Financial Information For Better Live » Guest Post

Where does your car live?

admin — Thu, 28 Oct 2010 20:24:01 +0000

Insurance is a slightly unusual contract because it depends on good faith. That’s your honesty in telling the insurer everything it needs to know to assess the risk, both when you apply for the policy and then while the policy is in force. Obviously, it’s not practical for the insurer to come visit whenever you buy a car so you have to disclose all the relevant facts. If you are less than honest or fail to tell the insurer when there’s an important change, the insurer is entitled to cancel the policy when the mistake is discovered, e.g. when you make a claim. This can turn out expensive because, if the insurer cancels the policy, you are left with the bill. So what should you tell the insurer? If in doubt, send an e-mail every time something important changes. That’s not you fitting replacement parts, but it would include any modification you make to make it go faster. What’s this about the car’s address? Well, this is one of these unfair issues. In all states except California, the ZIP code where you keep the car overnight is a key factor in setting the rate. So, if the car lives in a high crime area where it’s more likely to be stolen or vandalized, the premium will automatically be higher. The same happens if your area has bad road design or poor maintenance, and there’s a high accident rate. This is unfair because insurance should be all about your skill as a driver. And this is not ignored. The rate will rise or fall depending on whether you are an experienced driver with no claims as opposed to a young driver with multiple tickets. But, for the starting point, it’s quicker and easier for insurers to group everyone together by ZIP code. There’s a potential set of discriminations at play here because some “high crime” areas are associated with different racial groups. Unfortunately, these vague legal issues are never allowed to interfere with the way the insurers assess their risks. So, if you have some choice about where you live or store your car overnight, check out the ZIP codes by getting different car insurance quotes. You might find significant savings if you find a place to live in a “good” ZIP code area. This can mean paying slightly more rent or a high mortgage to avoid paying more to insure the home and car. Equally, you might have to pay a storage fee to garage your car at a different address. In all instances, the addresses must be genuine. If you dishonestly declare an address simply to get a lower premium, this is potentially a criminal offense. Not that the police prosecute this type of white collar crime very often. It’s left to the insurer to cancel the policy. If the insurer is not at risk of loss, and you have no policy to claim on, that’s usually sufficient penalty. Car insurance is deceptively simple to deal with. Buy a car, pay a premium, drive it away. When you do this, remember all the power is with the insurer to cancel the policy.

No Transparency? You Can Beat It!

admin — Wed, 27 Oct 2010 12:21:59 +0000

Insurers might try to tell you that all homeowners insurance policies are basically the same. They want to be able to say, “Look, our price is lower than theirs. You’re getting the same thing really, so just go with the lower price.” The reality is a bit different from the rhetoric, however. Flood coverage for one company does not mean the same thing as flood coverage for another. That much is attested to by Daniel Schwarcz in his eyebrow-raising “The Need for Insurance Policy Transparency”, which points out that shopping for homeowners insurance can be a pretty horrible experience when no two policies are even basically the same and you are trying to compare costs. The abstract follows: This Article empirically debunks the common claim that homeowners insurance policies do not vary across different insurance carriers. It demonstrates that different carriers’ homeowners policies differ radically with respect to numerous important coverage provisions. It also reports that a substantial majority of these deviations produce decreases in the amount of coverage, though some deviations increase coverage. Additionally, the Article reviews the shocking absence of any mechanisms by which even informed and vigilant consumers could comparison shop among carriers on the basis of differences in coverage. It closes by noting that state insurance regulators must act aggressively to remedy this lack of transparency in homeowners insurance markets and to study more broadly whether this problem extends to other personal lines of coverage. If you want to read the newest version of the argument, get the October 25th issue of Underwriting Magazine, where the author refutes the insurance industry’s response. The industry claims that all existing policies provide a base amount of coverages. While nobody in this debate has called for all policies to be completely standardized, it has been suggested that the insurance industry should at least agree upon provisions to “have a minimum floor for personal for personal lines policies,” which would guarantee the essential coverage that a paying customer needs to continue his or her way of life in the event of a catastrophe. Some of the more powerful points from Schwarcz’s earlier essay are: 1. Insurers only allow their policy forms to be seen by consumers after they have bought coverage. 2. Regulators don’t even have access to the aforementioned complete forms. 3. Even the insurance agents believe the myth that all homeowners forms are basically identical. As a consumer, the odds are stacked against you when it comes to home insurance. So how can you beat it? Careful review your existing policy. You can always find an expert to help you review it. When using home insurance quotes to shop, make sure you have in mind exactly what coverages you want in your policy. Then, make sure the policies that you are looking at guarantee those. Also make sure to check consumer reviews. It these companies have swindled anybody or withheld information that you should know before you sign a contract, consumer reviews are a good place to look for information. While consumers will have to wait a while for industry transparency, you can’t wait for home insurance.

