Anyone who owns a car must legally have car insurance. Getting your insurance and then dealing with everything involved with it is not always easy. Since vehicle insurance is mandatory, it is best if you know as much about it as you can. The following information shares some helpful hints that you may need when you are shopping for car insurance.
First of all, you need to do some research on the insurance companies in your area. You can look online to see what others say about the company, ask your friends or check with the insurance authority in your state. It may be easy just to pick a company and use that one, but insurance is important and it is important you go with a trustworthy company.
Next, it is important to know a few key terms when it comes to insurance policies. It is required that you have liability on any car that you own. Liability insurance will cover anything that you do to another vehicle or someone else or their property. Uninsured coverage will pay for any damages caused to you by someone who does not have insurance. Collision insurance pays for anything that is damaged if you have a wreck. Comprehension coverage is for anything that happens to your car that is not the result of a wreck. These things include fire, theft, vandalism, wind or anything else not related to an accident. Going into the insurance agent’s office with knowledge will be quite helpful and will make it so much easier for you to make your decision.
Deductibles are another thing that you need to consider. This is the amount you will be responsible for and then the insurance company will pay for the rest. Whether it is medical charges, property damage costs or repairs that need to be done to your vehicle, the deductible is something that you need to take into consideration. The lower your deductible, though, the more you will pay for your insurance policy. If you have plenty of ready cash, you may consider going with a higher deductible, that way you will pay less on your insurance policy.
Look into discounts that may be available to you. If you have homeowners or rental insurance, talk to your insurance agent as many times you can get a bundle deal if you have more than one insurance policy with the same company. You may also be able to get a discount if you have a safe driving record, work at a particular company, or belong to a certain bank or have other special circumstances. Always ask your agent about the available discounts and you may be able to save some money on your insurance policy.
Shopping for vehicle insurance is not always easy, but if you own a car it is something that you must do. Use the information shared here in this article and you should have a much easier time getting the insurance you need for your vehicle.
Do you need to find a new insurance policy for your vehicle? You should read this article to learn more about auto insurance.
There are thousands of insurance providers you can choose from, but do not assume the insurance providers you saw advertised on TV are your best option. It is important you do some background research about different insurance providers to find a reliable company. Do not purchase a policy from an insurance provider with a lot of negative reviews. You should also avoid companies that have been created very recently. Talk to your friends and family about their auto insurance and ask how satisfied they are.
Find out how much coverage you are legally required to purchase in your state. Do not hesitate to get more coverage if you can afford to, but keep in mind that getting as little coverage as possible is a good way to save money until you can afford to upgrade your insurance. Assess how much coverage you need and can afford. You should not spend money on clauses you are very unlikely to need. For instance, being covered for flood damages to your vehicle is not necessary if you live in an area where floods never occur.
Take the time to compare quotes once you have decided how much coverage you want to purchase. You should be able to get quotes on the Internet or on the phone. Get as many quotes as possible within a week so your credit score does not reflect multiple inquiries. When comparing quotes, make sure you are comparing equivalent amounts of coverage. Do not hesitate to spend more if this means getting access to a quality customer service or discounts.
If you want to save money on your premiums, you should talk to your insurance provider about discounts. You will probably qualify for discounts if you have a good driving record, own a vehicle with anti-lock brakes and other safety features or are willing to take some driving classes. You can also lower your premiums by paying for your insurance once a year instead of every month and by raising your deductible. If you decide to do this, put some money aside for your deductible or for your yearly payment.
You should go over your policy regularly and not hesitate to make some changes if you do not need the same amount of coverage. If you can afford to spend more on auto insurance, add some clauses to your policy. This is a good thing to do if you are about to teach your children how to drive. You should also stay in touch with your insurance agent to talk about your policy and ask about discounts. You will become eligible for more discounts if you did not file a claim over the last few years.
These auto insurance tips will help you get the amount of coverage you need without spending too much. Do not hesitate to switch to a different insurance provider if you are not satisfied with your first choice.
Everyone who drives needs to be insured. This protects the driver as well as others who are involved in an auto accident. There is a huge array of choices in auto insurers and plans. Trying to sort out what is the best plan for can sometimes be difficult. If you are in the market for auto insurance, this article can help you with some of the questions that you may have.
The biggest question that most people have about auto insurance is how much they have to pay. The cost can vary widely among different companies and among plans within the company. You can start your research by asking the people you know about their auto insurance company. Get some information on the type of coverage that they have, the premiums that they are paying, the level of customer service that is offered, and an example of an actual experience that they have gone through. The testimonies from your friends are much more helpful than any advertising that you may see in the media. Any auto insurer can say that they give you the best rates and service. However, when it comes down to it, the consumer will be the last judge of that. So, ask around. Go to online forums where consumers discuss auto insurance. Look for write-ups from consumer magazines.
