Auto Insurance

I’ll stand in line for the latest Harry Potter book. You can probably convince me that I “need” the latest Dior volumizing mascara and yes, I have eaten turtle cheesecake for supper before. I have several guilty pleasures. Buying auto insurance is not one of them, but it’s a necessity. Read on to learn why, in addition to being a legal stipulation, auto insurance is important to you and your assets.

First things first – While penalties vary state to state, you can guarantee that driving without coverage will take some clank out of your bank. Uninsured drivers can face a myriad of punishments for merely being stopped and not being able to prove coverage. This fact alone should be enough to convince you to start researching reasonable insurance coverages for your vehicle.

Not persuasive enough? Consider your possible liability in the event of an accident…

Your vehicle collides with Mrs. Baker’s vehicle. Mrs. Baker is a fourth grade teacher at the local elementary school and is now facing $80,000 in medical bills, $65,000 in lost wages and is requesting $200,000 for pain and suffering. That’s a $345,000 claim that, unless you have adequate coverage for, you will be pulling out of your pocket. Certainly in this case, as the too familiar adage wisely states, it’s better to be safe than sorry.

So, you know you need auto insurance. While it’s not sinfully delicious or nearly as enjoyable as turtle cheesecake, lack of adequate coverage will definitely leave you with a bellyache in the event of an automobile accident. It is possible to find insurance you can afford.

Remember! Your car insurance rate is based on your insurance risk assessment. If an insurance company determines you are a high-risk driver, your monthly cost will be higher than that of the average driver. You CAN remedy this! Let’s take a look at a few things you can do to reduce your auto insurance risk which, in turn, could lessen your auto insurance cost…

1) Purchase home/renter’s insurance from the same carrier as your auto insurance. Some insurance companies offer multi-policy discounts.

2) Always obey traffic laws, specifically the speed limit. Insurance companies take note of your driving record. More speeding tickets = higher risk driver = increased auto insurance cost

3) Study hard. Insurance companies often reward students with good grades with a student discount.

4) Purchase a vehicle that receives notability for low damageability and increased passenger safety.

5) When given the option, purchase additional safety features for your vehicle. (Air bags, antilock brakes, etc.)

6) Take a driver safety course. A defensive driving class could possibly reduce your insurance rate. If not, it would at least make you more aware of the importance of being a defensive driver.

Other things to keep in mind…

1) To the insurance company, plain and simple, you are a set of risks. Anything you can do to decrease your “risk factor” might affect your cost of coverage.
2) Always ask for discounts. Many insurance companies offer deals for safe drivers. If you’re considered less of a risk, they’ll likely reward you.
3) Always comparison shop. You can always find a bargain if you know where to look. Insurance is such a commodity.

How to Find Car Insurance Discounts

Saving money wherever you can is important to us all. Car Insurance should be no different. Do not assume that your insurance agent knows everything about you and your car. At HometownQuotes we go out of our way to find all the possible car insurance discounts that are available to each customer.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect car insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save money on car insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Car Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple cars. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.

Many insurance companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your car insurance in other ways as well.

For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your car insurance rates is important to save you money.

Auto Insurance Buying Tips

Consolidate Insurance Policies

Insuring two or more vehicles with the same insurance company can save you between 10 - 15% on your premiums. Covering your home through the same company that you have auto insurance with can reduce your premiums by another 10-15%.

Increase Your Deductible

One rule of thumb is to carry the highest deductible you can afford. By increasing your deductible from $100 to $1,000, you could save up to 25%. Keep in mind, though, that your lender might not agree to a higher deductible.

Install Anti-Theft And Safety Devices

Installing a vehicle recovery system such as Lo-Jack or Teletracer could save you up to 7-10% per year. There are other relatively inexpensive anti-theft devices such as "The Club", which locks the steering wheel in place, as well as having your Vehicle Identification Number (VIN) etched on each window.

Safety features such as air bags, traction control and anti-lock braking systems (ABS) are viewed positively by insurance companies which, in turn, is reflected in your premiums. Although these systems may not reduce injury during an accident, they will reduce your premiums.

