As with most insurance policies, you hate to spend money on the premiums for years and years while never making a claim, but you are so incredibly thankful if you do ever have to count on making a claim. It could mean the difference between being financially unaffected and bankruptcy.

What is an Umbrella Policy?

A personal umbrella policy is additional coverage that goes above and beyond what your homeowners and auto insurance policies cover. Think of it as a protective umbrella that will pick up the damages once you have exhausted your coverage of those policies. Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowners, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to: false arrest, slander, libel, and invasion of privacy.

How Umbrella Insurance Works

Let’s say that you’re having a 4th of July cookout with some neighbors, and one of your neighbors suffers a major injury while in your home. You don’t think much of it because you know that your homeowners policy covers liability up to $100,000. But to your surprise, the neighbor is suing for $1 million in damages. How on Earth will you ever be able to come up with another $900,000?

If you don’t have an umbrella policy, you could find yourself in a very ugly situation. But let’s say you had the foresight to purchase a $1 million umbrella policy. Guess what, you’re in luck. Your homeowners policy would pick up the initial $100,000, and the remainder would fall under your umbrella. This could save you from losing almost everything you’ve worked your whole life for.

It is also important to realize that this type of policy works for auto accident claims as well. We all know how dangerous the roads are, and most people only have a few hundred thousand in liability coverage through their auto policy. Just a seemingly small accident can do a great deal of damage to the occupants of another vehicle that leads to a potential significant lawsuit. Are you willing to share the road with all those crazy sue-happy drivers with only $200,000 in liability protection?

How Much Does Umbrella Insurance Cost?

Most people just assume that since the coverage amounts are typically in the millions that it would simply be too expensive to purchase. This is generally not the case. In many instances you can obtain $1 million in coverage for just $200-$300 per year. Think about that–the annual cost of a million dollars of coverage is little more than what you spend on a few utility bills. Sure, you may never need it, but if you ever do, you’ll wish you had it.

Where to Get Umbrella Insurance

You usually never have to go beyond your own current insurance provider. The first place to check is with your homeowners insurance provider and see what they offer. Even if you don’t own a home, or want to look for other options, I’d check with your auto insurance provider. I use Liberty Mutual for my auto insurance, and they also offer an umbrella policy. The last time I got a quote for coverage through them they had an annual premium of $250 for $1 million in coverage. You can also look for coverage elsewhere, so there is nothing stopping you from shopping around. But keep in mind that having multiple policies with one carrier may provide additional discounts.

How Much Coverage?

This answer will be different for everyone, and due to variances in state laws regarding what assets may not be subject to seizure,  it is impossible to say that you should have a specific amount of coverage. This is where it pays to speak to an attorney. Even so, there is a general rule of thumb that suggests that you should have coverage equal to your net worth, rounded to the next million. So, if your net worth is approximately $600,000, you should err on the side of caution and have a million in coverage. Granted, some assets may be protected from lawsuits  in your situation or state, but given how inexpensive the premiums are relative to the coverage, it is better to be slightly over insured in this instance.

There are several reasons why people who rent an apartment or a home should look into renters insurance. It offers protection on several different levels that can come in extremely handy when an unfortunate incident occurs to a rented property.

Property Protection

Renters insurance offers protection for property such as furniture, electronic equipment and jewelry. If a storm blows through the area and rips the roof off of an apartment building, then it would be the landlord’s insurance that would cover the damage to the building. But the property of the tenants inside each apartment is not covered by the landlord’s insurance policy. It is up to the tenants to get their own insurance.

A renters insurance policy can protect you in case someone breaks into your apartment and steals your new television and stereo and it can compensate you for furniture or other items lost in a fire.

There are a few factors that renters should keep in mind when it comes to renters insurance premium rates. If you live in a neighborhood that is prone to robberies, then your rates will be higher. If the previous tenant made several claims on his renters insurance policy for theft and damage, then that can affect your premiums as well.

Liability

There are several reasons why legal professionals recommend that tenants and landlords have a signed lease contract. One of the main ways that a lease protects the tenant and the landlord is that it outlines the property maintenance responsibilities that each party has. For example, if the tenant is responsible for taking care of ice build-ups on the sidewalk, then it is the tenant that can be sued if someone falls on unattended ice.

