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Why Earthquake Insurance is Important Everywhere

When most people think about earthquakes in the United States, California and Alaska are the two states that come to mind. However, earthquakes can happen in any part of the country. Many people move out of areas that are prone to earthquakes after experiencing one to escape the possibility of a repeat experience. The truth is that there is no place that is completely safe from earthquakes. They are a very real threat that everyone must consider and plan for. One of the most vital aspects of proper preparedness is having ample insurance coverage.

Earthquake damage isn’t covered in the majority of homeowners policies. This is also true for business policies. Both types of policies specify that damage from earth movement is not covered. While actual damage from a quake may not be covered, property insurance may provide coverage for fires and other incidents that occur as a result of it. Policyholders should scour their policies to understand the specific exclusions. If the policy seems difficult to read, it’s important to contact an agent with any questions.

Many people think they won’t experience a major earthquake during their lifetime. This is especially true for those who live in areas where earthquakes happen every 100 years or less. Although many people may not experience a strong earthquake like the recent Virginia incident, there are over 5,000 incidents recorded each year by the USGS. Damage from earthquakes has been recorded in all 50 states in history. There have been reports of damage in 39 states alone since 1900. This proves that while some people may not live in areas that commonly experience earthquakes, they’re still not immune to the threat.

Earthquake insurance is available as a rider, which is added to a business or personal property policy. People who have one of these types of coverage should contact their insurer to find out what coverage options are available. Since they’re unpredictable and happen suddenly, it’s best to be prepared for all types of disasters. Earthquake insurance is so important that it can’t be stressed enough. While the majority of people assume all California homeowners have this type of coverage, research indicates that about 12% actually have this type of insurance. The nation’s average is less than 12%.

Earthquake insurance costs vary by location, building type and the age of the building. It’s much more expensive to insure older buildings. In addition to this, brick structures are more expensive to insure. Buildings with wood frames withstand the force of earthquakes better, so it’s cheaper to insure them.

To offer an example, a home with a wood frame in Washington may cost between $1 and $3 per $1,000 of coverage. The same home may be less than $.50 per $1,000 insured on the East Coast. However, a brick home may cost between $3 and $15 per $1,000 in the Pacific Northwest. In most East Coast locations, the same home may only be between $.60 and $.90 per $1,000.

Every earthquake policy also has a deductible. This means that homeowners must pay upfront for a portion of the damages before the insurer pays the remaining amount. The deductible may be up to 20% of the structure’s replacement value. The percentage depends on the insurer and the location of the structure.

There are also options for renters. There are coverage policies that protect personal property. In addition to this, they usually cover living expenses if the building becomes uninhabitable after an earthquake. It’s important for renters to keep a list of belongings and their values. Major appliances, furniture, electronics and other expensive items must all be documented properly. A new way of creating a record of belongings is making a narrated video tour of the home and focusing on belongings.  It is best to contact your insurance agent to secure the earthquake coverage that is right for your individual needs.

Understanding the Basics of Insurance Deductibles

To get the most out of a car or home insurance policy, it is important to understand the roles deductibles play. A deductible is the amount deducted from an insured loss. When a damage claim is filed, the deductible is the amount of money a policyholder must pay upfront. It may be a percentage of the policy’s total or a set dollar amount. Larger deductibles are associated with smaller premiums. To find the verbiage concerning deductibles, consult the front page of the auto or homeowners policy. Deductibles are subtracted from the claim amount. For example, if a person with a $500 deductible files a claim for $10,000, that policyholder will receive a check for $9,500. However, if that individual’s deductible is calculated using percentages, the amount may differ. With percentages, the variable is calculated from the total claim and then subtracted from the total.

In many areas of the United States, deductibles are increasing. This is especially true in states prone to hurricanes. Property damage deductibles work differently than those for other types of insurance. For example, a deductible applies each time a claim is filed for auto or homeowners insurance. However, a deductible applies only once each year for health insurance. There are some exceptions for damage-related insurance products. In some cases, hurricane coverage has a per-season deductible. The following points cover some of the most important deductible information.

Deductibles Do Not Apply To Liability Claims

While there is no deductible for a liability claim with a homeowners or auto policy, there is a deductible for property damage. Deductibles apply to claims made to the comprehensive policy. In homeowners insurance, deductibles also apply to damaged items inside the insured structure. However, they do not apply if a homeowner is sued or if a medical claim is filed by an injured visitor.

