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Category: Insurance

Price Determining Factors of Auto Insurance Policy

There are a number of factors that can actually determine your auto insurance rates. According to a research, men pay an average $15,000 more for auto insurance in their lifetime compared to the American women. It might be tempting for you to reduce the amounts of coverage for lowering your car insurance premium. But, it is also essential for you to build a clear conception about the other price determining factors of Auto Insurance.

So, here is a list of the factors which has the capacity of affecting the price of your auto insurance policy.

Marital Status:

It has been noted that married people are less prone to meet with an accident, compared to the single people. Thus, getting married can significantly help you to cut down the rate of your auto insurance. Although, the decreasing rate of the policy highly depends upon your driving history. If you belong to that group of people who has never met with an accident before, you would be able to witness the rates going down to a great extent.

How much you Use the Car?

This is also one of the most essential factors which can determine the price of the policy. The more miles you drive, the chances of meeting with an accident also increases. If you are using the car for work or driving it to a long distance regularly for reaching your work place, you will pay more. On the other hand, if you are driving your car occasionally- what some companies have tagged as ‘pleasure use’, you will definitely pay less.

The Car you Drive:

Some cars can be more expensive to repair or more likely to be stolen than the other cars. Larger cars are generally considered safer than the smaller ones. Therefore, a lot of people are picking larger cars to have a safe drive. However, cars with larger engines relative to body size tend to have higher rates. The cost of your car itself can be the major rate factor. The cost of repairs, size of the engine also has the capacity of providing an impact over the insurance premiums.

While fixing the rate of your auto insurance policy, the insurer will not only look at the safety of the occupants, but they will also look at the potential damage a car can do for the other. If a car has the capability of inflicting a huge amount of damage to another car, then the insurer might charge you with an extra amount of money.

Where you Live?

In most cases, it has been noted that a lot of accidents occur closer to the homes. Thus, the location of your house can affect the amount of your auto insurance directly. If you are living in a populated neighborhood with a lot of cars around you, then you are at a higher risk of meeting with accidents or collisions.

Repairing your cars in some places can actually be quite costly. There are many urban areas where the ratio of uninsured cars are very high due to the problem of unemployment. Some expensive cities of America like Philadelphia has a higher range of auto insurance, because of the high traffic density. If you are living in a place, where the chances of theft is greater than the price of your auto insurance policy will automatically hike.

The Gender:

According to a study, women are prone to pay more for their life insurance policies compared to the other policies. While on the other hand, men pay a higher amount of auto insurance premiums. According to the statistics, women belong to that group where there is the chance of getting into an accident is very low. A study has revealed the fact that, auto insurance rates can be 68% lower for a married woman with a college degree and a job. This ratio can be altered in the case of a single woman with a high school degree.

As more male teenagers have accidents than female teenagers, young men have to pay higher rates for their auto insurance policies. Thus, it is one of the most common factors used by the insurance companies in determining the rates of your car related policy.

Driving History:

If you have been in accident previously, the insurance company will definitely charge an extra amount from you. If your driving record is bad enough, some insurance company might also refuse to provide you with an insurance at all. Generally this defect tends to fade away over the time. So, try to drive more slowly and carefully for avoiding all hazards.

Paying for the car insurance is one of the most crucial parts of owning a car. So, you need to be more cautious about doing all the needful things for lowering the rate of your auto insurance. You can also think about taking the help of a local agent to understand which deductibles, coverage or limits would be appropriate for you.

James Paul is the editor and personal finance blogger at Basic Finance Care where he writes about personal finance and money management tips. He is also a regular contributor to many other personal finance blogs.

November 24, 2016
Top Misconceptions about Health Insurance

“Health care is not a privilege. It is a right as fundamental as civil rights. It is a right as fundamental as giving every child a chance to get a public education.” –Rod Blagojevich

Having a good health is not a privilege, but a fundamental right for every individual. However, even if we did practice great sleeping habits, follow a strict diet regimen, avoid unhealthy foods and exercise daily, some ailments would still plague us—whether they may be hereditary or not. For this reason, the idea of safeguarding one’s health by having a contingency plan should anything awry happen was conceptualized. By then, health insurance plans and policies emerged and provided a great alternative to breaking the bank whenever individuals got sick. Health insurance plans are not exactly luxuries, but rather necessities, yet a surprising number of people who remain uncovered and uninsured would prove otherwise. Today, a huge number of Filipinos remain uninsured despite the wide variety of insurance policies in the Philippines. Our health is not a trifling matter; in fact, it is something we should take excellent care of—especially if we have families who depend on us.