This is another reason why renters insurance is an excellent idea for tenants. There is a liability portion to renters insurance that will pay for any damages or lawsuits that occur in areas that the tenant is responsible for. In the case of the ice, the tenant with renters insurance would be completely covered for any damages, both medical and civil, that may come up as a result of the accident.

Temporary Accommodations

One of the examples we discussed earlier is of an apartment building roof being damaged in a storm. The landlord is covered by his insurance for the cost of the repairs, but those repairs will take time. Where are you supposed to go while there are contractors working around the apartment building and the storm debris is being cleaned out of the building?

One of the coverage options offered in renters insurance is reimbursement for temporary accommodations. The exact process varies from insurance company to insurance company, but the general premise is that the insurance company will either put you up in a hotel while the repairs are being made or reimburse you for the hotel costs that you accrue. Ask your insurance agent about the details for temporary accommodations as most insurance companies have limits on how much they will reimburse.

Getting the Protection You Need

Renters insurance is a way for tenants to protect their personal property and themselves in case an unfortunate incident occurs while renting a home or apartment. A renter should never assume that the landlord’s insurance policy will offer ample coverage because, in most cases, the landlord’s policy offers no coverage at all to tenants.

But how much does renter’s insurance cost? That is the question frequently asked when this topic comes up, but most people are shocked to learn how inexpensive it really is. Of course it varies on location, but the average renters insurance premium is typically between $10 and $25 a month. Now consider that cost with the value of the items in your apartment or rental home. You probably have electronics such as TVs, computers, cell phones, a DVD player, and so on. How many thousands of dollars do you have invested in that equipment? Then take a look at other items such as furniture, clothing, cookware, jewelery, and so on.

You probably have tens of thousands of dollars worth of possessions in your apartment and never really thought about it that way. Combine the value of those things with the liability protection offered by renters insurance and the few bucks a month for coverage is a no-brainer.

You don’t want to make any hasty moves because one move too soon could mean losses in the thousands over the long term.  Not all insurance companies are on your side or in business to protect you.  In fact, I’ve found that many are simply out there to swindle your money.

I’ve compiled a list of ten tips to take into consideration when purchasing a new insurance policy.  Hopefully these tips will help you make a wise decision and save yourself countless headaches.

1- Research consumer complaints

This is probably the most important tip on this list.  Knowing what the complaints are against a company will tell you how solid of an insurance company they are.  Companies with the fewest complaints are typically the companies that make an effort to provide excellent customer service.

2- Check agent’s credentials

This is another tip that will make an agent extremely uncomfortable or very confident.  Always ask for an agent’s credentials, no matter how small the insurance policy.  I have heard horror stories of insurance agents selling completely false insurance plans and then a big accident happens.  Well guess what?  No insurance coverage for that person.  Don’t find yourself in this situation; it’s truly something you can avoid by simply asking for credentials or looking into their background online.

3- Shop around before you make the big move

You shop around for things like cars and clothes, so why not insurance packages?  Research prices from various insurance companies and compare quotes.  I recommend comparing at least five quotes before you make your final decision.  A long term contract with an insurance company is something that you want to be 100% confident in. Spending 30 minutes shopping around could literally save hundreds or even thousands of dollars.

4- Research the company’s ratings 

Insurance companies are always competing for higher rankings.  By researching ratings and review online, you can find out which companies place an effort on providing higher value and which ones couldn’t care less.  Do your due diligence; you might even be surprised at the companies that don’t fare too well.

5- Get the right coverage but don’t get too much

Never let an agent tell you how much insurance or coverage you need.  This is something that is your responsibility to figure out.  Letting an insurance company tell you what you need is like asking a casino how much you should gamble.  Whether you need an umbrella policy or extended coverage, this is for you to decide, not an agent.  Come to the meeting with an agent prepared, not at a loss for words. Remember, insurance agents work on commission, so the more they sell you, the more money they make.

6- Ask some tough questions

Insurance is a significant financial decision.  Take the time to really ask the tough and important questions.  Make it your goal to make your agent squirm in his chair.  If he answers all of your tough questions and you’re satisfied, you’ve most likely found a great insurance company to give your money to. If the agent can’t or won’t answer your questions directly you may want to look elsewhere.

