More than how much money comes in it's a matter of how you spend it. That's where budgeting comes in. A detailed budget helps you keep tabs on your income. There are many people who are able to live comfortably on what they earn, even if their income is modest. True personal finance management boils down to spending less than you earn. A budget, therefore, keeps track of income and expenses. It will segregate your fixed expenses like your food, stay and insurance and your variable expenses like your travel, entertainment etc.
You can then figure out how much you can save and know what is available to invest. Experts advise you to keep at least half a year's income invested so that you can access it easily in the event of an emergency. Setting realistic goals is a big part of budgeting, along with understanding the difference between wants and needs.
The concept of personal finance and its management began when money could be exchanged for goods, when it became a matter of more than food, clothing and shelter. After money came into the picture, to make a living, people got jobs and were compensated in cash. The origin of personal finance and its management began with the concept of want versus resources. Living comfortably involved having enough money to buy all the things one wanted. Next came the necessity to balance a checkbook, to avoid getting into debt. These days, with credit freely available along with various financial alternatives that give you the means to achieve your financial goals, it has literally become mandatory to become skilled in making the right choices.
Managing personal finance usually begins with handling pocket money at a young age. Thereafter comes the ability to plan and budget. Budgeting and planning your expenses, investing for future requirements and retirement planning broadly covers the different aspects of personal finance.
Adequate insurance for you and your family is an essential part of investing. Life, health and property insurance protects you and your loved ones from unforeseen mishaps. Most people also make sure they have authorized someone through a power of attorney so that they can manage their personal finance in case they are unable to do it. It is also wise to make a will so that your assets can be handled smoothly.
Good personal finance management involves investing, managing risk, insurance, understanding and tackling debt and credit, knowing the value of time and money and ensuring that your retirement is taken care of. While planning you make an assessment of your present situation in relation to your goals. Managing personal finances becomes a hassle when you get into debt. Debt is what you owe, and can be good and bad. If you have borrowed money to buy property, it is an investment and the money you pay against interest on the loan is tax deductible. But running up debts like overdue credit cards is not good. This is why budgeting is very important so that you know exactly where your money is going. It is very easy to lose track of what you spend without a budget.
Dental insurance is an important part of maintaining good oral health, as dental expenses cost more than ever. You can easily pay hundreds of dollars on even a routine trip to the dentist, and basic and major procedures can cost thousands. If you have children, that cost multiplies. Dental insurance makes trips to the dentist more affordable, which also makes you and your family more likely to seek dental care as recommended. Here are some tips to help you find a cost-effective dental insurance plan:
1. Get a recommendation from your current dentist. If you have a favorite dentist you would like to keep seeing, check with that dentist about which plans he/she belongs to. Dentists are also good resources to learn which plans to avoid. Word travels fast in the dental care community, so your dentist should be able to provide good counsel about which plans are good and which ones are bad. If you don’t have a current dentist, get a recommendation from a friend. Most dentists or their staff will be more than happy to answer your questions to secure a new patient.
2. Search for dental insurance quotes online. The Internet has numerous websites dedicated to providing you with multiple online quotes for dental insurance. Don’t just look at price when comparing quotes; you also have to compare the features and reputation of the insurer. Check an insurer’s reputation with the Better Business Bureau. There are a lot of fraudulent insurance companies dealing in dental insurance. Any company you choose should be licensed with your state. You can check for licenses and complaints with your state insurance department.
3. Evaluate the network of dentists before buying. Not all dental insurance plans have extensive networks of dental care providers. Before you sign up for a plan, make sure there are qualified dentists in your area. You should have several to choose from in case you decide that you don’t like a particular dentist. Most plans will allow you to browse their provider directory prior to purchasing the insurance. If an insurer will not allow you to do that, take that is a red flag and find another insurer.
4. Take note of how treatment is determined. You don’t want to buy dental insurance from an insurer that controls treatment decisions. Some plans will require dentists to treat you in the least expensive way possible even if there is a better treatment available. You want to get a plan that allows you and your dentist to determine how your dental issues will be treated. You will likely have to pay a higher co-payment for procedures that are more expensive, but you should have the choice to do so if you so desire.
5. Inquire about dentist scheduling. Some dental insurance plans cause patients to only be seen at certain off-peak appointment times. These are the only times that people with these plans can get appointments, and they are typically the slowest times during the day and week. Dentists often use this practice to help fill gaps in their schedules and leave room for cash patients at the best appointment times. It’s incredibly inconvenient for you, however, to be restricted to only the unpopular appointment times. Before signing up for a plan, call one or more of the dentists in the network to ask about their scheduling policy.
6. Consider what type of treatments you need covered and at what level. Dental insurance classifies dental procedures as preventative, basic, and major. Most dental insurance will cover at least preventative and basic procedures, but the amount of coverage will vary from carrier to carrier and plan to plan. Before buying a dental insurance plan, consider how much care you have required in the past as a way of predicting how much you will need in the future. Only get what you need. For example, if you are young, you probably don’t need denture coverage.
7. Focus on preventative coverage if you are young and have healthy teeth and gums. You can easily find a dental insurance plan to cover 100% of preventative dental care including bi-yearly checkups, cleanings, and X-rays. By focusing on obtaining coverage for these routine procedures, you can help prevent the need for more extensive procedures like root canals in the future. Typically, non-preventative dental procedures are not fully covered by dental insurance and you will have to pay 20%-50% co-pay. With good preventative care you may not need coverage for those procedures at all, and you can always get a supplemental policy to cover emergencies.
8. Pay attention to the maximum amount of coverage allowed by the dental insurance plan. A comprehensive plan should have at least a $1,000 maximum coverage, but more is always better. A major dental procedure can cost hundreds if not thousands of dollars, and you can easily max out your insurance in one trip. When comparing different dental insurance plans, compare the coverage limits. Higher limits usually require higher premiums, but they may be worth it if you require multiple dental procedures.
9. Crunch the numbers to determine if a plan is cost effective. Calculate your yearly premium and make sure it does not exceed the maximum coverage. If you are paying $1,000 a year in premiums, it doesn’t make sense to get a policy with a $1,000 maximum coverage. Consider how much you typically spend each year in dental fees. Make sure your premiums do not exceed that amount either. Don’t forget to factor in how much you will need to pay in co-payments.
10. Try to get group dental insurance if possible. Group insurance is almost always cheaper than an individual policy because the premium is either subsidized by an employer or discounted because of bulk membership. If your employer doesn’t offer dental benefits or you are self-employed, you may still qualify for a group plan elsewhere. Some trade associations and fraternal associations offer members the opportunity to buy group health and dental insurance. While there are many affordable individual plans that you can purchase, if you have access to group insurance you should take it.
Buying and maintaining affordable health insurance can seem like a daunting proposition. With so many options to choose from and countless figures associated with each policy, it can sometimes seem as though you need an M.D. simply to make sense of it all. Thankfully there are some basic tips you can use for guidance along the way.
1. Know your health. Buying health insurance is confusing enough without having to wonder what those physicals will find. If you haven't been to a clinic for a checkup in the last several years, you may want to get a detailed overview before you begin shopping. Often just by getting your blood chemistry and a few other key indicators, you can save yourself considerable time down the road.
2. If you have a pre-existing medical condition such as diabetes or hypertension, you may have trouble getting affordable health insurance. Do not give up, however – these days a number of boutique insurance companies specialize in insuring people with certain disorders. Even if you believe you will never be able to find annual fees that suit your budget, a little research is bound to discover at least one or two companies who offer a higher standard of care and support. Needless to say, you want to avoid the major insurance companies for the same reason.
3. Ask your existing doctors and specialists whether they belong to any group plans such as HMOs or PPOs. You may not have anyone in your Rolodex if you have avoided medical care during a period of unemployment, but it is always wise to look ahead and anticipate the people you expect to visit. This includes psychiatrists, chiropractors and countless other subspecialties, so make a list of your ideal caregivers. Even if you cannot think of anyone offhand, most experts recommend calling a local treatment center and seeing what kind of insurance they offer the best rates with.