Clean Driving Record And Safety Courses

While traffic tickets and auto accidents will increase your premiums, most insurance companies offer discounts to drivers with clean records. Also, some insurance companies will offer a discount if you attend a Driver Training School Program, and your employer might even pay the cost if you use a company vehicle for your job. Training school discounts may vary between 7-10%.

Reduce Coverage On Older Vehicles

If you have an older car worth between $1,000 - $2,000, you might be better off dropping the collision coverage. Check to see if your collision premium is more than the value of the car.

Non-Smoker Or Early Retiree Discounts

Yes, some companies provide discounts for Non-smokers and Early Retirees. Insurers consider smoking a dangerous driving activity.

Park In A Garage

Sometimes the difference between getting auto insurance and going uninsured is where you keep your vehicle at night. Most thefts do not involve a garaged car and this is reflected in premium discounts. If you have a winter home with no garage, try putting the vehicle in storage. Let your insurance company know that your car is in storage, and you could receive a partial premium reduction.

Carpool With A Co-Worker

Most insurers surcharge premiums if the commute to work exceeds 3 miles. Carpooling with a co-worker may result in a discount for low-mileage use.

Drive A Conservative Car

Before buying a car you might want to find out how much your insurance will cost annually. Insurance companies consider certain cars easily damaged and expensive to repair, and other cars the target of thieves. You could end up paying a premium surcharge between 10 - 20%. The National Highway Traffic Safety Administration (NHTSA) has established the Auto Safety Hotline at 1-800-424-9393 to report safety defects or to obtain information on cars, trucks, child seats, highway or traffic safety. The Insurance Institute for Highway Safety provides information on death rates by car make and model as well as the standard safety equipment available. The Institute can be reached at 703-247-1500.

Teenage And College Bound Drivers

You may want to consider letting your teenager drive the family car instead of buying his/her own vehicle. This will very likely lower your cost to cover them. Students in school and living away from home can reduce their premiums by 30 - 50%, depending on the insurer.

Conclusion

After reviewing all of the savings tips, you may have determined that if you added up all your credits you could receive a 70 - 90% reduction in your premium. Well, unfortunately it doesn't work like that. Certain measures that you take may qualify you for being placed with the "preferred" company of a particular insurance group. This "preferred" company will be able to give you additional premium credits.

Changing Auto Insurance Companies

There are many reasons why you may choose to change your auto insurance coverage to another company. Perhaps you’ve found another company that offers you the same amount of coverage for considerably less money. You might have changed jobs and are eligible for a group discount through another insurer, or maybe you’re unhappy with the service that your present company provides. With the growth of the internet and quote comparison sites, investigating your options has never been easier!

Why change to a new Auto insurance carrier?

You need to regularly review your auto insurance coverage to make sure that you are receiving the best insurance value for your money. You will discover that it pays to shop around. In some states, premiums for identical policies vary widely among different auto insurance companies. The reasons for this price variation can be very complicated, but they boil down to a company's claims experience with policyholders in a coverage group (e.g. people of similar age, number of accidents, type of vehicle). For example, if a large number of people in a coverage group files claims during a given year, their rates will likely rise. When this happens, better discounts and lower overall premiums may be available at other insurance companies. When you decide to switch your auto insurance to another company, you’ll find that it's fairly easy to do so.

How to cancel your old Auto Insurance policy

Generally, all you need to do to cancel your auto insurance policy is to inform your insurance company in writing, specifying the date you want the policy canceled. In some states, the new agent must notify the previous agent of the policy change. Some auto insurance companies ask the policyholder send back the actual printed policy. The insurance company will send a cancellation request form that will need to be signed and returned. Examine the form carefully to make sure that all information regarding the policy is correct. If the form is not received within two weeks of sending the letter, call the agent or company immediately to check on the status of the cancellation. Don't just walk away from the old policy without formally canceling it. Each state requires that auto Insurance policies be cancelled with notice, thus the insurance company might assume one wished to continue the coverage, and it might eventually terminate the policy for failure to pay premiums and report the lack of coverage to the state Department of Motor Vehicles. This can hurt your credit rating and ability to get a new policy. Be sure to get a new Auto Insurance policy first

Always have a new policy in place before canceling the old auto insurance coverage. Otherwise you might have a gap in protection for a day or more! Most states require all drivers to carry a minimum level of auto insurance and most insurance companies require policyholders to present proof of new coverage before they will cancel an active policy. The new company will be able to time the beginning of the new policy to coincide with the cancellation of the prior coverage.

