INSURANCE BLOG

Cut Your Homeowner's Insurance Bill

2009-01-16T00:11:00.000+08:00

In addition to shopping for the best rate for your homeowner's insurance and raising the deductible, there are a number of other ways you can lower the cost:

* Multiple policies. If you purchase your homeowner's, umbrella, and auto coverage from the same company, you may be eligible for a 5 to 15 percent discount on your premiums.

* Add home security. You can usually get at least a 5 percent discount for installing smoke detectors. Beware of overdoing the security thing, though. Some insurance firms will give up to a 15 to 20 percent discount for sophisticated sprinkler systems and burglar alarms connected to a local police, fire, or private security station. But these systems are not cheap. Compare the cost of installing and maintaining such systems with how much they will save. Often, you may find it's cheaper to raise the level of your coverage than to buy a $1,000 security system. But there are other reasons to install a security systemlike safety and peace of mindreasons that can't be measured in dollars,

* Stop smoking. Some companies offer small discounts, but remember everyone in the household must be nonsmokers. Some health insurance policies will cover the cost of quitting; some HMOs even offer a cash bonus if you quit!

* Home improvements. If you replace the old electrical wiring in your home or overhaul the plumbing, you may be entitled to a discount because your house has become more fireproof. But if you add a new room, you may have to boost your coverage because that will increase the replacement cost of the entire house.

* Age has its privileges. Some companies provide discounts to people who are over 55 years old and retired. Their reason is that retired people stay in their houses more than working people and can thus spot fires more quickly.

The Insurance Contract in Plain English

2009-01-15T23:52:00.000+08:00

An insurance policy is a legal contract, and every contract contains four basic components:

1. One person (or party, in legal parlance) must make an offer, and the other must accept it.

2. Both parties must be of legal signing age and mentally competent.

3. The subject matter or activity covered in the contract must be legal.

4. Each party must assume some obligation toward the other or give something of value like money or a promise to the other.

So how does this work with an insurance contract? The insurance company makes an offer to provide auto insurance, for instance to you. Let's say you sign the insurance policy. Now, assuming you are old enough and not insane, you must follow the rules and procedures in the policy. You must also pay the company some money a premium for the insurance. In return, the company must pay you for certain costs if you have an auto accident and if those costs were spelled out in the contract.

Title Insurance

2009-01-15T00:52:00.000+08:00

The bank requires that you buy title insurance when you borrow money from the bank to buy a piece of property The title insurance makes sure that whoever sells you the property has the legal right to do so. The bank wants to protect its equity in the poverty while you are paying down the mortgage.

Thus, when you close on a house typically must buy title insurance from a title insurance company for about for every $1,000 of coverage. The minimum the bank requires is equal to the amount of equity the bank has in your property. That covers bank's risk.

But what about your financial risk, which is equal to the equity you have in the property? For this you can purchase owner's title insurance for about $3.50 per $1,000 of coverage. If a flaw in the title comes to light some 20 years after you've bought your home. the title insurance company forks over the money, even if the value of your property has risen ten times.

Since you only buy this insurance one time when you purchase your propertyit can be very good deal for a lot of protection over a lot of years. On a $120,000 home, you would spend $420 only once for private title insurance that covers your spouse as long as you own it.

Stock VS Mutual Insurance Companies

2009-01-14T23:24:00.001+08:00

Insurance sales people love to tell you why the insurance companies they represent are the best. Some agents will extol the virtues of being a publicly-held-a.k.a. stock-company. Others will tell you how lucky you will be to have your insurance with a mutual insurance company.

The reality is that the financial health of the company and its operating record in the state where you live are far more important guideposts than whether it's a stock or mutual company. There are small nuances, though. Here are the differences.

* Stock insurance firms. These companies are owned by one or more investors. When the company makes money, the investors may receive a portion of the profits in the form of a dividend. The company's stock may be traded on a stock exchange. As a policyholder, you do not get to share in the profits.

* Mutual insurance companies. These companies are owned by the policyholders. Thus, when you purchase auto insurance from a mutual company, you become a shareholder of that company. You get to share the profits when there are profits.

Most insurance companies are stock firms. Examples are: Allstate, CNA, and Zurich American.

4 Top Tips For Getting A Great Auto Insurance Deal

2008-12-20T23:39:00.003+08:00

Auto insurance advertisements are everywhere, from the pages of the daily newspaper, to television and radio commercials. They each promise low rates, quick claims handling and personalized attention. But, how do you know that you are really getting the best deal? What does a smart driver need to know in order to find the best car insurance for their needs?

1. Consider Your Coverage Needs

Before diving headfirst into the murky waters of the auto insurance companies, you need to have a basic idea of the coverage you are looking for. At the very least, you need to be aware of the minimum limits each state imposes for various coverage options. For instance, liability insurance, which covers damage when you are at fault, is mandatory in almost every state. PIP or MedPay, which pays a percentage of your medical expenses and lost wages, is another coverage option that is required by most states. Also, keep in mind that if you are leasing or financing your car, comprehensive and collision coverage are mandatory.

