Your Wealth Puzzle » Auto Insurance

6 Tips To Save Money On Your Insurance

yourwealthpuzzle — Wed, 30 Mar 2011 10:08:41 +0000

With the price of everything going up nowadays is it even possible to find ways to reduce any of your expenses?

Yes there is a way to reduce your expenses! Believe it or not there is one expense category where you can reduce your cost and not have to sacrifice quality.

That expense category is insurance.

There are ways to reduce your auto and homeowners insurance costs, you may just have to work at it a bit. Let’s review how you can keep more of your money in your pocket and less in the insurance company’s cash register.

Save Money On Your Insurance

Tip #1 - Slow Down

Change your driving habits if you have a tendency to speed. Slow down your driving.
Most insurance companies check for speeding tickets at least once a year. Most insurance companies then raise your premiums based on those speeding tickets.
To save money by lowering your auto insurance premiums, work on your driving and don’t get speeding tickets, period!

Tip #2 – Watch Your Claim Activity

Don’t file a lot of claims. Too many claims will increase your insurance premiums.
It’s very basic: claims cost insurance companies money; insurance companies need to recoup that money, so they raise your premiums.
To lower your insurance premiums, only file major claims and avoid filing frivolous, minor claims.
What’s a frivolous claim, to you all claims seem important. A minor claim would be a loss that’s just an annoyance or an inconvenience to you…(ie) you spill paint on your carpet. A major claim is when your house burns down….see the difference?

Tip #3 – Improve Credit Score

Credit scores carry a lot of weight with insurance companies. Credit scores are being used by more and more financial institutions to determine rates and pricing; insurance companies are no different.
Insurance companies are using credit scores to draw a line in the sand on premiums.
Improve credit score to keep your insurance premiums low.
To an insurance company, improve your credit score above 750 to save money on your insurance premiums.

Tip # 4 – Combine Insurance Companies

Carry all of your insurance policies with the same insurance company to get the multi-policy discount. This would include your auto, home, umbrella, motorcycle, boat, disability, and life insurance.
Ask your insurance agent about getting a discount on your auto insurance because you also carry your home insurance and a discount on your home insurance because of the auto insurance policy.
Some insurance companies also give discounts on life insurance if you insure the home and auto with them.

Tip #5 – Update Your Insurance Coverages

Raise your deductibles.
If your deductibles are high, the insurance company knows that you’re less likely to file minor claims, so they charge you less in premiums.
If you have an older car look into dropping some coverages.
Ask your insurance agent about comprehensive and collision coverages on an older car.

Tip #6 – Get All The Discounts

Inquire about low annual mileage discounts to lower your auto insurance premiums.
Install a burglar, fire, smoke alarms, dead-bolt locks and other security systems to lower your home insurance.
Ask your agent about additional discounts that your insurance company may offer to help keep auto insurance premiums down: these extra discounts may include: airbag discount, anti-theft discount, multi-car discount.
Quit smoking. Some insurance companies actually offer discounts on a homeowners insurance policy for non-smokers since unattended cigarettes increase the chance of a fire.

Meeting expenses can be a challenge. A few simple adjustments to your insurance policies may help you lower insurance costs and save you money.

Lower your insurance premiums by tightening up on your claim activity, avoid speeding tickets, improve your credit score, increasing your deductible, and asking your insurance agent for all possible discounts.

How Important Is It To Improve Credit Scores

yourwealthpuzzle — Mon, 07 Mar 2011 15:20:48 +0000

Improve Credit Score|Depends On What You Want

Your credit score is only important to you if you want a mortgage, a credit card or an auto loan. If you want low insurance premiums, low-interest rates on loans and credit cards your credit score is also important.

Now, if you aren’t looking for any of those financial products or programs, than your credit score is not important. However, in today’s financial world, since when can you get by without insurance, a mortgage, a car loan or a credit card?

Your credit report and credit score are the first two things the financial industry looks at when evaluating you as a potential customer. If your credit score is too low, you will either be charged higher fees for services rendered or you will be denied services. Based on that actuality, if your credit score did not seem important before, it should seem quite important now.

How You Are Evaluated By The Financial Industry

Your Perfect Credit Score

If your credit score is 850 you do not need to improve your credit score because your score is perfect. The financial industry will be falling all over themselves to do business with you. You will get low-interest rates, you will receive many credit card offers. Just be aware though, to keep your perfect 850, avoid opening lots of new credit cards because that will lower your score.

