Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows everything about you and your vehicle. Carinsurance.com goes out of their way to find all the possible discounts that are available to each customer.
Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.
Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.
First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.
Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.
Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your Business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.
Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile Home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.
You could lower the cost of your insurance in other ways. For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.
In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.
Understanding how discounts affect your insurance rates is important to save you money.
2007年11月29日星期四
Do Insurance Premiums Increase Every Year?
Many people ask, "If I am supposed to get a renewal discount, why do my premiums seem to increase with each renewal?" The answer is not always so simple. Each year, new vehicles cost more then they did the previous year. It will probably cost more to fix a damaged vehicle than it did last year, or five years ago when you first bought your current policy. However, in many cases, your renewal premium will be less. Some factors that contribute to decreases in your premiums are straightforward.
According to the Insurance Information Institute (I.I.I.), the cost of auto insurance is expected to rise only 3.5% in 2004, the smallest increase over the last four years. Why? The number of auto accidents is on the decline due to better drivers and safer cars as well as crackdowns on fraud and abuse. However, due to the rising costs for medical care, vehicle repairs and skyrocketing jury awards the potential of price increases remain a problem. Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts, and New York.
The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, the I.I.I. observed. The average cost for auto insurance nationwide for 2004 is estimated at $871, an increase of $29 per vehicle from last year.
Unfortunately, even though drivers are filing fewer claims these days, the claims that are filed are costing the insurance companies more than they used to. It is costing more to repair cars as the amount of damage sustained in crashes is up from what it was a few years ago. Some in the industry feel this is due to accidents involving sport utility vehicles.
The cost of medical coverage is also increasing. This year insurers could pay as much as $20 billion in medical claims. Higher costs for hospitalization, medical care, medication and associated legal costs are also to blame.
What can you expect to pay for insurance? In many cases, your renewal discount will offset a rate increase from your company. It can become hard to keep track of increases if you make many changes to your policy. When you move to a new residence or get a newer vehicle as these factors affect the rate you pay. Your driving record is also one of the factors the insurance company uses in determining your rate. Go to http://www.carinsurance.com. Not only will you get the rates of various insurance companies, you will see the A.M. Best rating for each company along side their rates for you personal situation.
Now is the time for your fingers to punch their way to a quick rate analysis and view the ratings at the same time.
Visit http://www.carinsurance.com to Check Out the Lowest Premiums Available!
According to the Insurance Information Institute (I.I.I.), the cost of auto insurance is expected to rise only 3.5% in 2004, the smallest increase over the last four years. Why? The number of auto accidents is on the decline due to better drivers and safer cars as well as crackdowns on fraud and abuse. However, due to the rising costs for medical care, vehicle repairs and skyrocketing jury awards the potential of price increases remain a problem. Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts, and New York.
The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, the I.I.I. observed. The average cost for auto insurance nationwide for 2004 is estimated at $871, an increase of $29 per vehicle from last year.
Unfortunately, even though drivers are filing fewer claims these days, the claims that are filed are costing the insurance companies more than they used to. It is costing more to repair cars as the amount of damage sustained in crashes is up from what it was a few years ago. Some in the industry feel this is due to accidents involving sport utility vehicles.
The cost of medical coverage is also increasing. This year insurers could pay as much as $20 billion in medical claims. Higher costs for hospitalization, medical care, medication and associated legal costs are also to blame.
What can you expect to pay for insurance? In many cases, your renewal discount will offset a rate increase from your company. It can become hard to keep track of increases if you make many changes to your policy. When you move to a new residence or get a newer vehicle as these factors affect the rate you pay. Your driving record is also one of the factors the insurance company uses in determining your rate. Go to http://www.carinsurance.com. Not only will you get the rates of various insurance companies, you will see the A.M. Best rating for each company along side their rates for you personal situation.
Now is the time for your fingers to punch their way to a quick rate analysis and view the ratings at the same time.
Visit http://www.carinsurance.com to Check Out the Lowest Premiums Available!
The Many Benefits of Travel Protection Plans
Many people purchase insurance thinking I want full coverage and once I get it I will be covered for every event that may befall my vehicle. But then they begin to question if every type of incident is covered with full coverage. Some events that people question if they are covered for are: if my car breaks down what about towing costs or if I need a rental car does the insurance company pay? Towing service and rental service is not an automatic service that you are covered for but it can be easily added to a new policy purchase or during the renewal process.
