5 Steps to Filing Your Auto Insurance Claim

1. Evaluate whether or not you should file a claim: Did you know that just when you call your insurance company with a question about possibly filing a claim it is often recorded on your insurance record? It is important to keep your insurance record clean and one way is deciding whether or not you should file a claim. It doesn’t matter if the accident is your fault or not, you should ask yourself first if you can pay for the damage. Simply put, if you can pay for it yourself without financial hardship, don’t file the claim.

2. Fill out your What to do After an Auto Accident Worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.

3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.

4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.

5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed.

New Car? Make Sure You Have Gap Insurance

Just bought a new car? What if an accident occurred soon after taking your brand new ride off the lot? You have full coverage insurance, right? So, you're covered... or maybe not.

When you drive your new car off the lot the value of your vehicle plummets, sometimes as much as 20%-30%. Say for instance you pay $25,000 for your new vehicle and have an accident a month later. You probably have only made at the most one payment and if you did not put any money down your loan amount is still close to the $25,000 purchase price. Unfortunately, even with full coverage, which includes comprehensive and collision, you will only receive the market value of your vehicle which could be as much as 20%-30% lower than the purchase price. That means you may be stuck paying that 20%-30%. On a $25,000 car, just a 20% depreciation would be $5,000! That amount could be more if you financed your taxes and license into your loan.

Fortunately, you may already have Gap insurance with your current insurer, which would insure you for the difference between your loan amount on the car and the actual market value of the car. But, not all insurance companies offer Gap insurance.

Gap Car Insurance

Getting a new car is great and making sure you have the insurance coverages you need for it is one of the most important things you can do to protect your new vehicle. Of course, you don't want to have a gap in insurance so that is why you need to have gap car insurance. Yes, you know having gap insurance coverage is important but, it is just as important to know what those coverages mean.

You Won't Have a Gap in Insurance, But What Else Will Gap Car Insurance Cover?

If you have gap insurance coverage, you won't have a gap in insurance but, if you need to use your gap car insurance will you understand the coverages? Understanding your gap car insurance coverages will not take a lot of time and it will probably save you a lot of money and time later. There are two important things to know about your gap insurance coverage: what is covered and what is excluded (or not covered). First, let's take a look at common gap car insurance coverages:

Gap Car Insurance Covers Total Losses Due to Most Any Reason Including:

Theft
Fire
Vandalism
Accident
Flood
Tornado
Hurricane

As you can see, pretty much any totaled loss your regular car comprehensive and collision insurance will cover, gap insurance will also cover. Most gap car insurance policies will also cover your insurance deductible.

Gap Car Insurance Covers Most Total Losses, But What Does it Exclude?

So, now that you know your gap car insurance will pretty much cover most any total loss that your regular car insurance company did not cover, what will gap insurance not cover? This is important to know, so here is a list of some gap car insurance exclusions:

6 Common Gap Car Insurance Exclusions:

1. Cars that Are Not Covered by Both Comprehensive and Collision Insurance

2. Any Equipment On the Car that Was Not Factory Installed

3. Money that Was "Rolled" Into the Car Loan Such as From a Trade-in or Leased Vehicle

4.Costs for Any Other Products Added to The Loan or Lease Such as Extended Warranties

5. Unpaid or Overdue Lease or Loan Payments

6. Financial Penalties or Security Deposits on Leased Vehicles

Please remember that these are only examples of common coverages and exclusions and it is important to check your own policy to see what your particular gap car insurance coverages and exclusions are.

Gap Insurance Requirements and Your Rights

Gap insurance is a common purchase for new car loans and lease agreements. Gap insurance is a great type of insurance that has helped many people not incur extra expenses when their vehicle was totaled. But, as with any insurance, gap insurance is not always needed. Unfortunately many consumers don't know their rights and often end up purchasing and paying for gap insurance without knowing and maybe without needing it.

Gap Insurance Requirements

First, let's take a look at when gap insurance is required. Generally every lease agreement requires gap insurance, and for the right reasons because this is a great protection for the buyer. The buyer is still financially responsible for the leased car even though the car is still owned by the manufacturer or dealership. Usually gap insurance is built into the lease agreement and is part of the lease terms.

Consumer Rights

Other than lease agreements, generally gap insurance is not required. But for reasons of ignorance or greed, many dealerships or car loan departments often automatically add gap insurance to the buyers loan and sometimes without the buyer being aware of this. When purchasing a new car you do have the right to deny gap insurance. Before you deny gap insurance though, make sure you don't need it.

When Gap Insurance is Not Needed

Although gap insurance is highly recommended in many new car purchases, in some cases gap insurance is not needed. If someone has enough cash reserves to cover the gap in the insurance payoff and the value of their car, then they would not need gap insurance if they would rather use their money than insurance to cover that gap. Also, some insurance companies already provide gap insurance, or a similar loan pay off type of insurance, built into the vehicle's auto insurance policy, so obviously it would make no sense to pay for an insurance policy that one would already have. And, some loan companies offer a pay off benefit in the loan agreement. This means that the loan company will take care of the gap in value. In addition, some people may be purchasing a vehicle that is not over priced and therefore if the car was totaled, the vehicle would have the same value as the loan payoff.

How to Refuse Gap Insurance

So, you are not leasing a vehicle and you have researched your need for gap insurance and realize you don't want to purchase it. Tell your dealership or lender. That is all you should need to do to refuse gap insurance. Next, before you sign your loan papers, make sure you get an itemized list of everything that is included in your loan payment and make sure you are not paying for gap insurance or anything else that you did not authorize. If you still have problems, since gap insurance is a form of insurance and its sale is regulated by your state, you can contact your state insurance commissioner for further help in securing your rights to refuse gap insurance.

Where to Purchase Gap Insurance

Purchasing gap insurance is important for many. If you are buying a new car or leasing, in most cases it is a must. But, when it comes time to purchase that gap insurance policy, have you thought about what company you want your gap insurance through?

Usually when one goes to buy a car the dealer will ask you who you are using for your car insurance. Typically this is not the case with gap insurance. Most dealers "package" the gap insurance right in with your new car purchase or lease. But, is this a good idea and is this the only way to get gap insurance?

Getting gap insurance through the car dealership is not a bad idea, if you understand how gap insurance works and you are working with a dealership who is knowledgeable about gap insurance. If your dealership does not understand the gap insurance policy then they won't be able to answer your questions. However, if you are working with a reputable dealership that you trust, you have studied about how gap insurance works and you understand your gap insurance policy, then purchasing gap insurance through the dealership is convenient and generally is not any more expensive than finding your own gap insurance policy.