The dos and donts when insuring your car

admin — Wed, 27 Oct 2010 08:12:40 +0000

Getting affordable car insurance is not such a hard thing to do. However, it’s not as simple as pushing down your coverage amounts in order to lower the premium. The bad news is that you can’t safely save money by slashing your coverages dramatically and dropping damage coverage for your car. In reality, when you hear suggestions to drop your coverage in order to save some money on car insurance, the person giving such an advice is either incompetent or simply wants to make fun of you. Because there’s much more to cheap insurance than coverage manipulations. Most of us tend to believe that cheaper is better. But don’t forget the saying: you get what you’ve paid for. Of course, having cheap insurance coverage on your car is very attractive, but do you want to pay for the repair out of own pocket if anything happens to your vehicle and you don’t have enough coverage? Accidents happen regardless of a driver’s experience, and no one can be sure that they are 100% safe. So after you’ve dropped your comprehensive and uninsured motorist coverage, lowered liability coverage and raised the deductibles will it be reasonable to cover all the expenses all by yourself and pay for car insurance at the same time? Doing things like that is quite similar to gambling. You strip down your chances to the bare minimums and place a bet on that you won’t ever run into an accident and ever require the coverage you’ve just dropped. Maybe your friend or neighbor has managed to save money that way? Well, do you look at your friends when buying stocks or placing bets in the casino? That’s pretty much the same thing. And if you really do chances are very high that you’ll end up paying much more out of own pocket than you’ve actually saved on your premiums. So is there any way out? Fortunately there is a solution to the problem of cheap car insurance. And it goes beyond the simple cut of coverage that will have a very serious financial impact in the long run. First of all, check all the discounts you might be eligible for. Your insurance provider probably won’t tell you about them if you don’t ask so it’s in your own interest to get all the information on the discounts you might use to lower your premiums. Also check local drivers associations or clubs and see if a membership in these will offer some insurance incentives. It often does. Next, compare insurance rates at different companies. The rates usually differ significantly from one company to another and you can use it to your advantage. Take the time to compare quotes and you will definitely find a policy that will suit you both in terms of coverage and rates. And always make sure to buy uninsured/underinsured motorist coverage even if it means a slight increase in your premiums. There are a lot of uninsured cars out there on the road and if you will happen to have an accident with one of these you will have a lot of headache with paying for the damages out of own pocket.