When to Change Auto Insurance policies

At Renewal

Renewal is a convenient time to change auto insurance policies, as you don’t have to wait for a refund from your current carrier. A renewal notice will be sent to you approximately 30 days before a new policy begins, depending on the regulations in your state. Should you decide to switch companies, you’ll need to have a new policy by the time the current policy renews. Though a company might say there is 10-30 days to get your payment in before a policy terminates, you do not have coverage until the carrier receives the payment. If you have an accident during this time period you most likely will have no coverage since the premium wasn’t paid!

Anytime:

All Auto insurance policies contain a provision allowing you to cancel your policy with proper notice at any time. In a few states auto insurance companies “short rate” the policy that means one pays a penalty for canceling before the policy renews. Most insurance companies pro-rate their policies so there is no penalty. The advantage of switching before the renewal date can save you a lot of money. For example if you have a policy that runs from Jan 15th to Aug 15th and you have an accident or ticket that will be over 36 months on March 15th. By switching Auto insurance companies on March 16th, you get a discount for having a clean driving record. Your current carrier won’t apply this discount until the policy renews on August 15th! This can save you Hundreds of dollars immediately!

Cheap Auto Insurance for Teens

Prom dresses. Football camp. School uniforms. Cell phone bills. Birthdays. Specifically, 16th birthdays. The upkeep of teenagers’ expenses can be financially disheartening. Fortunately, quality auto insurance is one purchase that parents can find in the bargain bin. Yes, it is possible to find cheap auto insurance if the shopper is looking in the right places. Today’s consumer has many online options to find whatever he or she is looking for, including auto insurance, and can comparison shop with the click of a button.

“But my son JUST turned sixteen. He’s still learning the rules of the road.
Is it possible to find cheap insurance for my young, inexperienced driver?”

Because young drivers are considered “at risk” drivers, you might think cheap insurance isn’t an option. If you know where to shop, however, you may find a perfectly reasonable price for auto insurance. There are several insurance comparison web sites that allow you to quickly get an insurance quote – whether you’re looking for health, life, home owner’s or auto coverage. In this case, there are a few things you might consider while shopping for auto insurance at a reduced rate:

1) While you’re on the lookout for your perfect policy, keep in mind that you can probably add your teenager to YOUR auto insurance policy. This will be much cheaper than having your child purchase his or her own policy.

2) Encourage your child to do well in school. Many insurance companies will offer a good student discount on auto insurance. Whether the student is in college or high school, often if he or she is making at least a B average, makes honor roll or is on the Dean’s list, the student will be eligible for a discount. Companies base this reduction on the idea that good students are better drivers.

3) Most importantly, let your teenager observe your good driving habits – they learn by example. If your teenager sees your seatbelt dangling next to the car door, you are giving him or her a reason to ignore it when he or she gets behind the wheel.

While you are bargain hunting for auto insurance, remember to think about the price AND the package. Do not strictly base your purchase on the price tag alone. You want your young driver covered in the event of an accident. It is important to know what you are paying for and you want to be sure the policy contains all the coverage you want or need. Consider the amount of coverage you’re paying for. You will be financially responsible for your young driver’s wreck if the policy limit is too low – meaning you will have to pay for damages out-of-pocket.

Homeowners Insurance & Keeping Track of Your Goods

Homeowner’s insurance is an invaluable investment for every homeowner. If your house went up in flames and you lost everything, would you be able to recall everything you owned, including the items’ values? If you came home from work to find someone burglarized your home, would you be able to account for everything that had been taken or destroyed? While some items are priceless and/or likely have sentimental value, memories unfortunately are not sufficient for filing a homeowner’s insurance claim in the wake of a disaster.

In times of distress, you shouldn’t have to worry about whether your possessions are covered or not. If you purchase homeowner’s insurance, it is important to know what your policy covers. Not sure what’s in your homeowner’s policy? That topic will be covered in a future article.