There are many benefits for you with the travel protection plan that is offered with auto insurance policies. First of all this optional coverage does not cost you anything more on your initial down payment. That's right, nothing extra on your down payment. Whether you decide to add it or not you still pay the same down payment. This service is 100% financed into your monthly payments and for so much coverage the cost is very small!
The benefits for you are these:
If you are in an accident or if your car just breaks down, this service will reimburse you for towing service up to $50 each time you use it! If you need to be towed multiple times during your term no problem, you can use this towing plan as much as you need it. You are not required to use just one company either; you are able to use any company you wish.
Another benefit is that if your vehicle is disabled due to an accident or is stolen, you will be reimbursed for rental expenses up to $25 a day for as long as 10 days! If you are traveling, for example visiting family and are 250+ miles from home, this plan will also reimburse you for up to 5 days to get Home at $25 a day. Again you may use any company you wish for your rental. In addition any personal effects in a rental car that may be stolen or are lost due to fire in a rental car will be covered up to $300.
Many people, during their busy day, find themselves accidentally leaving his or her keys in their car just as they close the door. Normally one panics and wastes time trying to find a way to break into their own car or calling for some to come bring that extra key from Home. Most likely you still end up calling a locksmith to unlock the car and you won't be getting that money back. The travel protection plan saves you because it will reimburse you up to $25 for lock out service if this happens to you.
If you are unfortunate enough to be in an accident that requires you to be taken to a hospital, this plan is also helpful. When an ambulance is sent out to the accident site, you have to pay a service fee but the plan will reimburse up to $100 for this situation.
The final benefit worth mentioning is the bail bond service it provides. This plan will reimburse for up to $10,000 of bond expense if you are in a situation that would cause you to be incarcerated due to traffic violation. You may think you never get in trouble, but what if you were pulled over for driving with a suspended license because you failed to pay that old parking ticket you had forgotten about? Or what if you had a glass of wine at a nice restaurant and was stopped and considered to be over the local legal alcohol limit? You are not a criminal, but things like this sometimes do happen. If any of these examples occur, it is nice to know that you may be covered for bond service!
For just approximately 16 cents a day per car you can get all these great benefits. Peace of mind is also one of your greatest benefits from this plan. Again, your down payment will not go up at all! Why would you want to pay for any of these expenses and not get reimbursed? If any of these situations happen someone has to pay. It is either you or your insurance company so why not purchase this plan and have them pay.
There are many benefits for you with the travel protection plan that is offered with auto insurance policies. First of all this optional coverage does not cost you anything more on your initial down payment. That's right, nothing extra on your down payment. Whether you decide to add it or not you still pay the same down payment. This service is 100% financed into your monthly payments and for so much coverage the cost is very small!
The benefits for you are these:
If you are in an accident or if your car just breaks down, this service will reimburse you for towing service up to $50 each time you use it! If you need to be towed multiple times during your term no problem, you can use this towing plan as much as you need it. You are not required to use just one company either; you are able to use any company you wish.
Another benefit is that if your vehicle is disabled due to an accident or is stolen, you will be reimbursed for rental expenses up to $25 a day for as long as 10 days! If you are traveling, for example visiting family and are 250+ miles from home, this plan will also reimburse you for up to 5 days to get Home at $25 a day. Again you may use any company you wish for your rental. In addition any personal effects in a rental car that may be stolen or are lost due to fire in a rental car will be covered up to $300.
Many people, during their busy day, find themselves accidentally leaving his or her keys in their car just as they close the door. Normally one panics and wastes time trying to find a way to break into their own car or calling for some to come bring that extra key from Home. Most likely you still end up calling a locksmith to unlock the car and you won't be getting that money back. The travel protection plan saves you because it will reimburse you up to $25 for lock out service if this happens to you.
If you are unfortunate enough to be in an accident that requires you to be taken to a hospital, this plan is also helpful. When an ambulance is sent out to the accident site, you have to pay a service fee but the plan will reimburse up to $100 for this situation.
The final benefit worth mentioning is the bail bond service it provides. This plan will reimburse for up to $10,000 of bond expense if you are in a situation that would cause you to be incarcerated due to traffic violation. You may think you never get in trouble, but what if you were pulled over for driving with a suspended license because you failed to pay that old parking ticket you had forgotten about? Or what if you had a glass of wine at a nice restaurant and was stopped and considered to be over the local legal alcohol limit? You are not a criminal, but things like this sometimes do happen. If any of these examples occur, it is nice to know that you may be covered for bond service!
