Factors that Increase Your Car Insurance Premiums

The following is a guest post from Sean Gray. Thanks for the great article, Sean! If you a reader and are interested in guest posting on compounding returns, please click here!

There are a lot of factors that insurance companies look at when calculating your automotive insurance rates, and one of the most significant is the type of vehicle you are driving. Some cars are significantly more costly to insure than others, and you may be surprised to learn why this is, and what some of the most expensive cars are to insure.

There is a common misconception that bright red sports cars cost more to insure than family sedans and SUVs, but this is often untrue, as some of the factors that may make a vehicle more costly to insure include:

• Horsepower of the vehicle's engine
• Repair costs and parts value
• Replacement value
• Size of the vehicle
• Theft and vandalism statistics

So what are some of the more expensive cars to insure? Here are a few of the top models:

• Mercedes SL65 AMG: This car has a number of factors working against it when it comes to the cost of insurance. It is small and zippy, with a high horsepower engine. The value of the vehicle is high, as is the repair cost.
• BMW 750i: This four door sedan doesn't come with quite the zippy power as the Mercedes SL65, and is a bit larger in size, too. Yet it does have a high value and a high repair cost. With its BMW emblem emblazoned on it, it is also coveted by car thieves.
• Aston Martin DB9 Coupe: This luxury, 2-door coupe boasts a high price tag along with a high replacement cost, too. It's powerful engine and small size entice its owners to drive it faster than many other models, too
• Mercedes G55 AMG: The box-like appearance of this luxury SUV is anything but zippy. Yet with its appeal to thieves, its high repair cost, and its large price tag, this SUV is included as one of the most expensive vehicles to insure.

The Bottom Line: 

If you own one of these cars yourself or own a similar vehicle featuring the same characteristics as the vehicles listed above, your insurance rates may be higher than they could be with another vehicle. In fact, the annual premium cost on some of the vehicles listed above are about three times as much as the annual premium of some of the most affordable vehicles to insure.

About the Author: Tom has been in the automotive field for years, and he speaks from experience. He currently blogs for a top rated cash for autos company. His company offers a cash for clunkers program in San Diego.

Photo By: M93

The Risks and Rewards of Unsecured Personal Loans

The following is a guest post by Andrew Black, Andrew is a personal finance blog contributor. He has been working in the lending industry for 3 years helping people with no credit check loans and credit card debt solutions.

Unsecured personal loans are available for borrowers who don't own any property that could be turned over as security or collateral to a loan. If you aren't comfortable about the idea of using your property as collateral, unsecured loans may be ideal. As consumer demand for unsecured loans continues to rise more of such lending products are readily available.

However prevalent unsecured loans may become, they still come with some common risks that are imperative to understand.

First, unsecured personal loans usually come with higher interest rates compared to secured loans. This is because of the high risk of default that loan providers take on by lending money in an unsecured way. Unlike secured loans, loan providers would not get hold of any belonging that could be liquidated in case of a possible default.

Second, an unsecured personal loan may come with additional charges. If you read the fine print of the loan contract, don't be surprised to find more fees implemented when compared to charges applied to secured loans. In addition, penalties could be more significant in unsecured loans, again considering the risks lenders agree to take.

Third, loan providers may be stricter when assessing and approving unsecured loan applications. It may be much easier to get approval for a secured loan especially if you have poor credit history. That is why you should think twice about getting unsecured personal loans if you have bad credit.

Fourth, the loan term associated with unsecured personal loans may be shorter. In general, the shorter the loan is, the greater your monthly amortization will be. This is not ideal to some borrowers. But for those knowledgeable enough, short-term loans may be preferred because of the lower costs. This is because in some cases, the shorter the term is, the less you would pay for interest and other charges.

Lastly, the unsecured personal loan may come in smaller amounts. If you are in need of a significant amount of cash, such a loan may not be the one for you. An unsecured personal loan is best for people who need just a minimal amount of cash, which can be repaid in a shorter term. In comparison, secured loans may offer multiple times bigger amounts, still because of the value of the collaterals or security involved.

Are you ready to take these risks? Before choosing and applying for any unsecured personal loan, it would still be best if you would consider the many loan options available in the market. You could always run a simple comparison shop so you could compare the interest rates, fees, and terms offered.

Potential borrowers should also pay attention to the reputation of their loan provider. Some lenders are just more considerate compared to other lenders when it comes to such loans. It would be best to stick with a loan provider that you may have dealt with in the past without any hassle. You may also seek referrals or recommendations from your peers or relatives.