A Good Credit Score

If your credit score is between 750 and 850, you have a good score. Your auto and home insurance company will charge you the lower premiums, your mortgage company will offer you the lower interest rates and your auto loan or student loan should also qualify for lower interest rates.

You should strive to improve your credit score to an 850 if your score is hovering around 750. The closer you get your credit score up to 850, the more you will save money on interest rates, premiums and fees.

Needs Credit Score Improvement

A credit score between 350 and 750 needs improvement, that is if you want to save money on fees and interest rates. The closer your credit score is to 350, the worse you look as a client to financial vendors such as mortgage companies loan companies and insurance companies.

A low credit score of 350 tells the financial industry that you could be financially unstable and they do not want to do business or extend you credit if you are in that financial position.

It is in your best interest to take the time to improve your credit score, you will save money in the long run.

Use A Financial Professional|Keep More Of Your Money

yourwealthpuzzle — Thu, 10 Feb 2011 17:01:12 +0000

What does the financial services industry offer most investors? They offer help. Help with saving money, help with financial direction and commitment.

The main goal of a financial service professional should be YOU and YOUR financial goals.

Financial professionals should help you find ways to keep more of your money in your pocket. If they are not doing that for you, fire them and find a financial professional who knows how to help you keep more your your money.

Financial services are offered by different financial segments in the market place. Your 401k plan representative, your insurance agent, your banker and your accountant can all offer you different financial services depending upon their specialty.

Lets review each financial professional separately so that you can see the value of each.

What Has Your Financial Services Professional Done For You Lately?

Your 401k Plan Representative.

The 401k plan representative at your work place specializes in retirement planning.
That representative can help you make the best investment selections in your 401k retirement plan.
The investment selections should be within your risk zone and time horizon.
Before the 401k plan representative advises you on your investment selection, they should help you determine your risk tolerance zone, which is your comfort level with risk.
The representative should also determine your time horizon, which is the amount of time your money will be invested before you have to use it.
Your investment representative can tell you if you are saving enough for retirement based on your age, risk tolerance and time line.
They should be helping you make good financial decisions centered around your retirement.

Your Insurance Agent

Your insurance agent should always be reviewing your insurance policies.
The agent should review your auto insurance and home insurance to make sure you are getting all the discounts you can in order to get the best premiums possible.
When they see a way to help you lower your premiums without sacrificing insurance coverage, they should notify you.
The agent can work with you to find ways to change your insurance coverages so you can save money on premiums.
By saving money on insurance premiums you put more money in your pocket.
Maybe they will advise you to increase your deductibles to save money.
Maybe you can drop certain coverages that may not apply anymore based on the age of your auto or home.
Have your insurance professional working for you by advising you on the best coverages for the best premiums.

Your Banking Institution

Your banker can provide financial services by discussing with you additional ways to save money.
Can they lower your interest rates on your loans?
Will the interest rates on CD’s be changing, if so, they should notify you ahead of time.
Maybe your banker has different products that may fit your personal financial needs that you were not even aware of.
Those little notifications of change can make a difference in whether you save money or not sometimes.

Your Accountant.

Your accountant should be advising you on ways to save on taxes.
Accountants know tax law; that’s their job.
A good accountant can tell you ways to save money that you may not have thought of.
The goal of your accounting professional is to help you have more of your money staying in your pocket; that’s their job too.

All of those financial services are available in the market place today. Each of those financial professionals offer a different financial specialty. By knowing the differences you can seek their help with better understanding of what they offer.

Always remind them that the reason you work with them is so that they can help you to keep more of your money in your pocket.

Steps On How To Improve Your Credit Score

yourwealthpuzzle — Wed, 19 Jan 2011 20:48:36 +0000

If you are paying more for your auto insurance and home insurance premiums, you might want to look at your credit reports and credit score. If you have to pay higher interest rates on your auto loans or mortgage loans, it could be on account of your credit reports and credit score.

Financial institutions such as banks, insurance companies and mortgage companies charge higher fees, premiums and interest rates if your credit score is a bad credit score. If you improve your credit score, you can save money on interest, premiums and even your utility bills.

The Steps Needed To Improve Credit Score

#1 – What’s A Good Credit Score?