For just approximately 16 cents a day per car you can get all these great benefits. Peace of mind is also one of your greatest benefits from this plan. Again, your down payment will not go up at all! Why would you want to pay for any of these expenses and not get reimbursed? If any of these situations happen someone has to pay. It is either you or your insurance company so why not purchase this plan and have them pay.
Taking The Mystery Out Of Long-Term Care Insurance
enHere's the good news: with improvements in medical technology and healthier lifestyles, people are living longer. life expectancy today has increased to 83 years, up from 78 years in 1940 (The Shopper's Guide to Long-term Care Insurance from the National Association of insurance Commissioners).
However, the longer people live, the greater the chances they will need assistance due to chronic health conditions. Today, about 12.8 million Americans of all ages require some type of long-term care (National Academy on Aging, 1997). This number is expected to climb as the baby boomer generation moves into retirement. Over a lifetime, nearly 50 percent of all people will require some type of long-term care assistance.
One way to pay for some or all of your long-term care expenses is insurance. First introduced in the 1980s, long-term care insurance was originally designed as nursing home insurance. Today's long-term care policies now cover much more. They include Home health care, assisted living facility care, adult day care, Alzheimer's facility care, respite care and hospice care.
So how does long-term care insurance work? Long-term care insurance is not health insurance, and long-term care expenses are not covered under private health insurance, Medicare or Medicare supplement policies.
However, long-term care insurance is similar to health insurance in that an individual must apply for coverage by going through medical underwriting. The insurance company decides whether to offer long-term care coverage based on your current health conditions and age. In most instances, a person's medical records will be reviewed by the insurance company. Additionally, some applicants may be required to have a face-to-face or a telephone interview. Not everyone is insurable. People who already have health problems are likely to need long-term care but won't be able to buy a long-term care insurance policy. Your money may pay for long-term care insurance coverage, but it's your health that buys it.
Once a long-term care policy is issued, the insured individual becomes eligible to receive benefits once a healthcare professional certifies the insured is "chronically ill" -- unable to perform two of the Activities of Daily Living (ADLs) for a period of 90 days or longer; or be severely cognitively impaired. ADLs include bathing, eating, dressing, toileting, transferring (moving into or out of a bed, chair or wheelchair) and continence.
"At what age should I apply for long-term care insurance?" Generally, experts suggest you apply between ages 50 and 55. The younger you are when you apply, the better the chance you will be healthy enough to qualify. It's also during these years prior to retirement that your income is normally at its highest and you're better able to pay the insurance premiums.
Long-term care insurance policies vary widely. A professional specializing in long-term care insurance can be a great resource to consumers in considering the many options available today.
Brent Dees, president of Brent Dees Financial, is a small business coach and financial planner w
However, the longer people live, the greater the chances they will need assistance due to chronic health conditions. Today, about 12.8 million Americans of all ages require some type of long-term care (National Academy on Aging, 1997). This number is expected to climb as the baby boomer generation moves into retirement. Over a lifetime, nearly 50 percent of all people will require some type of long-term care assistance.
One way to pay for some or all of your long-term care expenses is insurance. First introduced in the 1980s, long-term care insurance was originally designed as nursing home insurance. Today's long-term care policies now cover much more. They include Home health care, assisted living facility care, adult day care, Alzheimer's facility care, respite care and hospice care.
So how does long-term care insurance work? Long-term care insurance is not health insurance, and long-term care expenses are not covered under private health insurance, Medicare or Medicare supplement policies.
However, long-term care insurance is similar to health insurance in that an individual must apply for coverage by going through medical underwriting. The insurance company decides whether to offer long-term care coverage based on your current health conditions and age. In most instances, a person's medical records will be reviewed by the insurance company. Additionally, some applicants may be required to have a face-to-face or a telephone interview. Not everyone is insurable. People who already have health problems are likely to need long-term care but won't be able to buy a long-term care insurance policy. Your money may pay for long-term care insurance coverage, but it's your health that buys it.
