Car insurance is one of those items that everyone needs in the case of an emergency. You never know when an accident will occur and need to be prepared in case one does. Getting a car insurance quote can be worth your time. A smart driver knows that driving without car insurance is putting your financial future at risk. Purchasing an automobile insurance policy will not only give you financial security but peace of mind. Here are a few of the benefits of having car insurance

Limited Liability

One of the primary benefits that car insurance offers is the limitation of liability. If you are ever involved in a car accident and do not have insurance then you can be forced to pay all of the costs involved with the accident out of pocket. This means having to fork over money for car repairs and medical bills. Having automobile insurance will limit the amount of liability and cover you in the event of an accident. This will lessen the financial burden that you have to deal with.

Protection of Assets

Another benefit of car insurance is that you do not have to deal with the handling of claims yourself. Insurance companies employ claims adjusters and customer service representatives that will handle the negotiations for you. This will limit the amount of money that you will have to pay and can help to protect you against bogus claims. Insurance companies are great at sniffing out people who are trying to fraudulently sue you just for some quick cash.

Legal Responsibility

Anyone that drives an automobile in all 50 states is legally required to have auto insurance. Automobile insurance is a smart purchase because it keeps you on the right side of the law. Your tags, title, and registration can be suspended for failing to carry automobile insurance. You are not only putting yourself at risk but other drivers as well by driving without insurance. Having car insurance will protect you, your car, and other drivers that you allow to borrow your vehicle.

With all of the benefits to having car insurance listed above, you can see why you need to make sure that you get a policy so that you and your automobile are protected.

Last month my wife ran to the supermarket to pick up some ribs for us to grill for dinner while I spent a lazy Saturday morning watching cartoons with my kids.   As an episode of Phineas and Ferb came to a close, I got up to grab myself a second cup of coffee…

Then I heard a terrible crash!!  I’d heard that sound before and immediately realized that two cars had just crashed into each other.  I cursed our busy street which often sounds like a race track as I ran to the front door to make sure no one was hurt.

And that’s when I saw that one of the cars that had just crashed belonged to me.

Thankfully, it wasn’t the minivan that my wife was driving.  It was in fact our third car (which I had inherited from my father-in-law and had just put on Craigslist the night before!) that had been parked in front of our house.  It was sitting on my lawn about 30 feet away from where I left it.

The guy who hit it was a little shaken up but uninjured and insisted he didn’t need a doctor.  He said he looked down at his feet for a second and the car swerved and rammed into my parked Accord.  I suspect he was texting or dialing a number on his cell phone, but that’s neither here nor there.

To make a long story short (too late), my car was totaled and my insurance company sent me a check for the loss.  Since I don’t need to worry about finding another set of wheels and the amount they gave me was actually slightly more than I would have accepted when selling the car, everything worked out just fine for me.

But the accident did serve as a reminder that disasters can happen at any time, and usually they come without warning.  It pays to have a good idea of what to do if something unexpected happens.

For example, if a tree falls onto my house I know my homeowner’s insurance will take care of it.  But if it happened while we were in the house how would we handle the emergency?  A family disaster plan would come in handy…complete with instructions on how to get to safety, where to meet up once outside of the house, where we would go, what we would do with the pets, etc.

With an emergency plan in place, we could even go through practice drills to make sure everyone would know what to do without panicking.

Do you have any kind of family disaster plan?  How often do you practice it?

This is a guest post by Anthony King

You may be in the possession of a car currently or you intend to buy one soon but you cannot stop worrying about the nightmare caused by car insurance. Alongside the fueling expenses, maintenance fees and other auto expenses, you can never steer clear of auto insurance. If you are pondering how to reduce your insurance burden by a great margin, here are a few tips for you.

Firstly, you should shop around for the cheapest insurance offers. Clearly, there are a thousand and one insurance companies out there ready to serve you. Do not get stuck on the most common ones around.  Find out from friends and family members where you can get the best offers. There are many places to check for cheap auto insurance online to see coverages available. You can then compare your findings and decide the best course of action. You will certainly find a reasonable deal that will enable you save on your insurance. However, be sure to read and understand the insurer’s terms and conditions before dispensing any funds.

Secondly, you could try and maintain a clean driving history. If you have been driving recklessly lately, this is the right time to change for the better. Or if you are interested in owning a car, you better be sure that you know how to drive carefully. This is because a good driving history, with minimum to no accidents at all, can qualify you for discounts. You will not pose a big threat to the insurance company and the best way you can be rewarded, is through an insurance discount.