Learn the rules of the credit score game so you can follow the rules.
Financial institutions consider a credit score of 350 to 750 to be a credit score in need of credit repair.
A credit score above 750 is a good credit score.
A credit score of 850 is a perfect credit score.
A perfect credit score may be hard to attain, but it is possible.

#2 – Learn Your Credit Score

To know if you need to improve credit score, you need to know where you stand.
You can only improve credit score if you know your number.
Order a free credit score.
You can only find your credit score on your credit reports.
You can get free credit reports from each of the 3 national credit reporting agencies once a year. Yes, these credit reports are available to you on an annual basis at no cost.

#3 – Develop New Financial Habits To Improve Credit Score

Watch Your Credit Limits

If your credit cards are maxed out to the limit, stop using them.
Put your credit cards away until you can pay down your current credit card balances.

Get Out Of Debt

Work on paying off your credit card balances.
Pay a little bit each month, just make sure you never miss a payment.
Pay down your other debts and loans.
By paying down your debt you show creditors that you are serious about cleaning up and improving your credit score.

Stop The Late Payments

If you make your payments late, start paying on time.
Late payments reflect poorly on credit reports.
Creditors view late payments as irresponsible and lower your credit score because of that.
Late payments on auto loans, mortgage payments, insurance premiums as well as credit cards have an effect on your credit score; so avoid making late payments on all of your bills.

Improve Credit Score|Attain Financial Health

yourwealthpuzzle — Tue, 11 Jan 2011 17:02:39 +0000

Do you want financial health? Do you know what that means? Do you know how to get it?

One way to help you become financially healthy is to use good financial services.

With increasing life spans, rising medical costs and a volatile stock market you need good financial services just to keep pace with everything. When the economy is turned upside down, financial health seems hard to get; but it’s not. You just have to know what you are looking for and where to find it.

Improving your credit score can work hand in hand with using good financial services. So don’t ignore the basics in attaining financial health, improve credit score.

What You Need For Financial Health:

You Need A Good Credit Score.

Improve credit score to lower the cost of everything you buy.
Financial institutions will charge you less in goods and services if you take the steps to improve credit score.
By paying less on auto loans, insurance premiums, mortgage loans and other goods and services, you will keep more of your money to start building wealth.
A credit score above 750 is a good credit score. A credit score of 850 is considered to be a perfect credit score.

You Need Good Financial Services.

Financial services involves more than a phone call from a financial advise once a year.
To become financially healthy takes more of a hands on approach.
The purpose of financial services is to keep more of your money in your pocket.
Advice and guidance on financial fitness.
Direction on how become financially healthy.
How to also stay financially health.
It’s a process.

Understanding The Different Stages of Financial Health.

Financial health is a moving target.
As your financial needs change, your financial health changes.
Your financial needs change as your life changes.
As you go through different stages of life, your financial priorities change.
You have different financial priorities when you first start a job.
You don’t even have a financial plan when you are new in your career.
As you start to settle into your working years, you begin to develop your financial goals.
Your financial priorities are different from when you start to accumulate wealth compared to when you have already accumulated wealth.

Already Accumulated Wealth.

You want guidance.
You need to preserve your wealth.
Your financial needs are projections and analysis.
You do not want to exhaust your investments.
You do not want to outlive your investments.
Just because you had the expertise on how to make it, does not mean you have the same expertise on how to preserve your wealth.
Good financial services should have that expertise.

Just Starting To Accumulate

If you are new to investing, you want a financial education.
If you just started to accumulate wealth, you want a different kind of guidance.
You want to be financially healthy, but don’t know how.
You want an education on how to build wealth.
Advice on how to grow and manage wealth.
You will learn that one key to financial health is avoiding debt and not living pay check to pay check.
If you want to build wealth, you need to live within your means.
Accumulating wealth is a long-term process.
Use the financial services available to you to learn the process.

Where Can You Find These Financial Services?

Your 401k plan

Some 401k plans offer financial advisers.
These advisers can help you with 401k investment selections.
The adviser can gauge your risk tolerance level.
Give you an idea of how much money you will need to retire.
Whether you are saving enough to meet your time horizon for retirement.
Your 401k adviser can tell you if you are on track.
What you can change to make your 401k investing better.
Where you can make improvements in your other investments.