7- Take a “free look”

This is a wonderful opportunity to really “get to know” your insurance policy.  Whip out that bad boy and study your policy.  If you are not completely happy, return your policy within a few days and get your premium back.  If the insurance company tries to tell you they don’t allow it, don’t back down. All policies are required to have a free look period, but the length of time varies. Ask what it is up front so you know how much time you have.

Well, hopefully this has helped.  Now, when you are on your quest for insurance, you won’t be lost.  Take these principles and print them out.  Keep them nearby when you are speaking with an insurance agent.  If you ever feel awkward or hesitant, that is a sign that it may be time to end the conversation and consider a different company.  Take your time and make a decision you and your wallet can be proud of!

The Worrisome Role of Retirement Planning

Baby-boomers and previous generations, up to the 2008 global financial crisis, have been able to reassure their worries caused by projected strains on Medicare and Social Security by taking steps towards wise retirement investments. 401(k)s were the most popular option and still are. These and other defined contribution plans allow employees some investment freedoms with retirement funds they deposit themselves and maybe a matching employer addition depending on the particular agreement. This enabled individuals to potentially accumulate retirement savings which could offset some entitlement program letdowns.

Then 401(k)s and other retirement investment plans lost an average of 1/3 of their total value in the wake of the financial crisis. It was a big slap in the face for those who sought to turn their retirement funds into huge investments that erase virtually all post-retirement worries. What was once a smart way to independently insure yourself against an entitlement crisis has turned into a method of retirement planning that has garnered a fair amount of skepticism. Less Americans are putting their money in 401(k)s than ever before. Even worse, in hard times people are tapping into their retirement plans via 401k loans.

The Reassuring Role of Medigap Plans

Medicare parts A and B are entitled to all Americans over the age of 65 and are prerequisites for attaining any further alphabetized Medicare supplement. These additional plans are called Medigap plans, and are designed to meet the individual requirements of seniors who wish to pay for extra services and insurances not guaranteed by Medicare. Originally C through L, these additional offerings have since been tweaked, removing plans E, H, I, and J and adding M and N to the mix. These added benefits vary from the incredibly popular D, which helps subsidize prescription drug costs, to K, which is geared toward helping pay for hospice care.

Medigap plans are offered through private insurers. When combined with the varying state laws, authoritative bodies regulating senior living, and Medicare assistance, it can get confusing for the typical senior. Despite being embraced by 18 percent of Medicare recipients, Medigap plans are far from perfect and even farther from being perfectly understood. That’s why these plans must be understood today by the healthy minds of those who will possibly be deciding which one or ones to choose from tomorrow.

When it comes time to start slashing Medicare and Social Security spending, the first things to get considered will be the entitlements that apply to everyone. That’s why Medigap assistance might be a real life saver for those up-to-bat when the time comes. That could be never, or it could happen tomorrow. Regardless, you don’t want to be frail in your thinking when the time comes to pick the right plan. What people don’t realize is that Medicare doesn’t cover as many medical costs as they would expect. Medigap policies should be a retirement cost that’s planned on right from the beginning.

Those still a decade or more away from their retirement ought to stay up-to-date on the ongoing adjustments to Medicare. They should be ready to go with the right Medigap program when the day arrives for them to do so. They must know how to safeguard themselves against diminishing sources to fund their hard-earned entitlements, because in today’s world of crashed markets, unemployed hordes, and uncertain futures there are limited chances for those retiring to count on anybody but themselves.

Sure, our generation may still be many years away from needing Medicare or to even think about Medigap plans, but we also have aging parents who are faced with these decisions today. You can help them make the right decision by staying abreast of the ongoing changes. Then when the time comes for your own Medicare decisions you will be familiar with the process and can help ensure you’re doing the right thing for your own retirement.

The good news is that patients can actually negotiate their medical bills, but many never do. The amount that you are originally billed is not always the amount that you absolutely must pay. While negotiating won’t work in every case, the majority of patients can negotiate their bill. Here are six tips to help you negotiate your next medical bill.

1. Be proactive.

If you know that funds are tight at the moment, let your doctor or healthcare provider know before any testing or procedure has been performed. Ask the physician to quote the price of a procedure, then ask if there is anything he or she can do to lower the cost. If you’ve recently been laid off or you don’t have health insurance, make sure that your doctor is aware of your situation. Believe it or not, there is a lot of flexibility in pricing.