In order to purchase insurance, you should understand what you are purchasing. The insurance industry has its own set of vocabulary and terms when it comes to policies. You should familiarize yourself with what these terms means. Words like “deductible,” “liability,” “comprehensive coverage,” etc., are just a few of the terms that you will encounter over and over again. If you do not know what they mean, look them up online. A policy means nothing if you do not understand the terms. Do not feel self-conscious about not knowing the basics. No one is ever born with knowledge about insurance, and learning has to start from somewhere. So, the best thing you can do for yourself is to be well-versed in the language that the insurance industry uses.
Figure out how much insurance you actually will need. This will depend on your car and your personal choice. Typically, if you have an older car that is not worth much on the resale market, it does not make sense to insure it for major repairs. If you do not plan on repairing it the next time this old car gets into an accident, just having liability insurance to cover the other party may be sufficient. Also, if you want lower premiums, you usually have to take a higher deductible. So, it all depends on the level of risk that you want to take.
Get accurate quotes from insurers before you make any decisions. Narrow your choices down to several, then contact each one to get further details.
If you follow these basic guidelines, you can find an insurer that will be right for you. Just remember not to sign anything until you are fully satisfied that you understand all of the terms.
There is no doubt that getting an appropriate car insurance policy for your specific needs is crucial. Having a good grasp of exactly the type of coverage you need can make the process much simpler. Keep reading to get several useful tips for doing just that.
The first step in obtaining the insurance you need is to make a frank assessment of precisely what type and how much coverage you truly require. It may be that your financial or family circumstances have changed significantly since you last purchased a policy. This can cause drastic shifts in the level and type of coverage you need, and can thus alter the cost of getting that coverage. Make sure your concept of what you need is thoroughly updated so that you are spending only what you need to spend.
Take some time to review your budget in order to determine the premium level you can comfortably afford to pay. It is important that you never overextend yourself in terms of insurance costs, because the last thing you want is for your coverage to be cancelled at some point during the term due to nonpayment. Examine all of your income and expenses and arrive at a dollar amount that you can easily meet each month or each payment period so that you can rest assured that your coverage is valid at all times.
Always make the effort to comparison shop between a variety of insurance carriers in order to get the best price. The process of doing so is easier than ever, thanks to the numerous price quote aggregation websites available online these days. You can also solicit individual quotes from several carriers on your own and make comparisons from those. Either way, it really does pay to get the best possible quote from multiple companies and choose based on that information.
Take care not to overlook the many policy discounts for which you may be eligible. Carriers often offer price breaks for households that insure multiple vehicles through the same company, or that also purchase homeowners or other insurance products that they offer. Perhaps you belong to a professional or organization or affinity group of some kind. In many cases, such groups negotiate with carriers to offer their members significant discounts on policies of all types.
Finally, make sure you take advantage of online insurance shopping options as a way to make your life much easier. Carriers these days have very detailed websites that allow you to tweak coverages and information in order to arrive at the coverage combination that best suits your needs. You can also make premium payments online so that you are never late and never have to write and mail another check to the insurance company.
Shopping for auto insurance can be a daunting process, given the wide array of options that exist. However, if you acquire a good understanding of what is available and what you actually need, it really is possible to make smart choices that will serve you and your family well.
If you are in the market for auto insurance, you can see that you have many choices among various insurers and plans. Trying to find the right plan can be a confusing process if you do not have a good approach. If you need some guidance in figuring out what type of insurance is right for you, read this article for some helpful advice that you can use.
The rate that you qualify for will largely depend on your driving record. It goes without saying that good drivers will have lower rates because they are considered lower risk, and drivers with points in their driving records will have a higher rate. Therefore, you should get a copy of your driving record to see if you have any strikes against you. For moving violations, you may be able to attend a driving safely class to erase one of the points. Even though you probably have to pay for the class, it may get you a lower rate in the long-run.
Look at your budget and determine what you can afford to pay in premiums. If you want a lower premium, you will have to accept a higher deductible. That means if you ever have to file a claim, you have to pay more out of pocket before your insurance kicks in. Just make sure that you will set aside funds for that if you ever need it.
Be sure to get quotes from various insurers for comparison. You can contact each insurer and fill out a form with the agent from each insurer. Although you can get your questions answered more quickly this way, you still have to call each one, which will take a lot of your time. The more efficient way is to use a website that can give you quotes from multiple insurers all at once. You just have to fill out one form and submit it. Then, the system will return the rates for a number of insurers. This method will give you a good idea of which insurers offer lower rates. Then you can narrow down which companies to contact for further information.
Keep your eye open for discounts. Sometimes insurers will run specials. Also, certain organizations can get group discounts for its members. Many employers have group insurance rates for its employees. Check with your human resources department to see if any discounts are available.
