A moving violation can be a serious mistake or a minor one. In many situations, your auto insurance provider is there to help you through mistakes you might make. However, there are some situations where it can become difficult to obtain auto insurance. If you are labeled a high-risk driver, it may be hard to obtain car insurance or affordable plans. There are several things to keep in mind in this situation.

Can You Be Denied?

Most states have requirements that those who operate a motor vehicle (or own one) must have auto insurance in place. This is required for nearly all drivers. However, car insurance providers are able to deny individuals coverage if the driver is too high of a risk to insure. It can be hard to obtain insurance if you have such a label because the risk of another mistake, accident or moving violation is high.

By definition, a high-risk driver is someone who has a higher potential of filing a claim at some time in the future. Insurers view these individuals as high risk and costly, therefore charging a significant amount more to cover individuals, or simply denying coverage altogether. There are many reasons for this outcome, including a DUI/DWI conviction, illegal street racing, excessive speeding, reckless driving, driving without licensing and traffic violations in which a person died or got seriously injured.

What Should You Do?

If you are a high-risk driver, you will need to work to minimize such risks going forward. More so, if you find a policy that offers coverage to you, be sure to do everything you can to reduce your points. In some cases, you may be able to take a driving course to reduce your points. You may need to obtain an SR-22 as well, which generally is a requirement by the department of motor vehicles. Most people can find a policy available to them, though it can be expensive and hard to do without the help of an independent insurance agent. The right auto insurance provider is likely available even for high-risk drivers.

As one’s household grows, so too, does their auto insurance policy. While this is a pretty standard and expected occurrence, it’s important for people with an increasing number of licensed drivers under one roof to realize they have options. Should any of their family members threaten their driving reputation and quotes, policyholders have the option to remove and exclude them from their insurance plans, making auto coverage someone else’s problem and responsibility.

REQUESTING AN EXCLUSION

If you’re a policyholder interested in excluding one or more individuals from your policy, then you need to contact your insurance company and/or agent. Your request will have to be in writing and might also come with additional forms and paperwork, depending on who your insurance company is. It’s also important to note that requesting an exclusion may cause your rates to increase a bit, but some view this cost as a much more affordable expense than the potential damages they might be held accountable for when the dangerous driver(s) in question get in a serious accident or have repeated traffic offenses.

Whom Should I Exclude?

Now that you know how to request an exclusion, it’s important to understand WHO to exclude. You should exclude anyone you see as high-risk, unreliable and irresponsible. Individuals who show no regard for rules and regulations and could care less what happens to your name and record in the process are other obvious options. To help make the choice easier for you, below is a list of three individuals you definitely don’t want on your policy.

Mittens, the Family Cat

While a fluffy, cute member of the family, Mittens also has a wild side with which you are all too familiar. She is open about her late-night romps with her neighborhood friends, often coming home as the sun rises. She’s practically nocturnal! Those crazy hours coupled with her sassy attitude are a recipe for disaster for you and your record, so nip this problem in the bud while you still can — before Mittens brings you down with her.

Your Six-year-old Who’s Going on Sixteen

Six-year-old Ben is your pride and joy. He’s cute and sweet, but let’s be honest — the boy is growing up too fast. Rather than run the risk of him growing up, stealing your car and running away, it’s probably best to exclude him from your policy to keep that from happening. You might not be able to stop him from physically growing, but you will darn sure try to stop him from leaving you!

The Neighbor Next Door Who Thinks He’s ALWAYS Welcome

Sure you let him borrow a cup a sugar once, but does that really warrant unannounced pop-ins or the dreaded ‘surprise I was waiting for you to get home from work’ visit? The answer is obviously no, but that doesn’t stop your too-close-for-comfort neighbor from doing just that and more. A sweet, eager individual with no concept of social norms, this neighbor is here so often you’re worried he thinks he’s actually a part of the family. While you technically shouldn’t have to cover him on your insurance, the lines that surround your whole relationship — and evidently your property— have been blurred. So, just to be on the safe side, you better exclude him. Who knows, maybe one day he’ll get really comfortable and decide to take your car for a spin and get locked up for grand theft auto — maybe then at least you’ll get to cook in peace again!