Comprehensive coverage reimburses you for any damages other than those sustained by hitting another car (ex. theft and fire). Collision coverage protects you against any damages done as a result of impact from another vehicle, a curb, a telephone pole or any other object. If your car is old and/or already paid for, you can save a substantial amount of money by electing not to carry collision and comprehensive coverage. Just be sure to understand that if you are involved in an accident, these non-covered expenses will have to be paid for out of your own pocket.

2. Consider Your Driving Record

Do you have a history of fender-benders? If so, you may be better off getting more comprehensive coverage. Have you accumulated a heap of speeding tickets? Consider taking a defensive driving course. Remember that when you apply for car insurance, the company will contact the DMV for a copy of your driving record. Generally, car insurance companies look at the past 3-5 years of your driving history and base your premium on any previous accidents and infractions that occurred.

3. Start Shopping

After you have considered what kind of coverage you need and taken a look at your driving history, you can begin getting rate quotes. You can do this in person, on the phone or on the internet Be sure you are prepared with all the necessary paperwork. This includes your license, current insurance policy, your automobile’s VIN, and registration. The idea is to get as many quotes as possible, so you can compare the coverage and rates side-by-side. Many websites will offer you their rates along with the rates of their competitors, which can save you time. Be sure to keep a detailed list of each company and their coverage limits, deductibles and rates. Print out a copy of quotes you get online and ask for a faxed/emailed/mailed copy of quotes you are given over the phone or in person.

4. Making Your Decision

After you’ve done all the necessary research, it’s time to choose a company. While it may seem tempting, going with the cheapest is not automatically the best way to go. You should be certain the coverage you choose is adequate for your needs and the level of service is decent and reliable. When it comes down to it, getting the best deal in auto insurance has little to do with catchy jingles or funny commercials and everything to do with being a smart consumer. By taking a little time to do some research, you can save yourself hundreds of dollars a year and still maintain the level of coverage you need

Comparison Shop for the Best Supplementary Travel Insurance

2008-12-19T23:29:00.000+08:00

Illness can strike and accidents can happen, even during a very short business trip or recreational getaway. While your health card entitles you to certain out-of-country emergency health care services, the coverage is limited.

It’s important therefore, to consider supplementary travel insurance. However, if you decide to buy supplementary travel insurance, make sure the policy meets your needs. To determine the coverage that suits you best, here’s a snapshot of the information to consider when comparison shopping:

Policies can vary greatly from company to company and from year to year. Your health, age, the medication you take, the destination and the length of your trip, are all factors that affect the price and the type of costs it will cover. If you’re 70 years of age or older, for example, or have any high-risk health problems, you may have to find an insurance company willing to write a travel medical insurance policy tailored to your situation.
Read each policy you are offered carefully. You’ll find that different insurance companies have different clauses for pre-existing conditions, medical exclusions, exemptions, and non-emergencies. Make sure you understand the terms and definitions of each one. Ask questions if you’re not sure exactly what a term means, how it applies to your medical history, or how it affects the coverage offered to you.
Do not make a choice based solely on the policy price. A low-cost policy may be less of a bargain, for example, if it limits the coverage of a medical emergency to just $25,000.

And don’t forget:

Take your travel medical policy with you when you travelling.
Keep your insurance company’s phone number and your health card with you.

Insurance Products to Consider when Away from Home

2008-12-18T23:19:00.001+08:00

It’s important for all the vacationers, business travelers, cottagers, and snowbirds, to consider the following insurance tips before travelling:

Travel Medical Insurance

Covers you for emergency hospital and medical expenses when out of the province. If an insurance company agrees to cover you for pre-existing conditions, you should get its agreement in writing.

Home Insurance

Check your home insurance policy for the expiration date and for other "away" requirements. Many policies will cancel coverage if your property is left unoccupied or unattended for extended periods of time.
Check coverage limits on valuables. Some policies contain limitations for loss or damage to these items if you are away for an extended period, or if you are taking the valuables with you.
If you’re travelling in the winter, make sure you drain your home’s plumbing before you leave or arrange to have your home inspected on a daily basis by a competent individual to ensure that heat is maintained. Insurance companies won't cover damage that arises from the freezing of indoor plumbing.
In the winter, arrange for someone to clear snow from your roof. Some home insurance policies do not cover roof collapse due to excess snow.

Automobile Insurance

Check the effective dates of your driver's licence and validation sticker to make sure they don't expire while you're away.
If you plan to rent an automobile, check with your insurance company, broker or agent to determine whether you'll need the supplementary insurance coverage offered by rental companies.
If you plan to take your own automobile and will be out of the country for more than 30 days, be sure to advise your insurance company, broker or agent. Also make sure you have the proper coverage and meet driver’s licence requirements for the jurisdiction in which you'll be travelling.
If you are leaving your vehicle at home and it won't be used by anyone, save money by suspending certain coverages from the policy, such as collision. Be sure to add the coverages back once you return.