Inside UK: Bristol Car Insurance

admin — Tue, 26 Oct 2010 09:54:08 +0000

Being English gives you no freedom to do what you want on the road. Being English means you have to be a responsible, attentive insurance owner. No matter where you are from – London, Liverpool or Birmingham, your car insurance is obligatory. Not having one on the road can lead to the strictest punishment you can think of – called jail. Insurance comes in different forms and at different prices. Of course, the amount of securities and protection provided by the insurance company is fully reflected in the premium. The more to pay, the more guarantees you have. It also depends on the kind of driver you are. If you only need insurance to protect yourself from fire and theft, you can get one called “3d party – fire and theft”. If you want a full protection, the lowest risk possible – you can purchase “fully comprehensive “insurance. This insurance covers you for anything. It will substitute your car and the second Party’s car if you are at fault in the accident. You can get more information on car insurance companies on the internet. There are plenty of official insurance company’s websites that are willing to hook you up with any insurance information you need – from how to get a cheap car insurance or auto insurance plan, to where to find helpful car insurance quotes. But let’s get back to the major topic. Let’s say you are a car owner from Bristol. You want to find a Bristol car insurance company and you will to count how much your insurance plan will add up to. What are the key points to consider? First of all, you have to be frank with yourself. What kind of driver are you? If you are too young or too old for a car, you will be charged a little extra for the risks the company takes with you. If you have some rule violations or speed limit problems, your car insurance will see some additional pounds. What is also important to know about those two basic car insurance types? We don’t want to flatter the “fully comprehensive” insurance or give it the credit it doesn’t deserve but most people in England go for it as it is more profitable. We mean that in sense of economy that results after any unfortunate case that nobody can predict. If you found yourself in an accident and you are to blame for the smash of both cars – your own vehicle and the second Party’s car, the “fully comprehensive” coverage will pay for both of your cars no matter what happens to them. The “3d Party – fire and theft” insurance type will only pay for the second Party’s car. You will have to pay for your own automobile. This is where you have to decide which insurance plan you prefer to have. Of course, you don’t have to forget that being a good driver helps. You will reduce your payments a bit if your driving record is clean. Bristol car insurance is not an expense. It is a necessity. When you hit the road in the morning you do not always know how the day will end and what kind of “surprise” is waiting around the corner for you. So let’s make sure no kind of “surprise” finds the reflection on our financial situation. We can make sure of it today.

Insurance Basics 101 For Small Business

admin — Mon, 25 Oct 2010 08:03:22 +0000

With both the economy and the job market taking a hit in America over recent years, more and more Americans are looking to run their own business or become self-employed. If this is a step that you have considered taking, or are a small business owner already, then you may have already learned how important insurance will be for your business. If you are new to the small business game, and know that insurance is a part of the self-employed life, then you will want to inform yourselves on the basics before you begin looking for insurance quotes. Here we will cover the basics on insurance for small business and you will see that you can still take steps to protect your business investment, without spending a fortune. Unless you have a large business, a significant amount of employees, and assets such as vehicles and machinery, your insurance needs for small business will be fairly straightforward. Today in America, most small business owners are using a standard model for this kind of insurance known as the Business Owner’s Policy, or BOP for short. The BOP is a kind of insurance that provides coverage and liability insurance for all of the basics needs in your small business. Building and contents are often covered, and you can add on or extend your business owner’s policy at any time as your business grows. While most BOP’s are fairly standard and straightforward, there are still ways you can save on insurance when you are looking for quotes. When it comes to protecting your business investment, you have to consider everything in your business that is worth value to you when you are getting insurance quotes. This could start with something as basic as a list of the building and its contents, but you may have parts of your business that need additional protection. For example, any securities or finances that you have invested through your business may need protecting, or you may have files or records on your property, or elsewhere, that are integral to the success of your business. Some businesses, like engineering firms, that rely on using intellectual property as their source of trade will even go so far as to insure their creative products from being stolen as ideas by competitors. When you are looking for small business insurance, you have to take into consideration every single part of your business that could experience a significant loss either through damage or theft. If you use a vehicle for your small business, you may find that you are able to save on insurance by either combining your business and car insurance, or getting car insurance through your business policies. You can also minimize insurance costs by asking your insurance company for higher deductibles, and this will not only reduce your premiums now, but assist in establishing a solid relationship with your insurance company that will get you lower premiums in the future as well. When you are looking for business insurance, you need to remember to take every factor into account that is directly related to your business. You can cut costs on small business insurance by combining policies, and eliminating unnecessary elements from your business owner’s policy.