Reality Check

Obviously, these examples of potential exclusions are extreme and ridiculous, but that’s just the point. Auto insurance exclusions are a serious issue that should be treated as such. They shouldn’t be added to policies willy-nilly and on a whim, but rather after serious thought and consideration has been given to the situation. It can be a pricey and potentially lengthy process that should only be implemented after you have determined there is no other feasible option.

You should only opt to exclude drivers with repeated violations such as driving under the influence of alcohol or drugs, speeding or any other behavior that shows a disregard for the law. It’s also important to note that exclusions can also apply to non-related roommates. Depending on your policy and location, it might be a smart idea to exclude any irresponsible roommates you might have, should they try to drive your vehicle without permission and thus endanger your reputation and record.

We do hope you’re never presented with having to exclude a family member from your auto policy. Keep in mind, it’s only advisable when the said-driver is extremely toxic. Most of the time, excluding a single driver will only lead to higher rates for everyone involved.

You’ll know they are a real risk if they cause you to be subjected to higher rates, or worse, put you in danger of losing your coverage altogether — those are costly expenses worth the fees that come along with an exclusion.

If you are seriously considering opting for an exclusion, talk with your insurer to explore all of your options and alternatives. They should help point you in the right direction for your future.

Here at Youautomotive auto loans, we often receive comments from consumers who are looking for their next car. Typically, people who are looking for an auto loan tend to pick out a car first and look for financing second. This process may work for someone with good to great credit, but for many people—especially those with bad credit—the process works differently.

Take this customer who recently wrote to us about finding a vehicle:

“I'm looking for a dark purple car would love to get Camaro but I would be willing to get a different model like Impala or even an SUV but I can't afford a new one…”

To be clear, we are not a car finder or a finance company. We help people with bad credit get connected to local special finance dealers who can help people get the vehicles they need.

Why the Bad Credit Process is Different

Wanting a particular car is one thing, but when you have damaged credit, it's more important to get what you need—or what you can afford—rather than trying to find the exact car you want. This is due to the fact that when you are looking for financing with bad credit, you first have to get an approval from a subprime lender.

Subprime financing is typically needed when you have a credit score around 640 or lower. This type of auto loan is done through indirect lenders who work with special finance dealerships. Not all dealers have subprime lenders, so choosing the right one to meet your needs is important. Once you have found a dealer with a sub prime finance department, you will need to sit down with the special finance manager, fill out an application and submit the necessary documents.

You will need to provide:

• A valid driver’s license or state ID.
• Proof of income – your most recent check stub.
• Proof of residence – a current utility bill in your name.
• Proof of a working phone – a landline or cell phone from a national carrier, in your name.
• Six to eight complete references – including names, addresses, and phone numbers.

Once you have completed this process, the dealer will transmit your application and documentation to the lender. The lender will either approve or deny your loan request. If you are approved, the lender will transmit a “payment call” to the special finance manager with the program you qualify for along with any additional requirements.

Choosing Your Vehicle

Once the lender has approved your auto loan request, the dealer will present you with a list of eligible vehicles that you qualify for, based on the information from the lender. Then, you can test drive them and choose the one you like that best fits what you need.

The good news is your choice of vehicles will typically be restricted to those that are less than 10 years old and with less than 100,000 miles. It is also good to note that your loan term can vary depending on vehicle mileage and model year.

As you can see, when you are dealing with subprime financing, choosing a vehicle comes at the end of the buying process, rather than the traditional loan process where you choose your vehicle first, then get financed.

Buying an auto warranty can be risky if you are unaware of the rules and regulations of the warranty. It is smart for vehicle owners to consider hiring a professional car consultant who can assist them with the process of purchasing an auto warranty. If the vehicle owner purchases an auto warranty without any help, there is more of a risk for buying a warranty that is fraudulent.