You can save some money with these auto insurance tips

2008-12-17T23:14:00.002+08:00

With gas prices fluctuating almost daily, it’s hard to budget how much it will cost you to fuel your vehicle. But there are tips you can follow to maintain or even lower your auto insurance premium. And any time you can save money today, it’s a plus for your family.

The following are examples of money-saving ideas:

Maintain a good driving record. Companies charge safe drivers (those free of at-fault accidents or violations) lower premiums for automobile insurance.
Shop around. Compare prices for identical coverages and coverage periods. If you don’t understand the language regarding the coverage, check out our auto insurance publication for definitions and examples.
Consider raising your deductible on comprehensive and collision coverage. Review your current deductibles to see if you can absorb a larger portion of a loss in the event of an accident or damage-related event. If you have a financial lien on the vehicle, you should check with the lienholder before pursuing this.
Consider the cost of insurance before buying a vehicle. With a movement toward smaller, more fuel-efficient vehicles, you would be wise to get a quote from your local agent before deciding which vehicle to buy. Some smaller vehicles might cost more to repair or offer occupants less protection from accidents, which could make their premiums higher than you might expect.
Ask about discounts. Ask your agent or company if you are eligible for discounts such as having two or more cars on a policy; driver education course credit; mature or good driver credit; airbags, anti-lock theft or other safety-equipment features; or having other insurance policies with the same company.

Choosing Motor Insurance Types

2008-12-16T03:53:00.000+08:00

If you drive your vehicle on the road, or leave it parked in the street, the law says that you must have motor insurance. It is a criminal offence not to insure your motor vehicle.

Before you buy motor insurance, decide who will be driving your car, and how much cover you would like. There are three main types of motor insurance:

Third party insurance
This is the minimum amount of insurance cover that you must have by law for your vehicle. Third party insurance only covers you for damage to someone else's vehicle or property, or injury to someone else in an accident which involves your car. This includes accidents caused by your passenger. If your vehicle is damaged in the accident you will have to pay for the repairs yourself.

Third party, fire and theft insurance
This includes third party cover and, additionally, damage to or loss of your car by fire or theft.

Comprehensive insurance
This includes third party, fire and theft insurance. In addition, it will also pay for repairs to your car. There is a range of extra cover that some policies provide, including:

cover for your own death or injury, or that of your partner or other member of your family, up to a limited amount
cover for your personal belongings if they are stolen from your vehicle or damaged
cover for your medical and legal expenses
hiring a replacement vehicle.

The cost of an insurance policy is called a 'premium'. Ask for quotes from several insurers to help you to get the best deal for your circumstances. You will need to compare:

what each policy covers, and any exclusions (risks which are specifically excluded, for example, allowing drivers under 21 to drive your car)
the amount of any excess. This is the first amount of any claim, for example the first £50, that you will have to pay yourself. Some policies allow you to pay a higher excess in return for a cheaper premium. Most young drivers (under 21 or 25 depending on the policy), and inexperienced drivers are expected to pay a compulsory excess which is higher than usual
discounts offered, for example a 10% discount for older drivers
the no claims bonus which increases for every year that no claims are made on your policy, up to a maximum amount. Most insurers will let you transfer the discount, if you want to change your insurer. You will also need to compare the amount by which your no claims bonus would be reduced if you made a claim
any policy restrictions, for example, only named drivers are covered.

Things to Remember for Motor Insurance

2008-12-15T04:18:00.000+08:00

you must give your insurer or the person who sells you the insurance as much information as you can about yourself and your vehicle. You must, for example, tell your insurer or the person who sells you the insurance about any driving convictions, any medical condition which could affect your driving ability, or any motoring accidents, even if you have not claimed on your insurance as a result. The information you give will affect the level of your premium, and whether your insurer will pay out on any claim
if you want to include anyone else on your insurance, you must give details about them to your insurer, or the person who sells you the insurance
you must tell your insurer, in writing, about any change in your circumstances, for example a change of occupation. You should tell them as soon as the change occurs, and not wait until it's time to renew your policy
if you take out an insurance policy in your name, you should be the person who drives the vehicle most. If you take out motor insurance in someone else's name because it's cheaper, and they are not the main driver, the insurer can refuse to pay out on a claim
if the vehicle has been bought on credit, the finance company will usually insist that it is insured in the name of the person who has taken out the credit agreement.
Motor insurance policies normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most insurers do send out reminders
When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or full insurance certificate, so do not rely only on a telephone conversation where someone has told you that you are covered
The police can ask you to show them your insurance certificate or cover note. If you can't produce the right document, they will give you seven days to do so at a police station of your choice. If you are stopped under the 'fixed penalty system', they can specify the station. If you can't produce a document within seven days, the police can seize your vehicle and sell it (although you can claim back the proceeds of the sale)
You can cancel an insurance policy if you sell your vehicle, if it is stolen, or if it is written off. You should check your policy to see if you have a right to a refund of your premium.