Higher Deductibles May Save Money

One of the easiest ways to cut expenses is to raise deductibles for homeowners and auto insurance policies. Increasing an auto insurance deductible from $200 to $500 reduces collision and comprehensive premium costs up to 30 percent. Raising the deductible to $1,000 may result in a savings of more than 40 percent. Remember this is the out-of-pocket amount that must be paid regardless of the amount of the claim.

Flood Insurance Deductibles Vary

Since flooding is not covered in standard homeowners policies, it is sold by the NFIP and private insurance companies. There are several different choices of deductible amounts for these policies. Keep in mind that some mortgage companies require homeowners to keep their deductibles under a specific dollar amount. Flood coverage for vehicles can be obtained with an optional comprehensive plan.

Various States & Companies Affect Deductible Amounts

Insurance is a state-regulated product, and insurers are required to follow their state’s rules. The laws affect how deductibles are worded in policies and how they are implemented. Since there are a wide range of deductibles found in each state, it is best to compare policies. Keep in mind that doubling the deductible may save more than 20 percent on the cost of a policy.

Percentage Deductibles Apply To Hurricanes, Hail & Earthquakes

Earthquake deductibles may be much less than 10 percent or as high as 20 percent of the structure’s replacement value. Insurance rates are higher in states such as Nevada, Utah and Washington. Consumers in these states may choose higher deductibles to save money. There are special earthquake policies for California residents. To learn more about areas prone to earthquakes, discuss them with an agent.

There are two separate types of wind damage deductibles. The first is a hurricane deductible, which applies to wind damage sustained from hurricanes. The second type is a windstorm deductible, which applies to damages sustained from any other type of windstorm. Hurricane deductibles depend on specific triggers. These are usually designated by the National Weather Service, individual states and insurers. The triggers apply when a storm is officially deemed a tropical storm or hurricane. To learn more about how these triggers work, discuss them with an agent. Some states allow set deductibles. However, communities in high-risk coastal areas may have mandatory percentage deductibles.

How to Avoid Colliding With a Moose or Deer

Many insurance claims are filed each year as the result of collisions with deer or moose. Although some accidents may happen regardless of precautions, most can be avoided with heightened awareness. Follow these tips to avoid a collision with a moose or deer.

1. Pay attention to the warning signs. Waterways, forested areas and plains marked with deer or moose signs are the prime places to encounter these wild creatures. It is important to understand that they are more likely to appear during certain months. If it is hunting season, keep in mind that startled deer may run across the roads more frequently. They also run more when there are fires nearby, so be aware of any wildfires in the area.

2. Travel at a safe speed. When approaching curved roadways or areas with more hills, slow down. Drive slower at night. Keep in mind that it takes several seconds to stop completely when traveling at higher speeds. Slower speeds can reduce the likelihood of a collision, and slower speeds also lessen the impact of an unavoidable collision.

3. Drive defensively at all times. Practice stopping the car within the length of the headlight beams. Do this in a safe place with little to no traffic. Always drive at a speed where this is possible to do at night. Be ready to react quickly, and always have a plan for what to do. For example, if a deer or moose stops in the middle of the road, brake quickly without swerving. Many accidents happen because people swerve into trees or other cars instead of actually hitting an animal.

4. Scan the landscape frequently. During daylight hours, the key to preventing a collision with a moose or deer is spotting it before it reaches the road. These creatures often run through fields in the late fall or winter months, so they may blend in better with the dead vegetation. Always watch for movement, and be prepared to stop suddenly.

5. Use the horn when needed. If a deer or moose is running near the road, honk the horn. In most cases, the animal will freeze or move away from the noise.

6. Take the proper steps after a collision. Driving defensively is the best way to prevent a collision, but it is important to know what to do if a collision occurs. First, pull over to the side of the road. Put on the hazard lights and make sure the other passengers in the vehicle are conscious. Treat injured passengers accordingly. It is important to keep a first aid kit available in the vehicle. Put road flares out if they are available.
If the animal is dead and lying in the road, try to angle the vehicle enough that the headlights cast light on it. This may help prevent other drivers from hitting the animal. Never approach an injured animal. It may gore, kick or attack a human out of fear. Stay in the vehicle, call the police and wait for help to arrive. If anyone is injured to the point of needing medical care immediately, call 911.