4. Look for group plans, even if you're between jobs. Too many people assume that if they have lost their jobs, few options exist for affordable health care. Not so – today a growing stable of trade groups, guilds and unions have sprung up to help people who may be out of work or self-employed. It's not unusual for major insurance companies to offer outstanding rates to group plans such as these, so you may save thousands each year just by joining up. The last thing you want is to pay out of pocket just because you freelance, so look for like-minded people in your area to see what's possible.
5. Another good option if you have recently terminated at another job is to take advantage of the Consolidated Omnibus Budget Reconciliation Act, or COBRA. This legislation stipulates that employers must provide you with supplemental health insurance for up to a year after you leave the job – not a long term plan, perhaps, but a welcome buffer if you do not relish the thought of spending weeks without a safety net. Most employers will extend COBRA benefits automatically, though some may require proof of employment and recent health records. Be prepared to produce all this information if you want to avoid lag times.
6. Decide whether you want to go with a Preferred Provider Organization (PPO) or a Health Maintenance Organization (HMO). Each offers different pros and cons, but the difference boils down to a simple question of access versus cost. PPOs are popular because they allow you to seek care outside your original health network, albeit it at an increased deductible and copay. HMOs, on the other hand, only cover caregivers within the network – but they may offer significant savings if you don't foresee the need to travel outside your plan for treatment.
7. Shop around! Health insurance companies are notorious for the widely divergent algorithms they use to determine your premiums. If you are unhappy with the prices at one, be sure to collect several more estimates before you commit to any plan. It's not unusual for two companies with the same data and case history to vary as much as 50 percent from one another, so you owe it to yourself to get a boarder overview. Don't just limit yourself to major providers either – a number of low-volume insurance companies offer special deals that may benefit people in your neighborhood or profession.
8. Be sure and check the copays on any medications you are already taking. Too many people forget this step, only to find themselves astonished by their first trip to the pharmacy. You may also want to look into the difference in cost for brand-name versus generic drugs – sometimes you can find a steep discount by switching to a medication only one provider covers. When in doubt, ask a customer service professional about your precise medication and dosage, as you want to get a specific number nailed down before you sign.
9. Save by combining health care policies with family members. It is a well-known fact that married couples enjoy less expensive health care premiums than their unmarried counterparts, but you may be able to save further by putting the whole family under a single umbrella plan. Spouses and children help distribute the risk for insurance carriers, giving them greater incentive to match or beat the other estimates you have seen. You may also be able to combine health insurance with life insurance to create an overarching combined policy – again, the premiums here will inevitably drop as you fold more coverages in.
10. Take care of yourself. This is perhaps self-evident, but it remains of paramount importance to individuals who see themselves switching carriers sometime in the future. Try quitting smoking, losing weight, increasing your exercise and otherwise taking daily steps to improve your health. It is a simple fact of the insurance business that private companies work for profit – if you can minimize the risk they take in covering you, you can expect to pay far less money over the course of your lifetime.
There was a time when health insurance was a luxury for average people, but that time has long since passed. These days health insurance is a must. Costs for medical care are higher than ever. Without health insurance, an accident or illness could seriously compromise your financial future. Moreover, having access to quality health insurance can help keep you healthier overall.
Sorting through health insurance quotes is no easy task. There are literally thousands of different plans out there for you to choose from. By far the easiest way to get good health insurance is through your employer or your spouse’s employer if you are so lucky. Group insurance plans are practically always the most cost-effective option; so if you have one available to you, take it. If you are self-employed, unemployed, or work for a company that doesn’t offer health insurance benefits, you’ll have to buy an individual plan.
In general, there are two main types of health insurance plans: indemnity plans and managed care plans. Indemnity plans are the more expensive of the two because you have a lot of freedom to choose your health care providers. These health insurance plans typically feature high co-pays and high deductibles. Preventative care, mental health care, prescription drug coverage, vision care, and dental care are usually excluded from indemnity plans unless added on.
Managed care is the most common type of health insurance these days. There are many different levels of managed care, and some plans incorporate features of indemnity coverage to add flexibility. Managed care plans include health maintenance organizations (HMOs), point of service plans (POS), and preferred provider organizations (PPOs). Typical characteristics of managed care health insurance include low co-pays, low deductibles, and a network of preferred or mandatory health care providers. Preventative care, prescription coverage, mental health care, vision care, and dental care are often included in the coverage. Some managed care plans, however, require pre-authorization of services.
Choosing the right health care plan for you and your family can be a complicated process. It’s not enough to choose the plan with the cheapest premium, because you could end up paying a lot more out-of-pocket expenses if the services you need are not covered. The best way to shop for health insurance is to get a variety of health insurance quotes from different insurers. Try to compare apples to apples by creating a list of benefits you and your family must have and looking for plans that satisfy those requirements.
When evaluating different health insurance quotes, there are three areas you should consider: benefits covered, applicable restrictions, and total costs. Most health insurance quotes include doctor’s visits, hospital visits, and surgical fees as standard benefits. Preventative care, vision care, etc. are considered optional benefits that may or may not be included. Pay attention to the maximum pay out of the policy as well. Determine if you can live with the restrictions of the policy. If you have a current doctor you would like to keep seeing who is excluded from a managed care network, that managed care plan may not be the one for you. Finally, consider cost. The total cost of an insurance quote is not just your premium, but how much money out-of-pocket you’ll have to pay in co-pays, deductibles, and uncovered services. This can be hard to evaluate, but it’s the most crucial factor to consider when evaluating health insurance quotes.
Getting insurance after you retire can be challenging if you retire before the age of 65. At 65, you become eligible for Medicare health coverage. However, before 65, your options may be limited. Because health insurance is so important, particularly as you advance in age, you should be sure to have a plan for coverage before you retire early. Make sure you will have access to coverage at least until you reach Medicare eligibility.
The best option for extending health care benefits past retirement is to join your spouse’s employer sponsored health plan. This is almost always the most affordable option. Before you rely on your spouse’s health insurance to carry you until you’re 65, however, consider if you spouse will be in that job until then and whether the business is stable and reliable. If your spouse suddenly loses that job, both of you will be without health insurance.
Some employers extend health benefits to their retired employees. This is often a good option for continuing your health care. Be aware, however, that these plans are not usually the same plan you have become accustomed to as a working employee. Usually these plans offer reduced coverage and require increased premiums. Sometimes you will have to pay the entire premium without any employer subsidizing. It’s important to find out exactly what is covered under your employer’s retirement health benefits and what is not. If you are on expensive medication, for example, make sure prescriptions are covered. Find out if there is a lifetime cap on coverage as well. A major illness or heart attack can quickly drain your coverage leaving you without insurance. Finally, find out if the coverage has a time limit. Some of these plans are only available for a year or two after retirement. You want to make sure you’re covered until the age of 65.
If you worked in a business with 20 or more employees before you retired, you may be eligible to purchase COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance. You are only eligible if your employer offered group insurance to employees, however. These plans are more expensive than regular group insurance, but they are less than individual plans. The only catch is, they are only available for 18 months after retirement.
If you don’t have access to group health insurance, you may have to purchase an individual plan. These plans are going to cost a fortune in premiums, however, because of your advanced age. Most insurers will consider you a high risk particularly if you have a history of health problems. In order to get coverage, you may have to waive treatment of pre-existing conditions and pay for treatment of those conditions out-of-pocket. This is probably the most expensive option and should be your last resort for health insurance.
Finally, if none of these options work for you because of lack of funds or ineligibility, you can look to your state assistance programs for help. Medicaid is available for low-income seniors that meet eligibility requirements. Coverage and cost varies from state to state, so you have to research what is available where you live. No matter what, you cannot go without health insurance. A catastrophic illness or accident could ruin you physically and financially, and unfortunately the older you get, the more likely you are to get sick.
Sending children off to college is a bittersweet moment. On the one hand, you’re proud to have raised them into adulthood, but on the other hand, you are afraid to let them go. Making sure your college student has the right medical coverage is one way to bolster your piece of mind. You never know what type of medical treatment your child will need while he or she is away, so try to get the most coverage you can afford.
If your child has been covered under your health insurance whether it’s group insurance or individual insurance, odds are that the coverage will remain available until the child is 24 years old. This usually applies even if the child doesn’t live in the home. Of course, you’ll have to keep paying for it, and you may have to pay an increased premium. Keeping your college bound child on your plan, however, isn’t always the best choice. Most colleges offer health plans through the school that have been subsidized by tuition to make them quite affordable.