Another way of saving on auto insurance is by buying a used or an old car. You do not have to buy extremely worn out vehicles just to reduce your insurance cost and risk your life, no. There are many used cars that still have all the major safety gadgets intact and functional. Besides the low prices tag, these vehicles do not depreciate immediately you drive out of the dealer’s lot. Their insurance costs could also be decreased further if you drop the collision and/or comprehensive coverage.

Saving on insurance is one productive way of slimming your monthly expenses. By shopping around for the best insurance coverage, driving
keenly or opting for second-hand vehicles, you can reduce your insurance liability and save the much needed extra cash. Worry no more; you have the ability to make your car ownership worthwhile.

As a responsible homeowner you want to ensure your family is protected from any eventuality. If disaster strikes you don’t want them to end up living in a homeless shelter, you want to be able to maintain the lifestyle you’re accustomed to. You work hard to provide for them and make them as happy and healthy as possible. Your budget is well thought out, and up until now your income has managed to stretch far enough to cover all the expenses. Now you learn your homeowners insurance is going up…again. It’s an area of coverage that seems to be rising by leaps and bounds. What steps can you take to help alleviate the increasing cost? The following tips will help you lower your insurance and keep your budget on track.

Look for the Best Possible Price

When you realize your budget may be in trouble because of the rising cost of homeowners insurance, the first thing to do is look for a better rate. Do your homework. Study all the possible options that may be open to you. Insurance companies are in business to make money. As a result they are extremely competitive. That can work to your advantage. Discounts and special rates are available, but you need to seek them out.

Consolidate Coverage

Some insurance companies will give you better rates if you get your homeowners and other types of insurance, such as auto insurance, from them. They’re called multi-policy discounts and the savings can be significant. By consolidating your policies your insurance agent is able to offer rates that will probably be much lower than the cost of each policy by itself.

Discounts Are Available

Don’t just take the first quote an insurance agent gives you. Ask them for clarification. Is there a special rate if you have smoke detectors? You just installed deadbolt locks. Is there a special rate for that? Is your home protected by a security system or a fire alarm? Find out if that system will allow your agent to offer a discount. Is there a special rate for all of the above? Don’t be afraid to ask questions. If you don’t completely understand the answer, ask again. It could lead to a considerable reduction in your payments.

Higher Deductible = Lower Premium

If you’ve taken precautions to ensure your home is safe, such as the aforementioned smoke detectors, locks and security systems, you may want to consider raising your deductible. The more money you’re willing to risk having to pay in the event of a claim, the lower your insurance payments will be.

Make Improvements

Steps can be taken to make your home less susceptible to damage during storms. Better windows are a good start. In older homes improving your roof or installing shutters may help lower your insurance costs. Redoing your electrical system makes the wiring less likely to be the cause of a fire. Improvements in the plumbing system may prevent costly repairs in the future. The list of possible upgrades to your home is only limited by your imagination, and your rates may drop accordingly.

Find a Good Company and Stick with Them

Although shopping around for better rates is a good idea, if at all possible stay with one insurer as long as it’s financially feasible. Most insurance companies reward long time customers. Staying with one company for 5, 10, 20 years, or longer will undoubtedly result in significant savings. If they suspect you’re comparing their rates to other companies, they may work even harder to beat the competition.

Keep Your Policy Updated

Make sure your coverage actually reflects your needs. If you add a garage or improve the exterior of the house you’ll need more coverage. Purchasing expensive jewelry for your spouse or buying a large screen television to replace that old 32 inch model you’ve been putting up with for the last 10 years increases the value of your possessions. If something happens, it’ll cost more to replace the new stuff. Your insurance coverage should be adjusted. Conversely, if you get rid of things you no longer use, such as that old bedroom furniture or the record collection that’s been collecting dust for decades your insurance rates may drop accordingly. Changes don’t need to be significant in order to save money. The little things add up.

Guest post from Bailey Harris. Bailey writes about insurance and other topics for the Home Insurance Blog.

Do You Need Tsunami Insurance?

In the wake of the recent earthquake and tsunami that caused massive destruction in Japan (not to mention the devastating Indian Ocean tsunami of 2004) many people are wondering if they need tsunami insurance.

If you live in Nebraska or North Dakota I think it’s safe to say you’re far enough inland to avoid any potential tsunami flooding.  But the same can not be said about communities closer to the coast.  The west coast of the US is known to be vulnerable to earthquakes and therefore tsunamis, and some believe it could happen on the east coast too.