Addition Tips To Consider
Although these six tips are the most important to follow, it is also helpful to know more about deer and moose behaviors. Many of these animals travel together, so there may be more following what appears to be a lone animal. Rest assured that if one deer or moose is seen alone, there are more within one mile. Even if a deer or moose is spotted off in the distance, slow down immediately to enhance alertness and safety.

In some states, oncoming motorists will alert other drivers of dangers in the road ahead. To do this, they usually blink their headlights quickly once or twice. If this happens, slow down and be alert. Tired drivers are more likely to hit deer, so pull over and rent a motel if sleepiness is overwhelming. Do not count on deer whistles to be effective. They have often fallen short of the promises printed on their packaging. These whistles will not work with moose. Keep these tips in mind to avoid submitting an insurance claim. 

Yet Another Reason to Improve Your Credit – Lower Insurance Rates

Your credit rating can affect a lot more than you may think. Almost all insurance companies factor in credit ratings to set rates for new and existing auto insurance customers. Yet, blemished credit doesn’t necessarily translate into higher insurance premium rates. Instead, it is the overall insurance risk score that can cause a rise in your rates. 

Insurance risk scores are similar to those used by lenders to determine whether or not to approve a loan or line of credit because both look at your credit information.  But credit risk models are formulated to predict the likelihood of loan default. Insurance risk models, by contrast, are built to predict the likely loss ratio of any particular individual. In other words, whether you will result in more or fewer losses than average to the insurer. The higher your insurance risk score, the less likely you are to file a claim.

Following is the information many insurance companies use to formulate a risk score and how each is weighted:

  • ·         Past payment history (approximately 35%)

A past payment history is determined by:  how you’ve paid your credit bills in the past; if your bills have been paid on time; items in collection status; the number of adverse public records (bankruptcy, wage attachments, liens); and the number and length of delinquencies or items in collection.  

  • ·         Credit owed (approximately 30%)

Credit owed is how many accounts, what kind of accounts, and how close you are to your credit limits. 

  • ·         Length of time credit has been established (approximately 15%)

Length of time credit established is how long you have had your credit accounts and how long you have had other specific accounts. 

  • ·         New credit (approximately 10%)

New credit is the number and proportion of recently opened accounts versus already established accounts; the number of credit inquiries; and the reestablishment of credit history after payment problems. 

  • ·         Types of credit established (approximately 10%)

Types of credit established are the various types of credit accounts including credit cards, retail store accounts, installment loans and mortgages. 

In summary, insurers rely on factors that show long-term stability. So, by demonstrating responsible use of credit and keeping your balances low, you should be able to improve you insurance risk score. A lower insurance risk score could translate into lower insurance premiums if you’ve been impacted by a negative credit history in the past.

Add a Teen Driver to Your Policy Without Breaking the Bank

For many families, adding a teen driver to their car insurance policy can prove to be painfully expensive. After all, insurance companies generally consider teens as high-risk drivers. Fortunately, there are a few ways to keep teen insurance costs to a minimum.

Here are a few things to keep in mind as you get ready to add your teen to the family insurance policy:

Make the grade

Typically, the higher grades a teen earns in school, the less their car insurance coverage will cost. Most insurers offer anywhere between 10 and 25% discounts for teens who maintain a B average or higher. Not only will this save you money, but it will also be a great incentive for your teen to keep up her grades. Consider telling your teen if their average drops below a B, she’ll have to take a break from driving until she can make the grade.

Increase your deductible

Most people cringe at the thought of a high deductible insurance policy. However, a higher deductible often means lower premiums-and that can save you loads of money when you’re adding a teen driver to your policy.

Your insurance premiums will probably increase significantly when you add your teen driver, so you’ll want to do everything possible to bring that premium down. You can achieve a lower premium by raising your deductible. However, if you choose a higher deductible, it’s important to stress that all the drivers in your family must be extremely careful on the road. If someone gets into an accident, you’ll have to pay more out of pocket before your insurance kicks in-and to top it off, your insurance rates will go up. Be sure to communicate this clearly to your teen driver.

Keep a clean record

According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds have the highest rate of car crashes than drivers of any age. Sadly, many of these accidents prove to be fatal.

