Although you may not be aware of it, insurance rates for your car will vary depending on which insurance company, broker or agent you choose, what auto coverage you select, and what kind of car you drive. Here are some things you can do now to reduce your car insurance costs.
1. Comparison Shop – Different rates for the same vehicle insurance policy can differ by hundreds of dollars so it is worth shopping around. Ask your friends, consult the yellow pages and call your state insurance office. You can also consult consumer guides, insurance agents, and insurance companies.
Don’t just focus on the price. You should look for an insurer that offers both excellent service and fair pricing. While a personal service that is more personalized may be more expensive, it will provide added conveniences. Talk to several insurers to get an idea of the quality of their service. Ask them about their suggestions to reduce your costs. Also, check the financial ratings. After narrowing down the field to three insurance companies, request price quotes.
2. Request a higher deductible. Car insurance deductibles are the amount you pay before you file a claim. You can reduce your insurance costs by asking for higher deductibles for collision and comprehensive (fire, theft) coverage. Increase your deductible from $200 – $500 to reduce collision costs by 15% to 30%.
3. Drop collision and/or understanding coverage for older cars – If your car is less than $1000, it may not be economically feasible to purchase collision or comprehensive auto coverage. Any claim you make will not exceed the annual cost and deductible. Banks and auto dealers can help you determine the value of your car.
4. Duplicate medical coverages should be eliminated – Even if you have sufficient health insurance, duplicate medical coverage may still be included in your auto policy. This coverage can be eliminated in some states to lower your personal injury protection cost (PIP), up to 40%.
5. Consider buying a low profile car. Before purchasing a car new or used, make sure to check out insurance costs. Insurance costs are higher for cars that are costly to fix or are easy targets for thieves. Ask for the Highway Loss Data Chart by writing to the Insurance Institute for Highway Safety at 1005 North Glebe Road Arlington, VA 22201.
6. If you’re moving, consider the cost of insurance in your area. Costs are lower in rural areas and higher in cities with more congestion.
7. Low mileage discounts – Many companies offer discounts for motorists who drive less than a certain number of miles per year.
8. Ask about discounts for airbags or automatic seat belts – If you have air bags and/or automatic seat belts, you may be eligible to receive discounts on certain coverages.
9. Ask about any other discounts – Many insurers offer discounts on multiple cars, drivers over 50, no accidents within three years, driver training courses and anti-theft devices. They also offer good grades for students.
SPECIAL NOTE: Call the National Insurance Consumer Helpline at 1-800-942-4242 for more information on auto insurance or any other type of insurance.
Life Insurance: How much and what type?
Life insurance does not mean that you have to leave your grandkids 75% the world.
Although it may not be the most loved article in the insurance industry, it is what I see. This is also a way of avoiding being sold something you don’t need.
First, forget about giving your grand children a comfortable life. Insurance is not about that. Insurance is all about finding the best insurance for you. To do this, you need to look at insurance objectively.
Insurance should be viewed as a way to replace the person. This is quite cold, but it is true. It is important to consider what other situations may exist or will likely exist in the future when insurance is required. It is important to constantly review these other situations as they may affect your insurance needs. Take, for example:
1. Do you have other assets that could be tapped?
2. What number of dependents do you need? How long? Is it possible for a spouse to remarry? What is the age of the children?
3. Is it possible to live in the present style?
4. Are you in control of your spending and debt?
These are difficult questions that must be answered before you can move forward.
Types of life insurance
Although there are annuities and endowments insurances, which are excellent investments, the most important types of insurance are term and whole life.
1. Whole Life – This program builds cash value and provides insurance protection. There is no other savings program that takes your money and puts it in an account for you. However, you will not be able to see it for at least two years. There is no other savings program that has a negative cash balance for many years. In the future, this cash value will be your money. If you borrow it, why do you have to repay it with interest? You have both life insurance and cash value. It’s fine to spend less on insurance, but you can still have life protection and build cash value. You can also invest the extra money in better investments. Even a mutual fund that is very safe will give you a much higher return. You could even be able to pay off your debt using the money you save. This can give you a tax-free yield of up to 40%. (See Debt Destroyed by Magic Bullet.
Is there a positive side to all of life? Yes. Rates are extremely low if you have a whole lifetime as a young person. Your future insurance can be protected by taking out a whole life. As you age, rates will not increase. Peace of mind could be achieved by having a small amount of your whole life saved up to pay for last expenses. It is easier to keep up with inflation throughout your entire life. However, it is not something I would recommend in all circumstances.
2. Term Insurance – Term insurance comes with limitations, as mentioned above. Although it does not have a cash value, it is the most affordable type of insurance. There are two types: decreasing term and straight term.
a. Straight Term – As its name suggests, straight term is a contract that you pay for as long as it exists. It doesn’t increase or decrease coverage.
b. Decreasing Term: As its name suggests, the term that is decreasing decreases with time. This type of insurance is often used to protect a car loan or mortgage. Here’s a warning. It is important to ensure that the reduction does not outweigh the payoff. This is an example. For a 30-year mortgage, the rate of decline in term insurance will not be equal to the mortgage. It is not a straight-line decrease if the term insurance scades over 30 year. However, a mortgage is not a straight line since the majority of the interest is at the beginning. It is possible that 75% of your mortgage debt will remain after 2/3 of the decreasing term of insurance has expired.
One other thing I would like to point out is: Avoid buying insurance from a commissioned retailer, dealer in cars, or mortgagor. A licensed agent is someone who understands his trade and can help you get insurance. If you don’t want to pay interest, do not include insurance in the retail sale.
