Your Teen Behind the Wheel: What you need to Know about Teen Driving and Auto Insurance

Posted on June 17, 2010 by Author

As a parent, the safety of your teenage driver is certainly your biggest concern. However, you may also be quite concerned about the cost of auto insurance for your teen driver.

Although auto insurance rates for teenage drivers will almost always be higher than rates for older individuals, there are things you can do to ensure not your teenage driver’s safety behind the wheel, but also save on their auto insurance policy:

  • Talk safety before they even get behind the wheel – Safety, of course is the number-one concern of most parents of teenage drivers. With that being said, the safety discussion needs to start before they get their driver’s license and needs to continue on a frequent basis. It’s not enough to tell your teenage driver not to text and drive; it must be reiterated nearly every time they get into the car. Bottom line: teenage drivers have notoriously short attention spans, so remind them frequently about what you expect from them when they are behind the wheel.

  • Consider an advanced driver course – It is a great idea to have your teenage driver take an advance driver safety course, not only for their safety but also for a decrease in auto insurance premiums. Most auto insurance companies will consider a lower rate if your teen completes an advanced driver program.

  • Talk to your insurance agent about an appropriate vehicle – Not all vehicles are created equal in terms of safety. Four-door cars, for example, are usually considered safer than two-door vehicles in the eyes of auto insurance companies. SUVs also have a higher accident rate than sedans, and therefore come with higher policy rates for your teenage driver. Keep in mind, also, that newer vehicles with more safety features, such as dual airbags and anti-lock brakes, have lower rates than older vehicles.

  • Understand the laws and make sure your teenage driver understands them, too - Each state has different laws regarding teenage drivers. Make it a point to understand the laws in your state regarding junior operator’s licenses and the stipulations and laws that come along with them.
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Why your Homeowners Insurance Rates may be going up

Posted on June 16, 2010 by Author

If you continue to see your homeowner’s insurance rates climbing, you may want to take the time to consider what may be the cause. Although there certainly are factors that are beyond your control, such as the state or city in which you live, there are many things that you may unknowingly doing to jeopardize your low rates:

  • Purchasing an “unsafe” breed of dog – There are simply certain types of dogs that are deemed to be “unsafe” by homeowners insurance companies and, as a result, you may end up paying more if you purchase a dog on the list. Before purchasing a new dog, it is best to contact your insurance agent and ask about their list of unsafe dogs. The general line of thinking is that certain breeds are more likely to attack people and cause injuries which, most of the time, are dealt with through your homeowners insurance contract.

  • Filing a series of claims – Filing one claim will not likely influence your homeowners insurance; however, multiple claims, even if they are not your fault, may cause an increase in your rates. If your home becomes damaged and the damage is minor, consider paying it out of pocket yourself instead of filing a claim. Limiting your claims will likely have a positive effect on your homeowner’s insurance rates.

  • Buying a home with a history of claims – If the previous owners of your home filed many homeowner’s insurance claims then you may be paying for their claims. A property with many claims may indicate an unsafe property to the insurer.

  • Late tax payments – If you fail to pay your taxes on time, your insurer may end up raising your homeowner’s insurance premiums because you are considered a payment risk. Make sure your payments are current to keep your homeowners insurance rates at bay.

  • Low credit score – If you fail to pay your bills and your credit score plummets, chances are your insurance rates will go through the roof. It is important to realize that a low credit score doesn’t just affect your credit, but other types of insurances and payments, as well.
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Is it Time to Reevaluate your Life Insurance Needs?

Posted on June 15, 2010 by Author

Each person’s life insurance needs are decidedly different. After all, the life insurance needs of a newlywed will be quite opposite of that of a retiree or head of a family, for example.

As your needs change throughout your life, you should consider that your life insurance needs may change, as well. From getting married to purchasing a home and having children, the amount and type of life insurance you need may change substantially.

Therefore, it is in your best interest to reevaluate your life insurance needs as your needs continue to change. Millions of Americans are grossly underinsured and, unfortunately, they don’t find this fact out until it is too late.

When to Reevaluate your Needs

The best time to reevaluate your coverage is any time you make a significant life change. Are you getting married, divorced or expecting your first child, second child? Did you just buy a home, buy a more expensive home or downgrade to a less expensive home? All of these life changes can impact your life insurance needs, so it is best to pull out your life insurance policies and carefully review them during these pivotal life moments.

