan/lease payoff coverage, gap insurance is a special type of insurance for people who buy or lease a new or used vehicle. In some states, such as New York, gap insurance is automatically included within the cost of the lease. In other states, coverage is purchased separately.

as loan/lease payoff coverage, gap insurance is a special type of insurance for people who buy or lease a new or used vehicle. In some states, such as New York, gap insurance is automatically included within the cost of the lease. In other states, coverage is purchased separately.

How Gap Insurance Works

Gap insurance is designed to cover the gap that frequently exists between the value of a vehicle and the amount owed on a vehicle. Since vehicles are notorious for depreciating in value the second they are driven off a car lot, it stands to reason that there will be a gap between value and debt at some point–especially while the loan is new.

A traditional auto insurance policy will protect you up to a certain point if your vehicle is stolen or wrecked beyond repair. However, you will only receive a check for the value of the vehicle. If you owe more on the car than your insurance company says it is worth, you are simply out of luck. The extra money needed to pay your lender will have to come out of your pocket–unless you have a gap insurance policy. If you have gap coverage, the policy will pay your lender the difference between what you owe and what your vehicle is worth.

Who Needs Gap Insurance

Gap insurance is a great deal for some and a waste of money for others. The only people who really need gap insurance are those who will have a gap between what a vehicle is worth and how much is owed. Gaps can occur with zero-down loans or minimal down payments. High interest rates can also lead to gaps. If you traded in a vehicle and carried over an amount from an old loan onto your new loan, you will owe more than the new vehicle is worth for some time. Gap insurance will minimize the risk of having a large loan. As you pay down your loan, the need for gap insurance may decrease. You could always cancel your policy at this time. If you have never made a claim, you may be able to get a partial refund on your premiums.

What Gap Insurance Won’t Pay

Gap insurance will not cover you in every instance. Refinancing the vehicle loan after the gap coverage was purchased can void your policy. If you have unpaid delinquent payments, deferred payments, or late fees at the time of loss, these amounts will most likely be your responsibility. Some gap policies also have limits on the amount of money that can be paid out. For example, Progressive’s loan/lease payoff coverage stipulates a maximum payout of 25 percent of your vehicle’s value.

Buying Gap Insurance

If you buy or lease a new vehicle from a dealership, you will most likely be asked if you want to purchase gap insurance. Although there is nothing wrong with purchasing the policy offered by the dealership, you may be able to get a better deal by going through your normal insurance company. The policies sold by dealerships are often more expensive. Of course, you will want to compare more than just prices when shopping for gap insurance. Every company offers different levels of coverage. Claim rules can vary as well. Some insurance companies will only allow you to use your gap policy if your claim is covered under your comprehensive or collision coverage. Make sure you know what your policy covers before signing on the dotted line.

Guest post from Bailey Harris.

Money Saving Tips on Groceries

1. Start with arranging items properly in your shelf for easy accessible. This would help you to shop an item which really exists somewhere in your cupboard but you have not found it before heading off for shopping.

2. Practice your grocery shopping once in a week. Give preference to weekday shopping than week end. This is just logic. There are possibilities of price hike by shop keepers in week end days due to the visit of lots of customers.

3. Always have a grocery shopping budget in place before going for shopping. Make a list of all items that you need to buy. I am sure; it is not possible to make a perfect list on before going to the shopping. One best practice to not miss any required item is by noting down it on a book or diary. Keep it in an easily accessible place only for that purpose and note the items when you remember it. This would help you to have right list to carry to the grocery. Yes, this will help you save lots of money.

4. Always have a practice to check all your carts to identify any item from your shopping list still remaining there are enough. This would help you to eliminate any items that is ‘wants’ rather than ‘needs’

5. Never go for a quick shopping! You could identify enough time for shopping. Quick shopping is a reason for losing money. Plan your shopping properly and take enough time.

6. Plan to buy items in bulk if you have option to store it. This would help you to save some good amount of money.

7. Eat before you go grocery shopping. You will spend less money at a grocery store if you shop when you are not hungry and are not tempted to buy more food.

8. Always shop alone. Bringing along children or your spouse to the grocery store will make you spend more money on the items that they want that aren’t on your list.

9. It is a best practice if you visit multiple stores and compare prices of regular buying items. This would help you to immediately identify the best place to get required items with comparatively less price with other stores. Creating a price log in your notebook would be an exceptional idea!

10. Inside the grocery, have a practice of roam before start picking items. visit and check each and every bay and shelves. This would help you to identify the availability of similar items but different price.

11. Many times shoppers will only buy products found at eye level. Cheaper stock is usually found on the lower shelves in grocery store aisles. Being lazy to bend down may cost you more money.

12. Don’t be brand loyal. Buy generic products. If a generic or store brand option is available, always choose it. Most of the time, both products use the same recipe and you are paying extra money for the name only. This would help you to save lots of money for long run. However remember, most of the time this point applicable to food items. It never applicable to pharmacy items, child care items etc.. you should have enough intelligence to identify to what items this point really applicable to.

