By admin
It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don’t want to pay too much for it. So how can you save money on your car insurance premium?
Check several insurance companies. Don’t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.
Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.
Check insurance costs for the car you intend to buy. Your premium will be based on the particular cars sticker price, repair expenses, overall safety record, as well as potential theft possibility. Consider features that reduce the risk of injury or theft, such as daytime running lights or anti-theft equipment. Because the car insurance company may offer you premium discounts for a car with those features.
Consider paying a higher deductible. It may sound odd. But if you increase your deductible from $300 to say, $500, the cost of your collision and comprehensive coverage would be reduced anywhere from 15 to 30 percent. A $1000 deductible would save you even more, perhaps more than 40 percent.
Reduce coverage on your older car. The rule of thumb is to multiply your premium by 10. If your car is worth less than that total, think about dropping collision and comprehensive. You can check your cars value online at www.kbb.com.
Insure your home and car at the same company; you may get a reduction in your premium. And if you have more than one car, that may also get you a reduction. Don’t be afraid to shop around.
If you drive far less miles than the average driver, ask about Low Mileage Discounts. The car insurance company may offer you for low-mileage discounts.
Other discounts may also be available. If you have no accidents or moving violations for a number of years, you can get a discount. A defensive driving course may also win you a discount.
Remove unnecessary items from your policy. Many lenders will attach items like roadside help to your loan package. This is a good thing, but most car insurance companies already offer this on a full coverage policy. You need full coverage when financing a new car.
As you can see, there are quite a few options for getting that premium down.
A final word; what works for you over the next few years may not work later, depending on your situation. Don’t be afraid to be an alert consumer and reconsider your needs on occasion.
By admin
Car insurance is one of the most dreaded chunks in your budget. And depending on which state you live in, it could be a smaller or larger chunk of your budget than your neighbors across state lines.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it’s about as useful as a stock broker’s tip to buy low and sell high. It might be sound logic but it doesn’t get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?
What do the minimums cover?
Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.
Coverage Definitions
Bodily Injury Liability
Covers other people’s bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it’s a good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Comprehensive Physical Damage Coverage
Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
Collision Coverage
Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.
Medical Payments
Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.
Uninsured Motorist Coverage
Covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy
Personal Injury Protection Coverage
Covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured’s own injuries on a first-party basis, without regard to fault. It is only available in certain states.
Property Damage Liability
Covers you if your car damages someone else’s property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.
Rental Car Reimbursement
Covers renting a car if your car isn’t drivable or while your car is being repaired because of a covered accident.
What else is available and can you afford it?
Did you come across a coverage and think, “I need that but it isn’t required by state law” when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Or maybe more to the point; can you afford NOT to have these additional protections? At CarInsurance.com it’s easy to get multiple quotes all with a click of your mouse. And during the quoting process, it’s simple to add or remove coverage to see how additional coverage will affect your budget.
What are you protecting?
What assets need to be protected from being plucked away if you cause injury or damage?
1. Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision.
2. Your net worth. Do you have an enormous net worth to protect. If so, either get it out of your name and into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.
However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.
Car insurance isn’t flashy. There is no “wow” factor and the opposite gender isn’t going to be impressed by the size of your policy. But not having enough can be the difference between financial stability and financial ruin.
By admin
All owners are required by law to insure vehicles driven on public roads. Some provinces and territories offer public insurance while others have insurance sold privately. Here are some basic items to consider when buying vehicle insurance:
* Liability insurance is mandatory, and is used as financial protection against loss or injury caused to others while operating your vehicle. The minimum amount of insurance required differs across jurisdictions but keep in mind that skimping on liability insurance may cost you in the long run. Minimum liability will not cover the cost of an accident resulting in the injury of several people, for example, particularly in circumstances where litigation is an option.
* Vehicle damage insurance, unlike liability insurance, may be optional. Damage insurance, however, is still recommended for the simple reason that damages to a vehicle will quickly add up in the event of an accident where you are at fault. Not being able to recover any money will have serious ramifications on your bank account.
* Some dealers or credit grantors may require that you take out other insurance such as life and/or disability insurance prior to agreeing to do business with you. Make sure that you fully read and understand any agreements that you are asked to sign and that you get a copy of the completed and signed agreement. Do not sign an agreement unless it is completed in full.
You should also do some comparison shopping on insurance prices and coverage prior to signing any agreement. Here are some items to consider in keeping your insurance rates to a minimum:
* Accidents can increase your insurance costs, especially when you are at fault. Though it’s easier said than done, staying out of accidents will save you money in more ways than one.
* Statistics show that some vehicles are more likely than others to be involved in an accident. Insurance companies are aware of this and therefore charge more to insure high-risk vehicles. The make and model of the vehicle, its colour, and whether it’s a two-door or four-door are all factors considered by your insurance company. Some cars are also more expensive to repair or are frequently pursued by thieves. Consider how important owning a high-profile vehicle is to you. Contact the Vehicle Information Centre of Canada (www.vicc.com) to find out which vehicles will cost you more to insure.
* Where you live may affect what you pay for automobile insurance. Driving to work everyday, especially if it’s a long commute, does not only mean extra gas and wear and tear on your vehicle but also the possibility of a higher insurance premium. Urban residents may have higher premiums than those living in rural areas.
* Insurance companies reward those who are of low risk to them. Discounts might be offered for driver education, multiple vehicles, high academic achievement, anti-theft devices or abstinence from alcohol, among others. Have your insurance broker inquire about any of these types of discounts.
