Month: May 2018

We all would love to save some few bucks now and then. This is why shopping for car insurance is necessary because you will be able to compare different car insurance rates. When you embark on the search journey, you will realize that many companies will give you different rates that may confuse you. Some companies give the insurance depending on the type of the vehicle, the age of the driver or even the families. The bottom line is that they are selling and are looking for clients.

However, here is a guide to help you make the best decisions when comparing car insurance rates. First let us understand the different types of insurance covers and then we look at how to compare the insurance rates.

Insurance covers

• Comprehensive Cover. This insures your vehicle from any form of damage rather than accident. Agents who are good will advise on which one to take it. But if the car is new, they are the right ones to take because they are not cost effective for older cars.
• Collision covers. These cover those cars that are involved in an accident. Again not cost effective for older cars thus suitable for people who have new cars.
• Liability Covers. If your car is involved in an accident, one may need money for court cases. This is the ideal cover to help you pursue such cases.
• -Uninsured persons cover. In case your car is damaged by people who don’t have any insurance cover this package helps because it covers for the repair costs.

How to compare the rates

1. Look at the insurance track record

You can understand the track record of an insurance company from customers review. Customers will always leave a good review if the insurance company is offering good services. Again, when you log in to most insurance companies, you will be able to access buyers guide. This will enable you gauge what insurance you should opt to buy. In most cases, the best insurance companies always have a conclusive list of the best companies.

Check if the insurance company has the insurance guaranty fund. This is important because in cases that the insurance stop its operation, the guaranty fund will cater for some of the claims. Again, it is important to look out for the insurance A.M. to have an idea if the insurance company is financially solvent. If it has you are sure if you make a claim when need arises, you can be paid.

All in all, this sums to two basic things. If you are looking for a good auto insurance company ensure there prices are friendly and they have a good claims service. The company with the low number of clients’ complaints plus low prices is always the best choice.

2. Look out for discounts

Once you are satisfied the ratings are good, it is time to look out for discounts. There are many discounts that you can look out for.  Some of these are; Anti-theft devices, anti-lock brakes, good grades, a good driving record and such things. Make sure you ask the car insurance company which discounts they offer. This way you will be able to compare the lowest or the fairest rates that are affordable.

Another way of getting the best is to raise insurance deductible especially on collisions and comprehensive coverage. This is a sure way to ensure that you reduce premiums.

3. Buy the insurance coverage that you need

This is one of the biggest mistakes people make. Avoid buying what you don’t need to lower the cost of insurance. If you are having an old car for example, avoid collision insurance because it not necessary. Again, if you have a health insurance, why do you need personal injury insurance? In case of any accidents and such things, you can always use your health insurance to cover the expenses.  So while choosing the best insurance, make sure you shop for the right coverage to avoid spending a lot of money.

4. Compare complaint ratio

The best way to compare complaint ration is to choose like five insurance companies in order to have an accurate fact. The best place to check the complaint is on National Association Insurance Commissioners website. They have stated the companies that have the highest numbers of complaints and by just typing the insurance name, you will get a list of them. Make sure you check the latest car insurance complaints. Avoid such companies and opt to work with the ones with excellent customer service.

Another thing to note is that when a company is large, their complaints ratio may be a bit higher because of the customer’s size. To ensure you get the right comparison, take the company’s complaint ratio number with the national median that is provided. This will help in reviewing the complaint report and its trend thus you are able to gauge whether the complaints are going up or down

5. Do a comparison on auto insurance coverage

In case your car is in repair or some parts are stolen, there are some insurance companies that offer optional coverage. They also offer rental coverage while your care is being repaired. If you think you need it this kind of insurance, it is good to take it to cover such occurrences.

But again, if the insurance company is offering the optional coverage with a reasonable price or at the same price with the company’s policy, just consider having it. It can save you when you least expect.

Conclusion

It is always good to shop for your car insurance. This will give you a clear guideline on what to look out while insuring your car. There are so many companies available in the market and with a clear search you are sure of getting the best rates. While doing the research, don’t only look out for the bigger companies that are well known. Look out for the upcoming companies and you will be surprised to note that they offer good services too.

Many people understand the importance of life insurance for the dependents they leave behind. However, when it comes to choosing the specific life insurance policy that is right, many of us get confused by all the options available. The basic concept of life insurance is the same, but there are differences that make each policy unique.