Choosing Travel Insurance

2008-12-14T03:10:00.001+08:00

There are a variety of types of travel insurance, including trip cancellation, trip interruption, emergency evacuation, accidental death and dismemberment and loss or damage to baggage and personal effects. Millions of dollars are wasted each year by travelers who purchase unnecessary travel insurance or travel assistance policies. Although these products may be valuable to some travelers in limited circumstances, you should check the terms and exclusions of any travel insurance or travel assistance policies carefully before purchasing them.

Buy Only the Insurance You Need

Frequently, several types of insurance are ''bundled" together and sold as comprehensive travel insurance. If, after reviewing this chapter and comparison shopping among several travel insurance policies, you decide to buy some type of travel insurance coverage, make sure you purchase only what you need.

Existing Insurance Coverage

The first question to ask yourself when determining what type of travel insurance you need is: "What kind of coverage do I already have?" In particular, consider the following:

Your homeowner's or renter's insurance policies may provide liability or baggage and personal property protection while you are traveling.
Your health insurance policy probably provides at least some coverage while you are traveling, but you need to check the specific limitations and exclusions of your policy.
Your life insurance policy may cover accidental death or injury.
Your automobile insurance policy may cover you while you are using a rental car.
Your credit card may offer some protection, including loss damage waiver when you rent a car, or coverage if you want to cancel or change a flight.

Primary Versus Excess Coverage

Many travel insurance policies provide what is known as "excess" or "secondary" coverage. This means that if any other coverage can be applied to the loss first (such as homeowner's insurance if your personal property is stolen), then the travel insurance will provide coverage only for amounts not paid by the primary insurance, such as deductibles. Some travel insurance policies offer primary coverage, which is most useful when your own coverage is insufficient or has a very high deductible. The premiums you pay for primary coverage are generally higher than for excess coverage.

Beware of the Exclusions

The biggest drawback of travel insurance is that most policies contain a number of exclusionsand travelers often don't learn about the exclusions until they try to use the coverage. Whenever you review a travel insurance policy, check the exclusions and definitions carefully to determine how much protection the policy really offers.

Be Aware of False Advertising Scams

2008-12-12T23:26:00.001+08:00

An increasingly common scam involves the sale of “cheap” auto insurance to unsuspecting consumers, tricking them into coverage that’s invalid, or doesn’t exist. Here’s an example of a common scam scenario:

Crooks advertise the sale of cheap auto insurance in newspapers or flyers. The advertisements may even resemble those of a legitimate insurance company or individual licensed to sell auto insurance. Typically, these advertisements claim they can find you auto insurance coverage at rates lower than what you have been paying or quoted in the past. Some advertisements do not identify the name of the insurance company, insurance agent or broker. Where a name is provided, it is often being used fraudulently, or it is phoney. Con artists commonly advertise the sale of cheap auto insurance along with other businesses.

Here are a few easy ways to protect yourself:

Be suspicious if you are asked to pay a referral fee. Licensed insurance agents and brokers do not charge you fees.
Do not pay the insurance premium through a transfer or money wiring service. This is not a practice in the insurance industry.
If an insurance agent or broker completes the insurance application form on your behalf, check it for accuracy. By signing the application, you are agreeing to the statements made to the insurance company.
If you suspect fraudulent activity, contact the police.

My Auto Insurance Rates Keep Going Up. How Can I cut some of the cost?

2008-12-12T03:32:00.000+08:00

Here are a few suggestions for ways to reduce your premiums:
• Shop around for insurance. Just because your current company once offered you the best deal doesn’t mean it’s still competitive.
• Increase your deductibles.
• Reduce your collision or comprehensive coverage on older cars.
• Find out what discounts are available from your company (or from a different company).Discounts are often given to people who:

use public transit or carpool to work
take a class in defensive driving (especially if you are older)
own a car with safety features such as airbags or antilock brakes
install antitheft devices
are students with good academic records
have no accidents or moving violations, or
have multiple insurance policies with the same company—such as automobile and homeowner’s insurance.

• Find out which vehicles cost more to insure. If you’re looking to buy a new car, call your insurance agent and find out which cars are expensive to repair, targeted by thieves, or involved in a higher rate of accidents. These vehicles all have higher insurance rates.
• Consolidate your policies. Most of the time you will pay less if all owners or drivers who live in the same household are on one policy or at least are insured with the samecompany.

How Can Insurance Help Protect a Rental Property Business?

2008-12-11T03:25:00.000+08:00

A well-designed insurance policy can protect rental property from losses caused by many perils, including fire, storms, burglary, and vandalism. (Earthquake and flood insurance are typically separate and, in some areas, coverage for mold claims may not even be available.) A comprehensive policy will also include liability insurance, covering injuries or losses suffered by
others as the result of defective conditions on the property.