If your doctor won’t lower the price of a procedure, ask if you could receive a discount for paying in cash. This is where having a health savings account can come in handy. If the doctor won’t offer a cash discount mention you may switch to another doctor that does. If you don’t have health insurance, always make sure to shop around for the lowest prices before undergoing any procedure if you can.

2. If you’ve already received the bill, figure out the fair market price of the procedures you received.

The fair market price is the price that insurance companies are asked to pay for different medical procedures. This is usually the same as the Medicare rate, as Medicare prices are the standard that many insurance companies and healthcare providers go by.

To find these prices, reference the Healthcare Blue Book, which lists the fair market price of most procedures. Once you know how much an insurance company would be expected to pay, you’ll have an idea of how much room you have to negotiate.

3. Contact the billing department and ask to speak with someone who can help you with your bill.

Contact the billing department and politely ask if there is anything that can be done to reduce your bill. Make sure to speak with a person who actually does the billing and not a receptionist, since he or she will be unable to make any changes to your bill. Explain that you simply cannot afford the bill, due to your low income, a period of unemployment, or another financially difficult situation. Be as calm and polite as possible throughout the entire conversation, as this will get you the best results. Again, it’s one of those situations where you won’t know unless you try and the worst that can happen is they aren’t able to do anything regarding your bill.

4. Carefully go through your bill and ask which, if any, charges can be billed differently.

Sometimes medical bills can be reduced by billing procedures a bit differently. Medical billing and coding is a tedious, detail oriented job. Each procedure has a very specific code which dictates its price. Your bill may be able to be reduced if the billing professional is willing to change the billing codes to less expensive, but comparable procedures.

I had a situation like this a few years ago with some eye exams. I had to go see a specialist for some testing on one of my eyes and when the bill came it looked like I owed over a thousand dollars because insurance didn’t cover these specific tests. So I went back to the doctor and inquired about how these couldn’t be covered and they went back to the insurance company and billed the tests as medically necessary, which meant the health insurance kicked in and covered them. Had I not asked I may have just thoughtlessly paid the bill even though I didn’t need to.

5. Request a new bill that lists the changes in price.

If your bill has been reduced, ask that the updated bill is sent to you. It’s important to keep a copy of this bill just in case you are again asked to pay the original price. If you don’t have a copy of the new bill, you will have no proof that your bill was reduced. And if you’ve ever worked with insurance companies before, you know very well how information gets lost or comes up “missing.”

6. If all else fails, ask for a payment plan.

Sometimes there really is nothing that can be done to reduce the price of your bill. While this is unfortunate, it can and does happen on occasion. If, after negotiating to the best of your abilities you are still required to pay the full price, ask for a payment plan.

Let the billing professional know what you can realistically afford to pay and when you can make payments. Do not agree to terms that are above your means, even if you are pushed to do so. As long as you make the required payments, you will be able to keep your bill out of collections and on its way to getting fully paid.

Again, this is a strategy I’ve employed on a few occasions. Namely, the bills associated with the birth of our children. Even after insurance picked up most of the tab we were left with a few thousand dollars in co-insurance and deductibles. Rather than writing a big check I called the billing department and let them know I couldn’t pay in full. To my surprise they immediately granted me a interest free payment program. That’s right, no interest charged for making payments over time! Talk about leveraging your money.

Anyone who is fortunate enough to have a full-time job that provides health benefits probably gives little thought to their health insurance other than grumbling about the premiums. But those who are self-employed, work part-time, or otherwise don’t have health insurance provided as a benefit are living in an entirely different world.

I don’t need to tell you that the health care industry is a complete mess in this country, and given the skew toward employer-sponsored plans and plans varying from state to state it can be a nightmare for those looking to purchase their own health insurance. But for many people their only option is to head out on their own to try finding the best plan for themselves or their family.