Your homeowner’s insurance, ideally, will replace the cost of what you lose in a disaster. More importantly, however, is the fact that you will only be compensated for what you can account for. In other words, fond memories are heartwarming, but they will not reimburse your losses in a catastrophe.

“But how will I account for everything I lose in such an event?”

Well, the most accurate way to keep track of your items would be to take an inventory of everything you own. While this is a process that could take months to complete, it is your most worthwhile strategy should you experience misfortune.

“What do I need to put in this inventory?”

Put simply. EVERYTHING. The more you can account for in your homeowner’s insurance claim, the more likely you will be reimbursed. The list should be as detailed as possible and should include appliances, carpets, jewelry, furniture, linens, antiques, furniture, and the list goes on. To get your money’s worth, go from room to room and be sure you are as descriptive and detailed as possible. Include:

1. a description of the item (including the quantity)
2. the manufacturer or brand
3. any model or serial numbers
4. a description of where or how the item was attained
5. the date of purchase or age of the item
6. receipt or other proof of purchase that shows the cost
7. the current value
8. the replacement cost
9. photocopies of appraisals

“I’ll never complete this process!”

Keep in mind that while this documentation process may be time-consuming, it is certainly easier than remembering everything you own. Don’t let this task discourage you. Take photos. Even better, make a night out of it. Grab your video camera and go from room to room to create a visual and verbal description of your items. It might take you an hour to document your entire house. Regardless of how you complete your inventory, remember that your compensation rests on the quality of your documentation.

“I’ve made the inventory, now what?”

It is likely you invested a good amount of time to document your items. Whatever you do, keep that homeowner’s insurance inventory safe! If an unfortunate event comes your way, you certainly do not want your hard work to go to waste. Store it in a relative’s home, in a lockbox, a safety deposit box or keep it tucked away in your office desk. While memories and keepsakes can rarely be replaced, it’s comforting to know your homeowner’s insurance will keep you financially secure should you properly document your items.

Your Homeowner’s Insurance Policy – Dissected: Part 1 of 5

If your homeowner’s insurance policy has been stuck in a drawer, cabinet or just tucked mindlessly away somewhere, it is probably about time to pull it out, shake off the dust and make sure it’s still up-to-date. This article is the first in a series of five articles that will help you decipher your homeowner’s insurance policy.

Who has time to labor through deciphering an insurance policy when the house needs cleaning, the fence needs mending, Fido needs a feeding and the kids need to be driven to soccer practice?

Let’s face it. At the end of the day, the only thing a person wants to read is the newspaper or a good book. Reading one’s insurance policy is surely the last thing on the list of “hot reads.”

While keeping your homeowner’s insurance updated is a dismal task, it is of utmost importance. As discussed in a previous article, not only is it important to purchase homeowner’s insurance, it is just as important to know what that policy covers.

Homeowner’s insurance policies contain several different coverage areas.
This article, and some of the next few that follow, will help you make sense of the different sections within your homeowner’s insurance policy.

RESIDENTIAL COVERAGE

The most obvious coverage is protection against damage to or destruction of your residential structure. In other words, if your home is destroyed by a tornado, fire, or whatever your policy covers, the insurance company completely replaces or repairs your home.

In this section of coverage, the most important reason to keep your homeowner’s insurance policy updated is because, in the event of disaster, the insurance company will only reimburse you for what your home is insured for.

For example, you purchased your home and homeowner’s insurance five years ago. It is very likely the value of your home has increased since the purchase date. If you purchased the home insurance policy five years ago and have not updated the policy to the home’s current cost to rebuild, the insurance company will only reimburse you for the price you paid five years ago. So, if you purchased the home for $300,000 and the value has increased to $500,000, you’re losing $200,000 – quite a large sum.

In the end, it is essential to keep your homeowner’s insurance policy updated because you want to be sure your home is insured for 100 percent of the replacement cost. (Some policies automatically update to your home’s current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner’s insurance policy may make heavy reading, but it will be even more burdensome should it be out-of-date.

Ways To Keep Your Home Insurance Costs Low

All homeowners are looking for ways to reduce our home insurance costs. Costs continue to rise and budgets get tighter and tighter with each passing year. Here are 8 tips to reduce your home insurance costs.

