Additional Interest Insured on Car Insurance

Additional Interest Insured on Car Insurance

Car insurance can be confusing, and in this economy, it can be expensive. Understanding the different terms used that insurance agents and lien holders use can save you hundreds of dollars per year. It is important to understand what a lien holder or leasing agent requires when it comes to car insurance before you start to purchase a new or used vehicle.

When it comes to the additional interest insured part of the insurance world it is pretty simple and a necessity. What an additional interest insured is on your car insurance policy by definition is a company or person who is protected under your insurance policy if they are named in a lawsuit due to an accident that is deemed the policy holders fault.

Most leasing companies and lien holders require their car buyers to have this on their car insurance policies. Basically it will protect these companies from being sued if you are in an accident. This not only protects these companies from liability, but it can protect the policy holder as well. If this protection was not available the consumer would suffer due to increased car payments to pay for this liability.

Since additional interest insured is generally required on a person’s car insurance policy if they are leasing or financing a vehicle your insurance agent will have all the necessary paperwork to meet this requirement. Most individuals may not even know that they have this on their policy, however if you lease or finance a vehicle it is generally required. Because of this requirement that is why your insurance agent generally asks you if you are leasing or financing a vehicle and who through, that way he or she will have all the necessary paperwork ready for you when you purchase your policy.

Fiance’s and Finances

Fiance's and Finances

You have finally met the guy or girl of your dreams and you have agreed to marry them. There is so much to do during the engagement period. Where will you live, how will this affect your career, and your family are a few of the things to consider. One important thing that you must not overlook is your financial situations, and how they will affect the approaching marriage. Discussing money makes some people very uncomfortable, but it is necessary. Financial problems are amongst the top reasons that people divorce. If you want your relationship to have a fighting chance, be adults and discuss your business.

You and your fiancé need to set aside a time to have this conversation. Some preparation needs to be put into this. Each should know their current financial situation, and be prepared to discuss it. Neither party should be rushed or tired when you begin this conversation.

Tip #1

Discuss any debts that you have, and you are bring into the marriage. Yes any debt. Do not attempt to hide your debt from your fiancé, that is not a good foundation upon which to build a future on. You should both agree to work to pay off or down any credit card debt you have incurred individually. Experts state it is best not to consolidate student loans when you marry.

Tip# 2

Discuss any assets that you have. Any retirement, trust, 401 K savings, homes, cars, etc. This is an opportunity to begin to see these as mutual assets, and not individual any more.

Tip # 3

You need to learn each others spending and saving habits. If you have dated any period of time, you already have some knowledge in this area. But when you were just dating, it was your prerogative on how you spent or saved your money, now your actions will affect more than yourself. You should work as a couple or devise plans that will satisfy the types of money managers both of you are.

Tip # 4

Be open about any negative financial situations you are currently in or are feeling the repercussions of at this time. If you have filed bankruptcy, have a low credit score, your future life partner deserves to know.

Tip # 5

You need to discuss how you will handle money issues that arise in the future. Will you lend to friends and family? Does you fiancé agree with giving to the needy or less fortunate? Will you tithe, etc? All of these are important questions that need addressing before you say I do.