Start With a Health Savings Account

While this isn’t exactly insurance, it can be a cost-effective way to mitigate your health care expenses. A Health Savings Account, or HSA is a personal account you create that allows you to set aside money for health care costs. What makes these accounts attractive are the tax benefits. With an HSA you are allowed to deposit money into an account, deduct the contributions, and allow it to grow tax-deferred and withdraw the money tax-free if done so for a qualified medical expense. Some expenses that qualify are: dental, vision, preventative care, baby wellness, and even insurance premiums, deductibles, and co-payments.

This is where the HSA can shine even if you plan on buying a health policy at a later date because you can use the money saved to apply toward those premiums. So, you’ll get a tax break on the contributions and a tax break on any gains within the account which can then be used to purchase the insurance. So, at the very least your first step in finding health insurance should be to establish an HSA.

For younger and relatively healthy individuals this may be the only coverage needed, but please keep in mind that it depends on what you can personal save. It won’t help you if you suddenly find yourself seriously ill and in the hospital or have an accident. But if you’re someone who doesn’t have any existing health issues and need little more than regular checkups, the HSA is a great starting point that will cover most of your bases and could mean you can save money on piggybacking a high-deductible health plan as a backup in the event of a major health issue.

Look for Group or Association Plans

Your next plan of attack should be to begin looking for group plans you may be eligible for. Group plans are usually the least expensive since the plan covers a large number of participants which spreads out the risk for the insurer. Even though you may not be employed by a company that offers a group plan, there could be opportunities out there.

You’ll need to think about what groups or associations you can identify with. Anything from your college alumni association to your local chamber of commerce. As strange as it may seem, even discount shopping clubs like Sam’s and Costco may provide insurance options. The group plans are out there, but you’ll have to do a little digging to see what’s available to you and your state. If you’re self-employed, don’t forget to check with the National Association for the Self-Employed for additional resources.

Finding Health Insurance Quotes

After you’ve exhausted your resources or have found some possible insurance plans it’s time to start looking for online insurance quotes. Health insurance premiums vary widely and even though you may have found a suitable group plan you won’t know how good the price is until you can compare it to other options. Another online quote resource is at eHealthInsurance where you can compare dozens of quotes for your situation.

Health Insurance Tax Breaks for the Self-Employed

If you’re self-employed you can ease the pain of high insurance premiums a bit thanks to some tax breaks. If you have self-employment income that’s claimed on Schedule C or F, are a member of an LLC, or own more than 2 percent of an S-Corporation, then you can take a deduction for health insurance expenses incurred for yourself, your spouse, and your dependents. Given the often high premiums for individual insurance policies this can be a nice tax deduction for your business.

It does get tricky if you have a working spouse who is eligible to participate in a group plan. As long as you are eligible to be covered under this plan, whether you opt to or not, these tax deductions for the self-employed go away for any months you were eligible for that plan.

Even if you’re required to have a minimum or all of the types of coverage listed below and you can’t really make any changes, it’s always a good idea to know what’s in the fine print. Plus, once you know what you’re actually insured for you may actually identify areas where you’re under insured. After all, you obviously don’t want to carry more coverage than you need, but you also don’t want to be exposed in the event of an accident. Not having the right coverage could have serious consequences.

1. Property Damage (PD) Liability – This mandatory (in almost all states) coverage pays for the damage caused to another vehicle in the event of an accident in which you are legally responsible. Given the high price of many vehicles and the unknown damage you could have on public property it is a good idea to have adequate coverage here.

2. Bodily Injury (BD) Liability – This coverage is very important and covers payment for damages due to injury or death in an incident that you are legally responsible. While this covers medical expenses it can also be used to pay your legal defense costs. We all know how expensive medical care and legal representation can be so again, this coverage is very important.

3. Medical Payment – This coverage is used to pay medical expenses incurred by you and your passengers during an accident regardless as to whether or not you are at fault. This coverage is optional in most states with a no-fault law because the no-fault coverage will pay for these expenses as well as often covering things such as lost wages tied to the accident.

4. Uninsured Motorist (UM) Coverage – There is one thing you can’t control while on the road and that is whether or not other drivers are insured. While it is a legal requirement in most states to have auto insurance, there are many on the roads who drive without. This coverage protects you and your passengers in the event you are involved in an accident with an uninsured driver. Typically it covers medical expenses, but some states extend this to vehicle damage as well.

