Get the Home Insurance Facts

Buying a home is one of the single largest investments that most people ever make. If you need to protect that investment, your main line of defense is homeowners insurance.Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by: Theft Fire and lightning Smoke Frozen pipes Ice and snow What's not covered? Read your homeowners insurance policy to find out exactly what is and is not covered. Do this before you suffer a loss, so you won't be surprised. Most insurers exclude damages caused by an act of war, nuclear accident, flood, earthquake, and terrorism, although you may be able to purchase special policies or endorsements that will cover these events. Most homeowners insurance policies limit coverage for certain high-priced or hard-to-replace items. Additional endorsements or floaters will be necessary to protect items like engagement rings, watches, furs, antiques, and other valuables. You'll need to have each item appraised. How much is enough? Mortgage lenders require that borrowers purchase a minimum amount of homeowners insurance (typically equal to the appraised value or the purchase price of the home). But this is often not the amount of coverage you truly need. Instead, find out how much it would cost to rebuild your home, and consider insuring it for that amount. You get what you pay for: Are you willing to pay more to have damaged personal property replaced? If so, consider purchasing replacement cost coverage with your homeowners insurance. When it comes to valuing property, insurers generally use one of two methods. The first, actual cash value, pays you an amount equal to the replacement value of the property, minus depreciation for the years you owned the item. The second, replacement cost, is more expensive, but it pays you the full value of the item today, so that you can replace the old item with a new one. Sound the alarm : Don't forget to tell your insurer if you have a home security system (e.g., fire, burglar, emergency). Most insurers offer discounts for such safety features. You may also qualify for a lower insurance premium if you live near a fire department or hydrant, own a newer home, own a home built out of fire-resistant materials, or get your auto insurance from the same company. Shop around: Get quotes from several insurance companies when shopping for homeowners insurance. But remember, the lowest price does not always equal the best deal. Compare the coverage each policy offers, and check with your state's department of insurance to make sure that each company you're evaluating has a good reputation in the industry.

Get the Home Insurance Facts

Buying a home is one of the single largest investments that most people ever make. If you need to protect that investment, your main line of defense is homeowners insurance.Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by: Theft Fire and lightning Smoke Frozen pipes Ice and snow What's not covered? Read your homeowners insurance policy to find out exactly what is and is not covered. Do this before you suffer a loss, so you won't be surprised. Most insurers exclude damages caused by an act of war, nuclear accident, flood, earthquake, and terrorism, although you may be able to purchase special policies or endorsements that will cover these events. Most homeowners insurance policies limit coverage for certain high-priced or hard-to-replace items. Additional endorsements or floaters will be necessary to protect items like engagement rings, watches, furs, antiques, and other valuables. You'll need to have each item appraised. How much is enough? Mortgage lenders require that borrowers purchase a minimum amount of homeowners insurance (typically equal to the appraised value or the purchase price of the home). But this is often not the amount of coverage you truly need. Instead, find out how much it would cost to rebuild your home, and consider insuring it for that amount. You get what you pay for: Are you willing to pay more to have damaged personal property replaced? If so, consider purchasing replacement cost coverage with your homeowners insurance. When it comes to valuing property, insurers generally use one of two methods. The first, actual cash value, pays you an amount equal to the replacement value of the property, minus depreciation for the years you owned the item. The second, replacement cost, is more expensive, but it pays you the full value of the item today, so that you can replace the old item with a new one. Sound the alarm : Don't forget to tell your insurer if you have a home security system (e.g., fire, burglar, emergency). Most insurers offer discounts for such safety features. You may also qualify for a lower insurance premium if you live near a fire department or hydrant, own a newer home, own a home built out of fire-resistant materials, or get your auto insurance from the same company. Shop around: Get quotes from several insurance companies when shopping for homeowners insurance. But remember, the lowest price does not always equal the best deal. Compare the coverage each policy offers, and check with your state's department of insurance to make sure that each company you're evaluating has a good reputation in the industry.

Buying Car Insurance

When you buy insurance, you're really buying something that you hope you'll never have to use. But if you ever do need to file an insurance claim, you'll understand why having the right amount and right types of coverage is important. Decide how much insurance you need: You can't stop bad things from happening. But you can protect yourself financially by purchasing insurance. How much insurance you need depends on a lot of factors including how much you owe and own, how much your assets are worth, whether you have dependents, and how much out-of-pocket cost you could afford to bear. You can estimate your coverage needs using calculators or worksheets available on-line, but it's a good idea to sit down with an insurance agent or broker who can thoroughly evaluate your needs. Comparison shop: No matter what type of insurance you're buying, the process is essentially the same. Once you've decided what type of insurance and how much coverage you need, you can begin contacting insurance companies online, directly by phone, or through an insurance agent or broker to obtain quotes. Get quotes from several different insurers because premium cost can vary widely. But compare the coverage offered, too. A policy might cost less because it offers fewer, or different, features and benefits. And make sure the company you've settled on is reputable, with good customer service and claims-paying ability. Understand what you're buying: An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you're buying. For instance, the policy will tell you: Who or what is covered What coverage exclusions and limitations apply When coverage begins and ends How much coverage is provided How much you'll pay for coverage (the premium) How you report a loss or file a claim It's always a good idea to ask an insurance professional to explain any terms, conditions, or benefits that you don't understand. Evaluate your insurance needs periodically: As your life changes, your insurance needs change, too. So every once in a while (annually, some experts suggest), review your insurance to see if you need more (or less) coverage or an additional type of coverage. Here are some times in your life when you'll definitely want to re-evaluate your insurance needs: You're getting married or divorced You're starting a family You're renting an apartment You're buying a house or a car, or making a major purchase Your child is going off to college You're starting a new job or becoming self-employed You're buying or selling a business Your income increases or decreases substantially You're taking care of an aging parent You're retiring Make your insurance policies work for you by taking the time to periodically review your needs and coverages.