Standard home insurance policies view tsunamis as an act of God and therefore exclude them from coverage.  The only way to get tsunami insurance is through the National Flood Insurance Program.  If you live in a flood zone you were probably required to purchase flood insurance so you may already be covered, though it would be a good idea to call and confirm that.  Even if you don’t live in a flood zone you should still be able to purchase an inexpensive policy just in case of a major disaster like a tsunami.

While the odds of being hit with a tsunami in the US are pretty low, there is always the chance that a major earthquake or underwater landslide could put your home at risk.  If the worst were to happen you might rest easier knowing that you has a tsunami insurance policy in place.

My car has been paid off for a few years now and my wife’s minivan has only 2 payments left, so I’m really looking forward to having no more car payments (and I plan on keeping it that way as long as possible!)

But if you’re in the market for a new car you might be happy to learn that now is a pretty good time to do so.  Interest rates have are still low so as long as your credit is in decent shape you should be able to get a loan under pretty favorable terms.  Of course, if you can pay cash for your next car that’s even better, but I understand not everyone can afford to do that.

Unfortunately, if your credit is less than stellar, you might have trouble securing competitive rates.  But it pays to shop around and look for the best possible deal.  Try your local bank and credit union before you even set foot in the dealership.  If you can secure financing before you actually go shopping for the new car you can take that element out of the equation when negotiating with the dealership.  Of course, they might be willing to give you a better financing deal anyway, but it is good to have a backup plan in place so you can negotiate from a position of strength.

Some more car buying tips…

You should research the cars you are considering online at sites like Cars.com and ConsumerReports.org before you go to the dealer.  Make sure you know exactly which model and which accessories you want and how much you’re willing to pay for them.

And don’t forget about car insurance.  You need to factor in insurance costs too because it will usually cost a lot more to insure a new car than your old one.  Many people don’t take this into account when buying a new car and are surprised at how much more they have to cough each month.

Insurance, whether it be car insurance, home insurance, travel insurance, mortgage protection insurance or health insurance, is one of the biggest drains on our monthly income. However, we live in a world where the unpredictable and the unforeseen can be catastrophically damaging to the state of our personal finances, and, therefore, insurance simply isn’t a dispensable commodity.  It is absolutely necessary.

So how do we go about making sure that we are getting the best deal? The answer is straightforward. Research research research!  Here’s how:

1. Many people head to the professionals. If you can afford it, unbiased financial advice is certainly a sound option. Take recommendations from friends in the know as to who to consult.

2. Check out what your local bank has to offer. Many banks nowadays, including big high street banks like Santander, also offer insurance policies, including deals on car insurance, home insurance and travel insurance. There are occasions when you are likely to be rewarded financially for keeping all your policies in one place.

3. Use online search engines and price comparison websites with care. Price comparison sites can be a useful tool for getting you started, but it is important to remember that these sites will never fully represent what is available on the market and many of their search facilities are too simplistic to provide you with a totally accurate quote.

4. Pay attention to special offers and introductory deals. Sometimes they won’t be worth a second glance but on other occasions they could offer you real savings. Some car insurance companies, for example, may offer discounts on certain mechanical services throughout the year.

5. If you want to keep on top of any financial changes that are going on in the world of insurance throughout the year, a subscription to Consumer Reports or Which magazine comes highly recommended. Though this is, unfortunately, not without its own charge. It can, however, help to keep you up to date with what’s new on the market, not only with regard to your insurance needs but on a whole range of financial and consumer services.

Are you sure your life insurance beneficiaries are set up the way you want?

Life insurance is a subject no one likes to think about, but unfortunately we just don’t have a choice.  If you want to make sure your loved ones are taken care of you need to plan ahead.

For the most part, once you purchase a life insurance policy and name your beneficiaries all you have to do is continue paying your premiums and you can rest assured they will be well provided for after your death.  But there are a few times in life when you you’ll need to take another look at your policy and maybe even change your life insurance beneficiaries.  Let’s talk about some of the common life events that would cause you to update your policy.

When you’re young and single you probably don’t need much life insurance and what you do have is most likely earmarked for your parents or siblings.  But once you get married you’ll want to make sure your new spouse is listed as your primary beneficiary.

As you start earning more and taking on more responsibility (like a mortgage), you will probably want to increase the amount of your policy.  While a $25,000 policy may have seemed like a lot of money when you were 18 and care-free, it could be woefully inadequate once you are married with a mortgage and car payments to make every month.

Once you start having kids, you’ll need to update your policy again to add them as your life insurance beneficiaries.  If you want you can leave your spouse as primary and make the children secondary, but they should definitely be on there somewhere.