A fraudulent auto warranty refers to a warranty that offers a very large variety of different features and is prices so well that it is too good to be true. However, the seller that is claiming to provide this auto warranty will not actually go through with providing all of the listed services. In the used vehicle market, you will often come across fraudulent auto warranties. This makes it absolutely essential for consumers who are looking into purchasing used car warranties to proceed with caution during the whole buying process.

As a result of the circulation of fraudulent auto warranties, the US administration created a law to protect consumers. It is called the used car warranty law, which is also commonly referred to as the lemon law.

Companies, such as dealerships or other lenders, may offer military rates or discounts to bring you into the showroom, but that doesn’t mean the financing offer is the best one you can get.  We’ve also heard that some companies may inaccurately promise benefits under the Service members Civil Relief Act (SCRA) to military customers. If you move and need a vehicle right away, your circumstances may mean that you  make a rushed decision and not shop around for the best financing. 

1. Reductions of interest rate under the Service members Civil Relief Act. We’ve heard from service members who were led to believe it was okay to sign for a loan with a high interest rate since they were active-duty and therefore, the SCRA would drop the interest rate to 6 percent. Unfortunately, that  is not true. If you take out a loan to buy a vehicle after going on active duty, the SCRA interest rate cap will not apply – that cap is only for pre-service loans. You can find out more about your rights under the SCRA here. 
2. Permission from your lender to take your vehicle overseas. If you think you might be assigned overseas, make sure before you sign the auto loan contract that your lender will allow your vehicle to be taken out of the country – many won’t.  If your lender has that restriction and will not waive it, then you should reconsider borrowing from them.  Shipping companies usually require your lender to write a letter of approval before they will accept your car for overseas shipment. Don’t be left with a big problem at the last minute because the fine print of your loan contract says you can’t take the vehicle with you.
3. Special military interest rates or discounts. If you’re offered a rate or promotion based on being a member of the military and you decide it’s the best financing for you, make sure you receive that rate in the final paperwork. You shouldn’t agree to anything at signing that you didn’t agree to beforehand. If the company tries to change the loan terms at the last minute, you can refuse to sign the paperwork and continue to shop around for the best auto loan for you.  Remember, interest rates and terms are negotiable until the contract is signed.

If you’re struggling with a high interest auto loan payment, you may be able to refinance your loan for a lower rate by contacting your loan servicer.  If your current loan servicer can’t help you – shop around! Always remember to stay focused on the total cost when shopping. Lower monthly payments for a longer period can cost you thousands of dollars in interest. 

Refinancing your auto loan can save you money on interest, lower your monthly payments, or potentially do both. With online lenders reducing the hassle of the refi process, it can be a no-brainer for some people. But if you only recently bought your car, or you’ve had it for a few years, you might be wondering:

• “When should I refinance my car?”

• “How soon is too soon?”

• “Is it too late to refinance?”

To remove the guesswork, here are five signs that could indicate now is a good time to refinance your car.

1. You purchased and financed a vehicle at a dealership

Did you buy and finance your car at a dealership? You’re not alone – over 85% of new vehicle sales and over 54% of used vehicle sales are financed.¹And if you bought your car at a dealership, there’s a good chance you financed it there, too. What you may not know is that dealer-financed auto loans are often not the best deal.

Auto dealers can mark up your interest rate, charging as much as 3% more than the APR you could’ve qualified for with another lender.²

Want to know if you can do better? It takes just one minute to check your auto refinance rate with Youautomotive.com, and it doesn’t affect your credit score.*

            2. You’ve had the loan for at least 90 days

How soon can you refinance a car you just bought?

Most lenders require that you’ve had the loan for a few months before you apply (at Youautomotive.com, the minimum is 90 days). This is usually to confirm that you’re making on-time payments, so stay on top of those payments if you’re hoping to refinance in the near future.

            3. Your current loan term is longer than 24 months

On the flip side, if you don’t have long to go before paying off the loan, you may not be able to refinance. At Youautomotive.com, we require at least 24 months remaining on the term.

            4. Your credit has improved

Has your credit score increased since you took out the loan? Have you consistently paid your debts on time? If so, you may qualify for a lower rate than you did when you first bought the car—which means savings in your pocket.

