Auto insurance rates go up if you have a gap in coverage. In other words, if you do not have auto insurance in force for a period of time, you will pay a higher rate when you get new insurance because of that gap.
A common mistake that people make is to cancel their auto insurance policy when they have been in an accident that is the other driver's fault and their car is totalled out. In some cases, people will take awhile to get a new car or use the settlement money for other purposes and either cancel or let their existing insurance policy on the wrecked car lapse.
While it is true that it does not make sense to maintain coverage on a wrecked, undrivable vehicle, it makes less sense to cancel the policy, wait, and then get a new car with higher insurance rates because of that gap in coverage. To avoid this, keep the policy in force on the original vehicle, even if it is wrecked, until you get the new vehicle. Then, simply have your insurance agent swap out the vehicles and you will not pay a higher rate because you kept continuous coverage.
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Showing posts with label auto insurance. Show all posts
Showing posts with label auto insurance. Show all posts
Wednesday, May 20, 2009
Wednesday, May 13, 2009
Auto Insurance Tip---Uninsured Motorist
If someone with no auto insurance slams into your car, what happens? The short version is that hopefully, you have a low comprehensive deductible and you also have Uninsured Motorist coverage.
When you are in a wreck and it is the other driver's fault, their insurance pays to fix your car, to rent you a car while your car is being fixed and to pay for your bodily injury and the bodily injury of your passengers. If the at fault driver has no insurance, and if you have Uninsured Motorist coverage, it will pay for your bodily injury and your passenger's bodily injury. Your only other recourse in this situation would be to go after the at fault driver in civil court.
Uninsured Motorist coverage varies from state to state. Some states will only offer Uninsured Motorist bodily injury, which does not pay to fix your vehicle when damaged by an uninsured driver. Some states will offer both UM bodily injury and UM property damage.
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When you are in a wreck and it is the other driver's fault, their insurance pays to fix your car, to rent you a car while your car is being fixed and to pay for your bodily injury and the bodily injury of your passengers. If the at fault driver has no insurance, and if you have Uninsured Motorist coverage, it will pay for your bodily injury and your passenger's bodily injury. Your only other recourse in this situation would be to go after the at fault driver in civil court.
Uninsured Motorist coverage varies from state to state. Some states will only offer Uninsured Motorist bodily injury, which does not pay to fix your vehicle when damaged by an uninsured driver. Some states will offer both UM bodily injury and UM property damage.
Sponsored by Personal Financial Guide
Monday, May 4, 2009
Auto Insurance Basics
Auto insurance is something that we all have to have, by law, but not all auto insurance is created equal, and different people have different needs when it comes to insuring their vehicles. Here is a quick guide to the basics of auto insurance terminology:
BIPD(Bodily Injury Property Damage) This is the basis of all auto insurance policies. BIPD is the liability coverage that all drivers are required by law to carry. On insurance forms, BIPD is expressed by three numbers such as 25/50/25. This means:$25 thousand dollars of liability coverage for bodily injury that YOU cause to one person $50 thousand of coverage for bodily injury that you cause per occurance---multiple people $25 thousand for property damage that you cause.
BIPD(Bodily Injury Property Damage) This is the basis of all auto insurance policies. BIPD is the liability coverage that all drivers are required by law to carry. On insurance forms, BIPD is expressed by three numbers such as 25/50/25. This means:
So, the basic 25/50/25 liability insurance is to protect you from liability caused by your accidents. The mimim limits will differ from state to state, but by law, all drivers must at least carry the state minimum liability insurance.
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Friday, May 1, 2009
Tips to Save Money
Saving money, cutting costs, and budgeting are all very popular buzzwords lately, and with good reason. There is a wealth of information available online and in print about personal finance, and much of it is relevant and useful. However, many people are able to save significant amounts of money on their own by following a few basic, and sometimes mundane steps:
1. Avoid Eating Out: While taking yourself or your family out to dinner on a regular basis obviously costs quite a bit, even eating out for lunch or breakfast on a regular basis can funnel away significant amounts of cash over time. Assume that the average lunch during the work week will cost you $7.00. That's $35/week, $151/month, $1820/year. Think about how much more quickly you could pay off your credit card debt by putting an extra $151 per month toward it, or the impact of making one or two extra mortgage payments per year with the $1820. That $7.00 a day five days a week could be put to much better use.
2. Use a List: Don't go grocery shopping without a list. Plan out what you need before you go and avoid impulse purchases. Planning out a shopping list helps avoid unnecessary purchases and can save a shocking amount of money.
3. Shop in Bulk: Invest a couple of hundred dollars in a large deep freeze and shop in bulk. Buying in bulk saves money on the quantity discount and it saves money by cutting down trips to the store.
4. Plan Meals: When you are cooking at home, time becomes an issue. Planning out a weekly menu fits right in with shopping in bulk, not eating out, and using a list. Having a weekly menu makes it a lot easier to plan ahead for meals to be cooked at home and allows you to budget your grocery money better.
5. Cut Utility Costs: There is a long list of ways to cut utility costs, but investing in a programmable thermostat, making your home air-tight, and getting a tankless hot water heater are some popular and effective methods of saving money on utilities.
6. Insurance: Make sure you are getting a good deal on your home and auto insurance. Most insurance companies will give substantial discounts for writing your home, auto and sometimes life insurance as a package. If you have your insurance policies scattered out among different companies, consider combining them at a lower price at one company. The savings can be surprising.