If you decide not to use the dealership for your gap insurance needs, then you can find gap insurance policies online. You may have to have this done before you purchase your car and especially before you lease your vehicle so the dealership can verify that you have purchased a gap insurance policy. Finding gap insurance online will probably not be a major cost savings, but since you will be working directly with an insurance company, they will be able to better serve you and help you understand what coverages you will have with gap insurance.

Before you purchase gap insurance through your dealership or online, there are a few things you will want to understand first:

1. Always check first with your insurance company to see if they already include gap insurance in your car insurance policy. There is no reason to purchase gap insurance if you already have the coverage.

2. Another place to check to see if gap insurance is already included is from the financing company. Some financing companies will cover any additional "gaps" in coverage if your car is totaled which would eliminate the need for gap insurance.

3. Make sure you need gap insurance. If you are putting a large amount down on your vehicle or if it is an older vehicle, you don't always need gap insurance.

4. And finally, it is important to remember that you can purchase gap insurance even after your car purchase. So, if you did not purchase it at the dealership you can still find a gap insurance company online or locally and take advantage of the benefits of a gap insurance policy.

Affordable Home Insurance

Home ownership: it’s an American dream. But buying a place of your own or settling the family in new digs requires financial commitment. That means saving for a down payment, getting the right loan and—perhaps most importantly—finding affordable home insurance.

Whether buying a first home or a fifth, all homeowners need insurance to protect against the unexpected. That’s where we come in.

With some basic how-tos, money-saving insurance strategies and affordable quotes, protecting your home affordably is as easy as 1-2-3!

Learning Insurance Basics

When buying a new home, lenders require insurance information up-front. To make things quick and easy, try contacting insurance providers online. Let them know what you’re looking for, examine several price quotes, and choose the insurance plan that fits your budget best.

Once a policy is in place, supply the lender your insurer’s name and contact information, coverage levels and deductibles. They’ll add this information to the new home contract and escrow insurance as part of your monthly expenses.

If insuring an existing home, don’t just stick with the same insurance company year after year. Though commendable, loyalty may keep you from getting the best deal. Think instead about current rates, make home improvements and discuss discounts with home insurance providers. Then settle on the broadest coverage for the least money.

Maximizing Home Insurance Savings

Use these money-saving tips to save 60 percent or more on the right protection at the right cost—no matter which insurer you choose.

• Set deductibles as high as possible. Doing so could slash as much as 25 percent from insurance rates.
• Buy insurance for car and home from the same provider. This could garner an additional savings of up to 15 percent on insurance rates.
• Install security or safety devices. This extra protection makes homes more secure and can score another 20 percent in savings.
• Eliminate unnecessary coverage. Save a bundle by getting rid of extra, unneeded coverage on items no longer owned or greatly depreciated.
• Make home improvements. Update electrical or plumbing systems, or add items like deadbolt locks for a sizeable discount.
  

Home insurance rates can vary by thousands from one insurer to the next. So learn insurance basics, take steps to shave costs from your policy, and shop for low insurance quotes. Then insure that home affordably today—and rest safely and securely for years to come.

Life Insurance Extras

The types of options that a person may add onto their life insurance policy vary widely, but the common denominator is that they will increase the cost of the premiums. Yet they are usually well worth it.

One of the best known is referred to as the “Waiver of Premium” option. This allows for a waiver of premium payments for a specified time, should the policy holder be incapacitated due to an injury or illness. Since the insured party may be unable to earn an income, this protection can be a financial lifesaver, especially since it can cover family members as well. Some companies may specify conditions, such as becoming “totally” or “permanently” disabled, or may quote an age upon which this option may take affect.

Another popular extra is the Critical Illness Cover. If an individual is unable to work because of a critical illness (such as cancer), this allows part of the maturity amount to be distributed in a lump sum. It may also, occasionally, be paid out as a regular payment to mirror former income. Each policy has its own list of such illnesses, and if the patient recovers, the money does not need to be paid back. It can be purchased alone or in conjunction with whole life, term or endowment insurance.

The Accidental Death Benefit provides a large monetary coverage (up to 100% of the regular benefits) to beneficiaries, should the policy holder incur an accidental death. It can be added onto policies for spouses and children, and for a relatively modest premium, can offer up to a million dollars in coverage, in addition to the main insurance benefits.

Accelerated Death Benefits will allow the insured or their covered spouse to collect benefits if the insured is diagnosed with a terminal illness. For example, if a person is given less than a year to live, they may obtain up to 50% of their coverage, although the amount provided will decrease the total payable beneficiaries by that much upon death of the insured.

The Permanent Total Disability option provides for additional insurance benefits if the insured should suffer permanent total disability as a result of an accident or illness. This defines “permanent” as a condition that lasts at least 2 continuous years, of which there does not appear any chance of improvement or the ability to resume work.

These life insurance “extras” are just a sampling of what insurance companies may offer policy holders. They are usually called Rider Benefits because they run, or ride along, the main policy. All life insurance comparisons should include several companies, and individual situations should be discussed with qualified and experienced professionals. Some companies may include one or two options at no cost to make their policies more attractive and competitive, and this should not be construed as lessening the value of the extras in any way.

Life insurance coverage that’s appropriate for an individual and his or her family will offer peace of mind, and should be considered a top priority when planning finances.

How Life Insurance Changes Through the Years

As you have life insurance, you might discover that as the years go on, the life insurance policies will change for you, and you'll be covered in different ways. If you are lucky enough to be able to afford a life insurance policy when you are younger, you will probably not think very much about it, as it will simply be something that will be there for you in later years. Also, some life insurance policies are either a little bit cheaper during this time, or more expensive, as you are making bulk payments to get them paid off. However, when you first get your life insurance policy, no matter what age you are, you will find that you are paying more for it. This is your chance to get the policy paid off so that you don't have to be paying it off as you get older.

Through the years your life insurance policies will change with you. They will mature, meaning that they have been entirely paid off and are now ready to be used if they need to be. In some situations, during this period of time, you might choose to sell your insurance policy back, meaning that you can get the money that you put into the policy and be able to cash in on the policy. This is often something that people do for investments.

Also, many insurance policies now come with this type of thing built in for them. These are policies that are actually able to be changed by you. You might want to have the coverage for awhile, but you can change the policy to stocks, bonds, or anything else that you might like after you have paid for the policy in full. This is also an investment option because sometimes you might find a better way of planning for your future, and not need to have the insurance policy any more.