Whether one should get a health insurance coverage plan or not has been the subject of many internal and external debates and discussions, but leaving one’s self in a precarious notion wherein you are uninsured in the event of a sudden disease should not be countenanced. Perhaps if individuals were not left woefully ignorant about what truly entails having a health insurance plan, they would be more receptive to getting themselves one. So, in order to dispel some misunderstanding about health insurance plans and shed some awareness to what people are missing out on, this article has enumerated ten of the biggest misconceptions about health insurance plans below.

1.) “I already have government health insurance. I do not need private health insurance.”

In the Philippines, it is customary for a fraction of a Filipino employee’s salary to go to Philhealth, the national health insurance program which was designed to provide universal medical coverage for Filipinos. Although having Philhealth works to your advantage, it would not necessarily cover you for any extraneous health issues and necessities.
Philhealth only covers a select number of packages and services and certainly has its limit. Medicines, dental care, various forms of rehabilitation services and other therapies would be excluded. Having a health insurance coverage separate from Philhealth would ensure that you do not have to pay out of your own pocket for these essential services.

2.) “I am healthy, I do not need health insurance.”

Some individuals do not see the need for a health insurance coverage as they have never experienced anything direr than the flu or an occasional cough and colds. But this false sense of immortality could be very precarious as when they do experience a crippling disease; they could potentially cause their financial ruin by paying for everything with what available monetary resources they have available. Do not squeeze your savings dry just because you have been afflicted with a disease, get insured instead.

3.) “Cashless is the answer.”

Potential health insurance buyers are under the false impression that a cashless cover would solve all their medical woes. However, before availing this, it is imperative that you need to check whether your chosen hospital is affiliated with your insurance provider and whether they have a cashless program. Should the hospital be a non-network hospital, no cashless program would work.

4.) “I cannot afford private health insurance.”

Whenever an individual contemplates about getting insured, the cost is always an associated concept. A lot of individuals are under the misguided notion that private health insurance is expensive and would hardly look at the options. The truth is that health insurances are relative to one’s age and health. You would only need to choose a supplementary one which would meet your lifestyle’s needs. There is no absolute need to pay exorbitantly for coverage you do not need.

5.) “Maternity program would not be covered.”

A common misconception of prospective health insurance buyers is that pregnancy would not be covered by health insurance plans. This might be the case a few years ago, but a lot of insurance companies have started to offer this as part of the benefits in their health insurance cover. All you would need to do is research for these enterprises.

6.) “The money used for insurance premiums can be better used elsewhere.”

A hackneyed adage once said that health is wealth. Similarly, individuals should not be so indifferent in regards to their health and start investing in programs to protect it. Remember, one serious illness or injury could be depleted your life’s savings, and a health insurance policy would make sure that does not happen.

7.) “I have a pre-existing disease.”

Prospective health insurance buyers would often worry about the pre-existing condition clause of a policy. But, almost every health insurance as of late would come with this clause and should this affliction be over, it would cover your pre-existing health condition or disease as stated in the policy. Additionally, insurance companies would expect prospective buyers to have a thorough medical examination and should you not have any pre-existing diseases; the clause would not be applicable.

8.) “Buying policy only is risky.”

Considering how everything and anything can be bought online, even insurance policies are offered through digital purchase. However, many potential buyers would think that this is risky but when you buy a policy online, nothing is hidden from you and the paperwork involved would be reduced. If you are skeptical, have a little background about the insurance company before proceeding with the transaction.

9.) “Only the earning member of the family would need insurance.”

Many individuals are under the impression that only earning members of the family would need insurance. This is because more often than not, they are economically reliant on them. However, diseases, injuries and other maladies and afflictions do not distinguish, and it could certainly happen to anyone whether they may be earning or not. It is imperative that every member of the family would have a health insurance coverage so that the family is better prepared for anything that may happen.

10.) “I would only need insurance when I am older.”

No one is ever too young to get a health insurance coverage. You might want to explore your options but do not wait too long. Remember, some insurance policies are more expensive the older you get and with the increasing cost of prescription drugs, health care, and other medical services, it is imperative that you get insured immediately.