College health plans vary greatly from school to school. Generally, these plans provide most of the coverage a college student needs. Preventative care including regular pelvic exams and PAP tests is usually included, but it may not be as extensive as a traditional policy. Most of the care your child will receive is from the student health center. These centers are set up to treat most minor ailments and injuries and may have specialists visit on a weekly basis. Students are not usually charged anything to visit the student health center when they have the college health plan. Some plans, however, may charge for lab work, X-rays, and other diagnostic testing. Prescriptions usually require a fee, but much of that fee is often covered by the plan.
Depending on what type of health plan your family has, it may be a good idea to purchase the college health plan even when your child is still covered under yours. Some health plans make it complicated for a college student to receive treatment out of state, for example. If you have to get a referral for out-of-network care, it may be too complicated for you child to receive treatment while at school. In those cases, it’s useful to supplement your child’s medical coverage with a college plan that makes getting treatment easy.
You may be wondering if your child is covered when he or she is home on holiday or summer break. Different college plans handle these situations differently, so be sure to inquire about these times before you sign-up. In general, most college health plans allow coverage for out-of-state providers, but they will not cover 100% of the charges. Much like a PPO health plan, the college plan will only pay something like 70% of the charges and a deductible will have to be met before coverage kicks in. That way your child still has some coverage while away from school. Of course, if your child remains on your health plan, these times will already be covered.
When deciding whether a college health plan is right for your child, be sure to examine the coverage closely. Check if pre-existing conditions such as asthma will be covered. Check how emergency room visits are handled. Find out what is available for free at the health center. College health plans are usually a cost-effective and convenient choice for college students, but you have to make that decision based on your child’s needs.
There was a time when health insurance was a luxury for average people, but that time has long since passed. These days health insurance is a must. Costs for medical care are higher than ever. Without health insurance, an accident or illness could seriously compromise your financial future. Moreover, having access to quality health insurance can help keep you healthier overall.
Sorting through health insurance quotes is no easy task. There are literally thousands of different plans out there for you to choose from. By far the easiest way to get good health insurance is through your employer or your spouse’s employer if you are so lucky. Group insurance plans are practically always the most cost-effective option; so if you have one available to you, take it. If you are self-employed, unemployed, or work for a company that doesn’t offer health insurance benefits, you’ll have to buy an individual plan.
In general, there are two main types of health insurance plans: indemnity plans and managed care plans. Indemnity plans are the more expensive of the two because you have a lot of freedom to choose your health care providers. These health insurance plans typically feature high co-pays and high deductibles. Preventative care, mental health care, prescription drug coverage, vision care, and dental care are usually excluded from indemnity plans unless added on.
Managed care is the most common type of health insurance these days. There are many different levels of managed care, and some plans incorporate features of indemnity coverage to add flexibility. Managed care plans include health maintenance organizations (HMOs), point of service plans (POS), and preferred provider organizations (PPOs). Typical characteristics of managed care health insurance include low co-pays, low deductibles, and a network of preferred or mandatory health care providers. Preventative care, prescription coverage, mental health care, vision care, and dental care are often included in the coverage. Some managed care plans, however, require pre-authorization of services.
Choosing the right health care plan for you and your family can be a complicated process. It’s not enough to choose the plan with the cheapest premium, because you could end up paying a lot more out-of-pocket expenses if the services you need are not covered. The best way to shop for health insurance is to get a variety of health insurance quotes from different insurers. Try to compare apples to apples by creating a list of benefits you and your family must have and looking for plans that satisfy those requirements.
When evaluating different health insurance quotes, there are three areas you should consider: benefits covered, applicable restrictions, and total costs. Most health insurance quotes include doctor’s visits, hospital visits, and surgical fees as standard benefits. Preventative care, vision care, etc. are considered optional benefits that may or may not be included. Pay attention to the maximum pay out of the policy as well. Determine if you can live with the restrictions of the policy. If you have a current doctor you would like to keep seeing who is excluded from a managed care network, that managed care plan may not be the one for you. Finally, consider cost. The total cost of an insurance quote is not just your premium, but how much money out-of-pocket you’ll have to pay in co-pays, deductibles, and uncovered services. This can be hard to evaluate, but it’s the most crucial factor to consider when evaluating health insurance quotes.
Buying and maintaining affordable health insurance can seem like a daunting proposition. With so many options to choose from and countless figures associated with each policy, it can sometimes seem as though you need an M.D. simply to make sense of it all. Thankfully there are some basic tips you can use for guidance along the way.
1. Know your health. Buying health insurance is confusing enough without having to wonder what those physicals will find. If you haven't been to a clinic for a checkup in the last several years, you may want to get a detailed overview before you begin shopping. Often just by getting your blood chemistry and a few other key indicators, you can save yourself considerable time down the road.
2. If you have a pre-existing medical condition such as diabetes or hypertension, you may have trouble getting affordable health insurance. Do not give up, however – these days a number of boutique insurance companies specialize in insuring people with certain disorders. Even if you believe you will never be able to find annual fees that suit your budget, a little research is bound to discover at least one or two companies who offer a higher standard of care and support. Needless to say, you want to avoid the major insurance companies for the same reason.
3. Ask your existing doctors and specialists whether they belong to any group plans such as HMOs or PPOs. You may not have anyone in your Rolodex if you have avoided medical care during a period of unemployment, but it is always wise to look ahead and anticipate the people you expect to visit. This includes psychiatrists, chiropractors and countless other subspecialties, so make a list of your ideal caregivers. Even if you cannot think of anyone offhand, most experts recommend calling a local treatment center and seeing what kind of insurance they offer the best rates with.
4. Look for group plans, even if you're between jobs. Too many people assume that if they have lost their jobs, few options exist for affordable health care. Not so – today a growing stable of trade groups, guilds and unions have sprung up to help people who may be out of work or self-employed. It's not unusual for major insurance companies to offer outstanding rates to group plans such as these, so you may save thousands each year just by joining up. The last thing you want is to pay out of pocket just because you freelance, so look for like-minded people in your area to see what's possible.
5. Another good option if you have recently terminated at another job is to take advantage of the Consolidated Omnibus Budget Reconciliation Act, or COBRA. This legislation stipulates that employers must provide you with supplemental health insurance for up to a year after you leave the job – not a long term plan, perhaps, but a welcome buffer if you do not relish the thought of spending weeks without a safety net. Most employers will extend COBRA benefits automatically, though some may require proof of employment and recent health records. Be prepared to produce all this information if you want to avoid lag times.
6. Decide whether you want to go with a Preferred Provider Organization (PPO) or a Health Maintenance Organization (HMO). Each offers different pros and cons, but the difference boils down to a simple question of access versus cost. PPOs are popular because they allow you to seek care outside your original health network, albeit it at an increased deductible and copay. HMOs, on the other hand, only cover caregivers within the network – but they may offer significant savings if you don't foresee the need to travel outside your plan for treatment.
7. Shop around! Health insurance companies are notorious for the widely divergent algorithms they use to determine your premiums. If you are unhappy with the prices at one, be sure to collect several more estimates before you commit to any plan. It's not unusual for two companies with the same data and case history to vary as much as 50 percent from one another, so you owe it to yourself to get a boarder overview. Don't just limit yourself to major providers either – a number of low-volume insurance companies offer special deals that may benefit people in your neighborhood or profession.
8. Be sure and check the copays on any medications you are already taking. Too many people forget this step, only to find themselves astonished by their first trip to the pharmacy. You may also want to look into the difference in cost for brand-name versus generic drugs – sometimes you can find a steep discount by switching to a medication only one provider covers. When in doubt, ask a customer service professional about your precise medication and dosage, as you want to get a specific number nailed down before you sign.
9. Save by combining health care policies with family members. It is a well-known fact that married couples enjoy less expensive health care premiums than their unmarried counterparts, but you may be able to save further by putting the whole family under a single umbrella plan. Spouses and children help distribute the risk for insurance carriers, giving them greater incentive to match or beat the other estimates you have seen. You may also be able to combine health insurance with life insurance to create an overarching combined policy – again, the premiums here will inevitably drop as you fold more coverages in.
