Top 10 Factors Affecting Auto Insurance Premiums

When it comes to shopping around for car insurance, there are many considerations to keep in mind. Whether you are a new driver or have many years of driving experience, now is as good a time as any to understand how insurance companies evaluate you in order to come up with a premium for your vehicle coverage policy. This is particularily important if you are shopping around for the cheapest car insurance, and why shouldn't you? Basically, according to many auto insurance professionals, the following is a list of the top 10 factors affecting your insurance premiums for auto protection.

1. Year, make and model of vehicle: The more a vehicle costs to repair will be more expensive to insure. Fast sporty cars will have a heftier premium than a 4 cylinder sedan, as will cars that are prone to theft, as well as newer vehicles.

2. Gender: Unfortunately, this is one you have no control over. Statistically, females have less collisions than male drivers.

3. Vehicle usage: Do you commute to work, or is the car used mainly for pleasure? How much mileage do you drive yearly?

4. Age of driver: According to insurance professionals, younger drivers pose a higher risk level. The more years you have been insured consistantly, the lower you can expect to pay.

5. Past claims: Companies look at your past driving record, especially if you have made claims in the past. If you have been involved in accidents, and have been found to be at fault, you will be considered a high risk driver.

6. Offenses and traffic violations: Insurance companies reward safe drivers with lower policy premiums. So make sure you keep those traffic offences to a minimum.

7. Where you live: If you live in an area where the crime rate is high and there is a higher chance of theft and vandalism, that risk will cause your coverage to increase.

8. Drivers education or training: If you have taken a course in drivers Ed, this will help lower your cost of insurance.

9. Coverage type: The more coverage you have, the greater your fees become. Normally, newer vehicles require more coverage. Liability, collision and comprehensive, fire, theft and vandalism are among the most popular options. By law, you are obliged to have liability coverage, but anything more is all up to you to decide whether it is necessary or not. It is important to wisely weigh your options.

10. Deductibles: This is where being a good driver can pay off for you. The safer driver you are, the less likely you are of being at fault in accidents. Choosing a higher deductible can lower your premiums a considerable amount, however you should make sure that if you do have to make a claim, you are able to cover that deductible amount.

As you can see, there are many elements affecting the premium you can pay for vehicle protection, which may explain why you are paying more or less than your next door neighbor. Even with all of these things in mind, it is important to shop around for the cheapest auto insurance, and this is easier than you may think. The internet is full of insurance websites offering free auto insurance quotes making it easier than ever to compare rates, and make your choices based on these comparisons.

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8 Reasons to change your Car Insurance Company

1. Paying too much for Car Insurance, its time to seek change.

2. When you must think of a new car insurance company.

Auto insurance is not a luxury but a necessity. And in order to get the maximum advantage experts recommend that you should shop around for auto insurance every 2-3 years. As policies change and newer players enter the market there are so many new attractive auto insurance schemes that you could benefit from. You should consider changing your auto insurance when:

* You are availing a huge mortgage to buy property and the bank or institution offers you a lower interest rate on home and auto insurance through their tie -ups.

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* You have moved to another state where the auto insurance rules are different and you will make a saving by transferring your insurance to a new car insurance company. Or when your old car insurance company does not offer service in your new state.

* You want to cut costs and are trying to run your life on a budget. Shop around online for competitive auto insurance rates and change the car insurance company to one who offers the best deal.

* You have purchased a new car and the dealer is offering free insurance for three years. New cars have lower insurance rates so it is best for you to do a comparative study and find a car insurance company that offers a great deal. Car insurance rates vary greatly between car brands and types; find out which car insurance company offers the maximum coverage for the lowest rate.

* You are getting married and now will have two cars. Think about cancelling your individual car insurance policies and getting a joint one for both cars. Similarly if your family is growing and you have many cars used by adults as well as kids, ask auto insurance companies about group insurance schemes that will cover all the cars and drivers in your home. Most companies offer great discounted rates for combining car insurance policies.

* You are retired and now a senior citizen. Car insurance companies offer discounts to those who are 55 and above. There are a great many discounts available for a car that has a good insurance claim record, a car that is not driven every day, and a car that is single driver driven and well maintained.

* You are eligible for coverage through your new job. Many large companies have facilities like auto insurance schemes at premium rates lower than the market. If you are working in such a firm then you must consider cancelling your old policy and taking a new one with the car insurance company chosen by your workplace.

* When the rates being paid by you are high and your car insurance company shows no inclination to offer you a competitive rate. If you are paying too much for car insurance its time you changed your car insurance company to one that is offering you great facilities and rates.

Whatever the reason to change your car insurance company, the World Wide Web has sites where you can compare offers as well as quotes. Sites like LowerMyBills.com give quote comparisons in a click. So, read all you can about car insurance and the companies and determine which car insurance company offer will suit you best.

Why should I buy life insurance?

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:
- Replace income for dependents
- Pay final expenses
- Create an inheritance for your heirs
- Pay federal “death” taxes and state “death” taxes
- Make significant charitable contributions
- Create a source of savings

1. Replace income for dependents
If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

2. Pay final expenses
Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.

3. Create an inheritance for your heirs
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

4. Pay federal “death” taxes and state “death” taxes
Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.

5. Make significant charitable contributions
By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.

6. Create a source of savings
Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).
(iii.org)

The Consequences of Not Having Auto Insurance

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"

College Debt

Why is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."

In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.

Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance

According to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.