If you are interested in a particular insurance company, do some research on its reputation. You can usually find reviews on online forums. You can read about policy holders’ first-hand experience with the insurer. This information can be important in your decision. Even if the insurer offers low rates, if customer service is terrible and claims are paid out slowly, it may not be such a good choice.
These tips will get you started in finding the right auto insurance. Always read the fine print before signing any contracts. If you approach this carefully, you will avoid insurance problems down the road.
Secret #1: Don’t spend too much time on a life insurance quote.
Do not be fooled by the low price quotes you get online – they don’t apply to you unless you are extremely healthy. Statistically only 10% of people who apply actually get the lowest priced policy. The premium you end up paying has nothing to do with the initial quote you get online or from an agent. It is amazing to me how often I see people getting duped by an agent who quotes company X at a lower price than another agent.
Life insurance policies are the same price no matter who you buy from! One agent or website quoting a lower premium means nothing. Prices for any given policy is based on your age and health. There are a few exceptions to this but that is beyond the breadth of this article.
Most life insurance companies have 10-20 different health/price ratings and no agent or website can assure you the quote they give you is accurate. You have to apply, do a health check, and then go through underwriting (meaning you complete a mini-exam with a nurse in your home and then the company checks you doctor records and reviews and ‘rates’ your health) to get the real price of the policy. Remember that a health rating also factors in your family history, driving record, and the type of occupation you have. Only use quotes to help narrow down your choices to the top companies. You may want to consider a no load or low policy. The more that you save on commissions the more money builds up in your policy. You can even buy term insurance no load, and save a lot on premiums. You will not get the help of an agent, which may be worth something if they are very good.
The most important factor determining price is matching your particular health history with the company best suited for that niche. For instance company X might be best for smokers, company Y for cancer survivors, Company Z for people with high blood pressure, etc.
Secret #2: Ignore the hype on term versus cash value permanent insurance.
You can go crazy reading what everyone has to say on buying term insurance versus a whole or universal life policy. Big name websites give advice that I think borders on fraudulent. Simply put there is NO simple answer on whether you should buy permanent cash value policies or term insurance.
But I do think there is a simple rule of thumb – buy term for your temporary insurance needs and cash value insurance for your permanent needs. I have read in various journals and run mathematical equations myself which basically show that if you have a need for insurance beyond 20 years that you should consider some amount of permanent insurance. This is due to the tax advantage of the growth of the cash value within in a permanent policy. I am divorced and have taken care of my children should I die. I probably no longer need as much insurance as I now have. I have earned a great return on my policies and have paid no taxes. I no longer pay the premiums, because there is so much cash in the policies. I let the policies pay themselves. I would not call most life insurance a good investment. Because I bought my policies correctly, and paid almost no sales commissions my policies are probably my best investments. I no longer own them, so when I die my beneficiaries will get the money both tax free, and estate tax free.
Since most people have short term needs like a mortgage or kids at home they should get some term. Additionally most people want some life insurance in place for their whole life to pay for burial, help with unpaid medical bills and estate taxes and so a permanent policy should be purchased along with the term policy.
Secret #3: Consider applying with two companies at once.
Life insurance companies really don’t like this “trick” because it gives them competition and increases their underwriting costs.
Secret #4: Avoid captive life insurance agents.
Look for a life insurance agent who represents at least fifty life insurance companies and ask them for a multi company quote showing the best prices side by side. Some people try to cut the agent out and just apply online. Just remember that you don’t save any money that way because the commissions normally earned by the agent are just kept by the insurance company or the website insurance company without having your premium lowered.
Plus a good agent can help you maneuver through some of the complexities of filling out the application, setting up your beneficiaries, avoiding mistakes on selecting who should be the owner, the best way to pay your premium, and also will be there to deliver the check and assist your loved ones if the life insurance is ever used.
Secret #5: Consider refinancing old life policies.
Most companies won’t tell you but the price you pay on your old policies has probably come down dramatically if you are in good health. In the last few years life insurance companies have updated their predictions on how long people will live. Since we are living longer they are reducing their rates rather dramatically. Beware the agent may be doing this to obtain a new commission, so make sure it really makes sense.
I really am amazed at how often we find that our client’s old policies are twice as expensive as a new one. If you need new life insurance consider “refinancing” your old policies and using the savings on the old policies to pay for the new policy – that way there is no extra out-of-pocket costs. We like to think of this process as “refinancing your life insurance” – just like you refinance your mortgage.
Secret #6: Realize life insurance companies have target niches that constantly change.
One day company ‘X’ is giving good rates to people who are a little overweight and the next month they are super strict. Company ‘Y’ might be lenient on people with diabetes because they don’t have many diabetics on the books – meaning they will give good rates to diabetics. At the same time company ‘W’ might be very strict on diabetics because they are insuring lots of diabetics and are afraid they have too big of a risk in that area – meaning they will give a bad rate to new diabetics who apply.
