The Budget Diet

The first thing to do after an accident is to be sure that everyone involved is alright. Later on, a top concern is how much your insurance rates will increase. The general answer depends on several factors. According to the Insurance Institute for Highway Safety, typical factors to determine insurance rates may include: who is at fault, the location of the accident, and the age of the driver. They also take into account the driver’s previous driving record and any prior insurance claims.

Surcharge Schedule

Every auto insurance company has different procedures regarding accidents. Some will be lenient and forgive a first-time accident, while others have a blanket policy for accidents, even if it is the first offense.

All insurance companies, regardless of established policies regarding accidents, use a surcharge schedule to determine how a policyholder’s premium will be impacted. The surcharge schedule takes several factors into consideration including previous accident and points on your driver’s license. Most states require insurance companies to present their surcharge schedule to a policyholder when they purchase a new policy. A general rule of thumb: the cheaper the insurance premium, the higher the markup following an accident.

Getting Down to Business

Most insurance companies follow standards established by the Insurance Services Office (ISO). While some insurance companies give first-time accident policyholders a break and only increase their premium ten percent, the ISO standard is to increase the premium by 20 to 40 percent after an initial accident. Do not expect to get a break the second time though. Most insurance companies will jack up rates substantially if a policyholder has another moving violation or accident following their initial accident. Even companies offering "accident forgiveness" will seriously increase insurance rates for a second accident.

Deciding to File a Claim

This is the "should I or shouldn’t I" moment. There is no law requiring that a driver file an insurance claim for every accident. The concept of car insurance is to pay for damages from an accident to the insured’s vehicle and other vehicles, people and property that were involved. Without insurance, these costs would likely be astronomical. If it is a serious accident involving a lot of damage, it is best to file a claim. If the amount of damage is just above the deductible or minimal, it may be best not to file a claim and pay any expenses out-of-pocket. In the end, it could save policyholder money.

Understanding Comprehensive Claims

Comprehensive claims are claims filed due to storm damage, theft and other accidents not directly involving the fault of any driver. Some states have laws regarding how much your insurance rates can be increased because of comprehensive claims. A policyholder may have a premium increase if it is determined that the damage could have been prevented within reason. For example, do not expect a break if you leave your car running with the keys in the ignition, and it is stolen.

Keeping It in Perspective

Being prepared for an accident starts with the type of insurance policy the insured selects in the first place. If you have to pay more than 20 percent for a first time accident, it is best find another policy. If you do end up having an accident, relax and remember that you have options. Decide if filing a claim makes sense in your situation, and remember that your rates can go back down over time.

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Life is full of surprises, and those surprises often come in the form of unexpected expenses. The Budget Diet refers to those surprise expenses as “Oh No Expenses.” If you or a loved one is on a fixed income, then you know there is little room for financial surprises.

Does a trip to the emergency room blow your budget for the entire month? Are co-pays a strain on your monthly budget? Don’t you hate having to meet your deductible every year?

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This article is written by me on behalf of Medicare Supplemental Insurance. All opinions are 100% mine.

written by: Kelly Wilson

The costs of healthcare and health insurance have steadily risen over the last several years, adding additional strain to my budget. As a money-saver, I’m interested in all of the healthcare options and health insurance Portland contains within its city limits, as well as what’s offered in other parts of the country.

During my research, I was pleased to discover that there are many ways that we can help decrease the cost of remaining healthy!

Practice Good Health
This tip is obvious and heard all the time, but it bears repeating. No health care treatment can match eating appropriate amounts of food that benefits your body as well as exercising regularly.

Quit Smoking
The monetary savings of this decision equals about $5 a day, and the health benefits are priceless. There are many educational resources and aids – like nicotine gum and patches – to help you quit rather than go it alone.

Invest in Prevention
It’s far cheaper to schedule an annual physical or gynecological exam than to wait until you don’t feel well to get checked out by a doctor.

Explore Clinic Options
There are some mainstream retail stores that now offer clinic services for basic healthcare needs. These clinics are operated by independent hospitals and healthcare providers at low costs that are clearly posted. These opportunities can also keep you out of the emergency room as well as avoid costly hospital bills.

Evaluate Your Medication
You may have a prescription for a drug that isn’t covered by your insurance company. However, there may be a similar medication that your insurance company will cover. This medication information is on a “formulary,” which is a list of drugs that your insurance will pay for. Take this to your doctor so he has access to the information when writing your prescription.

Talk to the Nurse
Unless it’s an emergency, you may not need to go in to your hospital or clinic to be seen. Call your doctor’s office and ask first to speak to the nurse. The advice from the nurse and a few more days might be enough to wait out your issue.

Avoid Unnecessary Tests
How do you know when it’s time for a mammogram or other costly test? Unless there are symptoms or family history, there are usually general guidelines for tests like these. Research the tests that pertain to your situation to help you decide which ones are necessary and which can wait.

Ask About a Discount
Depending on your financial situation, you may qualify for a hospital discount. Meet with hospital administrators and bring proof of your family’s income to see if you qualify.

Increase Your Deductible
If you currently have health insurance, you may be paying a higher monthly fee but have a low deductible. Call your insurance company for information regarding increasing your deductible and lowering the amount of money out of your pocket each month. Make sure to discuss the long-term benefits and consequences of this decision.

Use an HSA
A Health Savings Account is a good complement to a high-deductible insurance policy. Basically, the money you put into a Health Savings Account is used for medical expenses until the higher deductible is met. Any other funds remaining earn tax-free interest.

Kelly Wilson is a busy mom and freelance writer who works hard to save money on the variety of healthcare options and health insurance Portland can offer.

Reduce your insurance premiums and save your money!

Take 5 minutes today & call your insurance company to review both your auto & homeowner’s policies.

Do a quick review of your policy with your agent, and then ask your agent how you can reduce your insurance premiums. You might be surprised to find there are discounts available that you haven’t taken advantage of! For example: good student discount & security system discount.

Did you know the average person will save $10 – $75 per month by boosting their deductible…WOW, that’s instant savings! What’s the catch? Just make sure you keep plenty in your savings account to cover that higher deductible if needed.

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