5. Collision Coverage – This coverage is subject to a deductible and covers damages caused to your own vehicle in a collision. Like homeowners insurance, this coverage is generally required if you have a loan on the vehicle. When looking at collision coverage keep in mind the actual value of the vehicle that is being insured. Older used vehicles may have little or no use for collision coverage.

6. Comprehensive Coverage – In addition to collision damage, comprehensive coverage will pay for damages, subject to a deductible, from: theft, acts of nature, fire, vandalism and collisions with animals. Like collision coverage, many lenders will require comprehensive coverage on vehicles with a loan.

As you can see, there’s a lot more to your auto policy than meets the eye. It isn’t as simple as paying a premium for general coverage and a specific deductible. If you look at your own policy you may also see that some of these numbers seem a bit low. For example, just $100,000 for damages due to the injury or death of somebody in an accident is virtually nothing these days when lawsuit settlements regularly top seven-figures.

For liability coverage you will typically see the limits listed in a split format such as 100,000/200,000/50,000. This means the coverage limits would be:

• $100,000 for injury or death for any one individual in the accident
• $200,000 for injury or death for any number of individuals in the accident
• $50,000 for property damage caused to other vehicles or property in the accident

Keep this in mind when looking at your auto insurance policy and make sure you are adaquately covered for liability. Given the litigious nature of our society it would be unwise to be under insured just to save a couple bucks on your premium in the event of an auto insurance claim. The collision and/or comprehensive coverage is much easier to calculate in terms of how much to purchase. Since this coverage is used for paying for damage done to your own property the amount of coverage needed is more clear and the deductible you select can be based on the value of the vehicle and how much money you have in an emergency fund to cover the deductible and/or damages.

As with most types of insurance, nobody likes to pay for it. When we don’t have the need for insurance it seems like a waste of money, but just one unexpected event can be devastating to you and your family. Careful consideration should be done when choosing insurance to not only make sure you are adaquately insured but not wasting money on more insurance than you need. Becoming educated with your policies can lead to making the right choices to protect yourself and your family as well as keeping as much money in your own pockets as well.

The following article will help guide you through the “after events” of an accident and guide you towards the best returns on your insurance claim. We’ve compiled a list of the top 10 things you should know and do to get maximum return from an auto insurance claim.

1.) Check for rental car coverage
If your car isn’t drivable, check your auto insurance policy to find out it if covers the expenses related to a rental car. Talk with your agent to determine if you’re still liable for collision damage to the rental car, as it can vary by policy.

If a rental car isn’t covered, consider asking to borrow a car from family or friends for the time being �’ so at least you have a way to get around in the meantime. Or, look into public transportation. Some larger cities have great public subway or bus systems, as well as car share programs.

2.) Review your insurance policy
Check to see if you have more than one insurance policy that can provide coverage for the accident. Many people have more than one policy under which they can file an insurance claim. In particular, look for “umbrella” policies, credit card paperwork, and homeowner policies. If you realize during this event that your insurance isn’t very good, you’ll want to find the best auto insurance policy for the future.

3.) Prepare for a phone call
After you’ve filed your insurance claim, the insurance company will call you to get more details about the accident. The phone call will usually be made by an insurance agent or claims adjuster. If your claim is approved, the company will send out an adjuster to assess the damage, or may recommend local body shop where you can get it fixed.

4.) Prepare for a phone call from the other party
If there is a dispute about the accident, you may get a call from the other person’s insurance company, who will ask you your version of the night of the accident. Be sure to record the details of the call and ask for the name of the agent you’re speaking with.

5.) Don’t give anything in writing
Until you fully understand your coverage, don’t give anything to your insurer in writing. You’re also not required to let the insurance company record your phone conversation. If you have any doubts about your rights, don’t be afraid to ask an attorney.

6.) Keep good records
As you’re talking with the insurance company or others involved in the claims process, make sure you keep a good record of who you talked to, when you talked to them, and what was discussed.

7.) Save receipts
Being overly prepared when it comes to an auto insurance claim can definitely work in your favor. Be sure to save any and all receipts that are related to your insurance claim, repair work on the vehicle, and any medical costs for treatment of injuries. Keep these receipts from the time of the accident until you get your final insurance settlement.