You can check your credit report for free on an annual basis to monitor whether things are looking up.

             5. You could use the extra cash

Refinancing at a lower rate can lower your interest bill (Youautomotive.com auto refinance borrowers could save up to $1,350).³ However, you can also refinance to lengthen your auto loan’s term and reduce your monthly payment. If bills are tight, refinancing to lower your payments may be the solution you’re looking for.

When Should You Refinance Your Car?

Auto refinancing can make a lot of sense in some situations. In fact, many people don’t refinance their car even though they would qualify, simply because they think the refinance process will be long and arduous. That’s simply not the case anymore—Youautomotive.com’s auto refinances process is completely online and hassle-free.

If you want to know whether now is the time to refinance your car, check your rate now to get the answer in less than a minute, with no impact to your credit score.

For most people, buying a car is a major investment requiring thought, research, planning and finances. With the multitude of make, model and options available today, this major purchase is enough to make your head spin. And that’s before you’ve even waded through the wide array of financing arrangements. To be sure you make the smartest choice, you’ll need to do some homework. Here are some helpful tips to guide you through the process of buying a car.

Selecting a Car

Evaluate your needs and preferences to determine your current car style. If you know the answers to these questions, you may help yourself determine which car fits you best.

• What are the primary and secondary uses of the car? This may help you determine the best size, gas mileage, and durability for your needs.
• Who will be in the car most of the time? This will determine how much interior space you need.
• How often will the car be used? The more time you spend in your car, the more important comfort is likely to be. Considering frequency of use can also help determine engine needs.

Budgetary Issues

New or used, bought or leased – you need to know all the costs involved in getting your next car. If you’re not sure how much you can afford, talk to a financial advisor or get pre-approval on a car loan from a bank. Professional financial advice will help you know ahead of time how much you can really afford.

Once you set your price range, stick to it. If you’re buying new, don’t be tempted by unnecessary extras that will run up the price of the car, and be cautious about purchasing extended warranties. If you can’t afford everything you want in a car, prioritize the features on your list. Don’t forget that owning a car costs more than the monthly payments. Gas, maintenance, taxes and insurance should all be figured into the cost of car ownership.

Negotiate a Deal

The difference between the dealer’s invoice (estimates are available from automotive magazines, websites, and auto pricing services) and the price listed on the sticker is your bargaining range. The more information you have on exactly what the dealer pays for the standard package and for each option, the stronger your negotiating position. It also helps to know whether the manufacturer is offering any cash rebate offers or factory-to-dealer incentives (which give the dealer more latitude in pricing).

The popularity and availability of a particular car can also play a role in your negotiation with a dealer. And keep in mind that the time of year you shop may make a difference in the final price you pay. The end of the model year (September and October) favors consumers because that’s when dealers are reducing inventory to make room for next year’s models. Late December, when more folks are worried about holiday shopping than car shopping, is another good time.

Leasing a Car

When you lease a car, you make monthly payments in exchange for using the vehicle for a set period of time. Generally, at the end of the contract period, which is usually two or three years, you can simply turn in the car and walk away. Since you don’t own it, you get no trade-in or resale value. If you need to end the lease early, you may face steep charges. Likewise, you may be charged for excessive mileage or excessive wear and tear. Most leases include an option to buy at the end of the lease for a predetermined price. Generally, however, you may pay more than if you purchased the car in the first place.

On the positive side, a down payment may not be required, and monthly lease payments are generally lower than monthly payments when you purchase a car. Be sure you understand the terms of the contract and review it carefully before signing.

Buying Used

Buying used is very similar to buying new: You need to assess your needs, estimate what you can spend and do your homework.

You have one additional variable to consider when buying a used car: wear and tear. However, assessing a used car is better left to the professionals. If you think you’ve found a good option, have your mechanic check it out before you buy. A qualified mechanic can tell if the car is in good condition and worth the price, or if it’s maybe just a good wax job. To figure out the going price for a used car model, consult one of the used car price guides available, such as the Kelley Blue Book, which lists estimated values for used cars based on what car dealers are paying for various makes and models. Keep in mind that price guides aren’t the final word on a car’s fair value and that factors such as mileage can change a car’s value considerably.