Insider Tips to Save on Vehicle Insurance

admin — Thu, 21 Oct 2010 08:16:58 +0000

When you are looking to save money on your vehicle insurance premiums, you should know that not all insurance policies are created equal. The trick to lowering your required costs on vehicle insurance comes with knowing that your insurance policy will be customized to your needs and driving experiences, and this is valuable information that will help you save on insurance. Of course there are many standard ways of saving money here, but even insurance companies know you are using these means, and you may find they aren’t effecting your premiums as much as you would like. Read here if you are looking for insider ways to convey to the insurance company that you are a low risk, and this will dramatically improve the cost of your vehicle insurance premiums. Whether you are looking for vehicle insurance for the first time, or are simply thinking about renewing your existing policy, a little bit of research will go a long way. It is always easiest of course to simply renew with your current provider, or go with someone that your mom or uncle has used for years, but their insurance needs may differ from yours. If your mom for example is retired and doesn’t leave her home much, her insurance company will reward her with lower premiums. This may not apply to you, so knowing a few ins and outs will help you in order to reduce your rates and quotes. Comparison shopping is always one of the easiest ways to get the lowest quotes on your vehicle insurance, and many websites offer you this option online now. In fact, this makes things so much easier for the insurance companies, because they do not have to pay agent commission rates as high as they normally would. This alone is going to reduce their operating costs which is transferred down to you and your vehicle insurance premiums. Fortunately for you, getting lower insurance may be just a few clicks away, at a comparison shopping website that allows you to do all of your insurance homework right from the comfort of your own home. When you are comparison shopping, ask if getting an online quote will make a difference in your premiums, in many cases it does! If you are skilled at negotiating, or are serious about saving some money, then you can also play with the insurance companies a little bit and use a method known as “quote massaging”. This is not illegal by any shape or form, and is simply a way for you to tweak your primary factors in order to reduce your insurance. Insurance companies take a lot of things into consideration, such as your employment and how far you travel daily, and you can use this information to quote massage your way to lower quotes. For example, the higher profile your job is considered, the higher your premiums are going to be, because you will be forced to go out on the roads to get there every day, thus increasing your risk of collision or traffic violation. You can quote massage by playing with different titles for your job description for your insurance company, and this may help your quotes somewhat. For instance, a journalist that covers traffic reports might describe themselves as a writer to not alert the insurance company to a perceived increase of risk and higher car insurance quotes. At the end of the day you just need to be a little creative and inventive when it comes to getting cheap car insurance quotes that will still give you all of the coverage you need. When you are looking for car insurance, tailor your policy to your specifics and minimize your risks to the insurance company, and this will lead to lower costs on car insurance every single time.

How to get your car insured right

admin — Wed, 20 Oct 2010 08:26:03 +0000

The thing about insurance is that when you buy it, you really hope that you will never actually use it. But in case your insurance situation comes into force you will immediately understand why getting the right type and amount of insurance coverage is crucial. Decide on your insurance needs It’s impossible to prevent unforeseen situations. That’s why they are called unforeseen, and insurance is just the thing you need for such circumstances. Regardless of the actual type of insurance you’re looking forward to buy, whether car insurance or life insurance, there are universal factors you can use in order to define the approximate amount of coverage you will need. Look at the things you have and you want to insure, take the base value and start from there. In case of car insurance your car and its value is what you have to think about at first. Sit down with your insurance agent and discuss the amount and types of coverage your vehicle will need according to its condition and value. Shop around Again, it doesn’t matter what type of insurance you want to buy. The rule of shopping around applies for all insurance products and car insurance is not an exception. There are a lot of insurance companies out there on the market and they all have their conditions and rates waiting for the customer. Some might say that the offer is pretty much the same all across the market but it’s erroneous to say that. Just spend some time on getting insurance quotes from different companies and you will instantly realize that the offer is quite diverse. But don’t forget to compare similar policies. You may find a chap car insurance deal that will carry too little coverage for your auto, and you definitely don’t want to save on the coverage you need. The price alone shouldn’t be your guide. Compare the policies according to the price/coverage ratio and choose the offer that has the most advantageous one. Also make sure that the company you buy car insurance from is reputable. You can check this at your state’s insurance department and insurance forums on the web where you can also get independent feedback on most insurance companies in the US. See what’s in the bundle Bear in mind that an insurance policy is a legal document that will certainly be filled with technical jargon than an insurance novice may have a hard time understanding. However, you should definitely read it from start to finish in order to see what you’re actually paying your money for. Pay attention to the following elements of the policy: * The object of coverage * When the coverage does apply * When the coverage does not apply * The term of coverage * The amount of coverage * The price for coverage you have to pay (the premium) * The procedure of receiving coverage If you have any doubts or feel that you don’t understand something you should definitely ask an insurance expert to explain these things to you before signing the policy. The devil is in the details and you might want to spend more time on reviewing the policy you are interested in, especially if you’re looking for cheap car insurance. There may be some tricky exceptions or additional payouts hidden in the document and you really don’t want to find that out when filing a claim, right?