10. Take care of yourself. This is perhaps self-evident, but it remains of paramount importance to individuals who see themselves switching carriers sometime in the future. Try quitting smoking, losing weight, increasing your exercise and otherwise taking daily steps to improve your health. It is a simple fact of the insurance business that private companies work for profit – if you can minimize the risk they take in covering you, you can expect to pay far less money over the course of your lifetime.
Q: Is there any way I can lower my rates for homeowners insurance?
A: Many insurance companies offer better rates on homes that are more modern and present fewer hazards. Insurance companies look at the property in question and calculate the possibility of a payout. A house with modern electrical and heating systems are low risk, and an insurance company will charge less for a modernized home than one that is older whose systems have not yet been upgraded. Some insurance companies also give discounts for theft prevention techniques, such as upgraded security systems or a dead bolt lock on the door.
Q: If I file a claim, will it affect my rate?
A: Homeowners insurance is very similar to auto insurance on this point. Most companies claim to give some leniency for the first claim but reserve the right to raise the rate if they deem it necessary. If an insured individual files more than one claim during a certain period, that individual’s rates will most likely increase for the next insurance cycle. If there are rate increases, an insured individual should not feel obligated to stay with any particular insurance company; it is often times best to switch insurance companies from time to time.
Q: Does homeowners insurance cover flood damage?
A: Because flood damage is so infrequent, the majority of homeowners insurance policies do not cover it. Federal law requires people living in certain areas of the country that are subject to catastrophic floods to hold some type of flood insurance. These required flood insurance areas are labeled as federal flooding areas. It is a good idea to look into flood insurance in order to protect your external property (the house itself) and internal property (your possessions), both of which could be significantly damaged, destroyed, or lost during a flood. Flood insurance is relatively inexpensive for the possible payout that it could provide.
Q: If I own a house, am I required to hold homeowners insurance?
A: Unlike auto insurance, homeowners insurance is not required to own a home. Most financial institutions will require some type of insurance while you are paying off a loan, especially if there are common natural disasters (flooding, earthquakes, tornados, etc.) in the area where the property and the home are located. Although it is not required to hold homeowners insurance, after the loan has been paid off, it is generally a good idea to keep the insurance to help protect the property as an investment.
Q: What type of insurance do I need for a condo or a co-op?
A: There are two types of insurance that are required when renting a condo or a co-op. The first is a master policy, which is generally created and provided by the condo or co-op board. This policy consists of shared parts of the property, such as walkways, roof, boiler room, etc. The second policy is your own insurance policy. This should cover structural improvements or problems caused by fire, theft, or other disasters. The policy should also cover all property or possessions within the condo or co-op and should also include liability in case a guest or tenet is injured on your property.
1. Homeowner’s insurance and title insurance are two terms that are often confused. Homeowner’s insurance covers damages to your property and your possessions and any liability of a guest on your property. On the other hand, title insurance protects your ownership of the home and investigates the title to determine if the title is valid and without encumbrances or defects. Title insurance is generally required by lending institutions if you use a loan to purchase a home. Whether a lending institution requires you to purchase title and homeowner’s insurance or not, you should consider purchasing both types of insurance to sufficiently protect yourself and your property.
2. Homeowner’s insurance policies cover your possessions in your home. Generally insurance companies create categories of items and assign a certain dollar limit to each category. However, if you have possessions in one category that exceed the limit on the category, you can purchase a rider to the policy to increase the limit on that specific category. Riders come at an additional cost, but they ensure that your possessions are sufficiently insured in your home.
3. If you own additional properties besides the one that you reside on, you can purchase riders on your homeowner’s policy to cover those properties. These riders are called income property riders. As a general rule, you should purchase insurance for properties that you rent out to protect the property itself from renters that damage it and to protect you from liability suits from your renters or your renters’ guests. You can also purchase secondary residence premises endorsement insurance to cover vacation homes or a home that you reside in during a part of a year. Adding second homes to your existing homeowner’s policy opposed to creating a new policy is generally more economical.
4. Homeowner’s insurance policies can also cover vehicles that are stored at your home. These vehicles include watercraft and other recreational vehicles. These vehicles are generally not included under auto insurance policies. You can purchase a rider to your homeowner’s policy to protect against the loss of any of these vehicles. However, if you use these vehicles often, you might consider purchasing insurance for them on a separate plan. Such a plan would already cover loss and theft, generally the only coverage option available for these types of vehicles under homeowner’s insurance.
5. If an item on a neighbor’s property does damage to your property (such as a tree falling and damaging a fence or a deck), your neighbor’s homeowner’s policy should cover the expenses. When an individual purchases a homeowner’s policy, it not only covers the individual’s property and possessions, it also covers damage done to third parties. Therefore, when the neighbor’s tree fell and damaged your fence, your fence should be covered by their policy. If something on your property is damaged by your neighbor, you should contact your insurance company and inform them of the damages. In some cases, your insurance company may initially fix the damage done to your property and then have your neighbor’s company reimburse them.
6. Your possessions are covered to a certain dollar amount under your homeowner’s insurance policy. The question is, when you go on vacation, are those items covered? Policies vary from company to company, but the general answer is yes, homeowner’s policies that cover your possessions in your home also cover those same possessions if you take them with you while you travel. If you have possessions that are extremely valuable, like jewelry or rare items, you can add a rider onto your homeowner’s policy that can extend your coverage to cover the cost of such items. However, in some cases where some possessions are extremely valuable, it might be wiser to just buy separate insurance.
7. Insurance companies generally insure a home for 80 percent of its value. When you are purchasing insurance, you should determine whether 80 percent would be sufficient: you do want to be underinsured if your home is damaged heavily or destroyed. You may consider purchasing a policy that covers 100 percent of your home’s value and then offset the premium price by raising your deductible. If your home was damaged heavily, you would spend less if you had a higher percentage of your home covered by had a higher deductible than if you had a lower percentage of your home covered, had a lower deductible, and then had to pay out-of-pocket for the percentage of your home that was uninsured.
8. Before you purchase homeowner’s insurance, you should determine how much you should insure yourself for in case of a third-party accident on your property, in other words, liability. Determine the amount of your assets, and if a large judgment was issued against you in a liability case, how much insurance you would need to protect your assets. You should think about protecting your business and investments and then purchase insurance accordingly.
9. Many factors go into pricing premiums for homeowner’s insurance. There are a few factors that you have little control over that determine the premium: the material used to build the home (brick, wood, stucco), your home’s closeness to a fire station (the better the fire protection, the lower the premium), the age of the home (old buildings may be against building codes), and the location of the home. Factors that you can change to determine the premium include the deductible amount (the higher the deductible, the lower the premium), the amount of riders you have attached to your policy, and the amount and type of coverage.
10. There are several different types of homeowner’s insurance packages. Basic packages include protection from fire, lightning, windstorms, explosions, riots, aircraft, vehicles, smoke, vandalism, theft, and volcanoes. More broad packages include protection from all the previous incidents and then further protection from damages caused by falling objects, snow, water events (there are specific restrictions on this one), freezing, and electrical currents. There are several other packages available for homes that are older or that qualify as rental homes. Special riders can then be attached to policies to protect homeowners from specific damages.
Renting out real estate in any form, be it an apartment, condo or freestanding structure, comes with its own set of risks. Unlike traditional home ownership where your chief concern is damage to the things you own, rental home insurance tends to focus more on property and injury liability. Conventional home insurance scarcely begins to cover the sort of issues you are likely to see as a de facto landlord, which is why rental property insurance has become such a popular choice. If you have found yourself struggling to find the perfect policy, you may be heartened to know this industry is actually pretty simple.
Most rental property insurance begins with similar damage coverage as traditional homeowner's insurance. That means you can choose either a "named perils" or "open perils" policy – the kind that comes with regular premiums and a fixed deductible. Depending on that home's location and the kind of abuse it is likely to see, you may also want to purchase additional catastrophic coverage for mudslides, earthquake or flood. Which possessions you list on the policy is largely a question of how you intend to manage the property as well – fully furnished living spaces will need more coverage than basic lofts, for instance.