Unfortunately when you are applying a life insurance company will not tell you, “Hey, we just raised our rates in diabetics.” They will just happily take your money if you were not smart enough to shop around. This is the number one area a smart agent can come in handy. Since a good multi-company agent is constantly applying with multiple companies he or she will have a good handle on who is currently the most lenient on underwriting for you particular situation. The problem is that this is hard work and many agents are either too busy or not set up to efficiently shop around directly to different underwriters and see who would make you the best offer. This is a lot harder than just running you a quote online.
Secret #7: Don’t forget customer service.
Most people shopping for insurance focus on companies with the lowest price and the best financial rating. Unfortunately I know of some A+ rated companies with low rates who I would not touch with a ten foot pole simply because it’s easier to give birth to a porcupine backwards then it is to get customer service from them.
Before I understood this I used a life insurance company that gave a client a great rate but 2 years later the client called me and said, “I have mailed in all my payments on time but just got a notice saying my policy lapsed.” It turned out the company had been making lots of back office mistakes and had lost the premium payment!
We were able to fix it because we caught the problem so early. But if the client happened to have died during the short period the policy had lapsed, his family might have had a hard time proving that the premium had been paid on time and they might not have received the life insurance money – a loss of hundreds of thousands of dollars in that case.
Secret #8: Apply 3-6 months ahead of the time you need the insurance if possible.
Don’t be in a hurry to get a policy if you already have some coverage in force. But go ahead and apply right away knowing that you might need months to shop around if the first company does not give you a good rate. Even though the life insurance industry is getting more automated your application will still often be held up for weeks or months while the insurance company waits on your doctor’s office to mail them a copy of you medical records.
If you are in a hurry and buy a quickie ‘no-underwriting’ policy without going through the full health checks and underwriting that a mainstream life insurance company requires, you will end up paying 20%-50% more because the insurance company will automatically charge you higher rates because they don’t know whether you are healthy or about to die the next day.
Secret #9: Avoid buying extra life insurance through work if you are healthy.
I am sure there are exceptions to this “trick” but I have rarely found one. By all means keep the free life insurance your employer provides. But if you are healthy and you are paying for supplemental life insurance through payroll deduction you are almost certainly paying too much. What is happening is that your ‘overpayments’ ends up subsidizing the unhealthy people in your company who are buying life insurance through payroll deduction.
Usually the life insurance company has cut a deal with your employer and will waive the required health exam for all employees – instead they just average the price for all the employees and offer one or two rates for males or females at any given age. Life insurance companies know they will pick up lots of unhealthy clients this way so they jack up the price on everyone so that the healthy people end up overpaying so that the unhealthy employees get a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you buy through work will get more expensive as you get older.
Also group life insurance is generally not portable when you retire or change jobs meaning that when you retire or change jobs you might have to apply all over again even though you will be older and probably not as healthy and risk being turned down for a policy. If the group plan does allow portability they generally limit your conversion choices and force you to go into expensive cash value plans.
I remember helping someone evaluate his supplemental life insurance. He was sure it was a better deal than any policy I could find him. Little did he know that the price of his group plan would go up every year? By the time he retired his premium would have risen to over $10,000/year. I found him a policy for around $1000/year that would never go up. Also, unlike his old group life policy, he could take the individual policy with him when he changed jobs or retired.
Secret #10: Do a trial application on a COD payment basis.
Only send money with the application if you need the life insurance coverage right away. Sending a check with the application is a traditional practice agents used to do – I think mostly because it got them their commissions faster. If you send money with an application you usually get temporary coverage immediately but if you already have plenty of coverage and are just trying to get better rates ask your agent to do a trial application on a COD basis so you only pay once the policy is approved. If you do not send money, and you die before paying for the policy there is no coverage.
Secret #11: Wear your shoes when the nurse measures your height.
When the insurance company sends out the nurse to do your health check try to be as tall as possible if you are overweight? In most states you are allowed to wear shoes and if you are a little overweight your taller height/weight ratio will look a little better to the underwriter who is determining your health rating and policy price. Also do your exam early in the morning with no food in you – this will make your cholesterol count and various health ratios look the best.
Secret #12: Be careful with extra perks and riders.
Most policies come with options like accidental death benefit, child riders, disability riders, return of premium etc. If you do the math on most of these “extras” they usually don’t make smart financial sense. Life insurance companies are out to make money and these riders are usually profitable because they either cover something that rarely happens or they are so stringent that the benefit never gets paid out. Keep things simple and focus mainly on getting a life policy to cover your life without many strings attached. Again a good agent can help you weigh the benefits of the extra riders. But be wary of an agent who tries to tack on every possible extra rider.