November 9, 2016
10 Steps Towards A Cheap Car Insurance

Car insurance is a legal requirement by the law of USA. It is also beneficial to cover financial losses happens due to unforeseen events like theft, fire and accident. When you go to buy auto insurance, your first requirement is to get a suitable and cheap insurance plan. You require a reliable auto coverage with the best services at reasonable price. When I particularly talk about California, then there are many companies who offer similar insurance products at competitive prices. It is quite a task to get the best suitable insurance coverage. Now what to do to get best auto insurance plan at cheap price in California? Here is your answer. There are some points that determine the cost of your car insurance and how you can lower the premium amount.

Are you interested in the best car insurance quotes? Some important things to be sure about could be having the right insurance for your car. You need to check the various quotes from numerous companies to ensure you’re getting the cheapest quotes for your insurance policy.

1. Your car – Your car is the first thing which determines the cost of insurance plan. Generally collision and comprehensive coverage depends on your car. The model and make effect the premium. Inexpensive car will make your premium low and expensive one will increase it. To cut your cost on insurance premium you could drive the car which is cheap to insurance.

2. Insurance limits – Every state of America has set the minimum liability coverage. It includes bodily injuries and property damages. You need to know the minimum coverage required by the state. For this you could search it on state commission website and lower your cost on insurance.

3. Install safety devices – Installing safety devices in your car such as anti-lock, alarm, air begs etc. will help you get cheap insurance. Safety devices reduces the risk involvements. The high risk involvement you have, the higher you get premium. Make sure that you have necessary car safety devices installed.

4. Deductibles – Deductibility is the best way to get cheap insurance. It means that when you are at fault so how much you are going to pay out from your pocket. The rest will be paid by the insurance company. The higher your deductibility, the lower your premium. You could choose $1000 deductible amount instead of $250 and according to your choice and budget. It helps you get the cheap insurance plan for your car.

5. Credit score – Insurers require the details of your credit before providing you insurance. They check your past history and determine the cost. If you have bad record of credit such personal bankruptcy, overdueetc. so this could lead to high premium. Maintained credit record will lower the premium. It is the helpful step to towards a cheap insurance for your car.

6. Talk to an agent – Talking to an agent is the best way. An agent has proper knowledge of plans. Agent can understand your individual requirement and assist you for the coverage. Doing this could also lower your premium.

7. Ask for discounts – When you are buying insurance, you could ask for discounts. Insurance companies have discounts as well. If you are buying car insurance from an insurer and also buying home insurance then insurer will give you discount. Because of this, the premium of insurance will be low.

8. Leave the unnecessary coverage – if you are driving old car and having collision and comprehensive. Then it is not going to give you that much benefit. It is just making your premium higher. So you could drop this coverage and get cheap insurance plan. So leaving the coverage which you don’t need will help you get your cost low on premium.

9. Govt. insurance program – California’s govt. has been running low cost or no cost insurance programs for the people, their household income is equal or less then poverty level. If you qualify in the program so it will help you get cheap car insurance. Check the programs running by the govt. to make lower the cost of insurance.

10. Review your policy – Reviewing your policy once in a year gives you more details about your requirement for a auto insurance .If you are using your car to travel less than earlier then it can lessen the premium you pay for your auto insurance. More travel has more associated risk and make the premium higher.

October 27, 2016
How Car Insurance Saves Money for Young Drivers

It is quite easy for young people between ages 17 and 25 to learn driving. These people generally pass their driving test at the very first attempt. Passing the driving test gives them great confidence and the excitement to be on road as fast as possible. However, the truth is that while the young drivers might consider themselves excellent at driving, the car insurance companies do not think so.

Why are Car Insurance Premiums for Young Drivers Very High?

The car insurance companies have certain hard facts with the young drivers. It is likely for the young drivers to be the victim or the cause of accidents because of over-taking, high speed, loss of control, driving in the dark and ignoring a bend. Young drivers within 18 years of age are three times more likely to be involved in accidents in comparison to the elderly drivers above 50 years of age. On the ground of these facts, the car insurance companies classify the young drivers as high risk. Therefore, the young driver car insurance premiums are very high.