Understanding what you stand to gain from each type of life insurance policy makes it easier for you to choose a policy that is suitable. We look at the various life insurance plans and the main differences between them.

Whole Life Insurance

Whole life insurance guarantees payouts throughout your life as long as you honor all your premiums. It is the only type of life insurance plan that is not capped at a given number of years. The payouts can be made at intervals or after your passing, depending on the terms of the policy.

In addition to guaranteeing you payouts, whole life insurance also attracts a cash value, against which you can borrow.

The biggest disadvantage with whole life insurance is that it has much higher premiums.

Term Life Insurance

Term life insurance promises a specific amount in payout to your beneficiaries if you die within a stipulated time. If you do not die within this period, the policy expires and you don’t receive any benefits.

Most term life policies range between 5 and 30 years. It has lower premiums than whole life insurance.

This type of life insurance cover may be an ideal choice for people who plan to engage in high risk undertakings with a low survival rate.

The simple principle it’s based on, that of payout after death, gives you assurance that if you die during your adventure, your beneficiaries will receive the outlined benefits. You only have to ensure that your premiums are up to date at all times. Failure to submit even a single premium can void the policy, disqualifying your beneficiaries from getting any payout.

Term life insurance is usually only available for younger people.

Convertible Life Insurance

A convertible life insurance starts off as a term life insurance policy, but is later converted to a whole life policy. With this option, you retain the policy even when existing term life insurance expires.

The biggest advantage a convertible life insurance policy has is that it does not require you to have a medical exam to qualify for theconversion to whole life.

However, there may be a limit beyond which the policy can no longer be converted. This is its greatest shortcoming.

Variable Life Insurance

Under variable life insurance, you decide where your premium is to be invested. You can choose to invest in money market funds, stocks or bonds. The cash payouts and death benefits are determined by the performance of the linked portfolios.

If you’re very knowledgeable about a given portfolio and believe your beneficiaries can get good returns from it in future, you may want to consider this option.

The biggest disadvantage with this type of life insurance is that you don’t know the amount of payout your beneficiaries will receive following your death.

The fluctuating nature of the investment market also makes it sort of a gamble.

Some insurance companies allow you to pay extra for your beneficiaries to get a guaranteed amount in payout.

Universal Life Insurance

A universal life insurance policy is permanent. Its main advantage is that it allows you to adjust the premiums and the insurance payout following death.

They attract lower premiums and these are also flexible.

The policy accumulates cash value, against which one can take out a tax-exempt loan. You may also withdraw the cash, but this option is not tax exempt. The insurer retains any cash value remaining in your account after your death, and only pays out the death benefits.

However, the specific terms applicable to each insurance plan may differ. Some universal life plans require a one-time premium payment while others require scheduled fixed premiums.

All these differences will influence the amount you pay in premiums.

Which Factors Determine your Life Insurance Cost?

The amount any single individual pays in life insurance premiums can be significantly different from what someone else pays under the same policy. This is influenced by different factors, the most common of which are:

• Duration of the policy
• Death benefits guaranteed
• Your age
• Your lifestyle
• Your health

These are the factors an insurance company considers when issuing a life insurance policy. An individual who is relatively young may end up paying more premium than an older person if they lead a high-risk lifestyle. The older personwith a low-risk lifestyle and in good health is viewed as a safe bet, hence the lower premiums.

What should you consider when choosing A Life Insurance Policy?

Analyze your individual life situation to find out how much cash in death benefitsyour beneficiaries would need to maintain their current lifestyle following your demise. This gives you a clear idea of the total figure to work with.

Factors that influence the amount of insurance to take include:

• The number of dependents
• Age of dependents
• Any serious illnesses among dependents
• Expected amount in death benefits
• Whether your beneficiaries will be eligible for Social Security survivor benefits.

The more the number of dependents, the more insurance you need to buy. If most of your dependents are young, you’ll need more insurance for the benefits to caterfor their upbringing, college fund, and related expenses.

If your dependents have to manage a serious illness, the payout should be able to cater for this extra expense too. This means buying a higher amount of insurance.

If your beneficiaries will receive Social Security survivor benefits, you can buy a lower amount of insurance. The SS benefits coupled with the death benefits of your policy will add up to a significant amount.

Conclusion

Calculating how much life insurance you ought to buy is not so hard when you understand the concept behind each plan. Should you still have questions about any plan you’re considering, talk to an insurance expert for further clarification.