10 Tips for Avoiding Car Accidents

1. Avoid drinking and driving. 2. Minimize distractions such as reading newspapers or talking on the cell phone when driving. 3. Properly maintain vehicles. Tune up cars according to maintenance schedule, and especially take note monthly of tire condition. 4. Do not encourage aggressive drivers. Let other aggressive driving behavior roll off your back, or call the police. Losing your temper could worsen the situation. 5. Leave a safe distance between your cars and others. For every 10 miles per hour of speed, leave at least one car length space between your vehicle and the vehicle ahead. 6. Maintain a constant speed. Don’t continually slow down or speed up. 7. Adjust mirrors properly and check the side and rear-view mirrors every 15 seconds. 8. Take defensive driving classes to improve your ability to drive and be better prepared for the unpredictable behavior of other motorists. 9. Proceed with great caution through intersections. Intersections are the center of most accidents. When entering an intersection, look left, then right, then left again to ensure the area is clear. 10. Be sufficiently aware of road conditions and be more visible. Keep your lights on at dusk and dawn and during rain, as is the law in most states. Understand basic vehicle dynamics, such as knowing how to recover from a skid.

Insuring a Used Car

A standard auto insurance policy is a package of different kinds of coverage. There is generally some flexibility in terms of both the types and amounts of coverage you select. However, practically every state has enacted insurance laws that require drivers to carry at least some auto insurance. Many states even require that you present proof of insurance before you register a car. So the short answer to the question is that you will probably need to insure your car, regardless of its value.               Every state requires that drivers carry liability insurance. The liability coverage section of an auto insurance policy provides financial protection from liability claims against you when you (or certain other people) cause an accident that results in bodily injuries to other people and/or damage to their property. Every state has mandatory minimum levels of coverage in this area. The rationale behind such laws is that at-fault drivers should be able to compensate victims who suffer accident-related losses. But the required minimums in most states don't even come close to covering the costs of a serious accident. Consequently, if you wish to be adequately protected from liability claims, your liability coverage should probably exceed your state's requirements.              Other coverages are required in some states and optional in others. Medical payments coverage and uninsured/underinsured motorist coverage are two such coverages. Medical payments coverage covers medical expenses incurred by you, your family members, and your non-family passengers. Uninsured/underinsured motorist coverage covers losses you and others suffer as a result of an accident caused by a driver who either has no insurance or insufficient insurance. If buying these coverages is optional in your state, base your decision on your needs, circumstances, and other factors. Consult your insurance agent for more information.

Factors that Affect Your Car Insurance Rates

1. Factors you CAN’T change that impact your auto insurance rates: Your age - Dick Clark and Sophia Loren notwithstanding, aging is unavoidable. And while you may be a mature-looking teen or a youthful octogenarian, the oldest and the youngest drivers are far more likely to have accidents. Gender -Whether it’s the mothering instinct or fewer NASCAR fantasies, women statistically make safer drivers. Marital Status -Ok, you can change this, but there have been no reports of people marrying simply to lower their insurance rates. 2. Factors you CAN change that impact your auto insurance rates : Geography - Where you live matters. For instance, those living in rural America are far less likely to have a collision or a stolen car than those living in a city. But, sometimes even just moving across the street can change your rate. Driving violations - Speeding tickets, running red lights, failure to yield, etc. all count toward your auto insurance rate. Your vehicle - If you must have that cherry red Corvette or the Ferrari Testarossa, be prepared to pay for it. Your insurance premiums will be higher. Accident claims - While you can’t change the past, keeping your slate clean and free of accidents will hold you in better stead than lots of fender benders. Credit rating - That’s right — many insurance companies view having a poor, or even no credit history as suggestive of higher risk. Occupation - A little easier said than done. Believe it or not, insurers have found correlation between your occupation and risk. Makes sense that the pizza delivery guy could be a higher risk! 3. Other factors that go into determining premiums: Miles driven per year Distance to work Occupation Years of driving experience Business use of the vehicle Whether or not you currently have auto insurance Theft protection devices (often results in discounts) Multiple cars and drivers (another opportunity for discounts)

12 Tips to Help You Save on Car Insurance

Specific ways to save money on auto insurance: 1. Shop around. One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates. 2. Increase your deductible. For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes. 3. Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates. 4. Drive less. If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train. 5. Don't use your car for business purposes. Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes. 6. Drive more safely. You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times. 7. Buy a low-profile car. Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle. 8. Move. If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn't move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you're thinking about relocating from the country to the city. 9. Keep your car in a garage. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction. 10. Have safety/anti-theft devices installed. You may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized. 11. Inquire about multifamily/multipolicy discounts. You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company. 12. Other discounts Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.