Many insurance experts also talking with your life insurance agent and reevaluating your needs every two to three years, minimally.

Marriage

Marriage, for example, can certainly change your life insurance needs, as you will now need to review your monthly income, taking into consideration your spouse’s income. You may also want to consider protecting your spouse and providing him or her with enough money to pay off the house or simply to take the time to grieve.

Home Purchase

When you purchase a home you should definitely reevaluate your life insurance needs, as you will want to provide your spouse or loved ones with enough money to pay off the house and pay for household expenses, at least for the next two to three years.

Outstanding Debts

If you have any other outstanding debts that you don’t want to pass onto your spouse or loved ones, such as second homes, credit cards, cars, and boats, for example, you will surely want to provide enough life insurance to cover these debts.

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Why it may make Sense to Increase your Auto Insurance Deductible

Posted on June 14, 2010 by Author

We’ve all had to cut back on expenses. From the credit crisis to the housing market meltdown to the lousy economy and the loss of jobs, many Americans have had to find ways to cut the fat from their household budgets.

Is Decreasing your Auto Insurance Coverage a Good Idea?

In your search for budget cuts, you may have thought about decreasing your auto insurance coverage. Before you do this, you may want to think twice. Auto insurance, like many other types of insurance, may not be something you think too much about until the time comes when you need it. It is therefore best to keep your auto insurance coverage and to always carry what you can comfortably afford.

However, there is one area that you may want to cut back on when it comes to auto insurance: your auto insurance deductible.

The auto insurance deductible you pay when it comes time to file a claim is often a huge indicator of your monthly premium. In other words, the auto insurance deductible you choose has a clear effect on what you pay each month to your auto insurance company.

Does it Pay to Increase your Auto Insurance Deductible?

If you choose to raise your auto insurance premium by as little as $500 and agree to take on more financial responsibility in the event of an auto insurance claim, you can save up to 15 percent on your auto insurance premiums.

Higher deductibles may be particularly appealing to motorists with older vehicles, as they often will not worry about a minor ding or flaw. Individuals with newer vehicles, on the other hand, are probably best served with auto insurance policies with lower deductibles.

In other words, individuals with newer cars will usually be more apt to repair their vehicle in the event of a minor fender bender.

In the end, you must decide which type of auto insurance policy and deductible you will carry. Always keep in mind, however, that you should save at least the amount of your deductible in a savings or money market account in the event of an auto insurance claim so that you won’t be caught off guard.

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Your Guide to Understanding your Homeowners Insurance Policy

Posted on June 11, 2010 by Author

Your homeowner’s insurance policy sits in your filing cabinet, safe and sound. You know you have a policy; you know you chose a good, solid policy; and you know that you always pay your premiums.

But do you really know what is in your policy and do you fully understand your rights and obligations under your homeowner’s insurance policy?

If not, then you’re not alone. Most homeowners, in fact, do not take the time to really understand the ins and outs of their homeowner’s insurance policy. And we all know the saying: what we don’t know can hurt us.

With that said, it is probably a good time to pull that policy from your filing cabinet and begin to read it so that you develop a clear understanding of the policy and what is contained in it. Along the way you may have difficulty understanding the policy because of the language used.

We have therefore set up a quick guide so that you can understand your homeowner’s insurance policy so that you can make better decisions regarding your policy:

  • Damage to House – Ever wonder what it means when it says “damage to house?” This part of the policy essentially covers any damage to the house itself. The damages that you can claim on your house are up to the face amount of the policy. In other words, if the face amount of your insurance policy is $200,000, you will receive that much if your home is completely destroyed.

  • Other Structures – Other structures in a homeowner’s insurance policy usually means outbuildings, such as detached garages, sheds and fences, just to name a few.

  • Damage to Personal Property – In addition the structure itself, your homeowner’s insurance policy also covers the contents of your home. Such personal property that may be covered includes: furniture, clothing and personal effects. Highly valuable items, such as jewelry and antiques, may need to be covered under a separate policy.

  • Comprehensive Personal Liability – This type of protection covers you from any accidents incurred by other people while on your property. Your homeowner’s protection for comprehensive personal liability will cover you, regardless where you go.
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Examining the Causes of Auto Insurance Rate Increases

Posted on June 10, 2010 by Author

We all want to know what we can do to lower our auto insurance rates. However, what many of us fail to realize is that we may be doing a lot to jeopardize our chances of good rates!

