10 Tips to Help Curb Rising Auto Insurance Premiums
10 Tips to Help Curb Rising Auto Insurance Premiums
Auto insurance can be expensive. According to recent data gathered by Business Insider, the average cost for car insurance between 2017 and 2019 was $1,566 per year. Although a variety of factors, including the state you live in, determine how much a typical driver pays, you may nevertheless be able to reduce your costs. To give you a better understanding of what goes into insurance prices, we list some of these factors below, followed by some tried-and-true ways to save. Factors that Affect Costs There are a number of different factors that influence what you end up paying for car insurance. Depending on these factors, your rates may fluctuate. For example, you can get better rates by driving for an extended period without accidents or tickets. You may also qualify for lower rates simply as you get older and have more driving experience. Age and experience are among the multiple factors that determine auto insurance costs. These broad-based underwriting criteria include: Age and genderMarital statusYears of driving experienceCoverages and deductiblesType of vehicleLocation of vehicle (state)Whether the vehicle is used for work or personal transportationDriving recordClaims historyCredit historyPrevious history of insurance coverage Tips and Ideas to Help Cut Car Insurance Costs It's possible to save money on your car insurance simply by being proactive. You should constantly check for discounts, compare different rates online, and look to take advantage of other excellent opportunities that may be available. There are discounts for education, good driving, or even installing safety equipment. You could get savings by doing any of the following: Insure more than one carMaintain a good credit ratingGet good grades (if you're a student)Take advantage of low-mileage discountsIncrease your deductibleDrop collision coverage on older cars worth less than 10 times the premiumInstall anti-theft devicesTake defensive driving coursesRemain a long-term customerHave no moving violations or accidents in three years Insurance costs can fluctuate for many reasons. When you take charge of your coverage, you can identify what things may help you save. That's why it's important to shop for insurance, research any available discounts, and let your agent know that you may qualify for lower costs. Keep these tips in mind when it's time to renegotiate your premiums or shop for new auto coverage.
What Everyone Should Know About Mortgage
One of the many aspects of the American Dream is owning a home. Getting a mortgage is just one of the many complex steps it takes to get there. If you are contemplating homeownership and have no idea where to get started, we've created a simple breakdown of a mortgage to make this big, but complicated, step a whole lot easier. The Simple Explanation—What is a Mortgage? A mortgage is a type of loan used to buy or refinance a home. Most people who buy a home will do so with a mortgage as it's a way to make your purchase without having to pay cash upfront. The Different Types of Loans Mortgages come in many shapes and sizes. Conventional mortgagesA conventional mortgage is made up of conforming and non-conforming loans. In a conforming loan, the loan amount falls within limits set by the Federal Housing Finance Agency. Loans that do not meet these guidelines are considered non-conforming loans. Conventional loans are ideal for borrowers with strong credit, a stable income and employment history, and a down payment of at least three percent.Adjustable-rate mortgagesIn an adjustable-rate mortgage (ARM), the initial interest rate is fixed for a period of time. Look for an ARM that caps the amount your interest rate or monthly mortgage rate can increase to so that you don't wind up in financial trouble when the loan resets. If you do not plan to stay in your home beyond a few years, an ARM could save you big on interest payments.Fixed-rate mortgagesThe term 'fixed-rate mortgage' refers to a home loan that has a fixed interest rate for the entire term of the loan. In other words, your monthly mortgage payment always stays the same. If you plan to stay in your home for a long period of time, this loan type might be ideal.Government-insured mortgagesA government-backed or insured mortgage program is when a private sector lender issues the loan to the borrower and the government insures or guarantees it. Examples of government-insured loans are FHA loans, USDA loans, and VA loans. Government-insured loans are ideal if you have low cash savings or less-than-stellar credit and cannot qualify for a conventional loan.Jumbo mortgagesJumbo mortgages are conventional types of loans where the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency. Jumbo loans make sense for more affluent buyers purchasing a high-end home. Qualifying for a mortgage To qualify for a mortgage, you must meet certain eligibility requirements. It's important to be realistic about what you can afford on a monthly basis. Your lender does need to know that you have enough money coming in to cover your mortgage payment, as well as your other bills. The type of property you want to buy will also affect your ability to get a loan. Your credit score is an important factor in qualifying for a mortgage. A high credit score typically means that you pay your bills on time. How does a Mortgage Loan Work? Your lender will give you a set amount of money to purchase a home. You will agree to pay back this loan with interest over a set amount of time. Until you pay off this loan, the home is not completely yours. The Bottom Line is A mortgage is likely to be the largest loan you take out over the course of your lifetime and comes with a lot of variables. If you are looking to buy a home, this article hopefully has given you some confidence to continue on your journey. Work with a mortgage expert to get the deal that will best work for you.
What's the Difference Between Medicare and Medicaid
Medicare and Medicaid are two programs enacted by the federal government. However, Medicaid is truly administered at the state level. Both of these insurance plans were created in 1965 by the Johnson administration. These programs are designed to provide healthcare coverage to people who meet certain eligibility guidelines. Each program has its own benefits, and it's important to understand how these insurance plans work so you can take ownership of your health. Eligibility Requirements In order to qualify for Medicare, you must be at least 65 years of age. Medicare has many sub-components and is available to you as a portion of what you paid as a worker or taxpayer. Medicaid's eligibility is income-based. People with a very low income may qualify for Medicaid. People who are both low-income and over the age of 65 may qualify for dual-eligibility to both of the insurance plans, with the programs working together to provide healthcare coverage. Open Enrollment Medicare has a specific open enrollment, which takes place each year in the fall. If you already have a Medicare insurance plan, you can change your enrollment at that time. There is no open enrollment for the Medicaid insurance plan. You can apply for the program any time you think you're eligible. Healthcare Coverage Medicare coverage is the same no matter where you live. Your healthcare coverage depends on the plan you choose. Medicaid healthcare coverage is determined by the state in which you live. A state can choose whether or not to cover health needs such as dental care, chiropractic care or vision care. Medicaid has mandatory benefits such as hospitalizations and visits to your family doctor. Each state sets its own optional coverage. See if any of these health insurance plans could benefit you.
