Archive for October, 2009

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Moving to a New State? Find Out if You are Legally Required to Carry Auto Insurance

Friday, October 30th, 2009

If you’re planning to relocate to a new state in the near future, then you’ll most likely need to continue to invest in your auto insurance policy; however, as each state has its own unique auto insurance requirements, you may need to alter your coverage in order to meet the legal guidelines for driving on your state’s roads.

Auto Insurance and State Requirements

In examining the legal requirements pertaining to each state, most of the country’s 50 states demand that all drivers carry some form of auto insurance.  Specifically, 48 states legally require hat drivers purchase liability coverage-excluding New Hampshire and Wisconsin.  Most states demand liability coverage in order to protect individuals from financial ruin in the unfortunate case of a serious accident.  As liability protection helps to cover the costs of bodily injury, legal costs, and other potential related costs pertaining to an accident, the basic liability policies help protect all drivers involved in some form of collision or auto mishap.  Essentially, if you are at fault of causing an accident, then you may be susceptible to potential lawsuits from other drivers involved in the collision.  As such, liability coverage can help protect you from exorbitant legal fees, compensation for damages, as well as coverage for yours and / or others’ physical injuries.

Registering Your Car in a New State

Once you’re settled into your new home inside your new state’s boundaries, you’ll need to head to the DMV to register your car.  Before heading in to receive your new documents, verify whether or not your current insurance coverage meets all of the state’s demands.  Oftentimes, some states will not allow you to register your vehicle until proof of insurance is verified.  Also, since states often change their insurance requirements each year, it will be to your advantage to verify the requirements often!

Penalties for Lack of Coverage

If you’re tempted to post-pone your vehicle registration with your new state, be aware that delay can lead to your spending extra dollars!  Nearly all states enforce financial penalties for late registration.  Adding to this, if your state’s DMV finds out that you have been driving without insurance, you can be forced to pay an incredibly large fine (depending on the number of days that your vehicle has been uninsured).

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How to Negotiate Compensation with Your Auto Insurance Provider

Thursday, October 29th, 2009

If you’ve recently experienced an unfortunate mishap involving your vehicle, then you’ll quickly need to contact your insurance company to determine your quantity of reimbursement and compensation.  While many insurance customers believe that they can haggle and trick their insurance adjusters into distributing more funds, experts assert that insurance adjusters are held to a specific calculation method that does not allow for any variation.  In other words, your safest bet involves simply telling the adjuster the clear facts and details of the accident.

Gathering Your Facts for Insurance Review

Since it is ultimately futile to attempt to gain added compensation through pleas and sob stories of one’s accident, insurance leaders seek to remind clients that adjusters simply need to be informed of the clear and true facts of an accident; with the factual data and information, an adjuster is able to more quickly and efficiently send due compensation for the quick repair of your vehicle.  As such, your first proactive step in making an insurance claim involves gathering all bills, costs, and information regarding the accident.  This may involve going through costs already paid, or by writing down honest estimates of anticipated costs.  Anticipated costs may include medical bills, lose of income if the accident causes harm that forces a rest from working, as well as additional damages or needs.

By creating an honest and realistic assessment of the current and anticipated costs of your accident, an insurance adjuster may be able to maximize your compensation.  Essentially, once the information is compiled and sent to an insurance adjustment officer, the adjuster often has the power to give you a greater amount of compensation within a set range.  For example, if your accident and injuries place you in a range of $3,000 to $5,000, then the adjuster has the option of giving you any amount within this allotment.  With this authority, the adjuster can either opt to place you at the minimum, middle, or even the maximum of the potential return!

Continuing Negotiation

After the adjuster contacts you with the decided amount of your return, you can still continue your negotiation by simply asking the provider to increase their compensation amount.  Many insurance experts have revealed that clients should never accept the first offer from an adjuster, as just a bit of inquiry and nudging can often lead to an extra few hundred dollars or more.  The key to success with this second step involves, again, a clear preparation and knowledge of the facts of your case.

