Many people struggle to figure out exactly how insurance companies work. Why are there so many different insurance companies? Why do some charge higher or lower than the next? Why do premiums change? It can be confusing to wrap your head around – to say the least!
How exactly do insurance companies work?
You can get insurance for many things, including your car, your health, your business and your retirement. When you buy an insurance policy from an insurer, you make regular payments, known as premiums. To make a claim on your insurance, your insurer pays you for the loss covered on the policy.
Just like any type of business, insurance brokers have their very own, unique business models. Generally, vehicle insurers assess your application based on where your car will be parked, the age of the primary driver and what type of car you have. Some insurers use a model where younger drivers are preferred; some like older drivers and some models take into account how many kilometers the vehicle will travel per year.
Insurance brokers and finance companies
Interestingly, finance companies are pretty much the same. They all operate using different models to each other. They look at customer profiles in different ways and have different criteria for how they assess your situation and credit options.
Some finance companies won’t take on somebody with a default…and some will. Some lenders will only look at customers who have paid defaults…and others unpaid! Some lenders will approve a loan if you have one month of casual employment…and the next lender won’t unless you have been in a job for 12 months. Just like with insurance companies, the list of differences is endless.
So, how does this impact your ability to get credit approved?
This comparison between insurance and finance companies is particularly relevant when it comes to finding the right lender to approve credit for you.
Although many people believe that because their bank has declined their finance application, other lenders will too – this generally is not the case. At Rapid Finance, we have seen many situations where a customer has been to a dozen lenders or brokers before coming to us – and in many cases we were the only ones who could help them.
Rapid Finance might have the solution for you
Whether you’re looking for car repairs, a car loan, comprehensive car insurance or a bad credit loan, Rapid Finance may be able to help. So why could we be the best option for you?
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We have over two decades of experience writing loans for bad credit.
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We continue to add new lenders to our panel.
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We stay up-to-date with daily lender changes to ensure you get the best deals.
What about loans for people with defaults and judgements?
At Rapid Finance, we have a great relationship with a credit repair agency who can often assist with removing defaults and judgements (typically within about 30 days).
One recent client had 10 unpaid defaults on his credit file to the value of $50,000. Although we could not assist at the time, we sent him off to our credit repair partner. Soon enough, they had removed all 10 defaults and he came back to us for a car loan. The result was that he drove away with a vehicle loan from a Tier A lender at a rate of 7% (based on rates in Jan 2022) – all within just 45 days.
Is there a lender for your situation?
Whatever type of loan you need, at Rapid Finance, we believe that there is a lender for almost any situation. Even if we can’t help you immediately, we can give you recommendations on how to get a loan within a few months (depending on your unique circumstances).
On a side note, don’t forget about our wholesale cars - We offer the one stop shop where we can help you source a vehicle through our extensive wholesale network - Through our network, we will do some extra checks on your behalf as well as inspecting the vehicle to ensure it’s a great vehicle - We will also check :
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There is no money owing on the vehicle
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The vehicle has not been a repairable write off
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The vehicle has not in any serious accidents
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We will check everything works on the vehicle
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We will get the roadworthy for the vehicle
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We will do a detailed inspection on the vehicle
To find out more info about our wholesale Network vehicle, click here.
Whether you’re after a home loan, a personal loan or a car loan, we created the Rapid Finance process to make it simple and stress free for every customer. Just call our expert team today for a no obligation chat on 1300 467 274.