Once a long-term care policy is issued, the insured individual becomes eligible to receive benefits once a healthcare professional certifies the insured is "chronically ill" -- unable to perform two of the Activities of Daily Living (ADLs) for a period of 90 days or longer; or be severely cognitively impaired. ADLs include bathing, eating, dressing, toileting, transferring (moving into or out of a bed, chair or wheelchair) and continence.
"At what age should I apply for long-term care insurance?" Generally, experts suggest you apply between ages 50 and 55. The younger you are when you apply, the better the chance you will be healthy enough to qualify. It's also during these years prior to retirement that your income is normally at its highest and you're better able to pay the insurance premiums.
Long-term care insurance policies vary widely. A professional specializing in long-term care insurance can be a great resource to consumers in considering the many options available today.
Brent Dees, president of Brent Dees Financial, is a small business coach and financial planner w
The Awful Truth about Annuity and Insurance Leads
You see the websites, you see the ads: exclusive, never before sold, prospects eager to buy, insurance and annuity Leads. Some leads cost a few dollars - others are over one-hundred a pop.
I was curious, just how good are these insurance and annuity leads? I decided to find out.
I'm not going to name specific insurance and annuity lead websites, but I will give you a summary of how it all shook out.
insurance and Annuity Lead website A:
Cost: Cheap
Results: Terrible. 10% of the leads my staff called got number no longer in service recordings. The rest: the people had no idea what we were talking about. They were not interested in annuities, insurance or investments, nor did they remember filling out a request for information form on the internet.
sales: 0
insurance and Annuity Lead website B:
Cost: Average
Results: Terrible. Prospects didn't recall filling out request for information on anything related to annuities, insurance or financial planning. Most just hung-up.
sales: 0
insurance and Annuity Leads website C:
Cost: Expensive
Results: About twenty percent remembered filling out a request for info. However, they had been called numerous times by different agents. Most were getting sick and tired of the calls. A few had begun working with other agents. Most hung-up angrily.
sales: 0
I spent two-thousand dollars on this experiment. I did not find one-receptive buyer. I had thrown away my money, not to mention time spent by my phoning staff to contact these "hot prospects".
What the heck was going on? How could these websites sell such garbage?
I poked around, wrote a few e-mails to 'industry experts', not surprisingly, nobody got back to me. Luckily, I did end up making contact with a marketing person who had previously worked for a big lead selling outfit. She gave me the juicy details of how the majority of these lead companies operate, whether it is insurance leads, long-term care leads, annuity leads, or MLM/Work-from-Home leads. They all employ the same methods.
Method #1: You send cute E-card to your mother wishing her a happy birthday. You fill out name, e-mail and click send. Your name and e-mail are captured. If the site is a lead harvester masquerading as an e-card site, you will now be e-mailed by people looking to sell you annuities, Business opportunity offers, etc.
Method #2: Leads site buys huge database, often just regional phone book listings. They sell these 'leads', which are nothing more than names and numbers picked from the phonebook. Some of these people may even be on the Do Not Call list, which could land you in hot water.
I was curious, just how good are these insurance and annuity leads? I decided to find out.
I'm not going to name specific insurance and annuity lead websites, but I will give you a summary of how it all shook out.
insurance and Annuity Lead website A:
Cost: Cheap
Results: Terrible. 10% of the leads my staff called got number no longer in service recordings. The rest: the people had no idea what we were talking about. They were not interested in annuities, insurance or investments, nor did they remember filling out a request for information form on the internet.
sales: 0
insurance and Annuity Lead website B:
Cost: Average
Results: Terrible. Prospects didn't recall filling out request for information on anything related to annuities, insurance or financial planning. Most just hung-up.
sales: 0
insurance and Annuity Leads website C:
Cost: Expensive
Results: About twenty percent remembered filling out a request for info. However, they had been called numerous times by different agents. Most were getting sick and tired of the calls. A few had begun working with other agents. Most hung-up angrily.
sales: 0
I spent two-thousand dollars on this experiment. I did not find one-receptive buyer. I had thrown away my money, not to mention time spent by my phoning staff to contact these "hot prospects".
What the heck was going on? How could these websites sell such garbage?
I poked around, wrote a few e-mails to 'industry experts', not surprisingly, nobody got back to me. Luckily, I did end up making contact with a marketing person who had previously worked for a big lead selling outfit. She gave me the juicy details of how the majority of these lead companies operate, whether it is insurance leads, long-term care leads, annuity leads, or MLM/Work-from-Home leads. They all employ the same methods.