How to Buy Insurance For Business

admin — Wed, 20 Oct 2010 08:01:14 +0000

When you are looking for insurance for small business, it can feel like you are caught in a little bit of a dilemma. You want to be sure that you cover absolutely everything you want covered for insurance protection, but you are a small business running in a tight economy and probably don’t want to spend a fortune. If you are looking for ways or tips on how to buy insurance for your small business, you will want to read this article to find invaluable saving tips that will help you protect everything your business needs, and still save you money. Having the right insurance policy on hand for your small business is the next best thing to having an excellent employee that you know you can count on no matter what. Of course this employee is going to cost you a little bit in the long run, but you know that having a good employee is a sound investment to having your business run well. The same thing applies to having the right policy. Having the right kind of insurance policy for your business can cost you a little now, but in the long run, you will find there is no price to put on the peace of mind that comes with the insurance policy that is protecting one of your greatest assets, your business. When you are considering the investment of insurance for your business, there are ways that you can get the best coverage with the best prices as well. The first thing you will want to do is make sure that you shop around. You definitely want to be sure that you are getting quotes from more than one insurance provider, because each insurance company will have different requirements before they agree to insure. Not only will this save you money in insurance costs, but you will also be able to get a good feel for the company that is most interest in protecting your needs. And when you are looking for insurance companies, you definitely want a company that you can feel good about. Comparison shopping for insurance companies is always very important. You also want to be sure that you know exactly what you want insured, and this will make sure that you don’t make the costly mistake of underinsuring. So many small business owners try to cut insurance costs by not having everything covered, and this could create disaster for your business down the road if an unexpected crisis hits. Small business owners that did not take flood protection coverage before Hurricane Katrina learned only too well the tough lessons that come with not insuring everything properly, and they lost everything they had worked their whole lives for. When it comes to purchasing small business insurance, you need to know exactly what you want to protect and when you want to protect it. If your business model is sitting in a shaky economy, you may also want to consider business interruption insurance. This is an addition to your policy that will protect you in the event that tough times is the crisis that hits your business. Though this will add to your premiums in the short term, it could save you a lot of money down the road. When it comes to purchasing business insurance, you need to make this decision with the same business head you started your business with. Invest a little bit now and this will lead to significant savings and prevention of significant losses down the road.

Low credit score?