One thing that won't change through the years with your insurance policy is going to be the amount that it will be worth if something bad happens to you. Most of the time, the policy amount will be the same, whether you have just paid for it, or whether you have had it for many years. Therefore, you can rest assured that when you purchase a policy you'll be able to use the money that you have put into it to have the same return on the investment, no matter when you need the money.

Also, there are some life insurance policies that will change in that they will be able to be cashed in and used while you are still alive. In some situations, such as a life-threatening illness, or an illness that is terminal, you can cash in your life insurance policy while you are sick. This will allow you to actually have the money to make arrangements for yourself and for your family while you are still alive. This type of policy can be a very good idea for many people who might end up needing it.

Whole Life Insurance & Your Needs

As people grow older, they begin to consider the legacy they’ll leave behind. Will there be enough to pay their final expenses? Will there be enough for a surviving spouse or children (or grandchildren) to keep them going? Whole life insurance policies can solve this problem. Depending on the age at which you purchase your policy, the payments and benefits could be very large or fairly small. It also depends on what your personal finances are like, and what needs you can foresee in the future.

If a policy is purchased by a non-smoker, in good health, thirty or so years old, the rates will be a good bit lower than for someone in their fifties, smoker, in less than perfect health. Insurance policies are issued according to age, health and the statistics involved. The younger and healthier one is when buying life insurance, the lower the price will be. A healthy, single person in his or her twenties will pay lower premiums for good coverage. When the person marries, the coverage may need to be increased, but the price shouldn’t go up exorbitantly. After a child or two comes along, the coverage will need to be increased and the premiums will go up, according to the level of coverage needed.

When buying a home, it’s wise to procure an extra life insurance policy that will pay off the home in the event that you aren’t there to make the payments. Some companies refer to this as “mortgage insurance” and others don’t. It is simply an extra policy that covers the price of the home so that the family doesn’t wind up losing it and finding themselves in a financial bind after the loss of the main bread-winner of the family.

In most families, the home isn’t the only expense to consider. There are vehicles, credit cards and medical bills. It isn’t a bad idea to cover all the contingencies with one large policy or two small ones, depending on the age and health and finances of the policy buyer. In a marriage, both the husband and wife should have adequate coverage to insure that their children can remain in their home and afford the education that the parents want for them. A few extra dollars every month can make a world of difference should a tragedy occur.

These are all things that weigh heavily on the needs of a specific policy. Each person is different and there are options ready for you as long as include all factors of your life and health. Whole life insurance is a significant responsibility and it should be considered with the utmost care. By taking the matter seriously from the start you can make an informed decision.
The security that whole life insurance provides a person is unbeatable. Prepared people looking to plan for their family’s future look into whole life insurance for a purpose. By laying out all of elements in a person’s life, you can make an educated choice as to which whole life insurance plan is right for your needs.

Motorcycle Insurance Information and Tips

The first step in purchasing motorcycle insurance is to contact your agent or broker with whom you currently have auto or home insurance. In several states, like California, you must have insurance coverage before you can bring your new bike home from the dealership. If your current insurance company does not cover motorcycles, talk with friends or others who already have coverage. This way, you'll be able to work from a good list of recommended agencies to start out. You may also gain information through your salesperson and motorcycle magazines. Be cautious with your dealership though; they don't always work with the best insurance companies. Don't become pushed into something you're not comfortable with.

HOT TIP!
If you are a first time, or even an experienced rider who has not taken a motorcycling safety course, put it on your “to do” list. Not only will it sharpen your street survival skills, but it will also bring you a discount on your insurance premium.

Things To Keep In Mind
Your premium will be based upon several key factors involved with your motorcycling situation. They include, but are not limited to:

-The motorcycle engine displacement size in cubic centimeters (cc)

-Type of motorcycle

-Brand of motorcycle

-Your age

-Your driving record

-Your driving experience

-Is the bike garaged?

-Location

-Number of intended miles driven weekly

Majority of the time, you'll receive a higher premium with a larger displacement engine. These bikes are more expensive and provide higher performance.

The type of motorcycle you plan on insuring also affects premium price. A 500 cc cruiser will be cheaper to insure than a 500 cc sport bike. Sport bikes usually have fairings (plastic covers that shroud the engine), and other various pieces of bodywork that can make them expensive to repair in a crash or accident. The make (brand) of your motorcycle is not such a big factor, but it is taken into consideration. A brand with models few and far between will run higher than a common brand. Your age will affect your premium. Older drivers tend to experience cheaper rates than their younger counterpart, on the same motorcycle. Statistics show that riders under the age of 25 tend to be involved in the most accidents. Driving record and experience both affect your premium. If your record is blemished with tickets and accidents, then expect to pay more. Experience tends to go hand in hand with your age. Will your motorcycle be garaged, or parked out along the street? If you plan on leaving it out on the street, then you'll experience a higher rate than if it is garaged. Leaving it parked along the street leaves the bike open to theft and accidents. If you live in a big city, your rates may slightly be higher than if you live in a rural area. Will the bike be your daily driver, or used for leisure? The mileage you tend to put on the bike on a weekly basis will push your premium up or down. If the motorcycle is your main mode of transportation, expect a higher rate.

Auto & Vehicle Insurance

Auto Insurance Coverages Explained
An auto insurance policy actually consists of several different coverages. Required in most states, it is something all drivers must posses.

Liability Insurance
This coverage is the basis of all auto insurance policies, and the minimum required in most states. If you're found at fault in an accident, liability insurance pays for the injury and property damage expenses of the third party involved in the accident. Property damage pays for the replacement or repair of anything that was damaged. Bodily injury expenses cover lost wages and medical bills. If you cause a major accident, your current or potential coverage may not cover you sufficiently. It is a safe bet to buy more than the minimum required by your state.

Collision
If you're found at fault in an accident, collision coverage will cover expenses needed to repair your vehicle. Collision coverage is usually the most expensive component of an auto insurance policy, although it isn't required. Insurance companies might proclaim your car a “total loss” if the repairs exceed the market value of the car. When this occurs, the insurance company will pay you the actual cash value, minus the deductable. From there your car is off to an auction where it will be sold for parts or scrap.

Replacement Cost
The amount required to replace your car or repair damages without considering depreciation.

Depreciation
Decrease in value because of age/wear on vehicle.

Actual Cash Value (ACV)
The value of your car when it is damaged or destroyed. Insurance companies figure the ACV by subtracting the depreciation from the replacement cost.