1. Increased Home Security

Most homes are fitted with some sort of security device. To make the most of your Home Security Discount make sure that you home is fitted with: dead bolt locks, smoke detectors, fire extinguishers and a burglar and fire alarm that are monitored. You do not have to have all of these to receive a discount on your home insurance so even if you only have one or two make sure that you ask for the savings.

2. Keep your credit score as high as possible.

While it would seem that a good credit score would have nothing to do with insurance rates, it is a fact that they do. Home Insurance companies are using your credit score as an indicator of responsibility. The theory is the more responsible the individual the less claims they will have. So, insurance companies are giving lower rates to those individuals with a better credit score.

3. Consolidate your policies.

Most, if not all companies that sell home insurance, offer discounts for insuring your autos with them. These discounts can sometimes save you up to 30% off of your total insurance bill. Plus, you get the added convenience of having one agent for both your home and auto insurances.

4. Protect your home with updates.

Discuss with your agent about the possibilities of receiving home insurance discounts for keeping your home in good repair. Some home insurance companies will offer savings for a anew roof, electrical, HVAC, plumbing updates. The discounts are generally not enough to warrant the replacement but if you needed it anyway, be sure to get the discounts if applicable.

5. Make sure you are not over insured.

Your home insurance coverage should not necessarily be what you paid for them home. Land values are calculated into the final sales price and should be considered when insuring the structure. In others words you cannot hurt the dirt. A good idea is to call local builders and ask them what new home construction cost per square foot is going for. Take that number, multiply that times your square footage and that is the amount that your home should be insured for. Companies will not pay more than what it is going to cost to rebuild the home anyway, so make sure you are insured correctly.

6. Stay away from low deductibles.

The deductible is your portion of the claim that must be paid before the insurance company pays for the claim. The lower your deductible, the higher your premium will be. Deductibles can range anywhere from $100-$5000 or more. The majority of homeowners will carry a $500 deductible, but the savings one can receive by raising your deductible to $1000 can be significant, up to 20%. It doesn’t take too many claim free years to make up the difference between the two deductibles, but remember you should never raise your deductible to a level that you could not afford to pay.

7. Ask your home insurance agent.

Most of the time, an agent will make sure that you are receiving 100% of the home insurance discounts that you qualify for, but it doesn’t hurt to ask. Some insurance companies have discounts that others do not. Some offer discounts that most would never dream as being a discount such as 55 and retired, non smoking, military service, law enforcement, single parent discounts, etc.

8. Don’t be afraid to shop around.

Home insurance shopping is easy. Insurance shopping online is even easier.(yes, I am biased) have given you the ability to get multiple home insurance quotes by filling out a form that takes about five minutes to complete. Also be aware that not all insurance companies are created equal. There are some bad ones out there but most, at worst, are pretty good.

10. home insurance tips

1. Safeguard your home

Take action to make your home theft-resistant. "Case" your home as if you were a burglar.

Burglars look for easy targets - make sure your home isn't one of them.

• Install exterior lights that are out of reach and triggered by motion.
• Trim trees and shrubs near doors and windows.
• Don't hide house keys outside - burglars know where to look.
• Consider investing in a security system. Not only does this make your home safer, it can lower your home insurance premiums.

When you're on vacation:

• Have mail and newspapers picked up.
• Leave blinds in normal positions.
• Arrange to have your lawn mowed or your driveway shoveled.
• Tell police and neighbors that you will be away and ask them to watch your home.

2. Be a responsible dog owner

The numbers speak for themselves: According to the Center for Disease Control and Prevention, 40% of Americans homes have a dog. There are 4 million dog bites per year, and dog bites create 33% of all homeowners liability claims - resulting in more than $1 billion in claims per year. Consider these tips to avoid having a claim brought against you:

• Pick a dog breed that's covered by your home insurance. Ask your insurance agent for details.
• Have your dog spayed or neutered.
• Train your dog.
• Keep your dog on a leash when walking.