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Find Out Why Your Home Insurance Provider May Refuse to Continue Benefits

Wednesday, October 28th, 2009

Unfortunately, while all potential home buyers are almost always legally required to carry an up to date home insurance policy, some home owners ultimately find themselves without coverage once they begin paying their mortgage.  To avoid losing your home insurance coverage, be aware of key reasons that a provider may terminate your policy.

Termination of Insurance Coverage

Deterioration and / or Neglect

Believe it or not, insurance companies have the option to cease coverage of your home if your property has been exposed or undergone extreme deterioration.  Essentially, when you purchase and agree to your home insurance policy, your contract will most likely contain information about the provider’s state of home standards.

If your house is significantly deteriorated, then you may not be meeting your provider’s baseline qualifications.  Issues of deterioration may closely tie in with various clauses of neglect in your insurance contract as well.  If, on the other hand, you are still covered by your insurance provider while damage occurs to your home due to the home owner’s neglect, then the insurance company will almost certainly refuse to offer compensation.  Compensation is only provided when a policy holder in good standing reports damages are not caused due to issues of neglect or issues exempt from the contract.

Unreliable History

Adding to the potential problems associated with property deterioration and neglect, an insurance company may refuse to renew your contract upon the end of your agreement.  An insurance company may opt to refuse coverage if a policy holder has above average claim rates.  Generally, a home owner only submits claims to their insurance company one or two times per decade; thus, if you tend to send in claims every other year or more, then you may be viewed as a less reliable candidate for home insurance protection.

Similarly, if you have a poor credit history, and / or if you have failed to pay for your home insurance premium as scheduled by the set due date, then your provider may also deem you as a less reliable client.

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What Qualifies for Coverage Under a Standard Home Insurance Policy?

Tuesday, October 27th, 2009

If you’ve carefully read the fine print of your home insurance policy, then you should be well aware of the fact that not all damages are covered by your provider.  In fact, nearly all home insurance contracts include a specific list of items and damages that are not insured.  Most commonly, these damages include costs associated with animals and / or personal neglect.

Animals and Home Insurance

While each insurance contract has its own guidelines and restrictions, most standard policies will not cover damages caused by various animals and pets.  Aside from a standard house pet, such as a dog or cat, animals maintained by the owner of the home may fall under a different set of insurance rules.  Essentially, as unique animals, such as horses, farm animals, and a variety of exotic pets, can cause varying degrees of damage to one’s home, insurance companies often exclude damages caused by these rarer creatures.  For example, if you own a horse on your property, and the horse damages the structure or features of your home, then your insurance contract may not legally need to compensate you for repairs and costs associated with the incident.  Surprisingly, some larger breeds of dogs may also be excluded from coverage; check with your insurance provider if you’re concerned that your personal pets may be a potential risk to damaging elements of your home.

Neglect and Home Insurance

In addition to potential damages caused by certain types of animals, an insurance company generally will not cover damages caused by a home owner’s personal neglect.  Personal neglect essentially means that a home owner did not engage in the necessary steps to ensure that their property was well maintained, up to date, and in proper condition.  Damages often associated with personal neglect may include water damage caused by rusting / rotting pipes, dry rot caused from poor exterior / water related maintenance, flooding caused by improper care of pipes, and vermin infestations.  Generally, insurance companies will not be willing to compensate a home owner for such issues and repairs, as home owners need to take responsibility for the maintenance of their own property.

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Insurance and Auto Accidents: A Step by Step Guide for Success

Monday, October 26th, 2009

Whether or not you have experienced an accident in the past, it is important to review the step by step suggestions for optimal safety and insurance compensation.  By adhering to the suggested practices, your auto insurance company will be able to provide you with potentially faster and more ideal service.

After an Auto Accident: How to Respond

  1. After an accident, after you are confident that neither you nor any other individuals are injured, check to make sure it is safe to exit your vehicle.  Once you are able to do so, contact the local police department; many states require that drivers contact the police after any form of vehicle accident or collision.  Some states, however, do not require that you contact the police; however, it is optimal to contact your insurance company if you are not sure.

  2. If possible, use your digital camera or cell phone camera to take pictures of the accident and damages.  Having photo evidence can help you to avoid any potential disagreements between you and the other driver(s).