Tip
In most cases, it’s better to choose replacement cost coverage. Although higher in price, the protection may be worth it.

Comprehensive
Comprehensive coverage will pay for damages to your vehicle that were not caused by an accident. This includes fire, vandalism, theft, natural disaster, and even animals. Depending on the damage, the insurance company will pay the cars worth right before the incident. This is also optional coverage.

About Group Health Insurance

The continuing growth in the number of insurance plans where the employer or union assumes all or part of the responsibility for paying claims made the nations employers a principal bearer of the financial risks of illness and non-job-related injury in 1990. Group health insurance is better than individual in most cases- your premium will be lower, and your options greater. If you cannot receive group insurance coverage through your employer, then you'll need to seek out an individual plan.

2 basic group plans
--fully insured
--MPP (minimum premium plan)

Under fully insured, your employer accepts all the risk for paying your claims.

Under MPP, your employer pays up to a certain specified maximum; after which point, the insurer pays. Most of these plans offer several types of coverage:

--basic coverage
--major medical coverage
-->basic, plus major medical coverage

Majority of these plans fall under major medical, and don't contain a basic hospital benefit for hospital related expenses.


Employers Offering Health Insurance
Coverage varies from industry to industry. Most, if not all, state and local government agencies offer health insurance. Goods-producing firms are more likely to provide health benefits than are service-producing firms.

Coverage is less commonly offered by firms employing significant proportions of low-wage workers, that have a large proportion of part-time workers, or that experience high employee turnover.

About Individual Health Insurance

Individual health care insurance provides coverage for only one individual, or family. In general, individual plans are more expensive than group insurance. You can obtain individual plans directly from a company who offers them. The company with whom you apply will evaluate you from a health standpoint, in terms of how much risk you present to them. Usually, they'll provide a questionnaire for you to fill out, asking various questions about your current and past health history. They will determine your risk accordingly, from which a premium will be generated.

Things to look for
Most individual plans fall under managed health care plans. Under this, you can opt for an HMO, PPO, or POS plan.

Guaranteed renewable
Your insurer cannot cancel your coverage if you become sick. If you continue to pay your insurance premium, coverage continues.

If available, group insurance is generally a better option, since it is usually more comprehensive and less expensive than individual insurance. However, individual coverage is ultimately better than being uninsured in the event of illness or injury. Although you may think you can do without health insurance, you are taking a major risk if you choose not to get coverage. An unexpected illness or serious injury can put you and your family under financial stress.

In a group insurance situation, the provisions of the policy are negotiated between the insurer and master policy owner (usually an employer or association). With individual insurance, you are directly in control of your policy. You can negotiate to have certain provisions included or excluded, and you can often choose your deductible amount and co-payment percentage. Keep in mind, however, that these things will have an effect on your premiums.

A Woman's Insurance Buying Guide

Save On Your Car Insurance with an Insurance Friendly Vehicle

Women often feel vulnerable when purchasing a car because they sometimes think they will be taken advantage of in the car buying process. As a woman, if you feel like you can't haggle a price or just don't like to, you can at least purchase a car that will give you a low car insurance rate. And, because of the characteristics of insurance friendly vehicles, they are often the less expensive cars to buy anyhow. So, if you are a woman looking into getting a car insurance quote for a new vehicle, make sure to consider first what car you want to buy.

The cost of a car insurance quote should be at the top of the list when a woman is considering the total price of purchasing a new vehicle. Just because she buys a smaller, cheaper car does not insure a cheaper insurance rate. And, although car insurance for women tends to be cheaper than for a man, a woman's driving history is another of many factors that are considered when determining a car insurance rate. Characteristics of the vehicle being purchased plays a large role in insurance costs.

Below is a list of features or types of vehicles to avoid to get the best stretch out of your insurance buck.

For a Cheaper Car Insurance Quote Stay Away From:

Vehicles With a Lot of Horsepower

Sports Cars

High Performance Vehicles

Luxury Vehicles

Vehicles With Added Technology Features

Large SUV's

Very Small Vehicles

Vehicles With a High Theft History (Go to nicb.org for theft history information)

Station wagons and vans are the best choices---not to big to cause large amounts of damage to the other car but big enough to cause less damage to their own passengers and, in addition, both have lower repair costs and less theft history. To save even more on car insurance check out the Auto Savings Checklist.

5 Steps to Filing Your Auto Insurance Claim

1. Evaluate whether or not you should file a claim: Did you know that just when you call your insurance company with a question about possibly filing a claim it is often recorded on your insurance record? It is important to keep your insurance record clean and one way is deciding whether or not you should file a claim. It doesn’t matter if the accident is your fault or not, you should ask yourself first if you can pay for the damage. Simply put, if you can pay for it yourself without financial hardship, don’t file the claim.

2. Fill out your What to do After an Auto Accident Worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.

3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.

4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.

5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed.

Changing Lives, Changing Needs: Marriage and Your Insurance

Of course, thinking about how marriage will affect insurance is not at the top of a couple’s list when the wedding vows are taking place, but with every life stage and change, insurance needs to be a priority. The basics such as name and address changes are not the only insurance evaluations that need to be considered before and after the marriage.

Is pre-natal care offered on your health insurance? What about that new engagement and wedding band..are you sure they are covered? These and many other questions could cause unexpected losses in the future for newlyweds. By following the 6 steps below, your insurance will be marriage ready:

1. Update all policies to add the new spouse and cancel any unneeded polices (such as policies you will merge like auto, homeowners, or renter‘s insurance).

2. Life insurance would need to be purchased and beneficiaries changed on existing life and annuity policies (although in most states your spouse is automatically your beneficiary it is still best to change). Also, you will want to most likely broaden your life insurance to include your spouse and to raise the policy value.

3. Consider merging your health insurance since the rate will probably be better. Also, if the canceled health insurance is offered through an employer, one of you will want to check to see if the premium portion the employer pays is eligible for reimbursement. Furthermore, you and your spouse should consider coverages such as pre-natal care and lower deductibles when deciding which company to stay with.

4. Renters or homeowners insurance limits will need to change for added spouses’ personal items.

5. Consider getting endorsements for valuables such as wedding rings, furs, ect.

6. If you or your spouse currently do not carry umbrella, long-term care, or disability insurance, now is the time to consider purchasing those additional policies.

