The top 10 car insurance tips for young drivers can take the mystery out of the entire process of buying car insurance for the first time. There are so many companies and variable that can affect the outcome. If a young inexperienced driver were to ask you about buying car insurance, what advice would you give? Now you can point them to the top 10 car insurance tips for young drivers...by the way, most are good tips for any aged driver! 1. Ask your friends and neighbors, those who seem wise, what insurance companies they go with and why. Insurance companies rate each location differently, so it helps to talk to people right in your area. 2. Get as many quotes as you can - the algorithms the insurance companies use to set prices differ from company to company for all drivers, but are most variable for young drivers. 3. See if they offer driver discounts for good grades or drivers' education, or other similar course completion. Also inquire about savings from bundling your car insurance with your parents' vehicle and homeowners" insurance policies. 4. Don't just accept the first quote that a company offers you. 5. Call three or four different agencies and get comparison quotes based on the same coverage. Be sure that each policy has the same deductibles and that they are ones that you are comfortable with. The lower the deductible the higher the premium will be. 6. Check the reputation of both the agent and the company they represent. The policy is no good if they don't cover you when you need them. 7. Be aware that your credit rating and previous accident history will influence the amount of your insurance premium. 8. Make sure you have the coverage you are required by law to have in your state. 9. Get the "full tort" option. Even though it costs more, if you are ever in an accident, it allows you do get much more money in benefits. 10. Ask about payment terms, as some insurance plans will save you a little money if you pay quarterly or every six months or year instead of once a month. Most will also offer a small savings by setting up an automatic payment directly from your checking account. This advice basically boils down to: Be an Informed Consumer. Shop around, ask questions and don"t be intimidated by the process. Once you have settled on an insurance provider don"t fall into the trap of acting like you are married to that provider. Insurance companies have a tendency to start out with low rates, but each policy renewal thereafter results in a subtle raise in your premium. Look for it and don"t settle. Check with at least 2 other companies to see if they will beat your current premium. Just make sure when you do this that the benefits are identical.
Autor: C. L. Hendricks C.L. Hendricks has been a Jill-of-all-trades and become an expert in some. She writes for http://www.invitingsmiles.com and http://www.survival-homestead.com, as well as several other websites on a variety of topics. Source: http://articlebiz.com/article/182079-1-top-10-car-insurance-~
Saturday, July 19, 2008
Top 10 insurance tips
NEW YORK (CNNfn) - Insurance pros recommend giving your coverage a once-over every 12 months. The start of the year makes a good time. Are you paying too much? Or would a disaster wipe you out?Being underinsured could leave you facing huge bills, or unprotected from a nasty lawsuit. Being overinsured means you're throwing money away.
A rare event that would really kill you is the best to insure.
Bob HunterConsumer Federation of America
The best way to shop is to get as comprehensive a policy as possible, insuring against unlikely but costly occurrences, according to Bob Hunter, director of insurance for the watchdog group the Consumer Federation of America."A rare event that would really kill you is the best to insure," he said.Coverage will be cheap, since calling on it would be rare. But it would save you.
AVOIDING CREDIT INSURANCE
Credit insurance mainly ends up protecting the creditor, insurance pros say -- and is very expensive. "A lot of this stuff is totally unnecessary," insurance agent Don Beery said. Get good life insurance instead.
On average, you'll only get back 60 cents to 65 cents of every dollar you spend on insurance, he said. So insuring for every little possibility isn't worth it.And the best way to save money is to shop around. That's really Rule No. 1, Hunter said – and the reason to check your coverage once a year. Prices and the best deals change.