Equally important is an airtight and comprehensive personal liability clause built into the policy. Conventional and first time homeowners often opt out of getting this kind of insurance, as they assume the chances of a guest injuring himself in the home are minimal. Not so with a rental property – you have no control over what goes on inside that home, and it's not unusual to see damages from such litigation stretch into six figures and beyond. Stick with policies that cover every type of injury and make special provisions for multiple accidents if you want to enjoy true financial security for years to come.
Finally you want to be covered in the event that one or more renters cannot meet the payment schedule anymore. Of course you assume some risk when you run credit reports and choose who will live there, but there is no reason to absorb the total cost in the event of a default. Sound property rental insurance usually comes with significant sums built in for events of this sort, so be sure and ask about so-called "loss of use" clauses from the beginning of this process. You may also want to clarify whether additional moving and cleaning costs can be counted against the policy in the case of an eviction.
Rental homes can represent steady profits and regular appreciation. If you want to maintain a healthy property and do not relish the thought of chasing residents for every little problem, it may be time to look into some of the top-rated property rental insurance carriers in this marketplace. Often with a little research and a good sense of what you want, you can zero in quickly on policies that meet your budget and needs in one fell swoop.
Home insurance comes in a number of shapes and sizes nowadays, from very narrow "named perils" policies to full "open perils" versions that cover essentially everything under the roof. Spend any time in this marketplace and you will quickly discover how many competing claims, clauses and contracts arrive at your doorstep on a daily basis. If you are a first-time homeowner looking for vetted and reliable information, it can be difficult to know where to turn. Thankfully a little information goes a long way in this industry, and all you need is a primer to point the way.
First things first. Home insurance, or homeowner's insurance, is designed to provide some measure of protection for the things you own. Today's home insurance policies tend to range from very specific to quite broad, and they may or may not include such features as injury and natural disaster coverage. Getting into this market and finding good homeowner's insurance quotes requires that you understand the different types of coverage and what they represent.
Basic property damage coverage is the most common type of home insurance, and with good reason. The home itself is generally more valuable than anything in it, and you want first and foremost to protect the structure from major damage. How much the policy is worth tends to be based on the value of your home, though lists of possessions can significantly swing that value one way or another. The home's condition and its location play a role in determining the rates you get as well – homes in high-crime neighborhoods represent a greater risk for the insurance companies, and they charge accordingly.
More comprehensive policies also cover injury to guests or employees that may occur inside your home or on the property. We live in a litigious culture, and these days it's not unusual to see general contractors and even trusted guests sue for major injuries incurred in your home. Personal liability coverage may ease the burden on your psyche by providing for considerable medical moneys should such an injury occur.
Many homeowners mistakenly believe their home insurance will cover so-called "acts of God" such as earthquakes and flooding, but often this is not the case. Risks associated with events such as these tend to be geographically based, and certain regions may carry high premiums for this kind of damage. If your home isn't covered and you want additional peace of mind, it may be worth looking into separate coverage for major natural catastrophes.
Countless other factors may enter the decision-making process as well, from the amount of money left on your mortgage to your credit score. If you are in doubt about the kind of premiums you can expect to pay, try asking your bank or financial counselor what kind of values you should assign these different priorities. When it comes time to buy, be sure and get estimates from multiple carriers before you make this decision. You'll be glad you did some comparison shopping first. For more information, check out our home insurance tips for homeowners.
Good home insurance is essential if you want to protect your most valuable possession against the ravages of time. Different policies cover different areas of liability, but the point is the same no matter which variety you end up with: security counts. That means whether your possessions are stolen or the home itself suffers structural damage, you want to be sure a financial safety net has been put into place. If you are a homeowner without insurance and can no longer bear the risk associated with this state of affairs, you owe it to yourself to look into the best options on the market.
The good news is that countless choices are available for homes young and old. The most common type of homeowner's insurance is basic property damage coverage – what most people think of when they talk about home insurance. Simply put, these are policies that cover the things you own and the things you keep on your property, including tools, jewels and secondary structures. Property damage coverage generally represents the single biggest expense for home insurance overall, though the rates tend to fluctuate based on your personal credit and the number of claims you have filed in the past. Your Comprehensive Loss Underwriting Exchange (CLUE) score can color that price as well, so you may want to get your hands on this data before applying.
The best way to save money on homeowner's insurance is to do some comparison shopping before you sign a contract. Different companies assign value in different ways, and sometimes all you need is an independent inspection to negotiate a far better rate. Your credit will affect this number as well – insurance companies see this score as a sort of catch-all for your overall responsibility. Raising your deductible will inevitably lower annual rates, so it is wise to set this money aside if you can afford it. Finally the amount of time you spend at home can be a factor if you commute for days at a stretch – this is the reason second homes tend to cost far more to insure than primary ones.
Homeowner's insurance comes in a number of guises beyond basic property coverage, of course. If you want a more comprehensive approach to the problem, consider looking into personal liability coverage as well. This basic policy protects you from having to pay out of pocket in the event a guest or city employee is injured on the premises. As broadband grows more ubiquitous and telecommuting becomes ever more common, it's not unusual to find homeowners purchasing separate insurance for their home businesses as well. Finally, check the fine print on your policy to ensure it covers regional hazards such as fire, flood and earthquake – you may need to purchase this coverage separately.
There is no question that home insurance represents a wise move for most homeowners. Shop around, seek estimates from major carriers and be sure to check popular trade resources for the highest-rated carriers. You may be pleased to discover how much money you can save over many years.
Homeowners insurance is an absolute necessity to protect yourself against damage to or the loss of your home and its contents. Most mortgage lenders require some level of hazard insurance for your home, but you should always get additional homeowners insurance to make sure you are fully protected. When shopping for a homeowners insurance quote, it’s important to research the insurer, understand the policy, and choose the right amount of coverage. Policies vary from one company to another, so you should get a homeowners insurance quote from several different companies before deciding on one.
The first step in buying homeowners insurance is determining what level of coverage you need. Typically, you should insure your home for full replacement value of the property and its contents. A builder or realtor can help you determine the replacement value of your home. You should go through your home to inventory its contents and decide how much everything is worth. Keeping receipts for major purchases as well as taking photos and/or video of your belongings will help you in case you need to file a claim. Some homeowner's and renter's insurance policies insure the contents of the home for their depreciated value. This is not a good option because in the event all of your belongings are lost or damaged, you will not receive enough money to replace them. Make sure any homeowners insurance quote you receive specifically covers replacement of home contents. You may have to pay more for this feature. Be aware, however, that most policies cap the amount of coverage for your home’s contents at between 50% and 70%.
The goal when buying homeowners insurance or any type of insurance is to get the best coverage for the smallest premium from a reliable insurer. With so much competition in the insurance industry, you can find similar policies for a wide range of prices. Be sure to allow for variations in coverage when comparing prices between insurers. Pay special attention to how much coverage you are allotted for high value items such as electronics, jewelry, and artwork. You may have to add additional riders to your policy for such items, as some insurers will limit how much they will pay out for such things, and the limit might be less than the value of the items. Also, make sure the level of coverage for additional features such as liability and displacement are equal when comparing one homeowners insurance quote to another. You can save money on homeowners insurance by asking for discounts or increasing your deductible. Installing an alarm system in your home is one way you can qualify for a discounted homeowners insurance quote.
The cost of the premium is only one of the factors you should consider when evaluating a homeowners insurance quote. Equally important, if not more, is the reputation of the insurer. The cheapest coverage in the world means very little if you can never get a pay out on your claim. Rating companies like Standard & Poor’s, A.M. Best, and Moody’s all rate the financial stability of insurance providers, a crucial factor in how reliable the company will be when you need to file a claim. Additionally, you can look to consumer reporting agencies or ask the insurance companies themselves to determine average claims processing times. It’s worth it to go with a slightly higher homeowners insurance quote to ensure that when you need your claim processed, it’s done in a timely manner.
Getting car insurance for a teenager is not a task any parent relishes because of the enormous costs involved, but buying it sooner than later is always the best option. As soon as your child gets his learner’s permit and starts driving your car, you should talk to your auto insurance company about adding him to your policy. This will make sure you are covered should anything go wrong during those dreaded driving lessons. Once your child gets his permanent driver’s license, you should contact your insurer again to have the policy updated accordingly.
