Five Things You Should Know About Auto Insurance


In the Philippines, the average brand new car costs almost half a million pesos nowadays. Considering the exorbitant price you pay, it is readily assumed that your vehicle is one of the biggest investments you would ever make in your life. To protect this expenditure and asset, getting an auto insurance should not be a matter of the question when—but rather, it should be automatic.

For this reason, it is imperative to include an auto insurance when you are calculating your budget. After all, you would not only be paying bills to defray the cost of your car loan—but your car insurance as well.

However, do not just simply buy whatever auto insurance you can immediately find. You need to be a little meticulous about how you select an insurance for your car—take into account more than just the monthly premium you will be paying and think about what the insurance policy actually covers.

Experts may encourage you to buy as much auto insurance as you can afford, but this is not necessarily helpful. To have a better understanding of what you are paying for, it is best if you know the basics of how it works and which coverage you should have and skimp on. Understand what the best auto insurance coverage is for you and select that.

So, if you are planning to buy a car insurance in the Philippines anytime soon, here are a few things you should know:

1.) Some of the most helpful coverages are the cheapest

Typically, liability insurance would be the most expensive and as it should be. Most common coverage limits would mean that your insurance is on the hook for a great deal of money for any kind of damage that you do. However, not all coverages are the same, and most of them would be capped by the value of your car.

You might neglect to get optional coverages such as roadside assistance, rental reimbursement, and gap coverage but these are actually necessary for optimal protection with just a little price increase. Paying a bit more than usual would not be all for naught. After all, it could potentially save you a lot of money in the future.

2.) Many factors would affect your insurance rate

Your car insurance rate does not only depend on the make and price of your car. Depending on the auto insurance company, the criteria can mean a myriad of things when it comes to evaluating an insurance application.

Guidelines in each company differ in the sense of which drivers they want to accept and how much they would charge those groups they consider to be at a higher risk. Underwriting is the term given to the process of evaluating an application. It is usually done automatically and by a software behind the scenes.

3.) Insurance prices vary by company

Much like how life insurance prices differ from one company to another, auto insurance prices vary a lot by the company as well. This is because each company has its own formula to assess and evaluate a risk. From there, they will evaluate how much you pay for the coverage.

As a consequence, no two insurers would offer the same price for the same policy. Considering this, comparing prices is paramount to choosing the best insurer. After all, if you do not compare rates, you would likely end up overpaying or lacking in some coverages.

4.) You will potentially pay more if you let your policy lapse

Auto insurance companies view drivers who have licenses but without car insurances as reckless, irresponsible and risky. Considering this, letting a policy lapse means that you are likely to pay more when you do buy insurance.

Prevent this, make sure to acquire and pay for your car insurance before your current policy is canceled.

5.) Discounts can make a significant difference

You might think a safe driving record, anti-theft devices, and car safety features are negligible things, but it actually contributes to a significant difference in what you pay for your auto insurance.

Many companies would offer you discounts for this such as this—most especially if you opt to pay in full.

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What To Do To Get Your Personal Loan Approved Faster



One way or another, we all need some cash. Perhaps, you need it for vacation or paying it all to your utility bills. Although we have different reasons why we need the cash, we are all hoping to avail quick personal loans. However, you cannot avail such loan when you are not capable of the application. Yes, some of you here might be wonder how and what ways they can avail personal loans faster.

Before lenders or banks can approve your loan, they make sure that there will be no bad records from your past loans. Of course, they don’t want to have troubles when it comes to financial matters. That is why you have to know what and what not to do for your loan to approved faster.

And if you are one of those people who are planning to avail a personal loan, below are some ways you can do to have a successful transaction.

Decide what sort of personal loan you need

Generally, we all know that personal loans are loans that are unsecured. However, when we look into the financial terms, all sort of loans are personal and not business. If you are not eligible for a typical personal loan, you can still apply and avail but you need to go for a secured loan instead. That means, your car, property and another value asset you have would put your collateral. However, if you are unable to pay the borrowed money, you will lose your collateral to the lender. So, you have to make sure and understand what type of loan you are going to apply for you to be guided when it comes to the payments.