Five ways you may not have enough coverageThe trade association the Independent Insurance Agents of America developed the following checklist to help you consider your coverage.Are you underinsured?1. Do you own a business in your home? An IIAA study found that at least 60 percent of work-at-home entrepreneurs are underinsured. Most thought their homeowner's policy was enough to cover their business. But a typical homeowner's policy only covers up to $250 of computers used off-site and it doesn't cover the cost of lost data. Don Beery, vice president of Eustis Insurance in New Orleans, noted that some companies offer special endorsements for certain types of business, such as dance studios. And he said people who work from home should be able to find a stand-alone home-business policy for around $250 a year, with $20,000 in business protection and $1 million in liability. Business visits aren't normally covered by homeowner's liability – so stand-alone coverage could be valuable if you have a lot of work-related callers.2. Do you have valuables or collectibles? Standard homeowner's policies cover the contents of a home up to half the value of the house, as well as home liability. But most policies have limits on the amount they'll pay out for different categories of goods – $1,000 or $2,000 on jewelry, for instance, or $2,000 on firearms. Those caps tend to be rising, so shop around.The IIAA recommends considering an "endorsement," or add-on rider, to your homeowner's insurance to protect valuables or a collection. An endorsement is normally cheaper than a separate policy. Beery noted that after Christmas, collectors have often added to their holdings and may need to reassess what they are worth3. Are you in a high-income bracket? Richer people have more to lose. They may also have more visitors who could get injured. Insurance pros recommend an "umbrella" policy that can cover you for a serious financial loss of almost any kind. It offers extra coverage beyond your underlying homeowner's or car insurance, which you must get first.A good policy costs as little as $150 per $1 million in liability coverage and would protect you for car- and home-related claims. Some very wealthy people have policies up to $5 million. Hunter at the CFA calls umbrella policies the best kind of coverage to have – low-cost, high protection.4. Do you have replacement-cost coverage? This coverage is more expensive – around 10 to 15 percent more than a conventional "actual cash value" policy. But replacement-cost coverage will pay to replace an item with one of similar quality, even if it has depreciated since you bought it. It's sometimes called "new-for-old" coverage.Actual cash-value policies pay out only the value after it has depreciated. So you can easily make up for the higher cost of the policy by having to replace a few items. Beery, for instance, had a small kitchen fire but his "new-for-old" coverage meant he was covered for new knives and appliances.5. Do you have children in college? Your homeowner's policy covers children staying in dorms, but not if they rent an apartment. The IIAA states 80 percent of college kids don't have insurance to cover property at school.Hunter notes that if they're dependents, children should still be covered at 10 percent of the parents' property insurance, just as with coverage that normally applies for possessions away from home. But that may not be enough to protect expensive computers and the like. "It's less necessary than the other kinds of insurance," Hunter said, but worth thinking about. If your child moves abroad to study, it's worth reviewing health-care coverage, too. The local national health service may cover your kid, but your health care may not. First World countries should be OK, Hunter said. But repatriation policies might be good from a country with poor care.
But maybe you've got it too coveredInsurance companies aren't always as scrupulous as they can be in selling you new policies. So it's worth checking if you're overinsured, too.The IIAA says you might be overinsured if:6. You've bought travel insurance. Any employer-sponsored health insurance plan likely gives you broader health and disability insurance than you'll get buying travel insurance. And your homeowner's policy should cover baggage insurance, under the 10 percent protection for possessions away from home. Most short-term policies are costly and unnecessary, according to the IIAA.7. You buy credit life insurance. This coverage, which kicks in on credit-card debt or furniture debt in case you die, really serves to protect the creditor, not your beneficiary. Hunter at the CFA said mortgage insurance falls in this category too. Insurance pros say you're better off getting a good life insurance policy to cover your estate. "If you're the breadwinner, you need life insurance, because you have a dependent," Hunter said. "You shouldn't buy [insurance] a squeeze at a time, like toothpaste."8. Your deductibles are too low. A $100 or $250 deductible is probably too low. Why not raise the deductible to $1,000, which will likely cut 10 to 20 percent off your cost? "You're really buying insurance to cover major kinds of things that would destroy you financially," Beery said. You could then use the savings to buy an umbrella policy giving you $1 million or more in liability coverage. Or, like Hunter, you could find the difference in cost in raising your premiums, raise them, then set the difference aside in a separate account. You'd "self-insure."9. You have computer insurance. A standard homeowner's policy will cover basic computer equipment at your home, for personal use. A standard policy insuring your home for $100,000 will cover up to $50,000 in personal property, the IIAA said. But a homeowner's policy typically covers business computers up to $2,500. Again, an endorsement is likely a better buy than a separate computer-oriented policy.10. You have policies with numerous companies. Many insurers give discounts for combining family policies or for having your car insurance, homeowner's insurance and any coverage all in one spot. That might get you a 15 percent discount. You may also qualify for a discount for having a good driving record or for installing theft deterrents on your home or car.However, it's not always the case that going with one insurer is cheaper. Hunter pointed out that using an agent isn't always the best deal, either – he recommends getting a quote from an insurer such as Geico or USAA, both of which sell direct to the public, as well as a couple of agencies.Hunter reiterated Insurance Rule No. 1. "The most important thing is shopping," he said. "Some companies are charging double what other companies are charging."
