Home' Trinidad and Tobago Guardian : October 31st 2014 Contents Whether you need to use your ride for business or pleasure, financing is
important to cover repairs when the time arises.
If your car is newer and the cost of repairs does not exceed the value of the car, you
can get a car repair loan to cover the costs of fixing it. Car repair loans can be used to
pay for expensive car repairs or to cover insurance deductibles and can range from a
few hundred dollars to a few thousand. Everyone who owns a car faces a break down
at one time or another and being able to fix your car so you can commute to work
and take care of other responsibilities is important.
As a motorist, can you picture driving your vehicle
without Motor Vehicle Insurance? With the road fatal-
ity statistics at worrying levels and the traffic viola-
tion laws tightened, no motorist would want to get
caught driving a vehicle without insurance.
Many fear of lawsuits and jail sentences without
proper auto insurance coverage. Philip Knaggs, President
of Automotive Dealers Association of T&T said, "An auto
accident can quickly become a financial nightmare. What
consumers need is for their vehicles to be repaired
quickly and properly, with correct parts, by a reputable re-
pair facility. You do not want to find out, after the acci-
dent, that your policy did not cover all repairs."
While motorists regard insurance as a form of invest-
ment toward keeping your vehicle safe and sound,
Knaggs said he would not label insurance coverage as an
investment because it is not intended to grow wealth.
Knaggs said, "Insurance coverage is designed to pro-
tect your high-valued asset/s in the event of an accident.
This coverage can often prove to be essential to a young
motorist due to the high cost of accident repair."
He added that auto insurance is mandatory for all cars
driving on T&T's roadways therefore, the motorist, when
looking for appropriate insurance should start by choos-
ing "a reputable insurance Broker or Insurance company."
Knaggs advised, "Sit down with them, explain your
needs and then listen to their advice. Ask them pertinent
• Exactly what am I covered for?
• What happens if the other vehicle does not have insur-
• What is my "excess"?
• What will I have to pay?
• Who will repair my vehicle?
• Will they use "genuine" parts?
Knaggs warns beware of "quickly reaching for the
most inexpensive plan available." He said your insurance
plan should be one that fits "you." He said, "A common
mistake is to opt for a plan with minimalistic coverage
because you view yourself as a "safe" driver. Remember
that accidents frequently occur due to the actions of oth-
For young drivers he suggested that they should be
accompanied by an experienced relative or co-worker
when they are meeting with prospective Broker or insur-
ance company for the first time. Knaggs said that being
accompanied by an experienced person ensures that the
right questions are asked and the proper coverage is
A car repair loan is different from a personal loan
because the money is being invested in a vehicle.
Usually care repair loans must be to cover repairs
that keep the car in running condition but in some
circumstances car repair loans can be obtained for
other types of repairs especially if a person has good
Even if you have car insurance that will cover the
repairs, most policies require you to pay a deductible
before they pay for the rest of the repairs. A car re-
pair loan can be used to cover the deductible if you
do not have enough cash to pay for it. Car repair
loans for the deductible are usually small and can be
repaid relatively quickly.
Lenders usually set the terms of a car repair loan
based on the current prime interest rate. A borrower
with good credit can get this low rate where as a
borrower with less than perfect credit will be
charged a higher rate. No matter what your credit is
it is important to compare the terms from different
lenders to make sure you are getting the lowest in-
terest rate possible.
Because loans for car repairs are usually less than
a few thousand dollars, they can be paid off within a
year or two. It is important to pay off car repair loans
as soon as possible to avoid paying more in interest.
If the cost of your car payment plus the cost of pay-
ing the car repair loan is going to be more than the
cost of a new car, you can also look into selling your
car and buying a new one. If the cost of paying for re-
pairs does not make you spend more than you would
on a new car, then a car repair loan is the best way to
ensure that you can get where you need to go.
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