Insuring a teen driver costs a pretty penny because drivers between the ages of 16 and 24 have the highest levels of at-fault accidents. Whether you add your teenager to your existing car insurance policy or purchase one in her name, you can expect to pay a lot more. There are some strategies, however, that can help you save money on your premiums when you do decide to insure your child including:
Tying driving privileges to school performance. Most auto insurers will give a discount of 10% to 25% to teenagers who keep their grades at or above a B average. Waiting to get your child a car until his grades are satisfactory can save you money and provide added motivation to do well in school.
Taking advantage of more driver’s education. Many auto insurers will provide additional discounts of up to 15% for drivers who take additional driver’s ed classes and have more hours of supervised driving. Laws vary by state for what is required to get a driver’s license, but you can seek out more instruction for your child independently. Not only can this save you on your premiums, it can also help you prevent needing to cash in on the insurance by extending the learning process and producing a better driver.
Adding your child onto your existing auto insurance policy. This will usually allow you to afford more coverage for your child than if you were to buy a separate policy, particularly if you are benefiting from discounts like safe-driver discounts or multi-policy discounts. Additionally, if you are getting a car for your child to drive, this could qualify you for multiple-car discount. This may not be a good option if you have a very expensive car on your policy, however.
Increasing your deductibles. Having a higher deductible will lower your premiums and can help offset part of the added cost of putting your teenager on your auto insurance policy. In the event that your child has an accident, you will have to pay more out-of-pocket, however. Of course, you could always pass that expense off to your teenager.
If you are thinking about buying a car for your child, talk to your auto insurance company beforehand to see how much it will cost to insure that car. Buying a car with less value will usually save you on your premiums. No matter what, you are going to end up paying more when it’s time to insure your teenager, but some planning can help you keep costs as low as possible.
The process of purchasing auto insurance for a used car is the same as the purchasing process for a new car. You first need to determine how much coverage you need. Then, you can go about soliciting auto insurance quotes from different insurance companies and comparing them. Next, you have to choose a reputable insurer to purchase your policy from. Finally, you need to review your policy and sign it.
Determining how much auto insurance coverage you need can be one of the more difficult parts of insuring a used car. The value of the car will influence how much coverage you need to buy. In every state, a minimum amount of liability insurance is required for all drivers regardless of the value of the car. Liability insurance covers bodily injuries and property damage resulting from an accident in which you are at fault. In most cases, the mandatory legal minimum is insufficient to cover the costs of a serious accident, so it is recommended that you purchase more than is required. Other types of coverage such as medical payments and uninsured/underinsured motorist coverage may be required or may be optional. Collision and comprehensive coverage is almost always optional and is directly affected by the value of the car.
Collision and comprehensive auto insurance covers damage to your car from an accident or other incidents such as theft or fire. If your used car is not worth very much, it may not make good financial sense to pay a premium for this coverage. This is particularly true if you choose a high deductible for your insurance. If your car is damaged or totaled, you will only get what the car is actually worth at most. Because depreciation is factored in, that could be very little. You can save on your premiums by skipping this coverage entirely if you choose.
Once you determine how much auto insurance coverage you actually need, you should start shopping around between companies. You’ll likely find a lot of variety in the quotes you get, but it’s important to always compare apples to apples. Research the insurers you are considering to make sure that they have good reliability records. If you choose an insurer based only on price, you may run into problems when it’s time to file a claim. There are several resources you can use to research an insurance company including the Better Business Bureau, A.M. Best and Standard & Poor’s. Once you choose an insurer and a level of coverage you feel comfortable with, take the time to read your policy carefully before signing it.
If you are buying a used car, it’s a good idea to talk to your insurance company or get a few quotes from different insurers before you close the deal. The type of used car you buy will have an effect on how much you pay in insurance premiums because potential repair costs, risk of theft and safety records are all taken into consideration. Consequently, there could be a significant difference in the cost to insure two very similar cars.
If you already have an auto insurance policy, be sure to cancel that policy in writing after you have secured new insurance. While you don’t want to pay for two insurance policies on one car, you could be charged a penalty by the state if you have a gap between insurance policies.
When an insurance company issues any insurance policy, it first determines how much of a risk the applicant poses for cashing in on that policy. This goes for all types of insurance including homeowners insurance , health insurance , life insurance and definitely auto insurance . In order to calculate your risk potential when you apply for car insurance, companies may factor in a number of different indicators including your credit history, age, gender, what type of car you drive and how many miles you drive each year. The most important indictor, however, is usually your driving record.
The Department of Motor Vehicles (DMV) of the state you are licensed in keeps your driving record. Among other things, it tracks of all of the accidents, moving violations and vehicular criminal convictions you’ve had. Most states use a points system to quantify the infractions on your driving record, but different states have different laws for how many points each infraction is awarded and how long those infractions stay on your record. Likewise, different auto insurance companies use different methods to assess an applicant’s driving record.
When you apply for a car insurance policy, most insurance companies will ask you questions about your driving history. They will not take your word for it, however; they will order your driving record from the DMV to see for themselves. If you have been licensed in multiple states, most insurers will get your driving record from each state. They will use this information to determine if you meet the minimum standards for insurability according to their company policy, and how much your car insurance premium will cost if you do. If you have a lot of infractions on your record, you will likely be charged a higher premium than the average driver. On the other hand, if you have few or no infractions on your driving record, you may be eligible for a discount on your premium through a “safe driver” program.
Periodically, throughout the tenure of your car insurance policy, your driving record may be reassessed. This is likely to happen whenever you change the amount of coverage on your policy, change the vehicle being covered, add another vehicle to the policy, add another driver to the policy or when the policy needs to be renewed. At this time, companies check to see if any additional infractions have been added to your driving record that will affect your car insurance premium. If so, surcharges may be added to your premium, which will drive your rate up.
The best way to save on your car insurance premium is to keep a good driving record. If you do have an at-fault accident or get cited for a moving violation, however, you may not be able to avoid paying more. In some cases, any “safe driver” discount may be negated or a surcharge may be applied. Some companies will forgive minor infractions, first-time accidents and other violations. Some states also have laws to regulate when an insurer can raise car insurance premiums. It’s a good idea to find out what will happen to your premiums if you do have a driving infraction when you first apply for the policy.
Owning a car can be something of a double-edged sword. On the one hand, you cannot imagine daily life without this source of tremendous convenience. On the other, the repair schedule and expenses can occasionally be brutal enough to send you running back to public transit. Thankfully there is a middle ground, and it relies on nothing more complex than a basic understanding of common car repairs. If you have found yourself wondering whether those mechanics' estimates may be a bit suspicious, some basic education can go a long way toward saving your finances in the future.
Cars are notoriously complex machines, given to wear and malfunction in countless areas. From dings in the body down to the tiniest catalytic converter, the vehicles we drive are as intricate as they are pricey. Only a few main areas seem to require attention year after year, however – master these and you can expect lower bills and a more successful ownership experience.
The most common repair is most likely the brakes. This is, after all, a part that was designed specifically to wear down and disappear over time. Whether your car uses pads or disks, it is important to get detailed information about how much wear you are looking at. Responsible ASE-certified auto shops will most likely give you a percentage of material remaining, making it far easier to decide when it's time for a replacement part. If the problem is something more substantial – blocked fluid lines or a defective booster, for instance – you will want to call around for different estimates before committing to an expensive process.
Engine problems are the second most common type of autorepairs, especially when you consider just how many parts are covered by this umbrella category. From issues with the fuel lines to a mis-choked carburetor, engine repair can run well into three and even four figures. Taking swift action is inevitably less expensive than waiting, however – that "check engine" light isn't decoration, and it's not unusual for problems such as these to quickly snowball into major mechanical failures. Experts recommend getting off the road and to a trusted mechanic at the first sign of engine trouble.
Countless other problems can arise in the daily operation of your car, from suspension and tire pressure failures to problems with the transmission, electrical system and climate control. Practiced mechanics and savvy customers know the best way to save money on auto repairs such as these is to do some comparison shopping and keep a vigilant eye out for pricing scams. Another way to protect yourself against unwanted loss is to obtain a variety of auto insurance quotes to compare when shopping for the right auto insurance ? this will ensure you have the coverage you need in case of an car accident. Also, Speak to friends about their experiences if you are on the hunt for a new repair shop, and be sure to check Better Business Bureau files to avoid sources of common compliant.