A rare event that would really kill you is the best to insure.
Bob HunterConsumer Federation of America
The best way to shop is to get as comprehensive a policy as possible, insuring against unlikely but costly occurrences, according to Bob Hunter, director of insurance for the watchdog group the Consumer Federation of America."A rare event that would really kill you is the best to insure," he said.Coverage will be cheap, since calling on it would be rare. But it would save you.
AVOIDING CREDIT INSURANCE
Credit insurance mainly ends up protecting the creditor, insurance pros say -- and is very expensive. "A lot of this stuff is totally unnecessary," insurance agent Don Beery said. Get good life insurance instead.
On average, you'll only get back 60 cents to 65 cents of every dollar you spend on insurance, he said. So insuring for every little possibility isn't worth it.And the best way to save money is to shop around. That's really Rule No. 1, Hunter said – and the reason to check your coverage once a year. Prices and the best deals change.
Five ways you may not have enough coverageThe trade association the Independent Insurance Agents of America developed the following checklist to help you consider your coverage.Are you underinsured?1. Do you own a business in your home? An IIAA study found that at least 60 percent of work-at-home entrepreneurs are underinsured. Most thought their homeowner's policy was enough to cover their business. But a typical homeowner's policy only covers up to $250 of computers used off-site and it doesn't cover the cost of lost data. Don Beery, vice president of Eustis Insurance in New Orleans, noted that some companies offer special endorsements for certain types of business, such as dance studios. And he said people who work from home should be able to find a stand-alone home-business policy for around $250 a year, with $20,000 in business protection and $1 million in liability. Business visits aren't normally covered by homeowner's liability – so stand-alone coverage could be valuable if you have a lot of work-related callers.2. Do you have valuables or collectibles? Standard homeowner's policies cover the contents of a home up to half the value of the house, as well as home liability. But most policies have limits on the amount they'll pay out for different categories of goods – $1,000 or $2,000 on jewelry, for instance, or $2,000 on firearms. Those caps tend to be rising, so shop around.The IIAA recommends considering an "endorsement," or add-on rider, to your homeowner's insurance to protect valuables or a collection. An endorsement is normally cheaper than a separate policy. Beery noted that after Christmas, collectors have often added to their holdings and may need to reassess what they are worth3. Are you in a high-income bracket? Richer people have more to lose. They may also have more visitors who could get injured. Insurance pros recommend an "umbrella" policy that can cover you for a serious financial loss of almost any kind. It offers extra coverage beyond your underlying homeowner's or car insurance, which you must get first.A good policy costs as little as $150 per $1 million in liability coverage and would protect you for car- and home-related claims. Some very wealthy people have policies up to $5 million. Hunter at the CFA calls umbrella policies the best kind of coverage to have – low-cost, high protection.4. Do you have replacement-cost coverage? This coverage is more expensive – around 10 to 15 percent more than a conventional "actual cash value" policy. But replacement-cost coverage will pay to replace an item with one of similar quality, even if it has depreciated since you bought it. It's sometimes called "new-for-old" coverage.Actual cash-value policies pay out only the value after it has depreciated. So you can easily make up for the higher cost of the policy by having to replace a few items. Beery, for instance, had a small kitchen fire but his "new-for-old" coverage meant he was covered for new knives and appliances.5. Do you have children in college? Your homeowner's policy covers children staying in dorms, but not if they rent an apartment. The IIAA states 80 percent of college kids don't have insurance to cover property at school.Hunter notes that if they're dependents, children should still be covered at 10 percent of the parents' property insurance, just as with coverage that normally applies for possessions away from home. But that may not be enough to protect expensive computers and the like. "It's less necessary than the other kinds of insurance," Hunter said, but worth thinking about. If your child moves abroad to study, it's worth reviewing health-care coverage, too. The local national health service may cover your kid, but your health care may not. First World countries should be OK, Hunter said. But repatriation policies might be good from a country with poor care.
