|
How To Calculate Your Monthly Car Payment
Author David Schneider | May 23,2007
|
When it comes to calculating how much to spend per month on auto insurance, many drivers find themselves walking a proverbial tightrope. On the one hand, they need to make sure that whatever policy they buy can handle all off their insurance needs - both current and those that may potentially arise in the future. On the other hand, they need to ensure that their monthly premiums will not reach stratospheric levels that make unreasonable demands on their wallets. Right in the middle of these two priorities lies the perfect policy, both comprehensive and affordable. But finding that middle ground - the auto insurance tightrope, if you will - can be a challenging task. And we all know what happens when someone leans too far to the right or left when walking a tightrope. They'd better hope a big net is waiting below, or it's time to call the cleaning crew.
So when you are in the position of calculating your monthly car payments, be sure to get a solid sense of the most critical issues at play. Put in simple language, the two things you need to worry about the most are your car and you. Makes sense, doesn't it? This isn't rocket science (which is good news, because you should see what the monthly premiums are for one of those things).
The exact kind of car you are seeking to insure obviously has a substantial effect on how much you can expect to pay in monthly premiums. The better shape your auto is in, the less you will have to shell out in order to keep it in that condition. There is no need to fear that, just because fiscal realities demand that you buy a used instead of new vehicle, you will be forced to pay exorbitant insurance premiums. Most insurers recognize that there are many used cars in perfectly good shape, now more than ever with so many certified pre-owned options available.
Whether used or new, a vehicle's safety features can make a huge difference in how much you have to calculate for your monthly payments. The more, the better: airbags, anti-lock brakes, anti-theft devices and other added extras will certainly make your car more attractive in the eyes of an insurance agent.
Aside from the condition of the car itself, you must seriously consider your own status as a licensed driver when calculating your insurance costs. What kind of driving record do you have, in all truthfulness? (It hardly makes sense to lie to yourself, as any insurer will have handy access to all the facts.) If your record indicates an unusual number of insurance claims, or a high number of moving violations, or even a DUI, you must know that these past occurrences will reflect how much you have to pay for car insurance each month.
Even with a clean record, your monthly premiums will go up if you have a history of operating a car without insurance. While this qualifies you as a high-risk driver, some kind insurers may cut you a break on this score. But you certainly can't count on getting so lucky. The great novelist William Faulkner once wrote, "The past is not dead, it's not even past." While it's unlikely he was referring to the ways in which a driver's prior history can impact his or her current insurance premiums, Faulkner's words apply with painful accuracy to the subject. |
|
|
Print
E-mail
Del.icio.us
Digg