Sometimes it doesn’t pay to be carrying collision or comprehensive insurance on an older vehicle if the total amount you are paying for the deductible plus the monthly premium is more then the entire worth of your vehicle.
For more information regarding auto insurance and other topics on cars and transportation, visit the Canadian Consumer Information Gateway ConsumerInformation.ca The Gateway is a new Web site created by federal, provincial, territorial governments and their partners that brings consumers, objective, reliable and current information.
By admin
Just about 5 or 6 years ago I was driving through the city and it was a typical snowy day in Cleveland Ohio. It was very cold, windy and ice was easily caking up on the car windshields. As I drove down the street I noticed a van was ready to pull out of the parking lot of a convenience store. I was about 1000 feet away and the van just sat there as I was approaching and getting closer.
Just was I was about 30 or 40 feet from where the van was to exit the driver proceeded to pull out of the driveway right into my path. I could not believe it. Why would that driver wait until I was right there and then pull out in front of me?
Needless to say we collided and it caused considerable damage to the front end of my car. I slammed on my brakes but it was to no avail. We both got and to access the damage and I could hardly understand what this woman was saying. She spoke no English and as I examined her van I noticed that all the windows were covered with ice front, back and sides. She could not see a thing. To the best of my knowledge since she could not see she was taking a chance or guessing when was a good time to come out of the parking lot.
The police just happened to be right there so we were able to trade information. That night I called Progressive my insurance company although maybe I should have let her file the claim on her insurance. The representative from Progressive asked me some questions and said a claims adjustor would be out the next morning to appraise the damage. I thought wow! That’s fast. And sure enough the very next morning there was a representative from Progressive in my driveway looking at my car. He filled out some paper work and told me what to expect. Then he handed me a check to cover the damages for my car right then and there. I could not believe it. A check for $1800. They had the car towed to a place of my choosing for repair.
As it turned out the damages were much more but that was no problem because they issued a check for the difference to the auto repair establishment. That had to be the best service I have ever had from an insurance company.
By admin
When you are in your forties your earning power should be at it’s highest. Possibly by now you’re children have left the nest, the house and its contents are almost paid for and you may have climbed the ladder to success in your company reaching a good position in the pecking order.
If you have well now is the time to save in earnest for your retirement. I know it will seem a long way off but I can assure you it will arrive sooner than you think.
If you are paying into a private or company pension it would be a good time now to pay a little extra in contributions. Often you can increase your payments with additional voluntary payments.
If you receive bonuses and overtime it would be good to use such extra money to put into a savings account, with a view to investing in something long term such as stocks or shares. Alternatively, or additionally, paying of your mortgage early by increasing those payments can be a load of your mind and save you a lot in interest payments.
Unfortunately with divorce and redundancy there are many forty pluses who are not in such a privileged position .Some will still have young children at home. However I urge you to think of the long term and get yourself a little nest egg set aside whilst you can. As you approach your fifties and sixties your health may decline and your earning potential could fall rapidly. If you are out of work in your late fifties there will be no spare money to save anything with.
If, however, no matter what your circumstances you can plan ahead and save a little you will benefit when you are retired. Making sure your finances are in order and you are using your money wisely is important at this age and time of your life. In your twenties if you have a bad patch you still have time to turn things around. By the time you hit your forties it is really your last chance to begin a pension plan which will have any benefit, and to secure some investments for the future.
Having said all of this, there are people in England, who never work and receive extra help in benefits in retirement which make them better off than some of those who have always worked. Very small private pensions can be a hindrance and actually prevent you receiving the necessary help which you may need. However, government policies are constantly changing and you cannot rely on this. If in your forties you are in a stable position and your income is OK try to plan ahead. If you choose to fritter every last penny, that’s your choice, but in the long term it may lead to financial misery.
By admin
With so many credit cards on the market, it’s no surprise that many of us are tempted by reward cards. After all, who wouldn’t want to be rewarded for spending money? Some reward cards offer cash back; others allow you to earn airline miles (frequent flyer points), hotel stays, rental cars, cruises, gifts, merchandise, fuel discounts and more. It sounds great but could it be too good to be true?
The good news is that it’s absolutely true, if used it in the right way. The rewards are real and are most certainly within reach - I often hear of friends taking free or upgraded flights thanks to their frequent flyer points. However, it’s important to remember that a rewards card will only benefit you if the value of the reward offsets any extra fees you might have to pay.
In an ideal world, we would all have low interest reward cards with no annual fee and pay our balance in full every month. This way, we would pay no interest and no fees and any reward that you get from the card is a direct benefit.
However, we don’t always live in an ideal world - the credit card you want may have an annual fee. It could have high interest rates and you may not be able to pay your debt in full every month. This is what banks count on and it’s how reward programs (and credit cards in general) make their money. Small increases in interest or fees can result in large increases in spending required to accumulate rewards needed to offset fees and interest and this is where you can potentially loose out.
Be aware of all financial charges and compare against prospective rewards to discover if reward cards suit your personal spending/repayment habits. Remember that the ‘best’ card is a very subjective term and the best set of reward credit cards really depends on your own spending profile.
The bottom line: If you pay your bill off in full each month, you might as well play the rewards game. A rewards credit card is most suitable for individuals who pay off their monthly card balances every month. If you typically carry a monthly credit card balance, the interest charges that you’ll likely incur on that balance will more than likely, offset the rewards that you can earn with the credit card, negating any net benefit. If you’re planning on carrying a monthly balance, you’ll probably be better off financially finding a low interest credit card instead.