Consultation Services are Important

If you are a young driver looking for cheap car insurance for young drivers, you can always go for free consultation services of the professionals. This can help you in saving up to 50% on your young driver car insurance. However, it is important for you to make sure that the consultation service is taken from a professional in a trusted and reliable car insurance company. Apart from consultation service, there are some plans that the young drivers can use in order to appear the best drivers for the car insurance companies.

Having the Right Safety Equipment in the Car

There are some foundation things that the young drivers should have in their cars in order to improve their position in receiving good discounts from the car insurers. The car should be equipped with safety features like airbags, daytime running lights and anti-lock brakes. In addition to this, the young drivers should always be proactive about the protection of their cars from theft. They can do this by installing anti-theft tools. The car insurance companies usually look more favorably at the clients that take the right steps in preventing or deterring thieves from getting hold of their automobiles. If young drivers are able to get all these things in perfect place prior to searching for cheap car insurance for young drivers, they can definitely save a huge amount of money on their car insurance.

The Willingness to Pay for the Car Insurance Up Front

The most important thing that the young drivers should have in order to get the best deals in their young driver’s car insurance is the willingness to make all the payments for their car insurance up front. This will actually help them in qualifying for deep discounts. This is because they are not choosing to make their payments on a monthly basis or eve on quarterly basis. Making car insurance payments up front can help the young drivers in making immense savings.

Michael Foote is a professional blogger who likes to write about finance or insurance topic. He shares all van insurance, Cheap Car Insurance For Young Drivers, compare home insurance, car Insurance ideas.

October 6, 2016
5 Tips to Find the Best Health Insurance Plan for You In 2016
With the increasing risk of diseases from high-in-oil-and-fat food and pesticide-loaded fruits and veggies that we consume on a daily basis and lack of exercise, the best thing we can do to protect ourselves from unexpected health care expenses is to get a comprehensive Best health insurance plan.

If you are an employer, then it’s obvious that you may be considering various health insurance plans for the benefit of your workers.

Are you looking for the best plans for your employees? Do you wish to help them get the most out of their coverage? If you said yes, then here are a few tips to help you offer the best healthcare benefits to your employees with the best plan.
1. Know your options
It’s always good to consider a few options before going for an insurance plan. Here are three main categories related to employee benefits.

Defined benefit plan – This type of insurance offers benefits to employees through a group plan. The perks are strictly catered to members who are directly linked to the network or services of the company.

Defined contribution plan – Through this plan, the employer doesn’t provide insurance coverage to employees but instead provides an allowance through a range of plans from which the workers can choose their preferred ones. For example, people with disabilities get more benefits with disability insurance whereas others get more with a life insurance plan.

Professional employer organization (PEO) – This is the best plan for companies that are looking to provide the benefits of employer insurance but don’t feature-rich plans that workers require. Under this plan, benefits are offered to employees in bigger groups. Get in touch with any of the PEO insurance companies to know more about this plan.
1. Consider wellness programs
The best way to save money on your health care expenses is to protect yourself from diseases. That’s what wellness programs are all about. You’ll be offered perks in the form of wearables like fitness trackers with which you can track your health and fitness on a daily basis and switch to healthier options.

If you’re like many other employers, you can offer attractive discounts on wearables to encourage your staff to purchase them. Insurance companies have offered discounts to employees who track their health regularly. So, this is an added benefit to your employees. Genetic discrimination also plays a major role in insurance eligibility. If you’re not sure what difference that can make to your insurance goals, just check out this easy-to-understand Infographic that helps you to learn more about genetic discrimination.
1. Know the differences between HMO, PPO, and EPO
Health maintenance organization (HMO)

This is a cost-saving way to offer insurance to your employees but the major drawback of this plan is that it offers limited features when compared to the other insurance plans. Your employees will need a referral from their physician to consult the insurance specialist.

Preferred Provider Organizations (PPO)

This one offers more flexibility to employees. Unlike HMO, PPO doesn’t require any referrals from a physician. The insurance buyer can consult a doctor of their choice – it can be inside or outside the network. However, consulting a specialist within the network will help them save money on copays. When it comes to premium, PPO is a bit higher-priced than HMO.

Exclusive Provider Organization (EPO)

EPO is a mix of both HMO and PPO. Employees will have access to a network of providers just like the case with HMO, but the big plus is that they need not seek referrals from their primary physician to consult a specialist.