Equally important, liability insurance covers the cost (including lawyer’s bills) of defending personal injury lawsuits. Here are some tips on choosing insurance:

Purchase enough coverage to protect the value of the property and assets.
Be sure the policy covers not only physical injury but also libel, slander, discrimination, unlawful and retaliatory eviction, and invasion of privacy suffered by tenants and guests.
Carry liability insurance on all vehicles used for business purposes, including the manager’s car or truck.
Make sure your policy is “occurrence based,” not “claims based.” Here’s the difference: a claims-based policy must be in effect on the date you make the claim—even if it was in place when the incident leading to the claim occurred. Under an occurrence-based arrangement, you can make the claim after the policy has ended, as long as the claim arose while the policy was in effect—which is obviously to your advantage.

When should I Start Looking for Homeowners Insurance?

2008-12-10T03:20:00.000+08:00

A house may be the biggest investment you make in your life, so you’ll want to fully insure it against damage (by fire, wind, vandalism, earthquakes, floods, and mold, for example). A comprehensive homeowners’ insurance policy should cover the replacement value of your house and other structures, and partial replacement of valuable items of personal property like art and
computers.

But beware: So-called “replacement cost coverage” for your house pays you only a preset amount, so you’ll want to make sure that’s enough to cover your actual rebuilding costs. You’ll probably want some liability coverage as well, in case visitors to your property slip and fall or are otherwise injured.

Start shopping for homeowners’ insurance soon after your purchase agreement has been signed. Don’t make the mistake of putting this off until escrow is about to close—finding a good policy at a reasonable price is getting harder and harder, due to recent losses and clampdowns in the insurance industry.

The problem is particularly acute in states such as California and Texas, where expensive mold claims have pushed the industry into a state of panic. Homebuyers who have filed past claims for water damage (a precursor to mold) or who are buying a house with a history of mold problems may find themselves unable to get any insurance at all. Homebuyers with a history of making frequent claims on their insurance policies have similar problems. Some homebuyers now add a contingency to their purchase contract stating that the deal can be cancelled if they can’t find adequate insurance.

Shop carefully—and if you’re in a state with a troubled insurance industry, buy a policy with a
high deductible. This will lower your premium cost and prevent you from racking up a history
of claims that could endanger your ability to renew your policy or get future insurance.

Shopping for Car Insurance Estimate

2008-12-09T03:07:00.001+08:00

Shopping around for a car insurance estimate is not something most people look forward to. It is one of the least exciting chores that is required in order to have a car on the road, but it is worth seeking out the most competitive car insurance estimate available. Although getting a car insurance estimate from a number of companies isn’t a desirable task; many people spend far more than they absolutely have to each year on their auto insurance because they simply haven’t taken the time to compare rates and policies with other auto insurance companies. It would be hard to find someone who would walk into an appliance store and decide to spend $200.00 more on a washer that offers the same exact quality and features as the one next to it that costs far less. It doesn’t make too much sense to do the same thing with car insurance.

Most of the time, a car insurance estimate will include collision, liability and comprehensive coverage on a vehicle. Most households have two or more vehicles and every car should be included when seeking out a car insurance estimate. There are a few things that can be done to make getting a car insurance estimate easier and more accurate especially when dealing with more than one car insurance company.

One of the best things to do before looking for a car insurance estimate is to see exactly what the state requirements are as far as what the necessary minimum coverage is in order to have adequate coverage. This is something that might be better to do without the assistance of an insurance agency if possible because their job is to sell insurance and they make more money with the more coverage they are able to sell.

In order to spend less time on the phone when looking for a car insurance estimate, it is a good idea to have a number of items handy including a driver’s license, vehicle identification numbers, make, model and year of each car and even the name and contact information for the company that is financing all vehicles if applicable. There are also a number of factors that can be taken into consideration when seeking a car insurance estimate that may mean additional savings per year. Features on each auto including airbags, auto alarms, anti-lock brakes and other things may mean discounts on auto insurance. Some insurance companies will even offer discounts for having more than one policy with their company as well as insuring multiple cars through with their coverage. Additional discounts may be found through other things like accident-free driving record, defensive driving course incentives and other discounts.

Other circumstances may cost a driver more with certain companies when looking for a car insurance estimate. Men under the age of 25, single drivers, younger drivers under the age of 21, the number of miles driven per day and even the kind of car that is driven can cost a person more money on car insurance when shopping around. The best part about this is that not one car insurance will probably charge the same amount of money for the same coverage so shopping around will prove that there are better choices available.

Get Auto Insurance Rate Quotes

2008-12-08T03:05:00.000+08:00

Auto Insurance rates will vary depending on the insurance agency, your driving record, and the type of insurance you are looking to purchase. I you are looking for affordable car insurance or truck insurance then read on.

There are ways to reduce your premiums without giving up coverage. One of the easiest things to do is get auto insurance rate quotes online. This will allow you to comparative shop stress free.

