Insurance World

Are you shopping for health insurance? Are you looking for the best rates? Are you totally confused? There are so many people scrambling for health insurance and are trying their best to compare the rates. This is not easy at first because the health insurance companies have had to come up with creative alternatives in their insurance portfolios. Those creative alternatives can give the average person an insurance headache.

The rising costs of hospital and physician services are always passed on to the consumer. The consumer depends on their insurance company to pay for their medical expenses in exchange for a premium. The medical rates are based on several criteria.

Here are a few:

1. Gender – Male/Female rates differ.

2. Tobacco - Non-Tobacco – Tobacco users are higher

3. Household Status - Single, Parent-child, Parent-children, Husband-Wife, Husband-wife-child, Husband-wife-children

4. Deductible – $500 to $5000 (with some companies)

There are some things that you can do to affect the rate. The most cost savings method is to choose a high deductible plan. The higher the deductible calculates into a lower the rate. Low deductibles no longer justify the premiums paid. This trend toward high deductibles is called self-insuring. You are taking on the financial responsibility for the deductible amount.

The best way to offset and prepare for the out of pocket deductible is to start a health savings account. This is a tax deductible savings plan for medical expenses. It’s the equivalent of a medical IRA. The tax deduction offsets some of the out of pocket expense you incur with the higher deductible. Contact your tax advisor or accountant about starting a health savings account.

Auto insurance rates are composed of dozens of different variables and while that may add to your confusion, it also allows many chances to find lower rates. By following the tips below you will be able to better tailor your policy to your needs while also saving as much on your premiums as possible.

Increase your deductibles: You can choose to increase your comprehensive and collision deductibles. Many policies are issued with a standard $250 or $500 deductible on these physical damage components. Calculate the savings you will have if you raise these deductibles to $1000. If raising your deductible saves you $125 every 6 months, it would take you two years for you to break even in the event of a claim. Determine if this is an acceptable risk to you.

Get older or get married: Most car insurance policies offer lower rates to older drivers. It’s simply a matter of time before your reach 18, 21, or 25 years old and become eligible for these discounts. You can also get married. Married customers can combine their 2 policies into one to save money and married couples are usually offered a lower rate due to their decreased risk of accidents.

Take defensive driving classes: AARP, AAA and other agencies offer defensive driving classes. Check with your insurance company and see if they offer an additional discount for completing a defensive driving class. Even if they do not, the knowledge you gain from attending the class can be an invaluable asset to your driving ability.

Make sure your distance to work is accurate: If you change your job, work from home, or retire, make sure you notify your insurance company. Your rate is calculated partly on the number of miles you drive to work each day and if you are improperly classified you may be paying more money than necessary.

Shop online for your insurance: Online insurance companies offer some of the most competitive rates available today. Shopping online is easy and allows you access to a large number of companies competing for your business. By spending 10 minutes online you may be able to save $100 - $500 a year or more on your car insurance. You can find out how much you can save online by clicking the link below and getting your free quote today.

Please note that this description/explanation is intended only as a guideline. Contact your licensed agent for more information.