By considering the factors mentioned above, it can be said that the decision to choose a worthy insurance plan boils down to knowing whether you need more features or low pricing with the plan.
1. Choose insurance according to your employee age group
The last thing you would want to face as an employer is offering a feature-rich insurance plan to your employees and later realizing that you have to downgrade the plan or deduct your employees’ salary because you just can’t afford the plan. Make sure you compare the cost of multiple plans and pick the ones with moderate benefits on a budget.

For example, if the majority of your employees are young healthy individuals, then it’s best to go with lower monthly premiums and higher deductibles because there is a less chance of your members using your insurance in the first place. Also, make it a point to consider other economical options like health spending accounts (HSAs) and Flexible spending accounts (FSAs).
1. Learn what your competitors are offering
There are many ways to benefit from tracking what your competitors are doing. Evaluating the plans offered to their employees is one easy way to chance upon attractive insurance plans. Visit the careers section of your rivals’ websites and try to find out what they are offering their talents. Once you figure that out, take steps to match that or go one step beyond them so you can attract more talented people to your organization.

Best Health Insurance Plan
August 28, 2016
Eight Things You Need To Know About Insurance – Assess Your Needs
Everyone knows that the sole purpose of insurance is to protect individuals against unexpected financial losses during an event of illness, accident, or death but what is surprising is that, the majority of Americans are uninsured.

Are you insured? Are your near and dear ones protected against financial losses that could arise due to health related problems? If not, then it’s recommended that you first get to learn the purpose of having health insurance and how it can help you during major illness, disability, or death.

Insurance stands as the difference between knowing what you already have (i.e. good health and fitness) and what you want in case something happens to your health.

Here are eight things you need to consider when assessing your insurance needs.
1. What you have at present
First, analyze what you have now. How much savings do you have in the bank? Do you have a regular source of income to meet your monthly expenses? Have you made smart investments in properties or shares?
1. Debt
What are the debts currently running? Do you have personal loans, mortgage loans, or any credit card dues? How much of the amount is yet to be paid? What happens to the debts when something unexpected happens to you?
1. Health
Are you hit by any health issues like back pain, obesity, blood pressure, or heart problem? If so, make sure you purchase insurance plans before things go worse. It makes sense to check out reliable sources and find out whether you need to go for genetic testing or not. A healthy person gets up to 20% on premiums.
1. Financial commitments
Ask yourself, how much money should you leave for your spouse and children to lead a stress-free life financially? If you don’t have children, how much will your loved ones require to meet their household and healthcare expenses? What are the significant future expenses they’ll need help with? Education, household, and healthcare are the major expenses for a family. In addition to these, there will be other costs like vehicle repair and maintenance, home renovation, and home appliances.
1. Childcare and home duties
Childcare is another major scenario you need to consider when thinking about whether you should purchase insurance or not. How would you like your children to be cared for if you or your spouse meet with a major accident or disability or death? In most homes, the parents are the primary earning members, so when something happens to them, the life of their children will be bleak when there is no backup plan. The two best ways to offer protection to your kids are (1) having a caregiver to take care of them or (2) sending them to childcare. Try to come up with a rough estimate of how much that would cost.
1. Living expenses
Coming to your personal expenses, ask yourself how much money you will need to take care of yourself when you’re affected by a threatening disease, illness, or disability? Also, consider the additional medical and caretaker expenses.
1. Funeral expenses
Well, let’s hope that nothing of this sort happens to anyone at a young age or even middle age, but again this is one scenario that needs to be considered when assessing one’s insurance needs. The hard fact about funerals is that they are pretty expensive costing anywhere from $3000 to $5000 depending on how it’s done. Leaving your family behind with little or no financial support can leave them devastated in their toughest time. So, the funeral cost is something you need to think about as well.
1. Timeframe
In the event of illness, how long will you be able to survive without your working income? Again, this comes down to the savings you have at present and the returns from investments you’ve already made. If you haven’t made any, then it’s high time you purchased a suitable insurance plan to prevent any unexpected financial damage to you and your family in the future.

Make sure you are always covered!

Situations and financial status change from time to time, so ensure that your insurance needs are regularly reassessed, and you are covered accordingly.

Get expert advice

If you’re not sure how to get started, then getting in touch with an expert is the best way to go about it. Talk to multiple insurance agents and compare different plans before choosing one.
August 28, 2016