The easiest and fastest way to get a good auto insurance policy online

If you want to get a good auto insurance coverage without overpaying on premiums, our site is just the right place for you! We offer you the opportunity to get the most precise information on auto insurance deals from the best insurance companies working in your area. By knowing the exact quotes and coverage amount you'll be able to compare different offers and choose the one that suits both your needs and your family budget. This will help you save hundreds of dollars on auto insurance premiums. So stop wasting your time and get your car insurance policy today!

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to have severe insurance losses.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." Found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated loss. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

• Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
• Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
• Length of credit history: the amount of time you have been in the credit system.
• Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
• Number of open lines of credit: the number of credit cards, whether you use them or not.
• Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
• Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report an error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

How Much Life Insurance Do You Need?

If you're researching your life insurance needs, you might well be getting a lot of complicated information. It's not a simple subject.

Some financial advisors will tell you to multiply your annual income by a certain number, like 20. Others will tell you to buy only enough life insurance to replace the income you are expected to make between now and retirement. Some might recommend you buy only enough life insurance to cover your present debts.

The question "how much do I need" might not be the most useful way to approach the problem. The question you may want to ask is, "What do I want my life insurance to accomplish?" Then you can start to determine how much life insurance you'll need. Calculating your life insurance needs takes homework. It requires an individual solution, not a one-size-fits-all approach or a throwaway equation.

Why Do You Need Life Insurance?
This is a specific question, not a general topic. Think about why you're considering life insurance, or why you're considering an increase in the amount of life insurance you have. The most common reason for purchasing life insurance is to replace the income of a family member that others depend on. For that need alone, it's usually acceptable to multiply your annual salary by 20 and buy that amount of term life insurance for a period that will cover you until you retire.

If you have additional debts or obligations, you can consider adding those to the amount of insurance you need. However, keep in mind that debts and obligations like mortgages usually decrease over time, while a family's need for income replacement does not. If you and your spouse both work and are financially stable, it might not be difficult for your spouse to pay off a mortgage or debts, as long as you buy enough insurance to replace your income. If you're a single parent, however, you would probably need to purchase enough coverage to pay off all debts so that they're not passed on to your children.

Not Leaving a Burden
For some people, life insurance may seem too expensive, especially if they're just starting a family. If that's the case, it may make sense to initially purchase only enough insurance to cover your debts and obligations. Although you need to realize that it's risky to be underinsured, it's better that not having any life insurance. As your financial situation improves, you can usually purchase more insurance under similar terms.

For single people with no children, purchasing a small amount of life insurance can be an inexpensive way to cover debts and final expenses.

Additional Life Insurance Uses
Not everyone buys life insurance to replace income. If you're wealthy, have a large estate, or simply wish to donate to charity or establish a trust for your family, life insurance can be a smart purchase. If you have a large estate, you may want to consider buying a life insurance policy as a way to pay the estate taxes when you die. Otherwise, your family could be forced to sell off assets in order to pay the estate taxes. Life insurance could also be a good way to donate to a charity without paying taxes, or to establish a trust for your family or for philanthropic purposes.

Regularly Review Your Insurance
Because things change and it's impossible to predict the future, it's important to review your life insurance needs and coverage at least annually. If you make a change in your life, such as getting married, buying a larger house, or having children, your life insurance needs will probably increase. If your salary increases dramatically and your family becomes accustomed to a higher standard of living, your life insurance needs will also become higher. If you're certain of one of these changes before you purchase life insurance, make sure to include your expected circumstances in your insurance calculations.

The Hunt For A Missing Life Insurance Policy

Uh-oh! You're the beneficiary of a relative who just died, but their policy is nowhere to be found! What do you do? Well, don't panic, because if you find it in the near future, you may still be able to claim the death benefit. Here's what to do if a life insurance policy is missing:

1. Look through canceled checks or go to the relative's bank and request copies of any old checks. When reviewing the checks, see if there are any made out to life insurance companies.
2. Ask your relative's lawyer, insurance agent or accountant and see what information they can give you on your relative's finances.
3. Call their old employers and see if they bought into the company's group life insurance.
4. Call the Medical Information Bureau (MIB)—an organization that maintains a database showing if insurers requested your relative's medical information. If your relative applied for a life insurance policy within the past seven years, the MIB will more than likely have some kind of paper trail to help you find it. In addition, the MIB offers a Policy Locator Service that will search over the last 12 years to locate applications, for a fee.

Naming a beneficiary
If you are making someone your beneficiary, here are a couple of things you will want to do:

1. Be sure to provide your beneficiary with your life insurance policy details, such as policy number, insurance agent's name, company phone number and email address.
2. Keep your records together. To make it easier on your beneficiary, be sure to keep all of your records (financial and medical) together in one place. This will help alleviate any panic or stress if your beneficiary needs to find something after you have passed.

Different kinds of policies

• Term policy—If your relative had a term life insurance policy, and they died during the term and paid their premiums, the named beneficiary will receive their death benefits. If they died outside of the term or failed to pay their premiums, you won't receive anything.
• Permanent policy—If the policy was in force at the time of death, the named beneficiary will receive the death benefits. If the relative died a while ago, the beneficiary is entitled to the death benefits plus the interest accrued from the date of death.
• Lapsed policy—If your relative had a permanent life insurance policy and they stopped making payments and the policy lapsed, the insurance company could switch its status to one of the non-forfeiture options selected at purchase or specified in the policy. These options include extended term, reduced paid-up, cash surrender value, and loan value. In most cases, laws specify that there are certain amounts that must be returned to a policyholder or beneficiary even if premiums were not fully paid.

Lapsed Policy Non-forfeiture Options

• Extended term uses any built up cash value to buy a term life insurance policy in the amount of the current policy. If the insured dies before the term ends, the beneficiary collects the benefit. Otherwise, the beneficiary gets nothing.
• Reduced paid-up means that the life insurance company uses the cash value of the policy to buy as much insurance as possible. This reduces the death benefits, but keeps the policy in force.
• Cash surrender value refers to the amount of cash value a policy has. This amount is returned to the policyholder or beneficiary and the policy is canceled.
• Loan value is the amount of the policy's cash value available as a loan. This amount will be returned to the policyholder or beneficiary and the policy will be cancelled.

If the policy lapses due to the death of the insured, the beneficiary will collect the full death benefit. Also, there is no time limit on when the beneficiary can collect the death benefit. The only requirement is that the death certificate is presented to the life insurance company to verify the insured's death. If the beneficiary never comes forward, then no one receives the money.