But maybe you've got it too coveredInsurance companies aren't always as scrupulous as they can be in selling you new policies. So it's worth checking if you're overinsured, too.The IIAA says you might be overinsured if:6. You've bought travel insurance. Any employer-sponsored health insurance plan likely gives you broader health and disability insurance than you'll get buying travel insurance. And your homeowner's policy should cover baggage insurance, under the 10 percent protection for possessions away from home. Most short-term policies are costly and unnecessary, according to the IIAA.7. You buy credit life insurance. This coverage, which kicks in on credit-card debt or furniture debt in case you die, really serves to protect the creditor, not your beneficiary. Hunter at the CFA said mortgage insurance falls in this category too. Insurance pros say you're better off getting a good life insurance policy to cover your estate. "If you're the breadwinner, you need life insurance, because you have a dependent," Hunter said. "You shouldn't buy [insurance] a squeeze at a time, like toothpaste."8. Your deductibles are too low. A $100 or $250 deductible is probably too low. Why not raise the deductible to $1,000, which will likely cut 10 to 20 percent off your cost? "You're really buying insurance to cover major kinds of things that would destroy you financially," Beery said. You could then use the savings to buy an umbrella policy giving you $1 million or more in liability coverage. Or, like Hunter, you could find the difference in cost in raising your premiums, raise them, then set the difference aside in a separate account. You'd "self-insure."9. You have computer insurance. A standard homeowner's policy will cover basic computer equipment at your home, for personal use. A standard policy insuring your home for $100,000 will cover up to $50,000 in personal property, the IIAA said. But a homeowner's policy typically covers business computers up to $2,500. Again, an endorsement is likely a better buy than a separate computer-oriented policy.10. You have policies with numerous companies. Many insurers give discounts for combining family policies or for having your car insurance, homeowner's insurance and any coverage all in one spot. That might get you a 15 percent discount. You may also qualify for a discount for having a good driving record or for installing theft deterrents on your home or car.However, it's not always the case that going with one insurer is cheaper. Hunter pointed out that using an agent isn't always the best deal, either – he recommends getting a quote from an insurer such as Geico or USAA, both of which sell direct to the public, as well as a couple of agencies.Hunter reiterated Insurance Rule No. 1. "The most important thing is shopping," he said. "Some companies are charging double what other companies are charging."
Top 10 Auto Insurance Tips
As a car owner and driver, you are responsible for driving safely, the obedience of traffic rules and laws, and maintenance and repair of your vehicle.
As required by laws of state, you should also be responsible enough to apply for auto insurance, as this can be very helpful in covering for your expenses in case of an accident, or if there is an emergency.
Auto insurance also protects other individuals who have been involved in the same accident as you. Vehicle insurance saves you from the worries of having to find funds when you get into a collision, need to pay medical expenses, and auto repairs.
In most cases, car insurance rates are highly dependent on the kind of driver you are. Read on to learn 10 essential tips to remember when applying for or selecting auto insurance plans for your car.
There are different types of auto insurance coverage that you can choose from. Depending on your needs, you can select one that best fits your situation.