13. It is a best practice avoiding readymade food items. This would cost more. Never buy any ready made item that you feel you are able to cook. This would help you to save money as well as tasty food.

14. If you are into the grocery, shop for only grocery items. Don’t buy non-grocery items at the grocery store. It may costly for you as these items generally priced much higher than discount store equivalents.

15. Remember, shoppers generally place various items nearby the payment queue. Candy, magazines and other useless gadgets generally fill in the sidelines of grocery store checkout lanes. These items typically represent the highest margin products for grocery stores and the best to tempt customers. Shop keepers looking for customers to spend after paying left over money to spend on these items.

16. It is a better idea to weigh items like vegetables before approaching to reach to the cashier. This would help you to avoid weighting mistakes happening due to any errors or purposely.

17. Remember to keep an eye on scanner to confirm any sale item scanned with right price as mentioned in the ‘sale’ tag. This may help you to avoid paying original price than its ‘sale’ price.

18. I never say to avoid any item that kept with a ‘sale’ tag. But, remember there would be some hidden intention behind adding ‘sale’ tag on items. Look closely to identify these intentions. For example, items reaching to the expiry date, quality less, items with manufacturing defects can be found within this deal.

19. I never against buying any item coming with a ‘free’ offer of anything along with. Before buying such items, watch the price of item closely to identify possible price hike due to giving another free item with it. Also, look on the free item to identify it is a valid one in the sense of expiry date, quality etc… Never buy any item coming with free offers once the free item not useful for you. Like the above points, it is certain there would be some hidden intention behind such deals too.

20. Previous idea again applicable to buy ‘one and get one free’ deals too. Check the original prices, quality, manufacturing perfection etc…, within such deals too.

21. Always carry enough bags with you to avoid losing money by buying carry bags from the grocery. This would sometime helpful to get some discounts from the offer from shops for those who carries own bags.

22. Never use phone shopping especially for groceries and never opt door delivery. This could cost you additional money!

23. Never feel free to ask for special discounts if you are a regular visitor. You may sometime get a consideration which helps you to save money.

24. Finally, be always conscious to check your bills line by line before moving out from the shop. This would help you to save any money you have spent more than the real price or from scanning, data entry mistakes by cashiers.

21 Best Practices for Credit Card Holders

Now, you are comfortable with having enough knowledge on the advantages and disadvantages of credit cards. You may now decided to have some personal rules to use your credit cards wisely to prevent it from turning as a worst enemy or finance destroyer. To have more advanced knowledge in each points to take care as a card holder, you can now read 21 best practices given below. These highly effective best practices would certainly save you from errors and protect you from various problems.

Go carefully through each points below and practice it to enjoy your credit card facility as a wise spender or intelligent shopper.

1. If you lot your card, report it immediately to the credit card company and block the card as early as possible

2. Never loan your card to others

3. Check the authenticity of sites and companies where you are going to give your credit card information. Only give your card information to trusted sites and companies

4. Keep track of all your purchases using credit card, separately

5. Check your statements carefully at the end of each months against the record made on purchases, to confirm everything is correct.

5. Pay off all the balances as soon as the bill received, at the end of each months

6. Always prefer to subscribe a no-fee credit card to prevent lose of money in each year as credit card fee.

7. Never use credit cards if you are not sure you are able to pay in full as soon as the bill is reached.

8. Know that the interest rates for taking cash advance start accumulating immediately and not in the base of monthly due date.

9. Minimum monthly payment is a trap. It is only helpful to increase your help and pay more interest. If you are not able to pay the bills in full at the end of each month, it is best to not use the card.

10. Always remember credit cards are for emergency purposes. It is best to use debit cards instead of credit card to get aware of your money spending and control on your own money.

11. Credit card users should practice patience and control temptations. Both would helpful only to put you in debt trap.

12. Be aware of mails and other hoaxes asking your credit card information. Upon receiving such, do not respond to such, but delete it immediately.

13. Ensure you have signed the back side of the card upon receiving the card first time. If not do so, someone else can sign on it and can use the card as their own and you may need to pay for that.

14. Never respond to any unsolicited application forms reached to you from credit card companies or anyone else. Destroy such forms immediately.

15. Before signing up any application to subscribe a credit card, read carefully especially the terms and conditions. It is a best practice to take a print or copy of the available information in the card for later use.

16. Never write your PIN or such important information on the card or anywhere in the wallet where people can have access in case any of these stolen.

17. Any caller asking credit card information over the phone, never give that. Check the authenticity first before making any move.

18. Store your statement separately for future possible references. If you not need them, shred it immediately than throwing somewhere.

19. Change of addresses must be informed to the company immediately. However, if possible use the feature of having statements in e-mail than physical format.

20. Never carry with a credit card library. You may required only and the only one properly selected card to meet all your requirements.

21. If you have found any discrepancies with the statements like over charges, extra charges, notice the same to your card company within a prescribed time to do so.