Unreported death
If the policyholder dies and the insurance company isn't informed, the policy will lapse. In this case, the life insurance company will send letters informing the insured that payment was not received and their policy may lapse if this continues. If there is still no response, the insurance company may initiate a search, but if no answer is found, the policy will automatically lapse due to delinquency of payment.

Unclaimed death benefits: are they gone forever?
If a beneficiary doesn't collect death benefits, and the life insurance company can't find the beneficiary after a few years, the money is transferred back to the state where the life insurance policy was originally purchased. The full amount must be turned over to the state comptroller department within three to five years of the insured death. There, it is put into a bank account and considered "unclaimed property."

A database with the names and addresses of lost beneficiaries is located at the state comptroller's office, and many times, they try to find the beneficiaries to distribute the death benefits to. Depending on your state, you may be able to go online, look in the paper for any unclaimed death benefits, or call the state comptroller or treasurer for information.

It should be noted that if the life insurance company doesn't know the insured has died, they are not required to turn the money over to the state. If the state doesn't have a death benefits law in place, then the money will remain at the insurance company and they can continue to search for the beneficiary. Also, it is very rare for money to be turned over to the state, because most insurance companies have their own search techniques to find beneficiaries.

Insurance.com is a national online auto insurance agency, not a life insurance agency. We do not have information about specific life insurance policies, nor can we personally assist in locating a policy. If you choose to consult a service that will search for a policy for you, be sure they are reputable before you provide personal information or payment. If you have any questions or comments about this article, let us know, but please do not send personal information, such as your address, policy number, or social security number.

Looking For Cars Online and at the Auto Dealership

What is the first thing you do when looking for a new vehicle? Do you just walk into the showroom, wander around for awhile, point at a car and buy the asking price to drive it home? Of course you do not do that.You do research. You find out what the dealer’s cost is compare to the sticker price. Where can you do this research and now possibly do your purchase - online.

Auto dealers are finally smartening up and learning that people like to shop online. Ebay has figured that out and their Ebay Motorssite is a very popular way to purchase a vehicle, especially a vehicle that is not usually available in your area. They have also realized by now that people research vehicles online before purchasing.

The first ones to determine this were the car manufacturers. They have put on their sites ways in which a person could not only look at all the vehicles that they offer for purchase but all the specs as well. You can now “build your own” vehicle on many manufacturer sites. This shows you what your new car would look like with different options or in different colors. Who knows better than the manufacturer what your car should look like?

Next manufacturers have introduced ways in which to have you contacted by the local dealership or better yet ways for you to be guided to a local dealerships site. At the local dealership site begins the next process. You have found the car model you want, the color you want now you just need to find that in stock.

Local dealerships, if they are smart, now have their inventory online. If you are lucky they will have both new and used inventory online. Not a bad way to compare new prices to what previously owned ones are going for. If the used car is certified that usually means it will have a decent warranty included with it.

Now with the inventory checker you can find if the car you want, with your options is actually on a lot in your area to test drive. This is much better than driving from dealership to dealership and walking the car lot yourself. If you want a black truck and the closest dealership only have white and red ones available you know to keep looking.

What is the next step we would take as consumers? That is easy, ways in which to purchase a car through the dealership online. If you have seen what you want enough times in person but just cannot stand to barter with the salesman, wouldn't itbe nice to do the bartering online?

Online sales by dealerships are possible. Ebay Motors shows that bartering online can be done with success. There are companies that will find the best price for a certain vehicle for you and contact you. This is all done online. Hopefully the dealerships will understand the consumer side of this and it will become the new way to purchase a vehicle in the future.

How To Make Money With Previously Owned Vehicles

People in America love their cars. Millions of cars are bought and sold each year. With the price of new cars more going up and up each year more people are buying used or a better term - previously owned - vehicles. Here lies an opportunity to make extra money for your family. Learn how to make money by buying and selling used vehicles.

Stocks were the big thing in the 1990s and now “flipping” houses are big in the 2000s. Flipping in this case means buyinga property putting some money into it and selling it for a profit, usually a pretty big one. Buy previously owned cars, improving them and selling them might just be the next big money making idea.

The first step is to find out what your state requires of you for this venture. Most states call for you to have a dealer’s license if you buy and sell a certain amount of vehicles for profit within a certain amount of time. You can research the requirements online or go to your department of motor vehicles office to get this information. It is important to get the correct licenses, insurance policies, permits, and so on. Do not let the requirements scare you off. Once you fill out the correct paperwork you should be on your way to the next step.

What you do next is to find cars to purchase for under retail or “blue book” value so that you can make a profit. You need to start out with an idea of what type of vehicle sells well in your area. Find out what the best selling cars are nationwide and what is most popular in your area. Once you have an idea of what type of car you want to buy there are various ways to find the car you should buy.

Classified ads used to be just in local newspapers. But with technological advances you now can find these ads online using the Internet. With the Internet you can look for a certain make and model with little difficulty. Buying from a private party through a classified ad is one of the easiest ways to find a car for a good price.

Besides local newspaper classifieds being online there are other sites you can look for cars on. Two of the most used sites are Cars.comand Autotrader.com. These sites can be very helpful even for researching and comparing cars you are interested in. You can also search out of your local area if you want to buy from farther away.

Auctions - Now a day there are many types of auctions you can participate in. OnlineAuctions are getting bigger and bigger each year. The best known auto auction site online is probably EBay motors. If the car you want to bid on here is local you should be able to go and take a look at it before buying. If it is not local than be sure you ask questions and know the exact condition of the car and the transportation costs before bidding. Auctions with no reserve are probably your best bet with online auctions.

Public Auctions are also available for you to go to. These types of auctions are open to the general public so you do not need a dealer’s license. Public auctions might have a preview day for you to go and check out the quality and functionality of the vehicle or you might just need to show up a few hours early to find this out.

County, city and states have public auctions. So do school districts, police and sheriff departments. A lot of the vehicles available will be well maintained fleet cars. Other vehicles will be repossessed that might just need a little TLC to get them looking good again. Public auctions are worth a look at to find cars below book value.

Federal government auctions are basically like your local auctions except you might have to travel further to find them. Most all areas of the government have fleet vehicles that they sell annually. These cars are again usually well maintained and sold for a decent price.

Estate auctions are another type you might consider. These are usually found in your local paper and will list if any vehicles are being sold. If possible try to see the vehicle before the actual auction date.

Dealer’s auctions can be a great place to find vehicles for way below wholesale. As the name implies you will need your dealer’s license to purchase a car. The cars found at dealer auctions are mostly trade-ins, rentals or private companies old fleet vehicles.