Raising your deductibles is the easiest way to reduce your rates. The higher the deductible, the lower the premium will be. The deductible is the portion you will have to pay in the event of accident, before your insurance coverage steps in. It’s important not to carry a deductible that’s more than what you are able to pay. Your insurance company will not honor its portion of the claim until you’ve paid your deductible. However, the higher your deductible the lower your premium cost will be, so you need to find a

Always remember to ask your insurance broker for any available discounts. Quite often we forget to ask and they don’t seem to volunteer the information. A clean record on the current policy for a certain period of time, having your homeowner's coverage with the same insurer, taking a defensive driving course, having an accident free driving record, and having an approved anti-theft device will reduce your auto insurance rates.

The type of car you drive can also reduce your rates. Stay away from cars that have a high class rating. Rates vary among the different makes and models of vehicles. The different rates are based on the risk of accident, cost to repair, higher theft rates for a particular model and replacement costs such as with a new vehicle. So be sure your vehicle isn’t going to be in a category that increases your rates too much.

A safe driving record consisting of no accidents and no traffic violations will get you the most substantial discount. Most insurance companies are very good at recognizing good driving habits. These are the drivers they want to insure because their risk is much lower.

If the car is old and not very valuable, comprehensive insurance is probably not worth buying as it can quickly add up to more than you’d ever receive in the event of an accident. You can save up to 20% by eliminating collision insurance. You may want to opt not to carry collision insurance as well which can save you and additional 20%.

Check around to make sure you are getting the best auto rates you can. Online auto insurance shopping has taken the guess work out of buying insurance and you can very quickly see if you are being hosed. So if your insurance is coming due now is the time to start shopping!.

Tips for Saving Money on Car Insurance

2008-12-07T03:03:00.000+08:00

Car insurance is required by all licensed drivers but many of them don’t know how to find the best rates available. Being complacent and purchasing car insurance without carefully investigating your options or maintaining the same car insurance for the remainder of your life could mean that you are paying too much for your car insurance. Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record are just a few of the money saving tips that can save you a fortune on car insurance.

Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.

Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.

These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.

Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.

Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.

Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.

How Can You Lower Your Car Insurance Premiums?

2008-12-06T03:01:00.000+08:00

Many factors influence the premium for your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. Below we discuss the key variables that are within the policyholder's control.

Consolidating policies

By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a ‘bulk buy’ discount.

Location

A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.

Excess

By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to offer you a lower premium.

Your Vehicle

The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance – you may be able to buy the car but can you afford to run it?

Mileage

You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you'll then become uninsured!

Parking

Where you park your vehicle overnight is also very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you leave it unattended in the street.

Security

Security devices that prevent or hinder theft may also reduce your premium. Common examples include alarms and immobilisers, however, be aware that as we improve the quality of our security devices the thieves just become better at bypassing them.

No Claims Discount

Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you'll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very helpful if you subsequently end up having an accident.

Advanced driving skills

By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer membership which provides you with discounts for both the cost of driving courses and your car insurance premiums. Two key variables NOT within the policyholder's control.

Your Sex.

Women are statistically less likely to have an accident and, if they do, it's less likely to be serious. Because of these statistics women benefit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the second driver.

Your Age

The older you are, the less likely you are to make a claim. As a result insurance companies charge lower premiums for more mature drivers.

One final piece of advice.

A large percentage of car insurance is now sold on the Internet. That's because it's convenient and cheap. Many insurers now give a further 10%-15% discount if you buy online.

Why Americans Spend So Much on Healthcare

2008-11-30T03:26:00.001+08:00

The United States spends far more per person on healthcare than any other country—about twice as much as other developed nations. Yet people in the United States don’t appear to be getting their money’s worth.

The United States lags far behind other developed countries on almost every important medical statistic—life expectancy, infant mortality, cancer, diabetes, heart disease, and so forth.
So, what is the problem with American healthcare?

Is it our inefficient medical bureaucracy, where 2 to 3 million Americans are employed by medical providers and insurance carriers—not to deliver healthcare, but merely to pass the buck for that care to someone else?

Is it the cost of medical malpractice insurance, which adds more than $27 billion a year to the cost of providing healthcare—enough to pay annually a high-deductible insurance premium for more than half of the 45 million Americans without health insurance?

Is it our employer-based system, whereby the ultimate providers of healthcare for most people (employers) have little incentive to spend even $1 today on wellness and preventive care in order to save $100 tomorrow—because the odds are that the employee will be long gone or receiving Medicare by the time serious diseases like cancer and heart disease develop?

The partial answer is yes to all of these questions, but the main reason Americans spend two times what they should on healthcare is not because of something wrong with American healthcare.

Today, more than 61 percent of Americans are overweight or medically obese—a figure that has doubled since the 1980s. Being overweight is just one of the symptoms of having a terrible diet—most Americans are also deficient in the basic vitamins and minerals necessary to keep their minds sharp and avoid major diseases like cancer.

If you are overweight or obese, please get immediate help in changing your lifestyle. Already, 59 million Americans have diabetes or prediabetes, mostly due to being overweight—if you are one of them, you have a 65 percent chance of dying from heart disease or stroke. Moreover, before
you die, if you are obese, you will likely consume much of your estate in medical expenses and will needlessly and selfishly be torturing those you love the most.