8.) Find out how much your car was worth
Research what your car was worth before the accident. Claims adjustors use a variety of resources (like online pricing sites and guide books) to determine the car’s value. Factors like registration, title costs, and sales tax are often figured in as well.

Since this can vary from company to company, it’s important you do research on your own �’ and don’t just take their word for it. Check websites like Edmund’s and Kelley Blue Book to determine your car’s value. If the claims adjuster presents you with a lower offer, don’t be afraid to come forward with what you’ve found.

9.) Decide if you want your car back
�’ After an accident, many people decide to purchase a comparable replacement or even upgrade to a nicer car since repairs can’t always return the car to its original state. Even if it can be repaired to a “like new” condition, it’s lost significant value because it was involved in a major accident.

10.) Get your car repaired or replaced
�’ If you got a rental car through your insurance company, the agreement will only provide the car for so long. Soon after the accident, you should begin looking for a replacement car. Or, if you decide to repair your car, look for a reliable repair shop in your city. Some insurance companies will recommend places to use, but ultimately, it’s your choice �’ talk to friends and colleagues to see which shop they prefer.

About the Author:
Pam King writes on frugality and insurance literacy for Direct General, a low cost car insurance provider. When not saving money on her insurance, Pam enjoys knitting, NASCAR and family (usually all 3 at once)

Adding your son or daughter to your insurance can significantly change the price of your monthly payment.  This may not be a possibility for you if you are already living on a very strict budget.  That is why it is so important to be cool, calm, and collected when you make an inquiry about teen car insurance rates. Here’s how to find the best auto insurance policy.

Price Increases From 50 to 100% For Teenagers

It’s a simple fact that young drivers cost more to insure.  Insurance companies charge a rate increase of 50 to 100% when they catch wind that a teenager will be driving under your insurance policy and there is a reason for that.  Traffic crashes are the leading cause of death of young people in the United States.  Men and women ages 16 to 19 also have the highest number of accidents and safety violations out of any other age group annually.  Needless to say, the statistics are not in your teenager’s favor.

Tips For Saving Time and Money On Your Insurance Policy

Before you start feeling discouraged, be reminded that there are other ways to obtain cheap car insurance rates.  In fact, here are a few tips that can help keep your premiums low without compromising the safety and security that you have grown used to by being a loyal customer of your insurance company:

1. Be on the lookout for policies that offer “Good Driver” and “Good Student” discounts. If your son or daughter maintains his or her good grades and avoids having any accidents or major traffic violations, you may be eligible for a discount on your teen automobile insurance.
2. Choose a sensible vehicle with driver and passenger air bags. Buying your teenage child a sports car is the last thing that you want to do.  The flashier and more expensive the vehicle is, the higher your insurance rates will be.  A used vehicle of significant size and age can make all the difference in slowing your young driver down.
3. Buy a separate policy for your teen. Sometimes it is in your best interest to go with another insurance provider in order to get a better rate.  You can do some price comparisons online and narrow down your search to one or two companies that are willing to do business with you and your teenager driver.  The internet is a great place to start when you’re looking for cheap auto insurance rates.

Finding cheap auto insurance for teens takes time but is well worth the effort.  By receiving a quote online in regards to what they charge to add a young driver to your policy, you increase the chances of getting the best bang for your buck without losing your peace of mind.  You will also find solace in knowing that your teenager is being looked after even when you’re not there beside them and that it is very reassuring.

Homeowners Insurance is designed to protect a person’s home. This is an obvious need for insurance since a home is often somebody’s most valuable asset backed by a large loan. This is why most people don’t even think about renter’s insurance. You don’t own the apartment, you didn’t have to borrow money to live there, so you’ve got nothing to lose. Wrong.

Renters face the same, if not more, potential hazards as homeowners. If the primary residence is an apartment or duplex, the renter is exposed to risks that result from the actions of their neighbors, like kitchen fires, water damage, vandalism, and theft. The landlord will have insurance coverage to protect their assets and investment but it won’t protect any of your belongings. Only renters insurance will protect the resident’s property inside the dwelling.