When you find a vehicle that you believe would sell well in your area be sure to check it out. The worst thing you can do is buy a car that you will spend more money in repairs than you will make by selling it. You do not want a car with major bodywork problems. Minor problems that can be waxed or polished out are fine.

You do not want a vehicle with serious mechanical issues either. Vehicles that appear stout but need cleaned up are the best. If it is sound mechanically you can also put on a new paint job for cheap or better yet polish and wax the car. Make sure the tires are clean and attractive. Clean the interior. Buy new mats for the floorboards. If the engine is stout and the car looks clean you will make money when you sell the car.

Once you have the car looking its best it is time to sell it and make some money. Go about selling it the same way in which you bought it. Place an ad on an online classified site or your local newspaper. Try to include a picture that shows the best qualities of the car. Pictures are very popular online and can sell the vehicle without you even saying a word.

If you love cars why not start making some money out of buying and selling them?Do your research, find the right car, get the lowest price, fix it up a bit and resell it. Remember not to buy a car that needs too much money put back into it and don’t over do it by buying new tires or rims that the car does not need. You want to make what you put into the car and much more.

Helpful Hints On Buying A New Or Used Car

When buying a car you can be either Sally Simple or Susan Smartie. Sally Simple will go to a dealership and find the car she wants and ask the price. Sally will believe the marked price, on either a new or used car, or what the salesman has to say. Now Susan Smartie goes to shop for a car after researching the type of car, the options she does and does not want and knows what the pricing should be. When buying a vehicle you will want to be Susan Smartie and not Sally Simple. Here are tips on how to be the smart one armed with facts and figures when you go shopping for a vehicle.

First you need to decide on what type of vehicle you need. Do you need an SUV, truck or 2 or 4 door sedan? This is the first thing you will need to know so that you can research the different styles of the type of vehicle you want to purchase. For example if you want to buy a 4 door sedan you will be able to research and compare the different types out there for you. You will learn that a Honda Civic and VW Jetta both fit your car type but come with different options. You may even make a list of what options you want on a car. Concentrate on cars that then have the options you want and stop thinking about the ones that are out of the running because they do not fit your criteria.

After you know what type of vehicle you want the best way to start researching is on the Internet. For new cars there are many sites out there that can give you the specs of the car, tell you what options are available and what those options should cost. They will even show you what color options are available for the exterior and interior of the car you are interested in. MSN has an Auto section that breaks down the pricing for the options, extras, and everything to give you a total price. This total tells you not only what sticker price or manufacturer's suggested retail price (MSRP) is but also what the dealer’s costs are. What you want to do is to memorize this information or print out the costs and keep them with you as you go to the dealerships.

With this information you can go to a dealership and easily barter to bring down the sticker price. If the salesman states that a certain option cost $500 but you know they real cost is $250, let him know. He will find out right away that you know your facts and they should be a lot more honest about the price that you can get the vehicle for. Remember the dealership will need to make some money so it is unlikely you will be able to get the price down to the dealer’s cost but you should be able to get it to a $1000 or $2000 above it and that should be a decent savings from the sticker price.

Do not let the research stop at the price, even if that is the most important thing. You should also research the different model types (one car can have 3 or 4 types available), options, safety tests, repair records and dependability. You might also check what previously owned vehicles of your chosen type are selling for just to know what the depreciation will be like.

Get out your library card; it is time to drive to the library. If you do not have access to the Internet, than begin your research at your local library. Once you get there you might find they have free Internet services and you can do the above researching. Even if you have done Internet research the library can still be helpful. Most libraries have a magazine section that will help you. Consumer Reports give annual reviews of what cars they find to be the best. This can be especially helpful for seeing what the repairs rating is. Ideally you want to purchase a car that does not have a history of needing costly repairs. Other magazines have test drives that last for months so they can really give you a feel for how a car will run not only on the day you buy it but 6 months later.

You might be thinking but I’m not buying a new car, how does the information above help me? Well you can use both the Internet and library to research a used car as well. On the Internet you can look up such sites as Edmunds or Kelly Blue Book which will tell you what used cars are worth for retail, trade-in or through private parties. They also give information on new cars so you can get a sense of what depreciation has occurred.

Even when buying a used car you will want to go into it with research. You definitely want to know what the going rate is for the particular vehicle you are interested in so you are not taken in and pay too much. If buying from a private party be sure to ask questions and get the maintenance records for the car. The first and best question to ask a person is why they are selling their vehicle. You certainly do not want to buy one that the person says they are tired of it hounding them with repair bills.

Now that you have your research done for your new or used car it is time to go out and see how the vehicle feels. You will want to definitely test drive the car you plan to purchase. Just because the outside looks good and the inside looks comfy does not mean that it is. Make sure that the inside is comfortable to sit in. If the back seat is to be used by adults or kids make sure there is enough leg roomfor them.

Take the car out on the road. Try to be able to drive the car in different conditions if possible. This might take a couple of trips to the dealership. If you are buying a used car this may not be possible so make the most of your first test drive. Take the car out on side roads, the freeway, stop and go traffic, hilly streets, wet conditions and dry conditions. If you are able to do some or all of this you will get a real feel for the car and if it handles like you want it to.

Buying a new or previously used vehicle is a big decision. It is probably the second most expensive purchase you will make, your home being the first. So this is not a situation to go into without the proper information. If you are well prepared you will not feel as pressured either at the dealership or buying from a private party into making a rushed decision. Remember to be Susan Smartie and not Sally Simple.

How to Buy a Used Car Under Book Value

Cars are not a great investment. That is what my financier friend tells me all the time. Though it may just be an excuse for him having an old, grungy car there is some truth to it. New cars depreciate the moment you drive them off the lot. Nothing you can do to stop or change that. But if you are looking for a new vehicle there are ways to save money and buy a used car for under book value and at least make you feel like you have received a good investment for your money.

Auction, the word can scare some. In America we are not used to the type of bartering that is common place all over the world. One place where we can take part in a bartering system is at an auction. Instead of staying away from an auction you should learn to enjoy it and learn how to benefit from it. Vehicle auctions specifically are what I am talking about here.

Vehicle auctions take place nearly every week someplace. There are different rules associated with different auctions so before just showing up make sure you do not need certain credentials. Some auctions require you to have a dealer’s license and if you do not you might not even get in the door to look at what cars are even available.

