Personal Finance Tips

Let’s leave the politics of healthcare reform to one side and focus on a proposal to change the law to allow free market competition between insurers in different states. A policy consistently mentioned by the Republican party is to break the state monopolies in the insurance market. Since the 1800’s, the individual states have claimed the sole right to regulate the sale of insurance within their own borders. Each state has asserted the right to license insurance companies and to set the terms on which they can conduct business. This has led to a patchwork of different sets of regulations with each state creating unique laws. In turn, this forces an insurance company to set up separate subsidiaries to trade in each state. No licensed company can sell a policy to someone who has a residence in another state. There was a brief moment in 1944 when a decision of the Supreme Court allowed the possibility of federal supervision. But the lawmakers in Washington immediately changed the law to retain state control. Why is this a bad thing? The national insurance companies have divided up the states between them and choose not to compete against each other. This keeps the number of insurance companies in each state artificially low and, because there is no real competition, premium rates are higher than they should be for weak policy terms.

You are reading this article on the internet. When online, you can buy more or less any product or service across state or national boundaries. Although there are some restrictions, e.g. some states limit your right to import drugs from foreign countries, there is an almost free market where you can search for the cheapest price and buy whatever you need. There is no possible economic justification for retaining this historical privilege for insurance companies. All it does is preserve their ability to maximize their profits at your expense. For example, in Minnesota three insurance companies dominate 80% of the market for health plans. There is no doubt that, if more companies entered the market, the premium rates would fall. During his run for President, Senator John McCain was in favor of free markets for health plans. President Obama supports it and the proposal is in both versions of the healthcare reform bills currently stalled in Washington. But because the Republican party’s only policy is to oppose everything the Democrats propose, it seems even this simple change in the law may be lost. What will the result be? The anticompetitive behavior of the insurance industry will continue and you, the consumer, will suffer.

Could the law change tomorrow and allow everyone access to cheap health insurance wherever it can be found? The problem is that the states have different sets of regulations and compliance leads to different costs. The playing fields are not level. So, premiums are significantly lower in those states which have the fewest consumer protections. It would not be fair competition if people living in Minnesota, which has strong consumer protections, could all get health insurance quotes from states with little or no consumer protections. The only way in which there could be a free market is to have a single set of federal regulations for the sale of health insurance plans. Sadly, the political parties do not want to talk about this even though we would all benefit. In the US, the political elite’s interests do not match the needs of the ordinary citizens.

The weather conditions should not affect anything. Of course, it is clear to everybody that in winter accidents are more frequent, but you also have to remember that avoiding an accident is much more valuable than knowing how to recover from it. But in case you did end up in an accident please know what to do. Let us try to explain everything you will require to understand while finding yourself a victim on the road. Here are a few very strong advices that will definitely help you to get through a difficult time of your life.

We would want you to read these points carefully and if you have an opportunity to print the information given below please do and make sure you keep it not to far away.

First of all it is important to take a deep breath and not to panic. Analyze the situation and determine the equivalent of losses. The damage can be significant or slightly important. In any case you have to consider that it is easy to make the situation even worse than it is. In any case, what you must know is that sometimes medical assistance is what you need to think of in the first place. Smallest details count.

You have to know to report police about any accidents you find yourself in. It has to be legal so there is a way to deal with the situation. Do not try to escape from the scene or arrange anything without police knowing about it. This will get you into more trouble. Police will make a full report of everything that happen and conclude with the verdict.

Do not let anybody get you blinded. Talk only with policemen about the accident. We know sometimes it is difficult to keep it quiet about what happened but take a look at it from a different point of view. While in panic people let themselves go, not realizing what it can get themselves into. Limit all of the conversations about the accident on the road and do not confess anything. The only two people that should know all honesty are the policeman and insurance company person.

Remember to make notes. People are so shocked and nervous after the accident that they forget the most important part – to write down names, addresses, phone contacts of those who were involved in the car accident with them. But you have to ask your insurance company’s advice while you are waiting for police to arrive. The insurance company guy will definitely tell you to recollect the name of the insurance company the others are dealing with plus their car’s identification number.

You should call your insurance company or your insurance agent as soon as you found yourself in the accident. He must know it before anybody. Please inform him about the smallest details and don’t be afraid to speak the truth even if you were the one responsible for the accident.

You ca also find some car insurance quotes on different websites and read them before you hit the road. We don’t mean you have to do it everyday but it is always good to know how to help ay case when it occurs. You can also get car insurance quotes from the insurance company itself if you have chosen one already. Good luck and be safe!

It should be a big surprise to anyone that young drivers have higher insurance rates than older car owners. There is a set of reasons behind such a state of affairs and parents unwilling to pay high premium rates for their teenage drivers shouldn’t think about dropping the coverage altogether. Instead, there are effective ways your teen driver can opt for lower insurance rates and save you some buck from the family budget. Here are some tips on how to do that:

1. Learn the offers at the market.

Shop around and see what local insurance companies have to offer. There are providers that specialize in high risk drivers (and teens also make part of this group), however there is also a small number of companies that work exclusively with teenage car owners and offer preferential rates. If you are able to find such a company in your area that would be the best option for you. Otherwise, compare the rates with different companies and choose the one that is more liberal towards young car owners.

2. Be a good student.

Good students can usually opt for special discounts with the majority of car insurance providers. This is because the statistics have proven that good students are safer and less risky drivers and thus can have lower rates. However, you should ask the insurance company what are the requirements and will be ready to provide proof with your current

3. Encourage the teen to pay a part of the premium.

Nothing encourages better saving and hard work when financial interest, so when you make the teen pay a part of the insurance premium you will instantly see how he or she tries to minimize these costs. This can be a good push for better grades and research on other insurance options. But be realistic about it, if your teen can’t manage to pay the premium in whole don’t put the burden and make him pay only the part he can.