Ways to Reduce Your Pharmacy Bill

2008-11-29T03:20:00.001+08:00

There are plenty of ways you can reduce your pharmacy bill. The Cost Containment Research Institute (www.institutedc.org) has compiled a list of 17. Here are a few ideas for you to consider:

Shop around by phone. Make a list of your medications, including strength and number taken daily, and call at least six pharmacies to compare prices, keeping in mind whether the pharmacies are on your plan.
Use a pill splitter (but do your research first). Many drugs are cheaper if you buy them in larger doses, then cut them in half. Ask your pharmacist or doctor first, though, since many drugs cannot be split without reducing their effectiveness. Most pharmacists say you should split only pills that are scored (i.e., those with a predesigned breakoff line). However, Toby Rogers from Rxaminer says, “We split a lot of pills that aren’t scored; you should be able to split pills that aren’t a ‘long acting’ type or encapsulated.”
Save by buying a 90- versus a 30-day supply. Most pharmacies offer higher savings if you buy a larger supply. In addition, people with insurance prescription coverage may save even more by getting a larger-day supply.
Over-the-counter drugs may be as effective as the prescription drugs. Most prescription cold medications average $20 to $60 for a onemonth supply and contain the same decongestant that is available over the counter for less than $2. Some doctors still prescribe 20-milligram Pepcid to their patients, which can cost $60 for a onemonth supply. Pepcid AC comes over the counter in 10-milligram strength; taking double the dose costs approximately $23.
Stop using drugs you no longer need. You should review all your prescriptions with your doctor at each visit. You may be taking drugs you no longer need. Also, report any side effects and ask questions about possible drug interactions. Don’t hesitate to ask your pharmacist questions; it’s free and can often save you money.
Take only those drugs you really need. When your doctor prescribes medication for you, make sure you understand exactly what it’s meant to do and for how long. If you are prescribed two drugs for the same symptom, ask whether you really need both; if you develop new symptoms ask your doctor if the prescribed medicine could be causing it.
You may qualify for a free drug program. There are over 1,100 drugs that are made by 100 manufacturers that have free drug programs. Most major drug companies provide free medications but rarely, if ever, publicize their programs. An estimated $2 billion worth of free medication is given away annually. You can get a complete list of drugs and manufacturers’ programs at www.institutedc.org.
Veterans have their own drug benefits. Recent laws grant veterans medical benefits for certain illnesses, like diabetes and hypertension, provided the veteran is subject to qualifying conditions such as Agent Orange exposure. Check with the Veteran’s Administration to see whether you qualify for benefits.
Buy home test kits. Kits for determining ovulation, pregnancy, and colorectal cancer can be purchased as home tests at half the price of similar kits from your doctor’s office.
Look for special deals by local governments. You can save on prescription drugs through special deals offered by state and local governments and even religious organizations. The states of Illinois, Kansas, Missouri, Vermont, and Wisconsin have initiated a web site where residents can buy 100 commonly used drugs from Canada, Britain, and Ireland at a discount of anywhere from 25 to 50 percent. The address for the site is www.i-saverx.net.

Tips for Shopping Overseas Pharmacies in US

2008-11-28T03:14:00.002+08:00

PharmacyChecker.com is one of the best web sites for checking out prices from quality pharmacies overseas, as well as the quality of an individual pharmacy itself. Tod Cooperman, M.D., who founded PharmacyChecker.com, has the following tips for shopping overseas for
prescription drugs:

Shop from Canada. As long as the pharmacy is licensed in Canada, there should be no concerns about the quality of the drugs. They are as good as what you would purchase from a U.S. pharmacy, and in fact many are manufactured here.
Look beyond Canada. High-quality prescription drugs are also available from Australia, the EU countries, Israel, and New Zealand. These countries have drug regulations equal to or better than those in the United States.
Use Pharmacychecker.com to monitor the quality of foreign pharmacies. The site is free to explore and paid memberships are available for more in-depth information. The web site does not accept funding from pharmaceutical companies, but pharmacies do pay to be rated voluntarily. Pharmacychecker.com does not receive any money on sales.
Be secure. Read the fine print on any web site before you enter your confidential information—the general rules for privacy in the United States do not apply to overseas pharmacies.
Avoid buying drugs advertised in spam e-mails and pop-up ads. Cooperman says these companies are impossible to trace.
Don’t expect to save on generic drugs from other countries. Generic drugs are actually cheaper in the United States than in Canada, since Canada sets its prices on generics from a two-competitor system, whereas the United States has a free-market system with as many as 12 companies selling generics.
Watch for counterfeit drugs. If you’re dealing with a reputable pharmacy, counterfeits should not be a problem. However, examine your pills when they first arrive to see whether they look different from those you normally get. If they crumble or if the consistency seems different, take it as a warning.
Remember to calculate shipping costs. To save on shipping, buy larger quantities, such as a 90- versus a 30-day supply, if you expect to be on the drug for at least that long