3. Protect your home business

Home businesses are generally not covered under your home insurance policy. You may have only limited property coverage and no liability coverage for your business under your homeowners policy. Research the coverage that you have for property and equipment damage or theft, loss of income, and general liability for customer and supplier injuries.

4. Cover your domestic help

Check with your state Department of Insurance regarding whether you need a workers' compensation policy for your housekeeper, gardener, nanny, cook, or other domestic employees. In addition, if someone else occasionally runs errands for you and drives your car, have that driver listed on your auto insurance. Confirm that you have adequate liability and medical coverage on your Home Insurance. Consider purchasing a personal umbrella policy.

Tips for Buying a New Home

1. Use all of the online resources available.

Almost every state and local government has a website where you can research real estate information. The data on home sales, taxes, and neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn't have to rely on a real estate agent to get the data for us. Doing the research yourself will make you more knowledgeable about the market, which is key to making a good purchase.

2. Be realistic about how much you can spend.

Try to buy a home in a price range that allows you to put down 20%. If you put down less than this, you will have to pay PMI (private mortgage insurance) to protect the lender in case you default on the loan. I know that 20% is a lot, but it's not unrealistic. You may not be able to do it on your first home, but hopefully you can on your second home. The profits from the sale of my condo enabled my husband and me to have more than enough for the 20% down payment on our home. But we didn't put it all down on the home - we saved some of the profits for the unexpected expenses that come with buying a home. We suggest that you do the same.

3. Shop for a home in the winter, preferably around the holidays.

Since most people just aren't interested in buying a home when they are trying to deal with the holidays, you can pretty much be one of the few buyers out there. We bought our home right before Christmas, and it was definitely a buyers market. We had our pick of homes and were able to underbid on the asking price, even though we live in one of the hottest real estate markets in the country.

4. Use a smaller mortgage company that can offer personal service.

People tend to go with large, well-known mortgage companies, since that's all they know. But the smaller, regional companies provide excellent customer service, and can often give you better rates than the big companies. Since they don't advertise and instead rely on word-of-mouth, they have to be good in order to get your service. We started off with a big-name company, but in the end, we went with a regional company because they had better rates and better customer service.

5. Always have a home inspection.

I think most people know this fact already, but it is really important in areas with a hot real estate market. It can be easy to get caught up in bidding wars, and to want to get a house at all costs. Some friends of ours wanted a house so badly that not only did they overbid, but they also waived the home inspection. They got the house - and right along with it they got several thousand dollars worth of damage that would have been found in an inspection.

As a final note, try to remember that buying a home doesn't have to be scary. It's very exciting to own your own home, so think of all the good things that will come once you have made it through the home-buying process. If you follow the advice above, then you should be well-equipped to make it through unscathed.

6. Save money and shop for your home insurance the easy way !!!

Life Insurance Buyer's Guide

Prepared by the National Association of Insurance Commissioners

• Buying Life Insurance
• How much do you need?
• What is the Right Kind?
• Finding a Low Cost Policy
• Things to Remember

Buying Life Insurance

When you buy life insurance, you want coverage that fits your needs and doesn't cost too much. First, decide how much you need - and for how long - and what you can afford to pay. Next, find out what kinds of policies are available to meet your needs and pick the one that best suits you. Then, find out what different companies charge for that kind of policy for the amount of insurance you want. You can find important cost differences between life insurance policies by using cost comparison indexes as described in this guide.

It makes good sense to ask a life insurance agent or company to help you. An agent can be particularly useful in reviewing your insurance needs and in giving you information about the kinds of policies that are available. If one kind doesn't seem to fit your needs, ask about others. This guide provides only basic information. You can get more facts from a life insurance agent or company or at your public library.

How much do you need?

To decide how much life insurance you need, figure out what your dependents would have if you were to die now, and what they would actually need. Your new policy should come as close to making up the difference as you can afford.

In figuring what you have, count your present insurance - including any group insurance where you work, social security or veteran's insurance. Add other assets you have - saving, investments, real estate, and personal property.

In figuring what you need, think of income for you dependents - for family living expenses, educational costs and any other future needs. Think also of cash needs - for the expenses of a final illness and for paying taxes, mortgage or other debts

What is the Right Kind?