Your Auto & Home Insurance Agent

Your agent can help you save money on your insurance.
The money they help you save, you can invest.
Ask your agent how to save money on premiums by credit repair.
Your credit score is one key to lowering your insurance premiums.
By improving your credit score above 750 you will lower your insurance premiums.
Maybe you can increase your deductibles to save money on insurance premiums.
Maybe you can drop certain coverages that may not apply anymore due to the age of your auto or home.

Your Banker

Your banker can discuss ways for you to save money.
Maybe refinance your mortgage to get a lower interest rate.
Invest the extra money you save.

Your Accountant

Save you money on your tax bill.
Find additional write-offs, so more money stays in your pockets.

All of those financial services are available to you in the market place. You just need to be aware of them. You need to know who can offer you the financial services that you personally need.

You Can Control The Cost Of Your Insurance Premiums

yourwealthpuzzle — Thu, 16 Dec 2010 09:18:48 +0000

Does it feel like the amount of money you pay every year for insurance just seems out of control? Does it feel like every year the cost of your insurance seems to go up instead of down?

Is there any way to get ahead of the rising cost of insurance in the battered economy that we’re in right now? It sure doesn’t feel like it sometimes. How do other people lower their insurance premiums during a tough economy? They start by focusing on what they have control over and so can you.

Focus On What You Control

You Control Your Financial Affairs

You have control over how you manage your financial affairs.
If you manage your finances properly, you can offset the rise in insurance premiums and maybe even lower your insurance premiums.
Managing your financial affairs includes your credit score.
Monitor your credit score, know your credit score.
Learn how to improve credit score. One of the best ways to improve credit score is to know your credit score, intimately!
Do you know your credit score?
Order your free credit report once a year. You can order a free credit report every year from each of the 3 national credit reporting agencies.
A good credit score is above 750.
If your credit score is below 750, you need some credit repair help to improve credit score.
With a credit score below 750, you will pay higher insurance premiums. Raise that credit score above 750 to help lower your insurance premiums.
If you need help with your credit problems, find some credit repair services, get help.
The purpose of credit repair services is to help you improve credit scores.
A poor credit score is not impossible to repair… just don’t delay in getting some credit repair help.

You Control Your Claim Activity

Driving safer will lower your auto insurance premiums.
Your claim activity affects your auto and home insurance premiums.
Keep your claims to a minimum.

You Control Your Insurance Coverages

Increasing your deductibles lowers your premiums.
By carrying higher insurance limits you can lower your premiums.
If you have an older car, there may be some coverages that you can eliminate.
Ask your insurance agent about all of the discounts that you may be eligible for.

Get Discounts

Insure your auto and home with the same insurance company to get a discount.
Insure all cars with the same insurance carrier.
Install alarms and security systems for a discount on your homeowners insurance.
Stop smoking.
Some insurance companies will give a discount to non-smokers since unattended cigarettes increase house fires.

We are in a “hard market” right now, which means that insurance companies are taking a tough position on writing new policies and renewing current policies. Insurance companies are tightening up their underwriting criteria on new and renewal business; the standards they use are getting stricter.

So in this economic climate to maintain your course and get through the hard times your best bet is to stay focused on things “you” can control.

Discount Your Way To Cheap Car Insurance

yourwealthpuzzle — Sun, 12 Dec 2010 10:14:10 +0000

How do you get cheap car insurance? By discounts of course!! But how do you get the discounts?

Believe it or not, you control the way to get discounts thus cheap car insurance.

You control your credit score, your driving record, your choice of coverage and much more.

Different insurance companies offer different discounts. Some insurance companies are conservative with their discounts because discounts mean cheap car insurance for you. And then again some insurance company’s are very liberal with their discounts.

Let’s review some of the standard discounts offered in the insurance industry.

Discounts Available To You

Your Credit Score

Insurance companies are starting to take credit scores very seriously.
A bad credit score to insurance companies signals carelessness or irresponsibility.
A bad credit score is below 750.
Carelessness to a car insurance company means more claims.
Claims cost insurance companies money, it lowers their profits, so they take credit scores into consideration when they are determining premiums.
To get cheaper car insurance, shoot for a credit score above 750.
A credit score above 750 is considered a good credit score by the insurance industry.
Your credit reports tell you financial story.
Order your free credit report once a year.
You can order free credit reports from each of the 3 national credit reporting agencies.