Obviously you’ll need to update your life insurance beneficiaries each time your family expands.  The last thing you want is to have one of your children wondering how you could have forgotten about them.

If one of more of your beneficiaries predeceases you then you will want to take them off your policy and either add someone else or reallocate the percentages to the remaining beneficiaries.

The same goes for divorce. There have been times where policy holders forgot to change their beneficiaries after a divorce and the new spouse and children were left empty-handed while the ex-spouse collected it all.

It would be a shame for you to pay premiums year after year only to see the wrong person cash in on your policy.  Be smart and double check your life insurance beneficiaries today.

Auto insurance is one of those things that most of us don’t like paying for but if you drive it’s a necessity. When looking for auto insurance, some people simply choose the first option that opens up to them, however there are ways that you can find a cheaper insurance policy, here’s a few tips:

Keep on the look-out for discounts

When it comes to auto insurance, there are many discount offers that you can take advantage of, and one which is particularly popular is the good student grades discount. If you’re young and you perform well in school, then you could be rewarded by some auto insurance providers by getting a % discount. If you drive more than one vehicle then look for policies that offer multi-vehicle discounts. Looking for special offers is a great way that you can save money.

Identify what type of coverage you want

You should identify what sort of coverage you want for your vehicle, if your vehicle doesn’t cost very much, then is there much point in you paying for full coverage? This depends on your circumstances. Also, you could consider higher deductibles to make your insurance cost cheaper, this is not advisable but you could consider it if you consider yourself to be a competent driver. You should also identify what extras or add-ons are included in your insurance policy, for example, does the policy you are looking at include healthcare coverage?  Do you already have health coverage and therefore you don’t need it? Then get rid of it and get a cheaper policy.

Compare as many quotes as possible

Comparing as many insurance quotes as possible is the best way that you can save money. It gives you a view of the wider options available and you obviously increase your chances of finding the best deal for you. Using a price comparison site is the best way to do this; it pulls information for you from various insurance providers, ensuring that you can find the cheapest price. Prices always change from company to company so doing this search gives you a quick and easy way of finding the best rate for you.

Yearly policies

Purchasing your auto insurance yearly rather than monthly can save you a lot of money. Many insurance providers offer you a great discount if you are prepared to pay via a one-off yearly payment. If you are unable to fund the one-off payment, then you could place the amount of your policy on an interest free credit card. Paying for your insurance this way means that you will have an interest free period (normally 12 months) to pay off your insurance at your own leisure.

If you pay monthly, use automatic payments

If you decide to pay for your insurance via monthly payments make sure you are using automatic payments. Some insurance companies now charge around $5.00 for mail payments, so it’s a good way to save some extra cash.

This article was written by Andreas Nicolaides, a personal finance and money saving writer from Money Supermarket.com.

If you’re like most people your home is the largest and most valuable asset you own. And it provides more than just a source of equity and shelter from the elements. It contains years or even decades full of memories. Just look around and you’ll see reminders of all sorts of events both large and small. The living room where your little girl took her first steps. The mantle where she hit her head and gave everyone an awful scare. The lines on the door frame where you measured her growth. These are memories that can not be replaced.

Given your home’s importance, it is vital that you have enough homeowner’s insurance to repair or rebuild your home in case of disaster. Being underinsured can lead to financial ruin.

Of course, you also don’t want to be paying more for insurance than is necessary. Rates can vary wildly from one insurance company to another so shopping around and comparing rates can save you hundreds of dollars per year. Compare at least three or four insurance carriers before making a choice.

More ways to cut insurance costs

Besides shopping around for the carrier with the best coverage for the lowest premium, some other suggestions for cutting your insurance costs include:

Consider buying both your  homeowner’s and auto insurance from the same company. Many companies offer discounts if you purchase more than one policy from them. This will lower both insurance policies so you’ll save double!

Don’t bother filing small claims for minor damage. A handful of small claims may lead your insurance company to consider you a higher risk and increase your rates. Just take care of any minor repairs that come up yourself. Save insurance for the big ticket repairs.

Boost your deductible. If you are going to pay for small repairs yourself anyway you might as well raise your deductible too. The typical deductible is $500. If you can afford to raise it to $1000, you can expect to see a significant drop in your premium.

Ask your insurance carrier about other discounts they offer. Many will give discounts if you have smoke detectors, fire extinguishers, security systems, or deadbolts on external doors.

Keep your credit report clean. It has been somewhat controversial, but some insurance companies have started using credit scores as a factor in determining rates. Miss a few credit card payments and you may find your insurance rates increased.