Good auto insurance rates are earned, and there are many ways in which we can achieve competitive auto insurance rates. However, at the same time, there are many mistakes we can make that are sure to send our rates through the roof:

  • Be responsible for a car accident – If you are at fault in a car accident, expect your auto insurance rates to increase. Your history with your auto insurance company, as well as the insurer’s policies, will likely dictate exactly how much you can expect your auto insurance rates to increase.

  • Modify your vehicle – If you like to modify your vehicle with “souped up” parts and accessories, your auto insurance company may end up raising your auto insurance rates. Often times, these types of modified cars are considered to be a higher risk for auto insurance companies because they assume that drivers who own these types of cars are more likely to drive recklessly.

  • Get convicted of a DUI – Expect your auto insurance rates to go through the roof if you get convicted of a DUI. In addition, many auto insurance companies will cancel your policy; particularly if it isn’t your first offense.

  • Marry someone with a reckless driving past – Although you may have a clean record when it comes to driving, if your spouse can’t say the same then you will likely be hit with high insurance rates.  If you add a driver to your policy who has a record of reckless driving your policy price will then be determined based on the other driver.

  • Purchase a sports car – Many types of vehicles that are deemed to be sports cars will come with higher auto insurance premiums. Other types of vehicles may also come with higher insurance premiums for different reasons. For example, some types of cars are stolen more often, while SUVs may come with higher premiums because of their risk of tipping over.
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Where to Turn for Health Insurance when COBRA is not an Option

Posted on June 9, 2010 by Author

If you lose your job, do you know where to turn for health insurance?

Larger companies must offer their employees COBRA benefits if they are terminated, yet many employees don’t even consider this an option because of the expense that comes along with this type of insurance.

In short, consider purchasing COBRA to extend your healthcare benefits if you can afford it. COBRA is still the best plan of action for most individuals who are terminated from their position and lose their healthcare.

However, if COBRA simply isn’t an option, you may still have other options available to you:

  • Purchase an individual insurance plan – If you are in good health, you may be able to find a quality health insurance plan for less than COBRA; however, expect your coverage to be more limited than COBRA coverage. If you have pre-existing conditions, you may have more difficulty getting an individual health insurance plan. However, don’t assume that you are ineligible for an individual insurance plan; instead, check out your options. The health care reform law, in fact, prohibits health insurance companies from rejecting you based upon pre-existing conditions.

  • Consider group coverage – You may be eligible for group coverage if you go into business for yourself. All states require health insurance companies to provide group coverage for business with two or more employees, so it isn’t out of the question to receive group coverage, even if you have only one other employee. In addition, insurance companies cannot deny you because you or your employees have pre-existing conditions.

  • Check state insurance programs for your kids – If you are unable to keep your health insurance coverage, you can at least make sure your kids are covered. Every state has some kind of children’s health insurance program. Information about all of these programs can be found at www.insurekidsnow.gov. These types of programs are available to all children, although prices may vary depending on your income level.
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You can Lower your Homeowners Insurance Rates!

Posted on June 8, 2010 by Author

You don’t need to give up good coverage to lower your homeowner’s insurance rates. You do, however, need to do your homework to ensure that you’re getting the best policy at the best rate.

First of all, it is important to understand that your homeowner’s insurance premium is typically dictated by where you live. In other words, don’t be surprised to find a huge difference in insurance premiums if you move from one state to the other.  Just like real estate, homeowner’s insurance prices vary widely, so don’t expect to pay the same rates in Florida as you did in Pennsylvania.

With that said, here are some inventive ways to lower your homeowner’s insurance premium – without lowering your coverage:

  • Raise your deductible – One of the easiest ways to see a significant drop in your homeowner’s insurance rate is to raise your deductible. Many homeowners, for example, can expect to see a decrease of about 25 percent, merely from raising their deductible from $500 to $1,000, according to the Insurance Information Institute. A larger deductible usually makes sense for most homeowners, as they will usually not file a claim unless there is significant damage. It is important, however, to make sure that you have $1,000 set aside in case you need to file a claim.

  • Bundle your policies through one company – Simply by buying two or more policies from the same company can reduce your rates anywhere from five to 15 percent, according to the Insurance Information Institute. Called an umbrella policy, you can choose to purchase your life, auto and homeowners insurance through the same company and save big.