Many teens start off driving safely, but after a few months, become overly confident and start driving recklessly to show off for their friends. It’s critical to make sure that your teen is and remains a safe driver-not just for the sake of your insurance rates, but also for their safety.

If your teen has an accident or even gets a speeding ticket, your insurance rates will jump significantly. You may want to give your teen extra motivation to be safe behind the wheel. Explain to them that driving is a privilege, and if they receive a traffic violation you’ll have to take away that privilege.

Consider an older car

Many parents are tempted to buy their teen a new car that includes all the latest safety bells and whistles. However, it’s important to remember that new cars often mean higher insurance premiums. Consider buying an older used car for your teen or giving him or her the oldest car on your insurance policy.

Keep your policy up-to-date

Be sure to review your insurance policy at least once a year and ensure that all the information is accurate and up-to-date. Once your teen graduates from high school or celebrates his 18th birthday, your insurance rates may drop. Also, if your teen heads off to college without a car, you may be able to take them off your policy for the time being. (However, before you remove your teen from your policy, confirm that your teen will not be driving at all. It could cost you big if he were to have an accident without insurance.)

Do You Have Insurance When You Use Someone Else’s Car?

Bob is a sales manager for a chemical equipment company. He drives his employer-furnished car thousands of miles each quarter on business. He also drives it on weekend trips, errands around town, and vacations. Focused on his job, he doesn’t give much thought to who will pay if he has a car accident.

Janet and her husband own one car and can’t afford to buy a second right now. They get by as best they can with one, but sometimes this is a challenge. It seems like a gift from heaven when their retired neighbors offer to let Janet use their car over the winter while they live in Florida. Janet doesn’t think about insurance coverage; she’s thinking about how she no longer has to take a 90-minute commute involving three buses.

Bob’s employer has an auto insurance policy that will cover an accident he has while using his car on company business, but it might not cover accidents occurring when he drives it for personal use. If Bob strikes a pedestrian while driving to a sales appointment in midtown Manhattan, his employer’s insurance will probably cover any liability for the injuries. However, if he hits another car while he’s on vacation in Hilton Head, the employer’s policy might not apply.

Janet’s auto insurance policy will not cover an accident she has while she’s using her neighbor’s car. The policy states that it does not apply to injuries or damage resulting from the use of a vehicle that is A) furnished or available for her regular use; and B) not listed on the policy (an exception is would be a loaner car she has while her car is being repaired.) Her neighbors have made their car available to her to use anytime for a period of months. Consequently, if she’s involved in a multi-car pileup on the way home from work, and she is at least partly liable for the accident, her insurance will not cover her share of the liability. If the neighbors have insurance in force, it should cover the accident. If, however, they forgot to pay their premium and the policy has been canceled, there will be no insurance available.

Both Bob and Janet could use some additional low-cost coverage on their auto policies. This coverage, Extended Non-Owned Coverage–Vehicles Furnished or Available for Regular Use, extends the policy’s liability and medical payments coverages to cover situations like Bob and Janet’s. The coverage has two important features:

It applies only to the person listed on the policy endorsement unless indicated otherwise. If the endorsement shows only Bob’s name, then the policy will cover only him for the use of the company car. Otherwise, the policy will cover him, his spouse and any family member using the company car.

The coverage applies on an “excess” basis over other collectible insurance. This means that the insurance company will look to the vehicle owner’s insurance to pay first; if that insurance doesn’t apply or gets used up, then the individual’s policy will pay. For example, if Janet’s neighbors have a valid insurance policy, their policy will pay for the loss until the amount of insurance is used up; then Janet’s policy will pay. If the neighbors’ policy has lapsed, Janet’s policy will pay from the first dollar.

Individuals with situations similar to Bob and Janet’s should consult with a professional insurance agent about the cost of purchasing this coverage. For a relatively small cost, they can protect themselves while they enjoy the use of a vehicle someone else owns.

What the New Flood Insurance Maps Mean to You

Is your property at risk of damage from flooding? If you answered “no,” think again. Every property has a flood risk; some may have a more severe risk than others, but all have some risk. A home on a lakeshore has a pretty obvious exposure to flooding. So, however, does a building miles from a body of water, located on a street with storm drains on it and a steady water supply. Because standard homeowner’s and commercial property insurance policies do not cover flood losses, the federal government makes insurance available through the National Flood Insurance Program. The NFIP evaluates the risk (and determines the insurance premium) for each property in a participating community according to its location on that community’s Flood Insurance Rate Map. Recently, those maps have been changing, and some property owners have received big surprises.