All life insurance policies agree to pay an amount of money when you die. But all policies are not the same. Some provide permanent coverage and others temporary coverage. Some build up cash values and others do not. Some policies combine different kinds of insurance, and others let you change from one kind of insurance to another. Your choice should be based on your needs and what you can afford. A wide variety of plans is being offered today. Here is a brief description of two basic kinds - term and whole life - and some combinations and variations. You can get detailed information from a life insurance agent or company.

Term insurance covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term insurance generally provides the largest immediate death protection for your premium dollar.

Most term insurance policies are renewable for one or more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. Check the premiums at older ages and how long the policy can be continued.

Many term insurance are renewable for one ore more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. Check the premiums at older ages and how long the policy can be continued.

Many term insurance policies can be traded before the end of a conversion period of a whole life policy-even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.

Whole Life Insurance covers you for as long as you live. The common type is called straight life or ordinary life insurance - you pay the same premiums for as long as you live. These premiums can be several times higher than you would pay at first for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term policy until your later years.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher than for ordinary life insurance since the premium payments are squeezed into a shorter period.

Whole life policies develop cash values. If you stop paying premiums, you can take the cash - or you can use the cash value to buy continuing insurance protection for a limited time or a reduced amount. (Some term policies that provide coverage for a long period also have cash values).

You may borrow against the cash values by taking a policy loan. Any loan and interest on the loan that you do not pay back will be deducted from the benefits if you die, or from the cash value if you stop paying premiums.

Combinations and Variations. You can combine different kinds of insurance. For example, you can buy whole life insurance for lifetime coverage and add term insurance for the period of your greatest insurance need. Usually the term insurance is on your life - but it can also be bought for your spouse or children.

Endowment insurance policies pay a sum or income to you if you live to a certain age. If you die before then, the death benefit is paid to the person you named as beneficiary.

Other policies may have special features which allow flexibility as to premiums and coverage. Some let you choose the death benefit you want and the premium amount you can pay. The kind of insurance and coverage period are determined by these choices.

One kind of flexible premium policy, often called universal life, lets you vary your premium payments every year, and even skip a payment if you wish. The premiums you pay (less expense charges) go into a policy account that earns interest and charges for the insurance are deducted from the account. Here, insurance continues as long as there is enough money in the account to pay the insurance charges.

Variable life is a special kind of insurance where the death benefits and cash values depend upon investment performance of one or more separate accounts. Be sure to get the prospectus provided by the company when buying this kind of policy. The method of cost comparison outlined in this Guide does not apply to policies of this kind.

A simple comparison of the premiums is often not enough. There are other things to consider. For example:

• Do premiums or benefits vary from year to year?
• How much cash value builds up under the policy?
• What part of the premiums or benefits is not guaranteed?
• What is the effect of interest on money paid and received at different times on the policy?

Finding a Low Cost Policy

After you have decided which kind of life insurance is best for you, compare similar policies from different companies to find which one is likely to give you the best value for your money.

Comparison Index numbers, which you get from your life insurance agents or companies, take these sorts of items into account and can point the way to better buys.

Comparison Indexes. There are two types of comparison index numbers. Both assume you will live and pay premiums for the period of index.

Yield Comparison Index . The Life Insurance Yield Comparison Index is a measure of cash value growth over the Index period which takes into account the interest credited, the estimated value of the death protection provided, and the expenses charged. A higher yield index number generally indicates a better buy. Since this index reflects items other than interest earnings, it may differ from the credited interest rate advertised or guaranteed in your policy. For the same reasons, the Yield Index may differ from the return on a pure investment like a savings account. Keep this in mind if you attempt to compare Yield Indexes with investment returns.

The Net Payment Cost Comparison Index helps you compare costs over the Index period assuming you will continue to pay premiums on your policy and do not take its cash value. It is useful if your main concern is the benefits that are to be paid at your death.

Guaranteed an Illustrated Figures. Many policies provide benefits on a more favorable basis than the minimum guaranteed basis in the policy. They may do this by paying dividends, or by charging less than the maximum premium specified. Or they may do this in other ways, such as by providing higher cash values or death benefits than the minimums guaranteed in the policy. The "currently illustrated basis" reflects the company's current scale of dividends, premiums or benefits. These scales can be changed after the policy is issued, so that the actual dividends, premiums or benefits over the years can be higher of lower than those assumed in the Indexes on the currently illustrated basis.