Your Annual Mileage

Low Annual Mileage is a discount that will help you obtain cheap car insurance.
Each insurance company has their threshold for low annual mileage.
The insurance company lowers the premium when your vehicle is used less often.
If your car is used less there are less chances for accidents; so fewer claims thus cheap car insurance for you.

Number Of Cars Insured

Two or more cars on the same policy is a way to get cheap car insurance.
Statistics show that you are more responsible because you have more at stake.

Multi-Policies

If you insure your auto and home with the same insurance company, you will get a multi policy discount on your auto policy.
You may also get a discount on your home insurance.
You should ask the insurance agent about any discounts they may offer if you also buy your life insurance from them.
Other policies you can ask about for additional discounts would be umbrella insurance policies, boat insurance, commercial insurance. You never know unless you ask.
Insurance companies would prefer to have all of your insurances, for profit purposes of course, but also for risk control. If they insure everything, they can control your risk levels.

Ahh, Your Driving Record

A clean driving record is another way to get cheap car insurance.
Your insurer figures that history will repeat itself and you will continue to have a clean driving record.
Fewer claims for the insurance company to payout on results in cheap car insurance for you.

What’s The Value of My Car Insurance Agent

yourwealthpuzzle — Sun, 05 Dec 2010 23:03:45 +0000

It’s that time again, your car insurance premiums are due again. Get your check book out, go online or go to your insurance agent’s office to make your payment.

Do you ask yourself every time you pay your car insurance premium, what the value your insurance agent is to you? You pay a lot of money for your insurance premium, so what are you paying for?

Your car insurance agent cannot snap their finger and lower your premiums, wouldn’t that be nice. Your agent may be able to work with you to make certain adjustments that will then lower your premiums though.

The agent and their staff seem to always be friendly when you call their office, but is there more to it than that? Is friendliness all that you’re paying for…read on.

Your Insurance Agents Value To You

The Agent’s Insurance Knowledge

Your car insurance agent should be able to explain your car insurance policy in great detail.
They should know how to handle any car insurance claim from start to completion.
Whenever possible, you should call your insurance agent before you file a claim.
A good car insurance agent will be knowledgeable about your entire experience with the insurance company.
A good agent will also be knowledgeable about one of the most important factors that go into determining your insurance premiums…namely your credit score.

Your Credit Score

Your credit score is used by the insurance company to determine your insurance premiums. Your agent should work with you on that.
If your credit score is below 750, you will pay more in premiums.
Insurance companies use credit reports to evaluate you as a customer.
Most insurance companies order credit reports when determining your premium.
You should order your credit reports once a year.
You can get a free credit report once a year from each of the 3 national credit reporting agencies.

The Agent’s Advice

Your car insurance agent represents the insurance company and is trained in many aspects of insurance.
Use you insurance agent as a resource.
Go to your car insurance agent with any questions you may have.
Don’t be afraid to ask questions, that’s what the agent is there for.
If you need a better understanding of credit and credit ratings, ask your insurance agent.
If the agent or their staff does not know the answers, they should know how to get you the right answer or at least put you in touch with the right person.
Your car insurance agent’s training includes:
Insurance coverages, insurance policies, claim procedures, your car insurance premium breakdown.
The insurance company rating, the insurance company background, the insurance companies complaint history.
With all that background information, your insurance agent can be a valuable resource for you.

The Agent’s Guidance on Premiums

Your insurance premiums are determined by many factors.
All of the factors would seem to have equal importance, but a few do weigh in more heavily when your premiums are determined.
Your insurance agent can guide you through the premiums.
Your agent can work on making some policy or deducible adjustments to help you lower your premiums.
Your insurance premiums are determined by your driving record, your claims history, your age, year, make,model of the car, your credit score, and your location.
Your credit score, claim history and driving record are the 3 most important factors that determine your premiums.
Insurance claims, whether large or small are figured into your insurance premiums.

Work with your agent…you may be surprised on how they can be friendly and helpful.

What Control Do You Have Over Cheap Car Insurance?

yourwealthpuzzle — Sat, 04 Dec 2010 19:16:25 +0000

When it comes to car insurance do you ever feel as if you have no control over what you pay for insurance premiums? Some factors are within your control and some factors are just out of your control.