Method #1: You send cute E-card to your mother wishing her a happy birthday. You fill out name, e-mail and click send. Your name and e-mail are captured. If the site is a lead harvester masquerading as an e-card site, you will now be e-mailed by people looking to sell you annuities, Business opportunity offers, etc.
Method #2: Leads site buys huge database, often just regional phone book listings. They sell these 'leads', which are nothing more than names and numbers picked from the phonebook. Some of these people may even be on the Do Not Call list, which could land you in hot water.
Health Savings Accounts
Most people with health insurance, especially employer paid health insurance, really don't know what their health care costs are. Furthermore, in many cases, they are limited in which health providers (doctors, hospitals, pharmacies etc) they can use.
Most people are locked into a network of doctors. They know what the co-pay is, but have no idea what the doctor actually charges.
When insured consumers are hospitalized, they rarely see the bill. They don't know if the insurance company was overcharged or not. There are firms that audit hospital bills for insurers and self insured companies. They get paid a percentage of what they save on the bill payer by finding overcharges, duplicate charges and the like. The last I heard these firms were still making lots of money.
Overcharging, whether deliberate or not, by doctors and hospitals drive up health care costs for all. (So do malpractice suits, but that's another story.)
In order to give consumers more direct control not only over their health costs, but in the choice of which doctor they can see or which hospital they can enter, Congress enacted the health Savings Account Availability Act. As of the beginning of 2004, individuals who are not otherwise insured can have health Savings Accounts (HSA) , which carry with them some very attractive tax benefits.
An individual can set up an HSA for himself or his family. An employer can add an HSA option to the so-called cafeteria benefit plan it may already offer.
The money put into the plan is before taxes, including Social Security, if part of an employer plan. Otherwise it is a above-the-line deduction, meaning you don't have to itemize your deductions to get the tax break and that the deduction is not subject to the phase-out rules that make many itemized deductions unavailable to high wage earners.
The plan is set up like an IRA. A trustee approved by the IRS must be used. Money put in the plan grows tax free and funds withdrawn for qualified medical expenses are also tax free. Unlike the older Flexible Savings Accounts offered in employer cafeteria plans, you don't have to spend the money put into the account by year end or otherwise lose whatever's left. Money can be rolled over from year to year. This can allow for a nice chunk of money to accumulate that can be withdraw tax free at age 65.
In order to qualify, the individual or family must purchase a high deducible health insurance policy. These are special policies that have a minimum deductible of $1000 to a maximum of $5000 for an individual and $2000 to $10,000 for a family. The higher the deductible, the lower the premium.
Individuals can deduct the lesser of $2250 or the deductible on the policy: for married couples or families it is double that. If over 55, the deduction is $600 higher for individual and $1200 higher for couples and will continue to rise at $100 a year until 2009, where it will be capped at $1000 for individuals and $2000 for families.
The money in the HSA cannot be used to pay the premiums for this policy except in certain circumstances (basically when you're unemployed). It is meant to meet the deductible, co-pays, drug costs, eyeglasses or any other medical expense that could be itemized on an individual tax return as a medical expense.
Money withdrawn in excess of qualified medical expenses is taxed as income and subject to a 10% penalty, unless the owner is disabled or over 65. Any money in the account at death is added to the taxable estate.
There are no income limits on this plan. If started early, when you are still young and healthy a substantial amount of money could accumulate to either meet higher medical costs as you get older or to use to supplement your income.
Most people are locked into a network of doctors. They know what the co-pay is, but have no idea what the doctor actually charges.
When insured consumers are hospitalized, they rarely see the bill. They don't know if the insurance company was overcharged or not. There are firms that audit hospital bills for insurers and self insured companies. They get paid a percentage of what they save on the bill payer by finding overcharges, duplicate charges and the like. The last I heard these firms were still making lots of money.
Overcharging, whether deliberate or not, by doctors and hospitals drive up health care costs for all. (So do malpractice suits, but that's another story.)
In order to give consumers more direct control not only over their health costs, but in the choice of which doctor they can see or which hospital they can enter, Congress enacted the health Savings Account Availability Act. As of the beginning of 2004, individuals who are not otherwise insured can have health Savings Accounts (HSA) , which carry with them some very attractive tax benefits.