5 Reasons Your Auto Insurance Is Too High
Next to purchasing a home, a car is probably the most expensive personal investment you'll make. While home insurance is optional, the same can't be said for auto insurance. In every state (except New Hampshire) auto insurance is required. But why does auto insurance have to be so expensive? Here are 5 reasons car insurance costs so much, with some additional ideas on how to lower your insurance rate. You're Too Young According to the Center of Disease Control and Prevention, drivers under 20-years old are three times more likely than adults age 20 and above to be in a fatal car accident. If you have a teen driver, the best way to lower their insurance costs is to simply wait until they're older. And if they're able to avoid accidents, their safe driving record could also help decrease their future premiums. You can also consider listing your teen as an occasional operator of their vehicle rather than a principal driver. This small change could help lower the cost for the time being, but it will only work if the principal driver is a parent or guardian. You Have a Low Credit Score If your credit score is poor or not yet built up, you may be seen as a 'high-risk driver'. Your credit score can impact your insurance regardless of your driving record, age, or car. By boosting your credit, you may be able to save on your insurance costs. You're Paying for Full Coverage Typically a new car owner should get full coverage for their vehicle. However, as your car depreciates in value, full coverage might not be worth it anymore (especially if you maintain an excellent driving record). Liability-only insurance can help you save and it might be all you need since it covers your vehicle if another driver is at fault. You Drive Less Than Your Insurer Thinks Accuracy counts when it comes to estimating your annual mileage. If you overestimate how much you drive, it could cost you. The mileage you previously submitted to your insurance provider may have changed since you picked your plan. Take a moment to estimate how much driving you're currently doing. Give your insurance provider a call and give them the updated figure. A few minutes of calculating could save you hundreds on auto insurance. You Live in an Accident-heavy Area If you live near a congested road, highway, or shopping area, you've likely seen a few accidents. Your auto insurance provider may increase your insurance rate if you live in an accident-prone area. Remember to keep your insurance company updated if you move to a rural or less busy area since it may end up lowering your car insurance costs.
The Complete Beginner's Guide to Car Insurance
Before you buy auto insurance online or call a broker, you should take time to understand what you're paying for. Knowing the basics about car insurance will help you to spot a good deal and avoid unwanted surprises. Although insurance can be complicated, mastering the basics will give you an advantage.[ilembed type="cta" vertical="autoinsurance" target="cta1"]You might think that the first step in getting a good auto insurance quote is to start calling various brokers and compare their offers. But there's an important step that comes before the phone calls, before the Google search for agents, and that's understanding how car insurance works in the first place. Auto insurance can be a complicated topic. Fortunately, just knowing some basics will probably give you a big advantage in selecting a coverage plan. This can result in better protection for your vehicles, and/or could save you hundreds of dollars every year - money that could go toward a family getaway, or a romantic weekend for two, or some extra Christmas presents at the end of the year.[ilembed type="banner" vertical="autoinsurance" target="banner1"]So, time spent learning these basics is time well spent! Considering Different Coverage Options The first thing about car insurance to remember is that an insurance policy contains multiple different coverages. Furthermore, each coverage could be applicable to a specific situation. For example, state law requires all drivers to carry liability insurance. This pays for injuries and damages you're responsible for if you cause an accident. These other coverages can be added to a policy to protect your own assets: Collision pays for damages to your vehicle sustained in an accident regardless of who's at fault.Comprehensive pays for damage to your vehicle as a result of weather, vandalism or other non-collision losses.Medical payments coverage pays for your injuries as a driver or passenger.Uninsured motorist coverage pays for damage to your vehicle if a driver without insurance damages it. You might also add optional coverages, like rental reimbursement and roadside assistance, to help keep your vehicle protected. Paying Your Deductible All first-party coverages like collision and comprehensive will come with a deductible. This is the amount that you agree to pay toward your vehicle's repairs in the event of a claim. Carrying a higher deductible will shave some money off of your monthly premiums. Understanding Your Rates All insurance companies base their rates on a driver's level of risk. When you get car insurance quotes, you are receiving a price based on how risky the insurer believes you will be. In other words, insurance costs more if you are likely to use it. These factors are considered in car insurance rates: • Age• Experience• Previous driving history• The type of car being insured• The state the policy is sold in• Financial responsibility You may find that your rates differ between insurance companies. This is because every insurer calculates risk differently. Therefore, it's a good idea to comparison-shop for multiple car insurance quotes before settling on any one company. Are you ready to start your search for car insurance discounts? If so, check out this insurance company.[ilembed type="cta" vertical="autowarranty" target="cta2"] .fl-post-content.clearfix h4 { font-weight: bold; font-size: 16px; line-height: 1.8; color: #808080; font-family: "Helvetica",Verdana,Arial,sans-serif; /* font-size: 14px; */ /* font-weight: 400; */ line-height: 1.45; font-style: normal; padding: 0; word-wrap: break-word; }.fl-post-content ul { margin: 0px !important; padding: 0px !important; }