For a variety of reasons, the Federal Emergency Management Agency, which administers the NFIP, has spent the past several years working with participating communities to update flood maps. Some areas have experienced development that has changed water flow and altered drainage patterns. Soil erosion has impacted other areas, while changes in hurricane activity have affected coastal areas. The new digital maps give more accurate flood risk information on a property-by-property level.

For every property, the flood map changes will produce one of three outcomes:

* The risk level changes from low or moderate risk to high risk;

* There is no change in the risk level

* The risk level changes from high to low or moderate.

According to the NFIP, a low or moderate risk means that the risk of flooding is reduced but not completely eliminated. Such properties are still vulnerable from floods resulting from heavy rainfall, rapid snowmelt, clogged storm drains, and other causes. Properties with a high risk have at least a one percent annual chance of flooding. This means that a property with a 30-year mortgage has a one in four chance of flooding sometime during the life of the loan.

When the NFIP issues new maps, it normally provides a six- to twelve-month period before the new maps take effect. This gives affected property owners time to understand the changes and prepare for their effects.

If your risk level has changed to high, the federal government will require your mortgage holder to verify that you have bought flood insurance. The cost of insurance will increase to reflect the higher degree of risk. The NFIP has “grandfathering” rules to help property owners who built in compliance with the maps in effect at the time of construction or who have maintained continuous flood coverage on the property. This can offset some of the additional cost. The owner of a building that is sufficiently high above the minimum height at which a flood is likely to occur may actually see a premium reduction.

If your risk level has changed to low or moderate, federal rules will no longer require you to buy flood insurance. However, you will still have some risk of flooding, so it may be wise for you to retain the coverage. According to the NFIP, 25 percent of flood insurance claims come from properties with low or moderate risks. You may be able to convert your standard flood policy to a Preferred Risk Policy, which carries a lower cost.

Even if your risk level has not changed, you should discuss your situation with a professional insurance agent, who can suggest ways for you to protect yourself financially from flood losses. The NFIP says that flood is the most common natural catastrophe in the U.S. The time to prepare is before that flood occurs.

Do You Have Coverage Wherever Things Go Wrong?

How is this for bad luck?

* Bob goes on vacation to Cancun. While he’s walking on a sidewalk one day, a car jumps the curb. He jumps out of the way and escapes injury, but his $2,000 camera gets run over by the car.

* To cheer himself up, Bob goes to a golf shop to try out some clubs. Forgetting where he is, he takes a practice swing; his back swing breaks the nose of the woman looking at putters next to him.

* Bob cuts his vacation short. He returns home to find snow and ice have accumulated on his driveway. The next day, he also receives an emergency room bill for the broken ankle suffered by a neighbor who slipped on the driveway while attempting to look in on his cat.

* Bob retreats to the hideaway cabin that he owns in the mountains. He chops some trees for firewood on what he thinks is his property. Actually, the trees are five feet on his neighbor’s side of the property line.

Bob has a homeowner’s insurance policy covering his house. Does it cover any of these losses? For three of the four losses, the answer is yes.

A typical policy covers an insured person’s personal property anywhere in the world. It also covers property that person is using, even if he doesn’t own it. The property is covered for losses caused by any of the perils listed in the policy, including fire, lightning, smoke, explosion, vehicles, and others. Therefore, Bob’s policy will pay to repair or replace the camera damaged by the car. However, the insurance company will subtract his deductible from the amount it will pay.

In addition to insuring property, a homeowner’s policy covers an insured person’s legal liability for injuries or damages suffered by others. It covers liability for all of the person’s actions anywhere in the world, except for types of losses that it specifically lists as not covered. Accidentally hitting someone in the face with a golf club is not on the list, so Bob’s policy will pay the amount he owes for the woman’s medical treatment.

Likewise, Bob has coverage for the neighbor’s broken ankle. Since he invited the neighbor to check on his cat, and his driveway was not in a safe condition on which to walk, he is legally liable for the injury. The policy covers liability arising out of an “insured location.” The term “insured location” has many definitions; one of them is the residence listed on the policy. Bob’s policy lists his home, so it covers losses that arise from the home.