One of the few consistent truisms about owning a car is that you will almost never see the same problem twice. Good research, sound preventive maintenance and an informed perspective on the repair business should keep you driving at minimal expense for years to come.
It is common for consumers to not understand what auto repairs are covered by their auto insurance policy. Be sure to review and compare multiple policies when deciding which auto insurance quote is right for you.
Getting into a car accident can be a traumatic shock to the system. Even if you aren't injured, the fear and adrenaline that inevitably accompany such an event can quickly cloud your judgment. It is for this reason that experts recommend preparing for such contingencies ahead of time, as you don't want to be faced with multiplying choices and confusion at the scene of the accident. The good news is that governing bodies in transportation have agreed on some basic guidelines you can use to make sense of such situations as they arise. Keep yourself prepared for any contingency and you may find such accidents become far more manageable.
The first priority in the event of a car accident is to get any injured passengers and yourself to safety. If the cars are still operating, that means turning on your hazards and moving everything to the side of the road. If you have lost such mobility, you will want to put cones or flares down the road to give the scene a wide buffer zone of safety. A number of car safety kits include such equipment as a matter of course, so it may be wise to look into a preventive purchase such as this.
Once the scene is secure, it is time to exchange information with other drivers. Resist the urge to make accusations at this point – the essential thing is to get the data you need so you can sort out the financial details later. Be sure and get the other driver's name, address, phone number, insurance company, policy number, driver's license number and plate number. You may also want to take photographs and create a written record of precisely what happened.
The next step is the police report. Again, you want to be as detailed as possible here, including any charts or diagrams you think might be illuminating. A number of drivers balk at this step of the process, hoping they can work out an independent payment scheme with the other driver and keep insurance out of the picture. In fact, such plans rarely go as one might hope, especially as other drivers may file their own reports without telling you. If you want to avoid lone liability or an exorbitant repair estimate, it is wise to protect yourself with a trail of paperwork from day one.
It is important as well to read your own insurance policy ahead of time, as a number of specific conditions may be required immediately after a car accident. Fast filing and ready compliance will likely save you money down the line. It's also useful to know what kind of services you can expect in the immediate aftermath of an event like this – some policies pay for towing, for instance, while others may not.
Good preparation and a level head are the surest ways to keep yourself safe, secure and protected following a car accident. Whether you have been in a wreck recently or simply want to plan for an uncertain future, smart preventive measures can save you considerable headaches down the line.
How auto insurance companies come up with your premium can seem like a complicated formula. In truth, it is. However, that formula is based on some very simple principles. Auto insurance premiums, like most insurance premiums are determined by what type of risk factors you, the insured, have and what level of coverage you choose. Some of your risk factors are within your control, and some are not. Having an understanding of the risk factors that determine your auto insurance quote will help you get the best coverage at the best price.
An auto insurance quote is made up of different types of coverage. Liability coverage, comprehensive coverage, and collision coverage are the three main types, but there are additional types of coverage available.
* Liability coverage covers the damages you are responsible for because of an accident. Most states require all drivers to have a minimum amount of liability coverage by law.
* Collision coverage covers damage to your vehicle if an accident occurs.
* Comprehensive coverage covers damage to your vehicle that is not accident related.
Both collision and comprehensive coverage are optional but strongly recommended. You should never settle for the minimum auto insurance coverage required by law. The more auto insurance you buy, the cheaper it is. That means you can get significantly more insurance coverage with just a small increase in your premium.
A number of different risk factors go into determining how much you will need to pay for auto insurance. Gender, age, occupation, driving record, type of vehicle, and where you live are just some of the factors considered when obtaining auto insurance quotes. Based on past accident and theft statistics, insurance companies use these factors to determine the probability that you will file a claim. For example, if you have a clean driving record with no speeding tickets, insurance companies feel like you are less likely to have an accident. Therefore, your auto insurance quote will be lower than someone who has one or more speeding tickets. In the same turn, it costs more to insure types of vehicles that are prone to accidents and theft.
There are a number of strategies that can help you get a lower auto insurance quote. For one, you can shop around. While most companies use similar methods to determine premiums, there is a lot of competition for your business in the industry. Premiums for the same coverage can vary by hundreds of dollars from one company to another. You can also ask for discounts. Many insurance companies will reduce your auto insurance premium if you purchase another form of insurance such as homeowners insurance or life insurance from them. Likewise, if you have anti-theft devices or additional safety features on your vehicle you may also qualify for a discount. If you need to lower you premium further, consider getting a higher deductible. Paying your premium in fewer installments can also save you money.
While switching policies can help you save, it’s important to never leave a gap in your auto insurance when you do. Before you cancel an auto insurance policy, make sure you have another one activated. That way you will always be covered, and you can avoid any penalties your state might impose.
Can you protect your business from an unforeseen tragedy? The short answer is: “Yes!” These days there are more ways than ever to make sure your business is fully protected in the event of a natural disaster, a product recall, a serious lawsuit, or any other potential danger. Getting business insurance, however, requires you to do a little research and analysis because the type of business insurance you purchase makes all the difference. The right business insurance can mean the difference between a long and prosperous business life and professional and personal financial ruin.
You can and should get business insurance tailored to the specific needs of your business. Part of protecting your business is determining where you are vulnerable. Every business should have insurance to protect the business property. This includes the building where the business resides if the business owns it and all of the contents of that building whether leased or owned. Should there be a natural disaster like an earthquake or a flood, you need to make sure your property is covered. Remember, however, that many types of natural disasters require additional insurance coverage.
Natural disasters are not the only tragedies that can harm a business. Power outages, structural failures, gas leaks, etc. can all force you to close your doors at least temporarily. While you’re closed, you are loosing money, and that’s why you have to carry insurance to cover income loss. This is usually included in a business property insurance policy, but not always. Income loss protection is crucial because a forced closure can be a tragedy for a business that could lead to bankruptcy.
Another unforeseen tragedy you have to protect your business from is a lawsuit. Whether a suit has merit or not has no basis on how much it could cost you. All businesses are vulnerable to lawsuits in one form or another, so it pays to have liability insurance. Liability insurance covers settlement costs, legal fees, and other expenses that come with defending your business against a lawsuit. There are several types of liability insurance, however, so you need to make sure that your business is property covered for its needs.
Commercial General Liability (CGL) is the type of insurance that protects you from suits brought about because of personal or advertising injury. This insurance pays for medical expenses and other payments your business is held responsible for. Most businesses will need this type of protection. Professional liability insurance covers your business against suits that arise from service related errors, negligence, or malpractice. Employment practices liability insurance covers your business against suits that arise from disputes over things such as discrimination, sexual harassment, and wrongful termination. It can be hard to determine how much liability coverage you need because settlements in these cases run the gamut, but you can use other settlements in your industry as a guide and discuss norms with your insurance broker.
There are other types of business insurance that can protect your business from a tragic end. Worker’s compensation insurance is an absolute must for any business that has employees. Commercial auto insurance is required if your business has or used vehicles regularly. Life insurance is recommended if your business has multiple partners. Which combination of coverage your business needs will depend on your industry and the specifics of your company.
Offering your employees group health insurance benefits is a great thing to do and it can help you keep and recruit the best employees. Unfortunately, the cost of providing those benefits has practically skyrocketed in recent years. Paying for group health insurance is increasingly more difficult for small businesses in particular. Luckily, there are ways you can save on those group health insurance premiums so that you can continue to offer this valuable benefit to your employees.
In order to find the most cost-effective group health insurance plan, you have to determine exactly what you need and don’t need. One way to do this is to discuss the situation with your employees. Find out what type of expectations they have for a health care plan and what they could live without. Scaling back coverage can help you save money, and it doesn’t make sense to pay for benefits your employees don’t plan on using. Additionally, you can offer your employees choice in health care benefits. Some employees may want or require less than others, and that can save you money as well.