  3. Exchange your insurance information with the fellow driver(s).  Additionally, write down the other drivers’ name, phone number, addresses, and any other important contact details.  If a witness was present for the accident, you should also record his / her contact information as well.

  4. Once all information is exchanged, contact your insurance company to inform them of your recent accident.  Whether a driver is at fault or not is irrelevant in this step; each driver must inform their provider of the damages involved.  Upon contacting your provider, inform them of any pictures that you were able to take, while you also must be able to give them details of the accident and damages.

  5. Lastly, after contacting your provider, revisit the specific details of your current policy.  Make sure you are aware of what resources and compensation rates for which you may be eligible.  Having knowledge of these features will help you to more effectively negotiate and communicate with your insurance company in the coming days / weeks.

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Will Your Health Insurance Cover the Costs of Private Home Care?

Friday, October 23rd, 2009

Injured, ill, or recovering from a debilitating surgery or sickness?  If you’re unable to maintain your regular daily activities and / or you’ve been forced to recover with a sustained period of bed-rest, then you may be eligible to receive private home care!  Covered by select health insurance companies, individuals can receive incredible benefits from at home care; best of all, if your health insurance covers this form of treatment, then you can recover without risking your financial savings.

What is Private Home Care?

Private home care essentially serves to allow patients to recover in the privacy of their own home, as opposed to recovering in a hospital.  Ideal candidates for private home care are often individuals with issues / health concerns such as:

  • Post-surgical patients
  • Individuals undergoing various cancer treatments
  • Debilitating injuries that restrict physical movement (ie: amputation, broken limbs, etc)
  • Elderly individuals in need of specific care and support

With private home care, certified health specialists, registered nurses, or other approved health experts can travel to your home for designated meetings or “appointments” each day / week.

Private Home Care and Health Insurance Coverage

While each health insurance company has its own policies and restrictions regarding private home care, individuals with long term health insurance may often be able to reap coverage benefits for such services.  Oftentimes, long term health insurance policies offer to cover around $150 to $200 per day for at home health care services; however, if you or a loved one does not have long term health coverage, then Medicare may still offer options for support.  Medicare will generally serve to help individuals over the age of 65 receive approximately 8 hours of private health care each day (24 hours each week in total) for a 60 day duration of time.

If you’re hoping to hire at home care for you or a loved one, begin by evaluating the current withstanding policy to find out what coverage options are available.  Also, contact various at-home health care providers to compare prices.  To help alleviate the financial burden, some at-home care service experts may allow individuals with minimal insurance (or no insurance) coverage to purchase bulk-care packages at an additional discount!

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How Cell Phone Habits Can Raise Your Auto Insurance Rates

Thursday, October 22nd, 2009

Before you reach to respond to that text or return that call as your cell phone rings, ask yourself if your desire to communicate is worth spending hundreds of dollars.  According to recent studies, the use of a cell phone while driving can lead to an incredible surge in auto insurance premium prices.  As cell phones are often attributed to accident-provoking distractions for drivers behind the wheel, setting your cell phone aside as you cruise along your commute can ensure that you’re driving with greater caution and greater savings.

Cell Phones and Auto Insurance

According to reports, drivers who tend to use their cell phone while operating a vehicle are far more likely to be involved in costly accidents.  As accidents ultimately cause insurance companies to fork out more money for repairs and damages, insurers are undoubtedly opposed to such hazardous habits.  In fact, some advocates opposed to cell phones while driving have equated the use of a cell phone to be as equally as harmful as driving while intoxicated!

Adding to the potential risks related to accidents and injuries, simply using a cell phone while driving can result in a serious fine and ticket.  As a rising number of states are banning the use of cell phones while driving, any citizens refusing to adhere to these restrictions can be hit with a large fine and a mark on their driving record.  In fact, if ticketed in some states, you may be additionally penalized with points on your driver’s license.  With a large number of points, your insurance company will undoubtedly view you as a less reliable driver.  As auto insurance rates are calculated using a formula that factors one’s accident, ticket, and overall driving history, even one ticket can lead to higher insurance costs.