Whatever your final decision may be, make it with confidence and make sure it’s the best car for you (and your family).

Whether your goal is to lower your monthly car payments or reduce the total interest you pay on your car loan, it’s important you understand how refinancing your car loan works.

Refinancing your car loan is replacing your current auto lender with another lender. This involves changing the name of the company that is listed on your car’s title, which is a document that details proof of official ownership. That means you will make payments to the new lender until your loan is paid off.

Before checking your rate for a car refinance loan check to make sure that when you obtain a quote it won’t be a hard inquiry on your credit report. This can impact your credit score. When you apply, a lender will look at your credit profile, as well as the make, model, trim and mileage of your car to determine your rate. You won’t need to have your car appraised the way you do when you refinance a home. Lenders will look at the value of your vehicle relative to how much you owe on the vehicle, called your Loan-to-Value ratio.

What else lenders will look for

Lenders will also look at how many payments you have left on your current auto loan to understand if refinancing is worthwhile for both parties. Typically, you need a minimum of a few months to show on-time payment history but after that, the more recent your current loan is the more potential refinancing will have to save you money. The way that many auto loans work is that the majority of the interest is paid during the beginning of the loan. Check the amortization schedule of your current loan to see what percentage of your payments are interest payments.
Once you get your rate, you should evaluate if the rate or terms offered to meet your financial goals. You should also make sure that you understand any additional fees or prepayment penalties so you can understand the total cost of the loans you’re comparing.

The process

Once you select your lender, there are certain documents you need to refinance your car loan. For example, your insurance and registration cards.

Once everything is verified and approved, you may be asked to complete a Power of Attorney (POA) form so your car title can be transferred from your previous lender to your new lender. A POA shows that you have authorized the title transfer to the new lender.

Your current lender will then pay off your previous lender. When you receive confirmation that your refinance is complete, your new lender will be responsible for your loan. You’ll make payments directly to them and contact them for any questions or concerns.

Depending on how fast you can submit your documents, many lenders will take between a few days to a few weeks to complete the refinance.

Want to check your rate to see how much you could save with a car refinance loan through Lending Club? Check your rate with no impact to your credit score.

The anti-lock braking system, or ABS system, is a safety system which prevents the wheels on a vehicle from locking up in a panic stop braking condition, or if you are on a slick surface.

The theory behind ABS brakes is simple. A skidding wheel has less traction than a non-skidding wheel. By keeping the wheels from skidding when you slow down, ABS brakes benefit you in two ways, you will stop faster and you will be able to steer while stopping.

There are four main components of an ABS system; the speed sensors, the pump, the valves and the controller. The speed sensors are located either at each wheel or in the differential, they provide the information that the wheel is about to lock up. The valves are located in each line at the brakes and they pass thru, stop and release the brake fluid from the master cylinder to activate the ABS system. The controller is the computer in the car. It watches the speed sensors and controls the valves.

When the ABS is at work you will feel a pulsing in the brake pedal, which comes from the rapid opening and closing of the valves. Some ABS systems can cycle up to 15 times per second. This equates to 60 up to 100 times of pumping action per wheel revolution.

Antilock brakes when used properly really do help you stop better. They prevent wheels from locking up and provide the shortest stopping distance on slippery surfaces. Properly operating the brakes is a definite factor, though, you should not pump the brake pedal on a car with ABS. The ABS controller has the valves open and close while the pump adds pressure so that the brake pedal pumps for you.

There is really no maintenance or service that is needed with the ABS system. When the ABS light illuminates on your dash the ABS system has been disabled because there is an error in the system. We recommend having that diagnosed and repaired if that light comes on.

Being able to stop and steer your vehicle in a slippery or skidding situation is the main benefit of the ABS system. Steve and Karen Johnston are owners of All About Automotive in Historic Downtown Gresham.

Most of us need car insurance, yet few of us fully understand it.