These are just a few basic money-saving tips, but if take to heart, they can be effective. A big component of saving money and cutting costs is planning and discipline. Planning out a budget and sticking to it instead of spending blindly, paycheck to paycheck can make a huge difference.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
1. Avoid Eating Out: While taking yourself or your family out to dinner on a regular basis obviously costs quite a bit, even eating out for lunch or breakfast on a regular basis can funnel away significant amounts of cash over time. Assume that the average lunch during the work week will cost you $7.00. That's $35/week, $151/month, $1820/year. Think about how much more quickly you could pay off your credit card debt by putting an extra $151 per month toward it, or the impact of making one or two extra mortgage payments per year with the $1820. That $7.00 a day five days a week could be put to much better use.
2. Use a List: Don't go grocery shopping without a list. Plan out what you need before you go and avoid impulse purchases. Planning out a shopping list helps avoid unnecessary purchases and can save a shocking amount of money.
3. Shop in Bulk: Invest a couple of hundred dollars in a large deep freeze and shop in bulk. Buying in bulk saves money on the quantity discount and it saves money by cutting down trips to the store.
4. Plan Meals: When you are cooking at home, time becomes an issue. Planning out a weekly menu fits right in with shopping in bulk, not eating out, and using a list. Having a weekly menu makes it a lot easier to plan ahead for meals to be cooked at home and allows you to budget your grocery money better.
5. Cut Utility Costs: There is a long list of ways to cut utility costs, but investing in a programmable thermostat, making your home air-tight, and getting a tankless hot water heater are some popular and effective methods of saving money on utilities.
6. Insurance: Make sure you are getting a good deal on your home and auto insurance. Most insurance companies will give substantial discounts for writing your home, auto and sometimes life insurance as a package. If you have your insurance policies scattered out among different companies, consider combining them at a lower price at one company. The savings can be surprising.
These are just a few basic money-saving tips, but if take to heart, they can be effective. A big component of saving money and cutting costs is planning and discipline. Planning out a budget and sticking to it instead of spending blindly, paycheck to paycheck can make a huge difference.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
Monday, April 27, 2009
Learn Financial Responsibility Young
Credit cards, credit history, auto loans, mortgages, insurance, savings, retirement........these are just a few of the things that people should have a basic understanding of from an early age. In fact, a personal finance course should be a mandatory part of high school curriculum, to be taken in the senior year. Many high schools offer a personal finance or consumer economics course as an elective, but it should be a standard part of the basic curriculum.
Why?
There is a long list of valid reasons why high school seniors should have to take a practical finance course, but what it boils down to is this: credit history, credit cards, auto loans and mortgages can have a huge impact, positive or negative, on a person's life. The fact is, many young adults learn about credit history, credit cards and auto loans the hard way. They have not received any structured training in these matters and are not aware of the serious consequences of bad credit and of the pitfalls of credit cards and loans.
If there was a federal mandate to include a personal finance course as a mandatory part of the high school curriculum, the instances of bankruptcy, foreclosures and bad debt charge-offs would decrease significantly over the next 5 to 8 years. Young adults would be introduced to the concept of financial responsibility before they get into the "real world".
Sponsored by Personal Financial Guide
Why?
There is a long list of valid reasons why high school seniors should have to take a practical finance course, but what it boils down to is this: credit history, credit cards, auto loans and mortgages can have a huge impact, positive or negative, on a person's life. The fact is, many young adults learn about credit history, credit cards and auto loans the hard way. They have not received any structured training in these matters and are not aware of the serious consequences of bad credit and of the pitfalls of credit cards and loans.
If there was a federal mandate to include a personal finance course as a mandatory part of the high school curriculum, the instances of bankruptcy, foreclosures and bad debt charge-offs would decrease significantly over the next 5 to 8 years. Young adults would be introduced to the concept of financial responsibility before they get into the "real world".
Sponsored by Personal Financial Guide
Thursday, April 16, 2009
Quick Tips for Home and Auto Insurance
When you are shopping for home insurance or auto insurance, what should you consider when making your decision? Should you make your decision solely upon cost? What about the quality of the coverage and the level of service? Here are a few key things to keep in mind when shopping for auto insurance: Can I get local face-to-face service? Are the billing options flexible? multiple policies with the same insurane company You should get a discount on your auto insurance if you have your homeowners with the same company and vice versa You should get a discount if you have more than one vehicle insured with the same company You should get a discount if you are willing to set your bill up on electonic draft from you checking account You should get a discount for defensive driving courses for being ticket and accident free for 1, 3 or 5 years.
On your homeowner's insurance, you should get a discount for: Having an interior/exterior inspection done Being able to prove you updated your wiring/plumbing/heat and air system Having a life insurance policy with the same company various occupations qualify for discounts---teachers, military, nurses, etc Various age classes will qualify for discounts.
These are the discounts that you should think of as standard discounts. You may not qualify for all of them, but you should qualify for some of them. If the company your are talking to does not offer these, you should consider shopping around.
What discounts do I qualify for?
Remember this; you should get a discount for:
Remember this; you should get a discount for:
On your homeowner's insurance, you should get a discount for:
These are the discounts that you should think of as standard discounts. You may not qualify for all of them, but you should qualify for some of them. If the company your are talking to does not offer these, you should consider shopping around.
Sponsored by Affordable Homes Oklahoma
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