Once you have decided what your business needs, you should take the time to shop around. Start with your current insurance provider. If you don’t already have group health insurance set up, you can turn to your business insurance provider. You can usually get discounts on additional insurance coverage from an insurer you already have a policy with. Be sure to get a few additional quotes, however, so you can comparison shop. Using an online agent is a great way to get quotes from multiple insurers and compare different plans. Make sure any agent you work with is properly licensed and qualified, however.
Consider a different pay structure to alleviate some of your business costs. By splitting the premiums with your employees, you can save a lot of money. It’s important to gauge the reaction of your employees to this arrangement, though. Inquire about how much your employees feel they can contribute to the premium. If your employees can’t afford the premium for the health care plan, it’s no good offering it at all.
Another way to save money is to increase the deductible for the policy. Increasing the deductible reduces the premium without changing the level of coverage offered. This means that your employees will be insured against major medical expenses that arise from serious illness or accidents, but will have to pay out-of-pocket for lesser expenses such as office visits. It may not be the most desired situation, but it’s far better than having no health care to rely on. The disadvantages of the high deductible plans are often offset by using “Health Savings Accounts” (HSAs). Employees can pull from their account to pay for certain qualified medical expenses.
Your accountant can help you make up for some of the costs of providing group health insurance by taking advantage of applicable tax benefits. You can usually deduct group health insurance benefits from your taxes. Your payroll tax can also be lessened by how you offer your employees health benefits.
Going to the dentist has a reputation for being a less than pleasant experience whether deserved or not. Imagine how unpleasant that experience would be if at the end of it, you were handed a bill of hundreds of dollars if not thousands of dollars. The fact is dental procedures are more expensive than ever. Even routine procedures like X-rays, check-ups, and cleanings can cost you dearly. If you don’t have dental insurance, you are responsible for paying entire fee at the time of service unless you have worked out a payment plan with the dentist ahead of time.
There is a better way. Get dental insurance. The concept of insurance is very simple. You accept risk you can afford (premiums) in exchange for risk you cannot afford (the payout). By paying low monthly premiums for dental insurance, you are protecting yourself from having to shoulder the full brunt of the cost of dental procedures that you may need in the future.
Without dental insurance, you may not be able to afford all of the oral care your teeth and gums require. Putting off needed dental care can have serious repercussions on your teeth and gums. It can cause serious decay in your teeth, which in turn often causes severe pain. Eventually, you will need even more expensive procedures to save your decaying teeth, or you will lose them altogether. The more teeth that have a problem, the greater the cost to repair them. Emergency visits to the dentist can also cost you a fortune. Dental fees vary greatly from dentist to dentist and region to region, but in general, they aren’t cheap. Dental insurance on the other hand often is. It only makes sense to protect yourself from having to pay exorbitant bills for access to quality dental care.
If you have children, your dental bills will multiply. Children’s teeth are particularly susceptible to cavities, and often require fillings or sealants. It’s important to get your children into the habit of visiting the dentist regularly so that they carry on the practice into their adult lives. Without dental insurance, your family could easily be looking at several thousand dollars a year in dental fees.
The good news is there are many different types of dental insurance available to you for affordable monthly payments. Often your premium is less than $15 a month depending on what type of coverage you choose. Employee dental coverage is the best option by far. Typically available for the whole family, employee dental coverage is usually the most comprehensive and least expensive choice. It would be foolish to deny employee dental coverage when it has the potential to save you so much money while contributing to the state of your health. Individual dental insurance plans are also available for people who are self-employed, unemployed, or work for businesses that don’t offer dental benefits. These insurance plans usually cost more and provide slightly less coverage, but they are still better than no coverage at all.
Dental insurance has its limits, however, and you should be aware that most dental policies do not cover all of your dental expenses. Even the best dental insurance will only cover around 80% of the basic dental procedures such as root canals, fillings, and extractions. Sometimes preventative procedures also require a co-payment. However, even with a co-payment, dental insurance usually saves you a significant amount of money.
Most people, if they are not independently wealthy, will end up renting a home at one point or another. Whether this means you live in an apartment for a period of years or simply grab a house for a few months at a clip, it is essential to understand the financial pitfalls that may await. Real estate agents and landlords tend to be all smiles at move-in, but such relationships can quickly grow toxic once damages and repair are on the line. It is for this reason that experts recommend keeping assiduous records and a detailed paper trail throughout the duration of your tenancy.
The most important step you take to avoid trouble down the line is a thorough walk-through. Too many would-be renters agree on the spot and move in within days – long after the time has passed to conduct a detailed investigation of the premises. The result is all too familiar – major disputes over the condition of the property when it comes time to move out. Just a few hours of dedicated attention are all you need to record everything about the condition and operation of that home. Pay special attention to door frames, HVAC units and kitchen appliances, as these have a tendency to break quickly after move-in.
You also want to look into the habits and record of the property owners. A growing phalanx of websites have appeared that allow renters to evaluate their own amenities and landlords – check these before you sign any contract. You may also want to speak to governing city and state agencies about your rights as a renter and what you can expect in terms of liability. Finally check the Better Business bureau and see if any liens or claims have been drawn against the owners – too many data points and it can get hard to deny a pattern.
Once you have moved in, it is essential to arm yourself with quality renter's insurance. Landlords maintain their own insurance policies to protect against liability they may owe you – it is wise to do the same on your own behalf. Most renter's insurance allows for itemized lists that include your most valuable possessions, and some even include replacement cost values rather than existing values. Beware, however: most renter's insurance will not protect against earthquakes, flooding and other "acts of God," so you may want to look into supplemental insurance if you plant to live in a high-risk area.
The good news is that most major rental companies take the responsibility of home ownership off your hands appropriately, leaving you with a hassle-free and convenient living arrangement. As you move up into nice apartments and freestanding homes, it pays to maintain strong relationships with the renters in case of any unforeseen events. Litigation should only be used as a last resort, so read your contact carefully if you want to avoid ugly and expensive deliberations down the line. You'll be glad you protected yourself during an often unpredictable process.
Getting insurance after you retire can be challenging if you retire before the age of 65. At 65, you become eligible for Medicare health coverage. However, before 65, your options may be limited. Because health insurance is so important, particularly as you advance in age, you should be sure to have a plan for coverage before you retire early. Make sure you will have access to coverage at least until you reach Medicare eligibility.
The best option for extending health care benefits past retirement is to join your spouse’s employer sponsored health plan. This is almost always the most affordable option. Before you rely on your spouse’s health insurance to carry you until you’re 65, however, consider if you spouse will be in that job until then and whether the business is stable and reliable. If your spouse suddenly loses that job, both of you will be without health insurance.
Some employers extend health benefits to their retired employees. This is often a good option for continuing your health care. Be aware, however, that these plans are not usually the same plan you have become accustomed to as a working employee. Usually these plans offer reduced coverage and require increased premiums. Sometimes you will have to pay the entire premium without any employer subsidizing. It’s important to find out exactly what is covered under your employer’s retirement health benefits and what is not. If you are on expensive medication, for example, make sure prescriptions are covered. Find out if there is a lifetime cap on coverage as well. A major illness or heart attack can quickly drain your coverage leaving you without insurance. Finally, find out if the coverage has a time limit. Some of these plans are only available for a year or two after retirement. You want to make sure you’re covered until the age of 65.
If you worked in a business with 20 or more employees before you retired, you may be eligible to purchase COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance. You are only eligible if your employer offered group insurance to employees, however. These plans are more expensive than regular group insurance, but they are less than individual plans. The only catch is, they are only available for 18 months after retirement.
If you don’t have access to group health insurance, you may have to purchase an individual plan. These plans are going to cost a fortune in premiums, however, because of your advanced age. Most insurers will consider you a high risk particularly if you have a history of health problems. In order to get coverage, you may have to waive treatment of pre-existing conditions and pay for treatment of those conditions out-of-pocket. This is probably the most expensive option and should be your last resort for health insurance.
Finally, if none of these options work for you because of lack of funds or ineligibility, you can look to your state assistance programs for help. Medicaid is available for low-income seniors that meet eligibility requirements. Coverage and cost varies from state to state, so you have to research what is available where you live. No matter what, you cannot go without health insurance. A catastrophic illness or accident could ruin you physically and financially, and unfortunately the older you get, the more likely you are to get sick.