Repossessed vehicles are a second kind of auction that you may find. There are government auctions, local city police and sheriff auctions that allow you to bid on repossessed vehicles.These are for the general public in most occasions.You may be able to find a car that is in good shape with few miles but that the owner was unable to pay their fines on so was taken. Others are taken for driving without a license and unable to come get their car. These cars are most likely in good running order. But always be sure to take a look at the vehicle you plan to bid on and not bid blindly.

Other kind of auctions includes cities, counties and schools that sell off vehicles they no longer need. These types of vehicles might have high mileage but because of being a fleet vehicle have been well maintained. These cars have had their scheduled tune ups and have been washed and kept looking good. The interior as well is usually in good condition since it was used for work purposes and not family or rough conditions.

So if you want a way to get a good investment for way under book value remember to try out auctions. Of course do not go into it blindly. Learn the auction lingo, know what book value is on the car you are interested in and stand firm on how much you want to bid up to. It is best to go to an auction or two to just watch and take in the action before bidding. Remember you are getting such a good deal because there is not a warranty or guarantee for the car in most instances. If you do your research before you go though you can come out of the auction with a nice used vehicle for an amazing deal.

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to have severe insurance losses.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." Found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated loss. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

• Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
• Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
• Length of credit history: the amount of time you have been in the credit system.
• Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
• Number of open lines of credit: the number of credit cards, whether you use them or not.
• Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
• Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report an error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

The three national credit bureaus are:

Trans Union (www.transunion.comor 800-888-4213).

Equifax (www.credit.equifax.comor 800-685-1111).

Experian (www.experian.com or 888-397-3742).

Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.

If you have taken the steps to improve your credit score, you should ask your insurance company to re-evaluate your credit score at renewal.

Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.

• Age
  Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
• Gender
  Women are statistically safer drivers, but that trend is changing as more female drivers get on the road.
• Marital Status
  A married person will pay less than a single person with an identical driving record.

You can think about these factors and determine what you can do to change them in your situation. You may be able to save on insurance based upon these decisions:

• Geography
  Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
• Driving Violations
  Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
• Vehicle Type
  A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
• Accident Claims
  A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
• Credit Rating
  Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rating free to see if you can get a better score. A better credit score will save on insurance premiums.
• Occupation
  Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
• Education
  A higher education can save on your premiums.
• Driving distance to work
• Miles driven each year
• Years of driving experience
• Business use of the vehicle
• Whether or not you currently have auto insurance and how high are your limits
• Theft protection devices (often results in discounts)
• Multiple cars and drivers (another opportunity for discounts)

What can I do right now to make sure I have the lowest premium?

Shop around and compare quotes from different insurers. CarInsurance.com puts many insurance companies on one site so you can compare them in one place. Carriers base their premiums on their claims experiences, which naturally differ. One company may see your area as a higher risk than others may. Another may charge more because of your occupation. Shopping at http://www.carinsurance.com makes it easier because you can quickly see multiple companies and their rates for your particular situation. Where do I go for quotes?

One stop can take care of it all. Go to www.carinsurance.com where you can receive multiple quotes, pick the best price, and then purchase. Get covered immediately on-line or over the phone. It REALLY is the easiest way to purchase car insurance. Enter your zip code above.

Simple Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.

• Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
• Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
• Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
• Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
• File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
• Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
• Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
• Consider these settlement factors.
  • Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
  • Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
  • Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? Choosing the best insurance company for you is a crucial financial decision. Does your insurance company have the financial strength to safeguard you and your family? If the company cannot pay future claims or benefits, other issues become far less relevant. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in the marketplace.

Ask your peers what experiences they have had. What is your sense of the reputation of the company? How quickly and easily are claims processed? Is there 24-hour claims service? Is the claims management in the house of the insurance company or have they outsourced? Auto insurance is meant to make you whole in the case of an accident with injury or property damage. It is to protect your assets and protect you from liability. You will want the peace of mind of a superior rated company when it comes time to manage and pay the claim. The financial health of a car insurance company is an often-overlooked area when shopping for the best auto insurance rate. It is human nature to make your comparison solely on the rates for the coverages. While this is certainly important, you should be aware of the company's overall rating and level of satisfaction. Consulting insurance company ratings is crucial. Each insurance company issues a quarterly report that is publicly accessible. You cannot always tell the future from the past. However, the past performance is a valuable insight into what expectation to have for your future coverage. One of the factors that are used in order to determine the companies' ratings is how long they have been in business. If there is no history, you may be taking an unnecessary chance. Look for a company that has a history and make sure that history shows good performance.

What about the reputation of the insurance company? It is very simple to find this information. Just ask around. There are your peers, the BBB, and family. Many times these resources closest to you will be able to share experiences that are favorable or unfavorable regarding the company you are considering. In addition, each state has a Department of Insurance that keeps public information about companies. Use all the resources you can to determine which company is best for you. Once you have paid for the policy, you will then become keenly interested in customer service. Be aware of what the source of information is regarding the insurance company. Many companies put our information about themselves in the form of illustrations that are intended to make them look as good as possible. Of course, while these illustrations must be factual, you should be aware that you are not receiving objective information.

How Much Car Insurance Should You Buy?

Car insurance is not very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it is about as useful as a stockbroker’s tip to buy low and sell high. It might be sound logic but it does not get you any closer to an educated decision. A few filters need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? Fourthly, what are you protecting?

You can use our easy Insurance Coverage Calculator or get an auto insurance quote to see the recommended coverage levels.

What is the minimum for your state?

You can get up to date state minimum requirements by following this link and selecting your state.

The first two figures refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 forth entire accident, and then you could have 20/40/10 with $10,000 worth of coverage for property damage.

What do the minimums cover?

Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.

Coverage Definitions

Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

Collision covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

Medical Payments covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.

Uninsured Motorist Bodily Injury covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy

Personal Injury Protection covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on first-party basis, without regard to fault. It is only available in certain states.

Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Rental Car Reimbursement covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.

What else is available and can you afford it?

Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Alternatively, maybe more to the point can you afford NOT to have these additional protections? At CarInsurance.com it is easy to get multiple quotes all with a click of your mouse. Moreover, during the quoting process, it is simple to add or remove coverage to see how additional coverage will affect your budget.

You can learn more about Insurance Coverages by following this link.

What are you protecting?

What assets need to be protected from being plucked away if you cause injury or damage? A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision. B) Your net worth. Do you have an enormous net worth to protect. If so, either take it out of your name and put it into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.

However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.

Car insurance is not flashy. There is no "wow" factor and the opposite gender is not going to be impressed by the size of your policy. Nevertheless, not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.