Alternatives for Safe Cell Phone Use

Fortunately, if you feel you simply cannot avoid using your cell while driving, you still have safe and legally viable options.  With innovations, many recent car models come equipped with hands-free “blue tooth” features, allowing drivers to call, speak, and hear cell phone conversations through their vehicle’s stereo speakers.  Adding to this, cell phone companies now offer an array of hands-free gadgets to enhance the ease and safety of your use of a cell phone.  Ultimately, to avoid spending extra bucks on insurance, find out alternative options to replace the riskier hands-on cell phone habits.

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Is Your Credit Score Raising Your Insurance Rates?

Wednesday, October 21st, 2009

Believe it or not, your credit score may either be helping or hurting your insurance rates.  While banks, lenders, and even employers look into your credit score to determine your general financial reliability, your various insurance providers may very well be examining the same private information.  From auto insurance to home owner’s coverage, an array of policy prices can be influenced by your personal score.

Insurance Premiums and Credit Scores

While each state has its own insurance regulations and restrictions, nearly all states allow insurance providers to evaluate your credit score in order to individually formulate your costs for coverage.  In fact, a recent United States Supreme Court decision has even extended these powers, as insurance providers are now no longer required to inform clients whether or not their credit score raised the costs for the insurance policy.  Currently, various reviews of insurance practices reveal that an estimated 90 percent of all auto and home insurance providers factor in a client’s credit score to determine the costs of premiums.

The Role of Credit and the Cost for Coverage

While one’s credit score may seem to be somewhat disconnected from the need for insurance, one’s credit score ultimately informs providers about each client’s history of general financial well being.  Factors that influence a credit score include:

  • History of opened accounts
  • Payment history (on time payments, occurrences of late payments, etc)
  • Ability to pay (at the least) minimum monthly balances on all due accounts
  • Income to debt ratio (essentially, is a client spending more money than he / she earns?)
  • Additional factors / economic habits

Essentially, by evaluating one’s credit score, an insurance provider can find out which clients are known to pay bills on time and which clients have histories of serious un-paid debts.  As a result, insurance providers can essentially “reward” those with a more positive financial record with greater savings.  Since individuals with a lower credit score may be more likely to repeat previous financial errors, insurance providers are accepting a greater risk by opting to offer coverage for clients with less consistent credit histories.  As such, the lower the score, the higher the premium.

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Can a Healthier Lifestyle Lead to Lower Health Insurance Premiums?

Tuesday, October 20th, 2009

Although uncommon and potentially controversial, some health insurance providers have experimented with policies that offer general savings and discounts for clients with a lower body mass index (BMI).  One’s BMI, which essentially reveals their body’s muscle to fat ratio, can often inform medical experts about an individual’s potential risks for obesity, heart disease, high cholesterol, and other related illnesses.  As a higher BMI may potentially help providers determine an individual’s anticipated insurance costs, some providers are hoping to motivate clients to engage in healthier daily habits in order to gain increased wellness and savings benefits.

Health and the Cost of Care

As Americans are reporting a rising number of obesity related illnesses and deaths each year, many experts argue that individuals with less than ideal lifestyle habits should ultimately pay more for insurance coverage.  According to medical studies, a BMI between 19 and 25 is considered to be generally healthy, while a BMI of 30 or more classifies individuals as “obese.”  Those whose BMI rank between 26-29 are labeled as “overweight.”  Currently, an estimated 1/3 of Americans fall into the “obese” category, while a large portion of Americans are medically labeled as “overweight.”

Because the health risks associated with obesity can result in the need for an increased number of medical tests, prescription drug treatments, and / or other costly services, some insurance providers are seeking to balance the costs for coverage by charging individuals with a higher BMI greater premium prices.

While many argue that this practice is an unreasonable invasion of personal privacy, as one’s BMI can be influenced by both genetic factors as well as lifestyle choices, proponents of this new insurance calculation undoubtedly disagree.  As obtaining information of a patient’s BMI would potentially require health insurance companies to access each client’s personal medical charts and histories, many assert that insurance leaders are obtrusively overstepping their boundaries of coverage and care.  On the other hand, advocates supporting this alternative method of pricing assert that charging higher premiums for individuals with greater health risks helps to more reasonably even out the costs of health care for all Americans.

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