A Renters Insurance Policy, known as an HO-4 policy, will cover losses to personal property from some or all of the following events:

• Fire or Lightning
• Wind or Hail (unless the property is in a Coastal Area where Hurricanes are common)
• Smoke
• Electrical Surges
• Water Damage from malfunctioning appliances
• Falling Objects
• Damage Caused by Motor Vehicles or Aircraft
• Explosions
• Vandalism
• Theft
• Riot or Civil Unrest
• Damage Caused by Glass that is part of the building
• Damage Caused by the Weight of Ice, Snow, or Sleet
• Volcanic Eruption

As with homeowners insurance, flood and earthquake damage are not included. These events are covered by separate policies or additional riders to the policy. The primary function of renter’s insurance is to protect the property of the policy holder. The policy holder’s interest may not be covered if they are liable for damage to someone else or their property. For this reason, renters may want to include liability coverage in their policy in the event someone is injured while visiting them. Dog related injuries are also not covered by the typical HO-4 policy.

Buying Renters Insurance

When shopping for renters insurance, the first set of factors to keep in mind are cost, amount of deductible, and payment options. Renters insurance premiums are affordable, typically averaging $30-$50 per month. A higher deductible means a lowers premium but also means you will need to pay more out of pocket in the event of a claim. Payment options tend to vary by company. Some require monthly payments while others expect semi-annual or annual payments. If the premium is paid semi-annually or annually, the coverage may not transfer if the policy holder moves.

Discounts may be available in certain circumstances. Renters over the age of 55, those who purchase their policy from their auto insurance company, and those who have protective devices like burglar alarms, smoke detectors, and fire extinguishers may be eligible for discounts, so it is important to shop around.

Types of Renters Insurance Coverage

It is also important to research the coverage. Some policies are written to cover the actual cash value of items while others cover the replacement cost. If the policy holder would rely on the insurance to replace their furnishings or electronics, actual cash value policies will decrease the value of those items with age to account for depreciation. Replacement cost policies will pay out at the value of new items at the time of the loss, minus the deductible. Renters policies usually exclude coverage for high ticket items. Collectibles, antiques, and luxury items may require a supplemental policy.

Renters insurance policies will cover living expenses if the policy holder is forced to leave their apartment for an extended period due to damage to the structure. This coverage can be for the amount paid in excess of the standard rent or the full amount so this is important to find out before there’s an actual claim so you know what to expect. The insurance company will determine the length of time that this coverage is provided. People who believe their belongings are not worth enough to justify the cost of the policy should consider this additional benefit as it could at least keep them from being completely displaced if a disaster occurs.

Filing a claim on a renter’s insurance policy can be difficult if the policy holder does not prepare in advance. Keeping an up to date inventory of all personal property owned or purchased is essential. Photo inventories that include serial numbers or other identifying features are very helpful when filing a claim for losses incurred from theft. A written home inventory that includes dates and purchase prices is very effective for all loss types. Having receipts for purchases will also make filing a claim easier.

So, don’t stop at buying a policy. You’ll need the policy to cover any loss, but you’ll also need to know what you have in your apartment that needs to be replaced when disaster strikes. Trying to think of everything you lost and how much it’s worth in a time of crisis is very stressful, you’ll probably miss some important items, and if you don’t have sufficient proof you may be denied replacement.

Do You Need Renters Insurance?

Nobody likes to pay for insurance. Whether it’s a home, car, health or life, it’s one of those things where you usually just pay and pay while never realizing much of a benefit. This is the wrong way to look at it because while it may seem like you’ll never utilize the benefit, the time you do you’ll likely realize those premiums paid for themselves a thousand times over.

This is especially true with renters insurance because it’s so inexpensive. Think about it. What is 30 dollars a month really covering? Consider what you might have of value in your apartment:

• Television
• Computer(s)
• Cell phone
• Your entire wardrobe
• Stereo
• Video camera
• Jewelry
• Furniture
• Cookware
• Books

Given the cost of electronics these days, just having your iPhone or TV damaged alone could mean hundreds of dollars lost. When you start to add up everything in your apartment you don’t realize just how much you’ve accumulated over the years and after all said and done you could be sitting on well over $10,000 worth of personal belongings even in a small apartment.

Obviously, if you live a minimalist lifestyle and don’t have much more than the clothes on your back it might not be a good use of money to buy insurance, but most people have a lot more in the way of personal belongings than they realize so it’s probably even more costly to not have coverage at all.