Companies that provide auto insurance are all playing the same game. They’re trying to outmaneuver each other and pick off each other’s clients through a variety of guarantees, pricing and marketing techniques. Luckily for us, all this competition works out to our advantage, even after we’ve purchased auto insurance.

Insuring your car is different than other types of insurance in a few ways that really play to our advantage:

• It’s less regulated.
• The sign up process is quicker.
• Competition is very high.
• It’s easy to drop one and move to another.

The ease by which you can pick up an auto insurance policy or drop one is quite remarkable compared to other types of insurance. In fact, 45 minutes and a couple phone calls can have you switched over to a new policy with time to spare.

This sets up a nice foundation for us to shop around and look for a better price on a regular basis. Even if you have a good auto insurance policy, there are a few excellent reasons to keep calling around to see if you can get a better price.

Here are three reasons why you’ll probably see some good results.

Insurance reps will bend over backwards to beat your current rate. – If you have a policy and call a competing company, posing as an unsatisfied customer, you’re essentially a gold mine to them. The person on the phone with you truly has every incentive to beat your current insurer’s price and will look for every possible way to give you a discount. If you do this for three or four different companies, you could end up with some pretty low quotes. Go with the lowest one, wait a few months than start the process all over again.

Some companies have discount policies that you might be unaware of. – Owning a newer car or turning 25 are some of the more known ways you can get a discount on your auto insurance. Though there are often discount policies companies have that you won’t know about until you call or do some research.

Even if you’ve gone with an auto insurance policy already, that company won’t call you and tell you about these discounts; you’ve got to ask them yourself. Call them up or do some digging. If you aren’t happy with the answers, jot them down and call some other insurance companies to see if they can offer you a wider range of discounts.

Rates can change on a fairly regular basis. – Auto insurance rates are wildly unpredictable, so it pays to keep checking back, whether you’re getting quotes online or just calling the companies and talking to a representative.

The downside of being this aggressive is that you’re bound to get your fair share of annoying call backs. Though if you’re thrifty at screening your calls and don’t mind doing so, a little prodding every few months is likely to save you a substantial amount on your monthly premium.

Conclusion

At some point in this process you’ll probably hit a dead end, but most people don’t even shop around. Make sure that you do until you’re certain you’ve got the lowest price available, then give it a year or so and go back for another round. You might be able to get your savings in the triple digits, which will really add up over the course of a year or two.

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written by:  Jenny Sampson

Jenny Sampson is a professional blogger that enjoys providing consumers with personal finance advice. She writes for TitleMax.biz, a leading Title Loan company offering loans for people with bad credit.

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Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Over the years it seems like our culture has gotten nervous. We’re worriers, where everything we buy and everything we do carries with it some level of uncertainty and risk. As a result we do our best to shore up our lives with insurances, policies and guarantees, that give us a comfortable cushion to fall back on should the unthinkable or even the inconvenient happen.

While some of these insurances are wise and prudent to pay for, a lot of the smaller warranties and obscure coverage plans that are available are not necessary. As a general rule of thumb you should avoid these areas and save the money to pay for plans that cover things that actually matter.

Here are five such plans that one could argue, are a complete waste of your money.

Cell Phone Replacement Insurance

Your cell phone plan is likely already expensive and adding to that in case you break your phone isn’t necessary. Phones can break, though it’s often cheaper to buy a used phone to get through until your contract is up than paying for the warranty. Even the stores themselves will usually have used phone for sale. If not, Amazon and EBay have plenty to go around.

Any “Extended” Warranties

If you buy a computer, TV, an appliance or any other product that offers an extended warranty, avoid wasting extra money on something you’ve already paid for. They’ll often give you the option of adding a warranty on to your purchase right before they finalize your sale. They put you on the spot making you feel like you’re making a life or death decision. Don’t fall for it. Even if what you’re buying does break, most retailers provide a 30 day money back guarantee along with the manufacturer’s warranty that’s usually good for one year. Even if your item does fail, a few aggravated phone calls can go a long way in getting it fixed or replaced for little or no cost.

Identity Theft Protection

Less than $100 per year seems like a small price to pay to protect your identity, though what you might not know is that a lot of home insurance policies include a form of identity theft protection. Also most banks will cover fraudulent use of your credit and debit cards and alert you or lock your card if they notice any suspicious activity.

Rental Car Insurance

This can be a bit of a calculated risk, but if you check with your auto insurance company they probably already have you covered on any liability here. Make sure you do your homework, but if you’re already covered, don’t let the rental car companies drive your daily rate up any more than it already is.

Credit Card Balance Insurance

This type of insurance is sold as something that will pay of your credit card bill if you can’t work for some reason. This is a waste on several levels. First, disability policies usually give you more than enough to take care of bills in the event that you can’t work for an extended period of time. Second, it’s really just another way for your credit card to start costing you even more than it already has. If you can’t simply avoid running up a massive credit card bill in the first place (which is the preferable solution), putting away money for an emergency fund is a more cost effective method of preparing for such an event.

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written by:  Chantille Watson

Chantille Watson is a personal finance expert who enjoys giving readers a heads up about money saving tools and sites like the Choosi insurance comparison website.

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Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Image courtesy of Naypong / FreeDigitalPhotos.net

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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While we’re on the topic of surprise expenses – seniors, don’t leave any surprise expenses for your loved ones! It’s not too late to purchase senior life insurance which will help with both burial expenses and final bills.

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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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