Unfortunately, the next loss is where Bob’s luck runs out. His policy lists his home but not his cabin. It does not cover his liability that arises out of premises he owns, rents, or rents to someone else if that premises is not an insured location. Since he owns the cabin and did not list it on his policy, and it does not fit into any of the other definitions of “insured location,” the policy does not cover his liability for accidents that happen there. Consequently, he must either seek coverage under another policy, if there is one, or pay for the damage to the trees out of his own pocket.

It’s a good idea to have a periodic chat with a professional insurance agent about your life circumstances. If you have a place in the mountains, own significant amounts of special property such as jewelry, or conduct business out of your home, you need special insurance coverage. Make sure you have the right coverage before you have a run of luck like Bob’s.

Earthquake Protection – Do You Need Coverage?

When the threat of earthquakes arises, most Americans think only about California, or more recently Haiti.  For many years, the San Andreas Fault Line has been the recipient of much of the press concerning earthquakes in the U.S.  Furthermore, predictions concerning the ultimate cataclysm believed by many to eventually be centered there have given it a mythical stature unrivalled by fault lines elsewhere in the country.

Despite all the focus on the San Andreas Fault, California does not have a monopoly on earthquakes. The New Madrid Fault Line, centered in Missouri, has been cited by the U.S. Geological Survey as being a potential source of a significant earthquake threat.  The USGS also notes that earthquakes in the central and eastern parts of the country usually have a broader range than their western counterparts.  One such earthquake along the New Madrid Fault Line in 1811 rang church bells as far away as Boston, Massachusetts, about 1,000 miles away from the epicenter!  More recently, in April 2003, a quake measuring 4.9 on the Richter Scale hit Alabama.  A year earlier, a slightly more powerful quake hit Plattsburgh, NY.   In January 2002, a 5.0 quake hit Evansville, Indiana.  These quakes all shook neighboring states and caused significant damage to businesses, homes and infrastructure in and around their epicenters.

Although none of these quakes equaled the intensity and resulting damage caused by the Northridge Earthquake of 1994, they do serve to support the idea that it may be wise to consider adding earthquake coverage to your property policy even if you are not located in close proximity to a known fault line. 

Since earthquake insurance is generally an elective coverage, it may prove to be beneficial to do a quick review to determine whether or not it is a covered peril.  Also, look at any scheduled property endorsements or personal property floaters to see if specific items are covered for earthquake-related damage regardless of whether or not the earthquake coverage endorsement has been purchased.   If the answer is “no” to any of these questions and you would like to obtain a quote, contact your agent for details.

Thinking of Buying a New Car? Be Sure to Consider Insurance Costs

If you are in the market for a new car you have probably looked at the reliability ratings, fuel economy statistics and safety tests. But have you looked at the insurance rates for the car of your dreams? If not you may want to take a step back and consider what that new car will cost to insure. Before you sign on the dotted line it is a good idea to contact your car insurance company for a premium quote. Some cars are surprisingly expensive to insure, while others are surprisingly affordable. The key is to find out how much the premiums on your proposed vehicle will be before you commit to buying.

If you are currently driving an older vehicle it’s likely that you no longer carry full comprehensive and collision coverage on it. When shopping for a new vehicle consider that you will be upgrading to full coverage, which translates into higher premiums by itself. Be sure to factor these higher insurance costs into the equation when determining what kind of car you can afford. Many drivers just look at the monthly payment for the car and forget about the cost of insurance, regular maintenance and other important expenses. By comparing insurance rates on the vehicles you are considering you can avoid those unpleasant surprises and keep your transportation budget in check.

One good strategy is to narrow your choice of vehicles down to three or four by using the typical criteria – reliability ratings, government crash tests, cost of ownership and the like. After narrowing the field, contact your agent to determine how much it will cost to insure each vehicle. You may not be able to get an exact figure without the vehicle’s VIN number, but your agent should be able to at least give you a ballpark figure. You can then use those figures to determine the true cost of ownership for each type of vehicle you are considering. Depending on how the numbers work out the cost of insurance may be enough to tip the scales in favor of one model over another.

Shopping for a new car can be fun and exciting, but it is also serious business. That is why it is so important to consider all of the factors, including the monthly payment, the total cost of the car, the cost of ongoing maintenance and of course the cost of car insurance. By understanding all the factors that go into the price of that car and its operating cost you will be able to make an intelligent and informed decision.