Dozens of car insurance companies may be vying for business in your area, including nationwide players and local insurers. Each offers an eye-glazing assortment of policy options, making it hard to compare policies and figure out what is the best and cheapest car insurance.

If you are looking for the lowest prices, there are some guidelines worth following as you do your research. Here are eight things you can do to ensure that you’re getting the best coverage at the best possible rate.

1. Don’t assume any one company is the cheapest

Some companies spend a lot of money on commercials, trying to convince you that they offer the lowest car insurance rates.

The truth is that prices individuals will pay for the same coverage at the same company vary widely, and no single company can claim to be the low-price leader. The insurance company that’s cheapest for one person in one place might be the most expensive option for a driver in another state. Some insurance companies have also developed complex predictive models that may charge you higher rates if they show you are unlikely to switch providers. This practice, called “price optimization,” is banned in 16 states.

And there’s quite a bit of saving at stake: A recent NerdWallet analysis found a difference of $859 a year between the average insurance quote and the lowest available quote.

The only way to ensure you’re getting the best deal is to shop around.

2. Don’t ignore local and regional insurance companies

Just four companies control nearly half the nation’s car insurance business: Allstate, Geico, Progressive and State Farm. But smaller, regional insurers, such as Auto-Owners Insurance and Erie Insurance, often have higher customer satisfaction ratings than the big names — and they may have lower rates, too. NerdWallet can help you compare rates for companies that serve your area.

3. Check for discounts

Insurers provide a variety of discounts, including price breaks for customers who:

• Bundle car insurance with other policies, such as homeowners insurance
• Insure multiple cars with one policy
• Have a clean driving record
• Pay their entire annual or six-month premium at once
• Agree to receive documents online
• Own a car with certain anti-theft or safety features
• Are members of particular professional organizations or affiliate groups

Discounts vary by company and location. Check insurance company websites or consult with agents to find out which ones might apply to you.

4. Pay your bills on time — and not just your insurance bills

Your credit is a significant factor in the car insurance quotes you’ll receive — except in California, Hawaii, and Massachusetts, which don’t allow insurers to consider it. Insurance companies say that customers’ credit has been shown to correlate with their risk of filing a claim.

Improve your credit — and lower your premiums — by paying your bills on time and reducing your debt. Track your progress by checking your credit reports at least once per year.

5. Consider insurance costs when buying a car

You probably already pay attention to factors such as fuel efficiency and repair costs when deciding which car to buy, but you should also consider insurance premiums, which can vary between popular models. A NerdWallet review of rates for best-selling vehicles in 25 cities found that the Toyota Camry, for example, cost an average of $187 per year more to insure than the comparable Honda Accord. Similarly, a Toyota RAV4 cost an average of $201 more to insure than a Honda CR-V.

6. Skip collision and comprehensive coverage for your clunker

Collision coverage pays to repair the damage your vehicle receives in an accident involving another car or an inanimate object. Comprehensive pays to repair vehicle damage caused by weather, animals or vandalism or reimburses you for your car if it's stolen. But both will only pay up to the value of your car. If your older and has a low market value, it may not make sense to shell out for the two policies.

7. Consider raising your deductible

If you need to carry comprehensive and collision — because your car is a later model or your lender requires it — you can save a substantial amount of money by raising the deductibles. A NerdWallet study of rates in Florida and California found that customers who increased their deductibles from $500 to $1,000 saved about $200 per year on premiums, while those who increased them from $500 to $2,000 saved $362 per year. Keep in mind that this will mean you’ll pay more out of pocket if you do make a claim.

8. Consider usage-based plans, especially if you don’t drive much

If you’re a safe driver who doesn’t log very many miles, consider a usage-based insurance program, such as Allstate’s Drivewise, Progressive’s Snapshot or State Farm’s Drive Safe and Save. By signing up for these programs, you allow your insurer to track your driving electronically in exchange for possible discounts, based on how much you drive, when you drive and how well you drive.

If you drive less than 10,000 miles per year, you might be able to save money with a mileage-based insurance program, such as Metromile or Esurance Pay Per Mile. Metromile is currently available in seven states, while Esurance Pay Per Mile is only available in Oregon.