4. Raise the deductibles.

Deductibles are the amount of money you have to pay upfront from your wallet before receiving the insurance benefits. And they are reverse-related to the insurance premiums, meaning that the higher is your deductible the lower premiums you will pay each year. So if your policy carries the smallest deductible, it’s better to raise it to the amount you can really pay out of pocket if something happens. This will cut your premiums for about 10-20%

5. Buy a vehicle that will give you low car insurance quotes.

It shouldn’t be a revelation to most of you that the car you drive strongly influences the rates you pay for insurance. And finding an insurance-friendly auto for your teen will really help cut the costs. Try searching cheap auto insurance online to see what autos offer you the best saving opportunities and cost less to insure.

6. See if you can include the teen into your policy.

Some auto insurance companies allow parents to include teens into their insurance policies and sometimes it will help you in saving on insurance rates compared to having a separate policy for the young driver. Ask your insurance agent about your possibilities and if has any financial sense and provides some money saving options then write your teen in.

When a person decides to get married it is definitely one of the happiest and most memorable moments in his or her life. It is the feeling of everything getting exactly to where it belongs, and it’s truly a wonderful time to enjoy. Of course, there will be substantial changes in many spheres of your life and when in comes to insuring it there will be some important thinks you will have to think over.

First, you have to keep in mind that when you insure your life you protect your spouse and your children against hardship in case you are no longer able to support them. Still, if you choose to insure your life before changing your marital status in most cases your new family members won’t be covered in an insurance situation. That is why it is very important to contact your insurance company after you change your marital status and give birth to kids in order to make sure that your whole family gets the necessary financial benefits in case something happens to you. It’s a very effective way to make sure your family is getting what it deserves if something goes wrong, and it really pays to make sure that your insurance policy has all your needs covered.

Another aspect of life insurance you might want to consider is adding your spouse to your policy if you already have bought one. Most insurance companies have no problems with that. This option is good from the family perspective, because if something happens to either of you, you can rest assured that the other one will get the necessary financial support. And if both of you end up in an insurance situation, your children will receive all the benefits to insure their life and education even if you aren’t around.

In case you don’t have your life covered before getting married, your marital status change can be a good boost to finding a cheap life insurance deal for you and your spouse. You can use the policy benefits to assure your mortgage payout or your children’s college education when time comes, and these are definitely the things you will have to think about well into your marriage. You are not alone anymore and have greater responsibility towards your family, so having a financial tool for assessing certain risks will sure give you a piece of mind. Besides, young families can get better life insurance quotes if compared to singles or older couples, so think about that when you are starting out as a family.

When getting your life insured, make sure you have full understanding of your policy and have some space to adjust it to your current insurance needs. It’s very hard to predict what your needs will be in five or ten years and being constrained by a policy that doesn’t allow you to change certain conditions can turn out being a heavy burden for your family budget. That’s why you have to consult with your insurance agent or broker about any possibilities before actually signing the policy.

Deciding on which form of insurance to go with is also another important topic. Both term and continuous insurance policies have their pros and cons and it really depends on what you want from your insurance policy. Define your needs and take the policy you think best fits your family.

This might sound strange to you if you have spent the money on putting an insurance policy in place, but there are times when you should consider not making a claim. It really can protect you from greater losses if your premium rates suddenly rocket up or, worse, the insurance company decides it would prefer you to take your business elsewhere. So let’s take it one step at a time. Almost every policy imposes a duty on homeowners to make claims either within a set time or a “reasonable” time.

If you miss out on a time limit, you have no right to claim. When is a claim made on a “timely” basis? You will be expected to notify the insurer of a theft or vandalism within days. Reports of serious damage will be expected within two weeks and certainly never longer than 30 days. This can put you under pressure if the policy requires you to get estimates from local contractors, but no-one ever said a policy was going to be worded in your favor. So, if you have reliable estimates of the amount lost and/or costs of repair, now comes the big decision.

As a general rule, you should only make claims if the amount is greater than the deductible. If you are going to pay out of your own pocket in any event, silence will benefit you in most cases. However, be careful if there is a third party liability element involved. Suppose the wind lifts two or three roof tiles and one blows down into the street, hitting someone on the sidewalk. The cost of repairing the roof may be small but the risk of a major claim for personal injuries cannot be ignored. Always make a claim when you cannot put numbers on a possible third party claim. Now comes the difficult part. Every time you make a claim, it’s recorded in a national database called the Comprehensive Loss Underwriting Exchange.

If you make multiple smaller claims, or one or two large claims, this will stay in CLUE for seven years and may deter other insurers from writing a policy for you or encourage them only to quote high premiums. You should therefore consider absorbing losses up to $3,000. You may be lucky – the insurer pays your claim in full and does not raise the premiums. But suppose you have a deductible of $1,000 and the insurer raises your premium for $500 for the next two years. You never know the real costs of the claim until after the event but setting a higher minimum amount for a claim gives you a margin of safety. You should at least break even on the smaller claims.

Dealing with claims shows the homeowners insurance companies at their best or worst. The best pay and do not try to recover their losses by increasing your premium. The worst immediately deny your claim and fight you on technicalities. Never forget every state has a Department of Insurance to deal with complaints against insurance companies. If you think your company is unreasonably denying your claim, make a complaint. There are also attorneys who specialize in insurance matters and, if the claim is for a big amount, it may be worth getting formal legal advice on your rights. Homeowners insurance is not “cheap” and you are entitled to fight to recover the costs of repairing or replacing your home so long as the damage falls within the defined perils.