  • Improve your home’s safety – Home improvements may go a long way when considering your homeowners insurance policy rates. Replacing your roof, updating your electrical service or adding a safety feature, such as an alarm or sprinkler system, may allow you to receive a lower-cost policy. At the same time, you may want to consider getting rid of the swimming pool or trampoline in the backyard; both of which may raise your insurance rates significantly.

  • Keep an eye on your rates and check them annually to ensure that you are receiving the most competitive rates.
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Are your Distractions Raising your Auto Insurance Rates?

Posted on June 7, 2010 by Author

We all like to think that we’re plugged in when we drive, but the fact of the matter is that many of us are guilty when it comes to distracted driving. In fact, it is estimated that distracted drivers caused nearly 6,000 fatal crashes in 2008 alone.

There are three types of driving distractions, according to Distraction.gov: visual, manual and cognitive. Have you eaten while driving? Have you made a phone call or texted a friend while driving? Have you applied lipstick or read a letter while driving? If so, then you, too, are guilty of distracted driving.

And your distracted driving may, in the end, cause you auto insurance rates to skyrocket. Here’s what you can do today to ensure your safety, your passenger’s safety and the safety of other motorists, all the while preventing an accident which can raise your insurance rates:

  • Although not engaging in any type of conversation is the best rule to follow while behind the wheel, it is also not very realistic. Therefore, you can protect yourself from distracted driving by not participating in any argument or heated discussion behind the wheel. In addition, if your children are misbehaving, instead of attempting to deal with the situation while driving, pull to the side of the road to take care of the situation. In addition, let your children know that you are unable to turn around and pick up toys or hand them items while driving.

  • Any type of technology that takes your mind or eyes off the road is best used only when your car is in park. If you have difficulty not addressing each text message you get while driving, turn off your phone to resist the temptation. In addition, let your friends and family know that when you are behind the wheel that you cannot partake in any conversations.

  • Manage your time better so that your driving time isn’t spent rushing from Point A to Point B and tending to multiple things. In other words, give yourself plenty of time to leave in the morning so you aren’t applying makeup, eating or rushing the kids to school at the last minute. When we are in a hurry we are often distracted, so make a point of turning over a new leaf and giving yourself plenty of time each day to accomplish your daily activities.
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Your Top Five Travel Insurance Questions Answered

Posted on June 4, 2010 by Author

Your travel agent recommends it, but do you know what travel insurance really is and why it is so important?

For many individuals, travel insurance is just another travel expense that they are more than happy to pay. Others, however, dismiss it, only to find themselves in a situation where their dream vacation is interrupted and their money is history.

Before you embark on your next trip, take the time to understand and appreciate all aspects of travel insurance and why it really is so important after all.

Here are your top five travel insurance questions:

Q: Where do I purchase travel insurance?

A: There are many companies that sell travel insurance, although the better known companies include American Express, Travel Guard and Access America. Whatever company you decide to purchase travel insurance through, make sure they have a solid reputation and a strong financial past. Remember: a travel insurance policy is only as good as the company that issues it, so take the time to find a good company through which to purchase your travel insurance. Your travel agent will likely recommend a particular company, too.

Q: What does a travel insurance policy cover?

A: Although each travel insurance policy will differ slightly based on their coverage, in general most travel insurance companies cover lost luggage, emergency medical care, terrorism, natural disasters and bankrupt companies. It is important to thoroughly read your travel insurance policy so that you fully understand what is, and isn’t, covered under your policy.

Q: Is travel insurance really necessary?

A: That all depends on your luck. However, when you consider the happening of just this past year, including volcanic ash, the H1N1 virus, and a number of hurricanes and floods, it really is taking a gamble not to purchase travel insurance.

Q: Why do I need to purchase medical care through a travel insurance policy? Shouldn’t my health insurance policy cover my medical expenses while on holiday?

A: Your regular health insurance policy may cover your healthcare while overseas, but many times it does not. In addition, emergency medical coverage through a travel insurance policy will be able to cover airlifting you off a cruise ship for an emergency appendectomy; your standard health insurance policy will not.

Q: Who needs to purchase travel insurance?

A: Anyone who wants to protect their investment should take out travel insurance. Remember: vacations can be expensive!

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