Understanding Financing a Car and Auto Insurance Requirements

If you are wanting to purchase a new or used car in Longmont, CO, it is important that you understand your car financing options as well as insurance requirements. Here is a quick overview of various financing options and a simple way to understand what type of insurance you need.

Understanding Your Credit Score

Before you decide to go to a dealership, you should take the time to check your credit report. You will need to do this because, unlike credit cards and mortgages, there are ways to purchase a vehicle even with bad credit; however, the higher your credit score, the more likely you are to get a good interest rate. There are free tools online you can use, such as Credit Karma, that are designed to give you a better understanding of what bracket your credit score falls into.

Get Financing Quotes

For those of you who have perfect credit, you will be able to visit a dealership and obtain the best financing rates. If you do not have the best credit, though, there is no need to fret because there are plenty of financing options. For starters, you can try out an online lender. To do this, you will need to complete your credit application online. The service provider will then use your credit score to match you with lenders who are willing to lend you money. An excellent advantage of quotes is that you are not required to use the loan you are being quoted on. Instead, you can compare quotes and choose one that works best for you and your financial situation.

Shorter Term is Better

If you get approved for a loan, it is best to go with a shorter payment plan because it will come with a lower interest rate. The downside to this is that your payments will be higher.

Contact Us Today

If you acquire an auto loan, the lender will likely mandate that you purchase an auto insurance policy with collision, comprehensive and liability coverage. If you don’t use a loan, however, a liability policy may be sufficient enough to meet the state’s minimum coverage requirements. Contact us today at 1st American Insurance Agency serving the Longmont, CO area to learn more about financing and auto insurance.

How Can Umbrella Insurance Prevent Financial Losses?

Common insurance policies such as auto and homeowners’ insurance can provide average protection. In some cases, however, you may need additional coverage to help prevent losses from events that exceed the limits of your coverage. Having umbrella insurance can give you the protection that other policies can’t offer.

What Is Umbrella Insurance?

Umbrella insurance is additional insurance protection that covers limits above and beyond standard insurance coverage. For example, if you have $1 million in coverage on your home, but you feel that there is a high chance that there may be an event that would exceed the limits of coverage you have then umbrella insurance would protect you. If you have an expensive vehicle and you feel that your standard coverage might not be enough to protect you from additional replacement costs or medical expenses, then umbrella insurance would be a smart option.

Do You Need Umbrella Protection?

If you are unsure whether or not umbrella coverage is right for your needs, you should consult an insurance professional. They can help you assess your needs and offer recommendations that can provide the coverage you need and the peace of mind that comes with it. 1st American Insurance Agency can assist the residents in and around the Longmont, CO area with their umbrella insurance needs.

If you feel that you don’t have enough insurance coverage, and live in or around the Longmont, CO area, then you should call or stop by 1st American Insurance Agency and speak to a knowledgeable insurance representative. They are there to answer any questions and help you determine what type of coverage is best for your situation.