How You Can Finance Your Long-Term Care

2008-11-27T03:11:00.003+08:00

There are four basic ways to finance your long-term care:

Family support and caregiving. This is the way long-term care has been provided for generations. While all of us like the idea of taking care of our parents as they age or being taken care of by our children, this is simply not a viable option for most Americans today
who have jobs and/or children of their own.
Personal savings. This is not a viable option for most people because they do not have millions of dollars available, nor do they know how much long-term care they will need. It is also selfish if your estate will be needed to support your spouse or children after you are gone.
Home equity options. This is an increasingly popular method, particularly with the advent of reverse mortgages, but it has the same limitations as personal savings. In addition, most people would prefer to live out their later years in a place other than a full-size home (e.g., in a retirement community).
Private long-term-care insurance. This is my favorite choice for financing long-term care. Insurance is the ideal method to finance unknown risks that can be predicted in the aggregate using actuarial information.

Some Factors to Consider when Purchasing a Disability Insurance

2008-11-26T03:02:00.001+08:00

Here are some factors to consider when purchasing a disability insurance policy, either through your employer or by yourself.

“Own occupation” or “any occupation” What is the definition of disability in your policy? Does it mean being able to work in the occupation in which you were engaged when you became disabled, or in any occupation? For example, if you are a surgeon who injures your
hand and can no longer work as a surgeon, perhaps you could work as a teacher. The tighter the definition of disability, the higher the monthly premium.
Guaranteed renewable and noncancelable. Look specifically for these two clauses in any individual policy, and don’t expect any guarantees past your plan year from an employer-sponsored group policy.
Tax-deductible premium or tax-free benefits. In general, if your premium is paid by your employer or yourself (with an FSA, discussed later in the chapter) with pretax dollars, disability benefits are taxed as income when you receive them. If your premium is paid with after-tax dollars, benefits are not taxed when you receive them. The conventional advice in the insurance industry is to pay your premium yourself or with an after-tax payroll deduction so disability benefits are not taxable income when you receive them, as that is when you will need the extra income the most.
Elimination period. This is the amount of time you must be disabled before benefits begin, typically 90 to 180 days, which is often covered by a short-term-disability policy. Some states have mandated state short-term-disability coverage, so check before you buy any—residents of California, Hawaii, New Jersey, New York, and Rhode Island are guaranteed their full after-tax salary (up to a reasonable maximum) for 6 weeks if they become disabled, then 50 to 60 percent for 20 more weeks.
Supplemental or overlapping coverage. Some policies guarantee you a fixed benefit, say $5,000 a month, reduced by any benefits you received from government entities like Social Security. This is usually a good option to lower your current premium, since it shifts the risk of ever obtaining government benefits onto your private disability carrier. Do not depend on Social Security or any governmentmandated disability benefits when you calculate your disability requirements.
Premium waiver, partial disability, and so on. Premium waiver specifies that your premiums will be automatically paid when you are receiving benefits. Partial disability specifies your benefits in case of only partial disability. These and other terms should be reviewed with your benefits administrator or an insurance agent licensed to sell disability
insurance.

8 Things to Look for an Agent of Individual Health Insurance

2008-11-25T01:27:00.001+08:00

Here are eight things to look for when picking an agent or agency to represent you or your employees in purchasing an individual/family health insurance policy:

Shopping. If you like to shop online, the agent should have an online web site where you enter your family information to get instant online price quotes on different policies offered by different carriers. This allows you to shop at your leisure until you are ready to make a decision. A good online insurance web site will not ask for your name or contact information until you have seen quotes and are ready to choose a policy.
Appointments. Agents you contact should be appointed to sell health insurance from several or most of the major health insurance carriers in your state—and they or someone at their agency should have a professional relationship with the underwriters at each carrier.
Knowledge. The agent should know and be able to clearly explain all of the information contained in this chapter.
Selecting a carrier. Should you or a family member have or have had a health issue, the agent should know which carriers in your state may have a bias against certain preexisting conditions. Once a carrier is selected, the agent should be able to contact the carrier without mentioning your name and ask the underwriters whether your medical issue raises any red flags.
Access. You should be able to speak to the agent or a licensed associate on the telephone or via e-mail at your convenience, or to visit that individual in person. Your health information is personal and confidential, and you should feel secure when sharing it with
someone.
Monitoring. The agent or agency should have a process in place to monitor your application once submitted and, after consulting with you, be able to withdraw your application or amend it before it gets formally rejected, uprated, or approved with an exclusionary rider.
Negotiation. The agent should have a personal style and communication ability that makes you feel comfortable—as he or she will be the one representing you to the underwriter if you have an issue with your application.
Volume. The agent or agency should be a significant producer of policies for the carrier selected. This will enable that person to better negotiate on your behalf during the underwriting process and to help you solve issues with the carrier at a future date.