admin — Wed, 20 Oct 2010 07:41:24 +0000

Life is never fair. When you bought that house years ago, it was in a good neighborhood. Now the ZIP code sends a different message and, no matter what you say about the quality of your driving, it cuts no ice. Your premium rate goes up just because of the ZIP code. It’s exactly the same when it comes to your credit score. Look around. How surprising is it that people’s scores are falling? There’s a recession and, because you are using your cards less often and paying off the debts more quickly, your score is falling. Score falling? It’s one of the basic unfairnesses of the way the score is calculated. One of the main factors is how much credit you carry. If you pay off one or more cards and stop using them, your score falls. It’s actually better to keep some credit outstanding on all the cards (except those store cards charging you excessive interest). So why do insurers think there’s a link between your credit score and their risk in insuring you as a driver? Well, the reality is people with poor credit scores spend less on the maintenance and repair of their vehicles. If you delay fitting new brake pads and cannot stop in time. . . No matter how responsible you may be in paying down your debts, insurers look at the bigger picture. Sadly, there are some dishonest folk who fake claims to help pay the bills. To give yourself the chance of getting the best premium rates for you as a driver living in that ZIP address, you should check your credit records. As recent survey found that just short of 80% of adults had mistakes in their records. Of course, not all these mistakes are important. It may just be a wrong spelling or a date may be wrongly recorded. But if you are shown as delinquent when, in fact, you are completely up-to-date, this is a major blot on the landscape. Credit scores are used not only by insurance companies, but also by landlords in deciding whether to rent to you and potential employers deciding whether to hire you. The law is on your side. The Fair Credit Reporting Act (FCRA) gives you the right to get one free copy of your records from each of the three bureaus, i.e. Equifax, Experian and TransUnion. The Federal Trade Commission polices the system and, if you feel any one of the bureaus is wrongly refusing you a copy, you can file a complaint and it will take up your case. Use the information on this site: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm. Do not rely on any of the websites you might find using google. Almost all of them are deceptive. When you get your records, check through. You have the right to have any mistakes corrected. You can also find which companies have recently had this information and send them the corrections. For your car insurance, always notify the insurer if your score improves significantly. The standard practice is to give you an immediate discount. The best car insurance companies give you a rebate.

Switching Policies Causes Grins and Groans

admin — Mon, 18 Oct 2010 18:15:56 +0000

Many people think that once they sign a policy, they are locked in to the agreement for either the duration of the term or life/death, as it may be. The truth is, people switch policies all the time. They do so because they are not satisfied with their service, death payout, return, or payments. Usually, there are fees and penalties however, so it doesn’t always make sense to switch plans prematurely. This article will prepare you for making that decision. Reasons to Switch It is worth looking at the reasons you might want to switch. Each reason comes with legitimate concerns that you should fully explore before jumping off that cliff. Better Rate If a different insurance provider offered you lower payments than the plan you are currently on, this doesn’t necessarily mean you should switch. There are a lot of other factors to look at. 1. Interest rate: Most whole life and variable life policies offer a savings plan where your payments are saved at some kind of interest rate for the future. While it is always less than inflation and not a great savings plan compared to a 401k and similar plans, the difference between saving 2% and 5% could well make up for the difference in your payments. 2. Reliability and Reputation: Some insurers are able to offer really low rates because they have shady practices that earn them higher profits than others at the expense of their customers. Make sure you are not switching from an honest, reliable provider to a less honest, reliable one. 3. Payout: The difference in death payout could really not be worth the difference in payments. If the amount you are insured for falls significantly, you might as well stick with the higher payment. Can’t Make the Payments If you are having a hard time affording the payments, you might want to see if your current provider will lower your payments. If a different insurer wants to give you a policy for a better rate, chances are that you have become less of a risk and your current provider will consider renegotiating to keep you. Dissatisfaction with your Provider Of all the reasons out there, this might be the best reason to switch. You have got to trust your insurer – they are responsible for your family when you are gone. Just make sure that the company you are switching to is better. Need some help deciding? The Consumer Federation of America – a nonprofit advocacy group – will run an analysis for you for less than $100 to make sure it’s worth it. Converting your Life Insurance If you want to switch from Term to Whole life insurance – either for better coverage or investment purposes – it might be pretty easy to simply convert your existing policy. Contact an insurance agent or representative from your insurer and see if it is possible. Try to get as flexible a policy as you can, because it is going to last your entire lifetime and your financial situation is probably going to change more than a few times. It’s a good idea to compare quotes online from other companies so that 1) you can make sure converting is the cheaper option, and 2) you can negotiate your cost down on the whole life insurance policy. Remember, buy holistically.