Insurance World

Auto insurance can make a big hole in your pocket. Insurance premiums vary hugely between companies, agencies or agents, brokers, and of course the make of the car you own and your credit rating. To pay lower insurance you must:

1.
Always maintain a good driving record.

2.
Never accept the first estimate you receive. Be wise and check comparisons of different insurance providers at your state insurance department website or phone them. Their addresses and contact numbers can be accessed from http://www.consumeraction.gov/insurance.shtml the consumer action website. Be sure to get competitive quotes from different insurance providers. Contact providers that are strongly recommended by people you know well. Keep your peace of mind by checking the financial stability of the companies with rating companies like A.M. Best (http://www.ambest.com/) as well as in forums and blogs.

3.
Complete a market survey well before you select a car make and make a comparative table of insurance and other hidden costs. Find out which features increase insurance premiums and which ones reduce premiums. For example if parts of a certain make are hard to find or expensive such cars will have huge insurance premiums, similarly installation of anti-theft devices or an extra brake system lowers insurance premiums. Many questions are answered by the Insurance Institute for Highway Safety at http://www.iihs.org/.

4.
Choose to have higher deductibles this will reduce the burden by at least 15-25%. But look at your finances first and determine whether you can set aside US$ 200-US$1000 periodically to create an emergency vehicle fund.

5.
Consider availing the insurance from the same company that has you covered for home, accident, or life. Many companies offer concessions to clients who have more than one kind of policy. Known as a multi-policy discount this could benefit you.

6.
Most policies are based on your personal credit record. Having an unshakeable credit history can lower costs. Pay bills on time, don’t avail too many loans, and be sure that credit balances are as low as possible.

7.
Avoid duplicating medical coverage. Find out whether eliminating medical cover in auto insurance will reduce your premiums or the personal injury protection costs. In some places the reduction is as much as 40%. So, if you have adequate health insurance you could weigh the pros and cons of eliminating this in auto insurance.

8.
Find out if insurance premiums are dependant on where you stay. Sometimes staying in a rural community or suburbs as against the city center could save you a bundle.

9.
Take advantages of discounts like low risk career, low mileage, taking public transport to work, car pooling, no violations or accidents, taking defensive driving courses, following safety rules and regulations, or having a child who studies far away.

10.
Use the reductions offered for insuring more than one car belonging to the family. Many companies have special offers for corporate organizations, club members, professional groups, alumni groups, or clubs.

Make time to make a big saving. Check through all the parameters and mark areas where a saving can be made. The market is competitive and you can be the beneficiary.

What would you do if an illness or injury left you unable to care for yourself? The chances of that happening might be greater than you think.

The U.S. Department of Health and Human Services indicates that people 65 and over face at least a 40 percent risk of entering a nursing home, while the U.S. Government Accountability Office estimates that 40 percent of the 13 million people receiving long-term care services are between 18 and 64.

Despite the risk, a 2005 Kaiser Family Foundation survey shows that only two in 10 (21 percent) adults say they have long-term care insurance. While cost is a common deterrent, LIMRA International, a market research organization, says that people who have never shopped for policies overestimate the cost by as much as five to 10 times.

“Premiums vary due to age, health and policy type, but most middle-income consumers can benefit from a long-term care policy,” said Scott Perry, executive vice president and chief operating officer of Bankers Life and Casualty Company, the 127-year-old insurer that specializes in the mature market. “Like other insurance, the younger and healthier you are when you buy, the less expensive the premiums.”

Planning for long-term care is encouraged while in your early 50s. As you research, remember to:

Determine long-term care costs.

Read about long-term care coverage.

Explore what’s available. Compare several insurers’ policies. Choose a well-established company with solid financials. Long-term care can be challenging and emotional, so you might want help from agents experienced in serving the mature market.

Determine what you can afford. According to the Life and Health Insurance Foundation for Education (LIFE), a good rule of thumb is to spend no more than 7 percent of your gross income on long-term care premiums. Consider spousal discounts and how different elimination periods, daily benefits and maximum benefits affect premium cost.

Involve your children. A 2004 survey sponsored by Bankers Life and Casualty Company found that adult children overestimate their parents’ planning, while older adults think they have the proper policies but are confused as to what they actually cover. Sixty percent of seniors mistakenly believe Medicare will cover long-term care costs. These disconnects can put unexpected financial burdens on both generations.