Some policies are sold only on a guaranteed or fixed cost basis. These policies do not pay dividends; the premiums and benefits are fixed at the time you buy the policy and will not change.

Using Comparison Indexes. The most important thing to remember is that, when using the Net Payment Cost Comparison Index, a policy with smaller index numbers is generally a better buy than a similar policy with larger index numbers. When using the Life Insurance Yield Comparison Index, the opposite is true: a policy with larger Yield Comparison Index numbers is generally a better buy than one with smaller Yield Comparison Index numbers.

Compare index numbers only for similar policies - those which provide essentially the same benefits, with premiums payable for the same length of time. Where possible the same amount of planned premium should be used. Make sure they are for your age, and for the kind of policy and amount you intend to buy. Remember than no one company offers the lowest cost at all ages for all kinds and amounts of insurance.

Small differences in index number should be disregarded, particularly where there are dividends or non guaranteed premiums or benefits. Also, small differences could easily be offset by other policy features, or differences in the quality of service from the agent or company or differences in the strength of companies. When you find small differences in the indexes, your choice should be based on something other than cost.

Finally keep in mind that index numbers cannot tell you the whole story. You should consider:

The level and quality of service from the agent or company, the strength and reputation of the company, the history (track record) of how the company treats carious classes of policyholders e. g. longtime policyholders versus current purchasers.

The pattern of policy benefits. Some policies have low cash values in the early years that build rapidly later on. Other policies have a more level cash value buildup. A year-by-year display of values and benefits can be very helpful. (The agent or company will give you a Policy Summary that will show benefits and premiums for selected years).

Any special policy features that may be particularly suited to your needs.

The methods by which non guaranteed values are calculated. For example, interest rates are an important factor in determining policy dividends. In some companies dividends reflect the average interest earnings on all policies whenever issued. In others, the dividends for policies issued in a recent year, or a group of years, reflect the interest earnings on those policies; in this case, dividends are likely to change more rapidly when interest rates change.

Things to Remember

• Review your particular insurance needs and circumstances. Choose the kind of policy with benefits that most closely fit your needs. Ask an agent or company to help you.
• Be sure that the premiums are within your ability to pay. Don't look only at the initial premiums, but take account of any later premium increase.
• Don't buy life insurance unless you intend to stick with it. It can be very costly if you quit during the early years of the policy.
• Read your policy carefully. Ask your agent or company about anything that is not clear to you.

Review your life insurance program with your agent or company every few years to keep up with changes in your income and your needs.

Do I Really need Disability Insurance Coverage?

Many individuals struggle to understand what disability insurance covers. There are two basic forms of disability insurance, short-term and long-term disability. Short-term as its name implies is for a short period of time usually less than a year. Group short-term disability is more prevalent in the work place than long-term. One of the failures that individuals make is assuming that their policy covers 100% of their income. The policy usually covers up to 66 2/3%, it may be only be 50% for 13 weeks only. (Check your employee handbook) Uncle Sam allows you to get the benefit tax free, but you cannot get more in benefit than your pre-tax salary. It is very important that people read their employee benefits carefully.

The two main definitions used to define if benefits under a disability insurance policy are paid include own occupation and any occupation. Own occupation disability means you are unable to perform the substantial duties of your current position in a nutshell. Any occupation includes the duties of a job that you have been trained for through education, training, or experience.

Individual disability policies cover a percentage of your income based on your occupation, the hazard of your responsibilities, and your income. The elimination periods for disability policies usually range from 30-365 days. If you become sick or disabled, exceed the elimination period, and become certified by a physician as unable to work, you may receive a tax free benefit except in rare cases (your employer pays for the policy). The policy is coordinated with any group disability benefits you may be receiving as well as Social Security Disability Insurance if you qualify.

Things to consider when thinking about Disability Insurance:

Can I get sick?

Do accidents occur?

Can I afford to self-fund?

Can I live off my savings?

Does my coverage at work cover short-term & long-term disability?