An individual can set up an HSA for himself or his family. An employer can add an HSA option to the so-called cafeteria benefit plan it may already offer.
The money put into the plan is before taxes, including Social Security, if part of an employer plan. Otherwise it is a above-the-line deduction, meaning you don't have to itemize your deductions to get the tax break and that the deduction is not subject to the phase-out rules that make many itemized deductions unavailable to high wage earners.
The plan is set up like an IRA. A trustee approved by the IRS must be used. Money put in the plan grows tax free and funds withdrawn for qualified medical expenses are also tax free. Unlike the older Flexible Savings Accounts offered in employer cafeteria plans, you don't have to spend the money put into the account by year end or otherwise lose whatever's left. Money can be rolled over from year to year. This can allow for a nice chunk of money to accumulate that can be withdraw tax free at age 65.
In order to qualify, the individual or family must purchase a high deducible health insurance policy. These are special policies that have a minimum deductible of $1000 to a maximum of $5000 for an individual and $2000 to $10,000 for a family. The higher the deductible, the lower the premium.
Individuals can deduct the lesser of $2250 or the deductible on the policy: for married couples or families it is double that. If over 55, the deduction is $600 higher for individual and $1200 higher for couples and will continue to rise at $100 a year until 2009, where it will be capped at $1000 for individuals and $2000 for families.
The money in the HSA cannot be used to pay the premiums for this policy except in certain circumstances (basically when you're unemployed). It is meant to meet the deductible, co-pays, drug costs, eyeglasses or any other medical expense that could be itemized on an individual tax return as a medical expense.
Money withdrawn in excess of qualified medical expenses is taxed as income and subject to a 10% penalty, unless the owner is disabled or over 65. Any money in the account at death is added to the taxable estate.
There are no income limits on this plan. If started early, when you are still young and healthy a substantial amount of money could accumulate to either meet higher medical costs as you get older or to use to supplement your income.
How Does Credit History Affect Car Insurance Rates?
Many personal car insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new car insurance, keep in mind that many insurers are looking at your credit history to determine your car insurance rates. I hope that we will be able to let you know why and how they do this.
The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.
Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.
The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.
Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." This can be found at http://www.ftc.gov/os/statutes/fcra.htm
If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.
Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan. Credit History Factors and Car insurance Rates
insurance companies use many factors in determining your credit score. Here are some examples of those factors:
. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
. Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
. Length of credit history: the amount of time you have been in the credit system.
. Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
. Number of open lines of credit: the number of credit cards, whether you use them or not.
. Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
. Unused credit: how much you owe compared to how much credit is available to you.
Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.
Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.
Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.
If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report and error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.
The three national credit bureaus are:
. Trans Union (www.transunion.com or 800-888-4213)
. Equifax (www.credit.equifax.com or 800-685-1111)
. Experian (www.experian.com or 888-397-3742)
Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.
If you have taken the steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.
Matt McWilliams is the Vice-President of Customer Relations for http://HometownQuotes.Com, the industry leader in providing insurance quotes for customers across the country. HometownQuotes.Com was founded in 2003 by insurance agents and has grown into one of the best-known ways for shoppers to find affordable insurance online.
Matt is originally from North Carolina where he spent way too much time playing golf.
The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.
Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.
The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.
Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." This can be found at http://www.ftc.gov/os/statutes/fcra.htm
If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.
Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan. Credit History Factors and Car insurance Rates
insurance companies use many factors in determining your credit score. Here are some examples of those factors:
. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
. Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
. Length of credit history: the amount of time you have been in the credit system.
. Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
. Number of open lines of credit: the number of credit cards, whether you use them or not.
. Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
. Unused credit: how much you owe compared to how much credit is available to you.
Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.
Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.
Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.
If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report and error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.
The three national credit bureaus are:
. Trans Union (www.transunion.com or 800-888-4213)
. Equifax (www.credit.equifax.com or 800-685-1111)
. Experian (www.experian.com or 888-397-3742)
Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.
If you have taken the steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.
Matt McWilliams is the Vice-President of Customer Relations for http://HometownQuotes.Com, the industry leader in providing insurance quotes for customers across the country. HometownQuotes.Com was founded in 2003 by insurance agents and has grown into one of the best-known ways for shoppers to find affordable insurance online.
Matt is originally from North Carolina where he spent way too much time playing golf.
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