Do a little research. There are tons of vehicle insurance companies around. It pays to know which ones are reputable, and which ones offer the best customer service for their clients. This makes it easy for you to file a claim if ever you need to.
Choose the plan that’s right for you. Since there are different policies to apply for, the auto insurance coverage can vary as well. For example, collision coverage only takes care of expenses in case of a collision, but comprehensive coverage has a broader scope of expenses that is can take care of.
Find out if you’re eligible for reasonable car insurance rates. Note that male drivers are rated differently compared to female drivers. Also, older and more experienced drivers tend to be quoted less, as compared to younger and less experienced drivers, because of the varying likelihood of a person getting into an accident.
Determine the current condition of your vehicle and what its value is. Insurance providers will always check your car before they can find a reasonable quote for you. Whether your car is old or new, and if your mileage is satisfactory, this can affect your insurance rates.
Check if you have any prior records of traffic violations. It can be difficult to be approved for auto insurance if you have outstanding traffic tickets or parking tickets. Be sure you have a clean record to avoid any difficulties.
Select plans with reasonable prices and flexible payment schemes. Do this by getting free assessments online and comparing the rates.
Find out if you can get discounts. Drivers with good records and students with high scholastic standing are highly eligible.
Maintain a reliable record with your insurance provider. Be religious and prompt with your monthly or annual payments.
If you are insuring another car, make sure your provider offers discounts for multiple policies. Insure other members or drivers in your family, as many companies have options for these.
Lastly, be a safe and responsible driver at all times. Nothing helps keep your auto insurance premiums low like a good driving record!
If you keep these tips in mind, then you will definitely not have a hard time selecting the auto insurance plan that works best for you.
As required by laws of state, you should also be responsible enough to apply for auto insurance, as this can be very helpful in covering for your expenses in case of an accident, or if there is an emergency.
Auto insurance also protects other individuals who have been involved in the same accident as you. Vehicle insurance saves you from the worries of having to find funds when you get into a collision, need to pay medical expenses, and auto repairs.
In most cases, car insurance rates are highly dependent on the kind of driver you are. Read on to learn 10 essential tips to remember when applying for or selecting auto insurance plans for your car.
There are different types of auto insurance coverage that you can choose from. Depending on your needs, you can select one that best fits your situation.
Do a little research. There are tons of vehicle insurance companies around. It pays to know which ones are reputable, and which ones offer the best customer service for their clients. This makes it easy for you to file a claim if ever you need to.
Choose the plan that’s right for you. Since there are different policies to apply for, the auto insurance coverage can vary as well. For example, collision coverage only takes care of expenses in case of a collision, but comprehensive coverage has a broader scope of expenses that is can take care of.
Find out if you’re eligible for reasonable car insurance rates. Note that male drivers are rated differently compared to female drivers. Also, older and more experienced drivers tend to be quoted less, as compared to younger and less experienced drivers, because of the varying likelihood of a person getting into an accident.
Determine the current condition of your vehicle and what its value is. Insurance providers will always check your car before they can find a reasonable quote for you. Whether your car is old or new, and if your mileage is satisfactory, this can affect your insurance rates.
Check if you have any prior records of traffic violations. It can be difficult to be approved for auto insurance if you have outstanding traffic tickets or parking tickets. Be sure you have a clean record to avoid any difficulties.
Select plans with reasonable prices and flexible payment schemes. Do this by getting free assessments online and comparing the rates.
Find out if you can get discounts. Drivers with good records and students with high scholastic standing are highly eligible.
Maintain a reliable record with your insurance provider. Be religious and prompt with your monthly or annual payments.
If you are insuring another car, make sure your provider offers discounts for multiple policies. Insure other members or drivers in your family, as many companies have options for these.
Lastly, be a safe and responsible driver at all times. Nothing helps keep your auto insurance premiums low like a good driving record!
If you keep these tips in mind, then you will definitely not have a hard time selecting the auto insurance plan that works best for you.
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