Check your credit history

Lenders are usually strict when it comes to your credit history. Of course, they will not approve your loan if you still have pending payments that need for you to pay first. When you have a bad credit history, which would only mean you are not a good borrower. And mind you, lenders don’t like borrowers who don’t know how to pay their obligations. That is why before you decide to apply for a loan, you have to make sure that you have a clean and impressive credit history. The more impressive it is, more and more lenders are willing to approve your loans faster.

Find the perfect lender for you

Whether you realize it or not, all lenders are different. This particular lender may have some rules that don’t apply to other lenders. Of course, if you are not careful enough in choosing the right lender when you apply for a loan, then it might be difficult and hassle on your part. Moreover, if you know what type of loan you want to apply, you will most likely also know which lender you can trust.

Choose trustworthy online lenders

There are actually a lot of lenders you can find online. However, not all of them can be trusted. And if it is your first time in applying for a personal loan, it is a must for you to choose a trustworthy lender. Before you decide in choosing one, you should know their background if their clients are happy and satisfied with the services they give to their clients. However, if you think that people are disappointed with their services, then that particular lender might not be the one for you. You will basically know if a lender is a trustworthy enough since there will be reviews online regarding with that particular lender. With that, you will have an idea on which lender you should go for.

Yes, we all do hope that lenders will approve our personal loans as soon as possible. But it will definitely be all up to you if you have a good record of your past loans. That is why it is also your responsibility to set everything in order.

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Five Questions to Ask before Applying for a Bank Loan


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Starting out a business venture is not exactly the easiest thing to do.

This becomes even harder when you do not have sufficient funds to commence such business. This is why banks offer small bank loans to business owners who have potential. Whether big or small, any type of business is inevitably going to require you to apply for cash loans. Whether you will use it as a capital or as collateral, that is up to you but if it were not for cash loans, most businesses would be nonexistent today. Save for the finance jargon thrown in the mix and the much needed filling out of paperwork, there is a lot more that goes into applying for one. Among a lot of other things, you need to take a long and hard look at the state of your personal and business finances. You need to be meticulous about all of your pecuniary transactions if you are going to apply for a loan. Apart from that, you need to consider how you are going to repay this loan and how much money you are actually going to need.

To help you gain some insight and understanding as to the dynamics of loan application, here are key questions that you could ask:

1.) Will I qualify for the loan?

Much like being declined for a personal credit card and this making it a lot harder to borrow in the future, the only way you are possibly going to get rejected for a loan application is if you apply for a loan you will not get. Getting turned down slaps a big red flag on your forehead for other banks and would make you look like a bad risk. Before applying for a loan, it would be much wiser if you asked lending institutions about their specific requirements before would actually apply. These institutions will have a lot of various requisites you would need to have or show including but not limited to their required minimum credit score, the cash flow you need to show and other factors.

2.) How much do I need?

Prior to your loan application, it would be best if you have a good grasp on how much cash you actually need. Creating a monthly cash-flow projection will help you determine this. For instance, you need to ask whether a customer will be paying you in sixty days and when you would pay your vendors. If you need to pay your vendors in fifteen days then you might need the extra money. The bank would not likely grant you your application if you come into the bank asking for fifty thousand dollars and when you create a cash flow projection, you would see that you actually need fifty thousand more. Know what you need first before approaching the bank.

3.) Do I have an adequate cash flow to repay the loan?

Garnishing your banker with financial projections for the business is an initial step to have your loan successfully approved. Be sure to have your debt repayment plan included in these projections as bankers are likely looking for businesses that have adequate leg room and you may need to show some available cash flow that is, at least, three times greater than your debt payment requirements.

4.) Will the money help my business grow?

That largely depends on where you put the money. If you are borrowing cash for payroll or other routine operating expenses, you are not likely to generate more revenue for the loan and would more or less find yourself in the same spot months from now. Instead, you can put the borrowed money into integral parts of the business that are sure to generate more revenue over time. In essence, this will also help you reduce the likelihood of borrowing or applying for a loan in the future.

5.) Should I die, how will the loan be repaid?

This is a rather morbid question, but a plausible one in case the uneventful occurs. Loans will still need to be repaid regardless of whether you are alive or not, and in case you should expire before you have fully repaid your loan, this will largely affect your family and will become a rather cumbersome burden on their finances. Suppose you have a life insurance policy, the bank may come after that to cover your debt. To make sure your family is financially secure in the event of your death, ask your lender about their policies so that you can protect your family financially.