fixed or escalating rates? which one would you prefer?
by Guest » Wed Jun 10, 2009 01:06 pm
Should one go for the fixed-rate auto insurance? Or would you guys suggest that he goes for the escalating rates?
Total Comments: 3
Posted: Thu Jun 11, 2009 08:45 am Post Subject:
Hey Barbie..
An annual escalation increases your insurance premium by a certain percentage rate every year. This interest rate may vary depending on the interest rate situation. So, you'll surely gain as a policy holder when the interest rate falls down. On the other hand, you'd need to worry if it goes up. Thanks, Roddick
Posted: Thu Jun 11, 2009 09:19 am Post Subject:
Why would someone opt for escalated rate auto insurance when the car value would depreciate with the use?
Again, I'm not sure about the interest rate part. I think two issues have got mixed in this question; insurance and auto loan.
The escalated rate or fixed rate might apply to the auto loan but it wouldn't affect the premium rate.
Posted: Fri Jun 12, 2009 10:35 am Post Subject:
Kelvin, it's quite expensive as compared to the yearly escalation fee when there's no hike in terms of our interest rates. It's a fixed amount that I'd need to pay every month irrespective of my probability to meet with an accident. Why do I opt for that?
Posted: Thu Jun 11, 2009 08:45 am Post Subject:
Hey Barbie..
An annual escalation increases your insurance premium by a certain percentage rate every year. This interest rate may vary depending on the interest rate situation. So, you'll surely gain as a policy holder when the interest rate falls down. On the other hand, you'd need to worry if it goes up. Thanks, Roddick
Posted: Thu Jun 11, 2009 09:19 am Post Subject:
Why would someone opt for escalated rate auto insurance when the car value would depreciate with the use?
Again, I'm not sure about the interest rate part. I think two issues have got mixed in this question; insurance and auto loan.
The escalated rate or fixed rate might apply to the auto loan but it wouldn't affect the premium rate.
Posted: Fri Jun 12, 2009 10:35 am Post Subject:
Kelvin, it's quite expensive as compared to the yearly escalation fee when there's no hike in terms of our interest rates. It's a fixed amount that I'd need to pay every month irrespective of my probability to meet with an accident. Why do I opt for that?
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