Home' Trinidad and Tobago Guardian : March 21st 2014 Contents As a motorist, can you picture driving
your vehicle without Motor Vehicle In-
surance? With the road fatality statis-
tics at worrying levels and the traffic
violation laws tightened, no motorist
would want to get caught driving a ve-
hicle without insurance.
Many fear of lawsuits and jail sen-
tences without proper auto insurance
coverage. Philip Knaggs, President of Au-
tomotive Dealers Association of T&T
said, "An auto accident can quickly be-
come a financial nightmare. What con-
sumers need is for their vehicles to be
repaired quickly and properly, with correct
parts, by a reputable repair facility. You do
not want to find out, after the accident,
that your policy did not cover all repairs."
While motorists regard insurance as a
form of investment toward keeping your
vehicle safe and sound, Knaggs said he
would not label insurance coverage as an
investment because it is not intended to
Knaggs said, "Insurance coverage is de-
signed to protect 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 choosing "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 ques-
• Exactly what am I covered for?
• What happens if the other vehicle does not
• 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 others."
For young drivers he suggested that
they should be accompanied by an experi-
enced relative or co-worker when they
are meeting with prospective Broker or
insurance 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 agreed on.
The purpose of insurance coverage:
"Car insurance is essentially an economic safety net for consumers. Major car repairs can easily
reach into the tens of thousands of dollars. Since most households exist on a fairly strict budget, there
is often no affordable way to prepare for a major repair bill. Car insurance will provide you with a way
to budget for accidents and will protect you and your family from an unexpected repair bill that could
easily be unaffordable. The "protection" offered by a proper insurance policy becomes even more im-
portant when the insured vehicle is essential to the economic livelihood of the family or individual."
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 paying 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
repairs does not make you
spend more than you would
pair loan is the best way to
ensure that you can get
where you need to go.
Whether you need to use
your ride for business or
pleasure, financing is im-
portant 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 re-
pairs 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 com-
mute to work and take care
of other responsibilities is
A car repair loan is differ-
ent from a personal loan be-
cause the money is being
invested in a vehicle. Usually
car 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 es-
pecially if a person has good
Even if you have car insur-
ance that will cover the re-
pairs, most policies require
you to pay a deductible be-
fore they pay for the rest of
the repairs. A car repair loan
can be used to cover the de-
ductible if you do not have
enough cash to pay for it.
Car repair loans for the de-
ductible are usually small
and can be repaid relatively
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 bor-
rower 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 low-
est interest rate possible.
Because loans for car re-
pairs are usually less than a
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