Just like in real estate, with car insurance it can be about location. Believe it of not, where you live can influence your car insurance premiums.

But location is not the only thing that determines what you pay for car insurance premiums…you can control a few things…like your credit score, that’s not determined by location.

Let’s break down for you the other factors that control cheap car insurance.

Factors That Determine Insurance Premiums

It’s A Regional Thing

Some insurance company’s offer cheap car insurance in certain regions of the country.
One reason for regional differences is because of the general age of the population in that region.
Another reason for regional differences is the weather of a region.
Certain regions just produce more claims on account of weather.
Even the road hazards of a region can impact the amount of claims, thus insurance rates.

A flat region will have fewer claims than a region with more mountains.
Low claim activity results in cheap insurance.
An area that never has ice storms will have fewer claims than a region that is known for ice storms; resulting in lower claim activity thus cheap insurance.
Frequency of claims in a region due to an aging population will not bring cheap insurance to that region.
Older drivers tend to have more claims; so a region with more senior citizens will generally have higher insurance premiums.
Increased claim activity costs the insurance company more so they pass that increased cost of doing business onto you, the policyholder.
Can you control the weather or the population of where you live – no – but you can control other factors that are figured into cheap insurance.

What You Can Control

Your Credit Score

Get to know your credit score.
Your credit score will determine your insurance premiums.
Order your free credit reports once a year.
Credit reports tell your financial story.
Insurance companies take credit reports very seriously when determining rate.
If your credit score is below 750, you will pay higher insurance premiums.
The insurance industry looks at 750 as a credit score bench mark.

Your Personal Claim Activity

Watch your claims.
The more claims you file, the more you will pay for insurance; there’s just no way around that.

Your Insurance Deductible

Cheap insurance can be obtained by what deductible you carry on your policy.
You can lower your insurance premiums by raising your deductible.

Your Insurance Coverages

You can get cheap insurance by lowering your insurance coverages.
If you own an older car, ask your insurance agent about possibly dropping the comprehensive or collision coverage.

So to offset the insurance company’s regional actuarial guidelines and obtain cheap insurance focus on what you have control over vs what you have no control over – - – focus on your credit score, your deductibles and your coverages not location.

Special Insurance|Long Term Care & Credit Insurance

yourwealthpuzzle — Wed, 01 Dec 2010 01:13:51 +0000

Where do you go when you want to get a specialty insurance policy?

Your insurance broker or insurance agent can both provide you specialty insurances. Keep in mind though that not all insurance agents or brokers are trained in the details of specialty insurance policies. Be sure to ask them about their level of knowledge before doing business with them.

These specialty insurances are special because they are not standard policies…auto insurance and home insurance are standard insurance policies.

Some examples of specialty insurances include long-term care insurance, credit insurance and blue cross insurance. These are considered specialty insurance products because they are usually purchased only for unique or special needs; unlike the standard home and auto insurance policies.

Special Insurance|Special Needs

Long Term Care Insurance

A long-term care insurance policy is purchased for needs not covered by a health insurance policy.
The needs covered by a long-term care policy include basic daily living activities, such as, bathing, dressing, eating, toileting, walking and getting out of bed.
The needs covered are usually those needs you could have as you get older or if you become handicapped or disabled.
The time to look into a long-term care policy would be before your age or health makes you ineligible.
Ask your agent for quotes at different ages.
Credit scores are usually a factor when most insurance premiums are determined, but not with long-term care insurance.
Your age and your health are the 2 main factors used to determine your premium.

Credit Insurance

A credit insurance policy is commonly purchased by individuals when they take out a loan.
The insurance is to protect the lender in case the borrower is unable to make payments on the loan.
The credit insurance premium is included in the loan payment.
Your credit score can be taken into consideration when the terms of the loan are being determined.

Blue Cross Insurance

Blue Cross insurance is a specialty insurance provider.
They specialize in selling individual or group medical insurance and travel insurance or accident insurance.
Blue Cross Insurance also offers health insurance in addition to their specialty insurance products.
Ask your agent for quotes.

If you are shopping for any of the specialty insurances detailed above, be sure the insurance broker you work with is knowledgeable about which insurance product best fits your personal needs.

You may be able to buy these specialty insurance policies online, but it may be better to work with an insurance agent, that way you can get all of your questions and concerns addressed directly.