To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state, visit the Department of Motor Vehicles' website.

How to Budget For Auto Insurance

As you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

To help make researching auto insurance rates easier, Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the best auto insurance coverage for your newly graduated budget.(insurance.com)

Car Insurance Industry Secrets Revealed! Find Cheap Car Insurance Information Tips Online and Save Money!

12 Secrets Your Car Insurer Won't Tell You

MSN Money recently revealed “12 Secrets Your Car Insurer Won’t Tell You.” Many people don’t take the time to really consider their auto insurance or shop around, and many of them end up paying too much for their coverage. However, these 12 tips could make hundreds of dollars difference in your yearly auto insurance premiums:

1. Good credit makes a difference. Having good credit will help save you money, because car insurance insiders believe that, if you have good credit, you are a more responsible driver and file fewer claims. Studies have actually confirmed it.
2. The type of car you drive is important. Some cars are very expensive to repair or replace. Other cars are considered safer. Both will end up making your car insurance premiums increase.
3. One lump sum saves you. Most auto insurance companies allow you to choose how you pay. If you break up your payments into Quartery or monthly payments you will most likely incur extra costs. The least expensive option is usually to pay in one lump sum per year.
4. Know what you can and cannot claim. Not everything in your vehicle is covered by your auto insurance. For instance, most coverage will not pay to replace a lost tape or CD. However, a Home owner’s insurance policy may allow for a rider to cover any losses due to theft that are not covered by your auto insurance.
5. Good drivers save money. Not every accident will cause your car insurance rates to rise, but if you are found to be at-fault, you could face an increase of over 40 percent.
6. Don’t lend out your car. Your car insurance could go up if your friend gets into an accident using your car, and if your friend is uninsured you could end up facing legal action.
7. Gap insurance is a good thing. Your vehicle loses significant value the moment you drive it off the dealer’s lot. You may even be surprised at what value your insurance provider would give your vehicle if you were to total the car. Gap insurance will cover the difference of what you owe versus what the car insurance company will pay you. However, know when to drop the coverage, because you don’t want to pay for gap insurance when you no longer need it.
8. Does your state offer “diminished value?” If you are in an accident and have your car repaired it will lose even more value. 14 states allow you to file a claim for those losses (Florida, Georgia, Hawaii, Kansas, Louisiana, Maine, Maryland, Massachusetts, North Carolina, South Dakota, Texas, Virginia, Washington and West Virginia).
9. Do you have to pay tax on a replacement vehicle? While only 14 states pay for diminished value, 28 states require car insurance providers to pay the tax on a replacement vehicle (Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Vermont, Washington, West Virginia and Wisconsin). Some auto insurance companies will pay it if you ask, even if your state does not require it.
10. Stacking may be allowed. Some states allow you to stack your uninsured/under insured motorist coverage, meaning you can collect from more than one company if you are in a collision with someone who does not have enough car insurance coverage.
11. Wait until the right time to insure your teen driver. You don’t have to add your teenage driver to your policy until he or she actually has a driver’s license. However, don’t forget to add him or her or you could be facing additional premium costs back to the date he or she was licensed.
12. Don’t forget to cancel the old policy. Some drivers forget to cancel their old car insurance policy when they get a new policy, and it ends up costing them money and in their credit rating. You have to actually call and cancel the policy. However, do not call until your new policy goes into effect so that you avoid being without coverage.

In the competing auto insurance industry, companies are working hard to lure insurance seekers to their organizations. Insurance is a very competitive market, so you may need to dig deep to find the discounts for which you could be eligible. Many insurance companies offer multi-auto discounts and multi-policy discounts, but there are often other ways to save on your discount auto insurance that may not be as well known.

First, it is important to shop around to make sure you are taking advantage of all the discounts companies have to offer. Ask questions and be willing to offer information about yourself including your age, gender, and even your occupation and hobbies to see what discounts for which you could be eligible. Talk to brokers and agents to find out what discounts vary from company to company, and which ones are pretty standard for almost all auto insurance providers.

For instance, insurance companies across the board tend to give you a discount for being accident free and having had no moving violations in the past three to five years. It makes sense, as most companies find safe drivers less risky. However, there are some lesser known discounts based upon what you do for a living, your age, and more that you could apply to your policy.

First, do you have a college degree? If you do, you could get another discount on your insurance. One insurance company discovered that people with engineering degrees were lower insurance risks than other individuals, so they offer between a 10 and 30 percent discount to engineers and scientists. Some insurance companies also offer discounts off automobile insurance premiums if you are a graduate of a four year institution and you are under 30 years old. The pennies you save here may even help you pay off that student loan faster!

Another career that can get you a discount on your auto insurance is being an educator. Teacher discounts vary from company to company, but most of the discounts for educators range from 8 percent to 30 percent. Many companies require that the teacher be a member of the state educators association or NEA, but the discounts often more than compensate for the association dues.

Current members of the Armed Forces and veterans are also eligible for significant discounts on their auto insurance. Many insurance companies offer discounts and programs available to veterans and those soldiers on active duty. Discounts vary from company to company, but most auto insurance providers have discounts available to those people who are serving or have served their country.

Are you a member of AARP? If you are, then there may be even more discount auto insurance programs available to you. Many insurance companies have programs for people who are members of AARP, and some even have non-cancellation clauses and other discounts for seniors.

The fifth and not so little known way to save is the internet. It is not so much that the internet holds hidden discounts, but that many people are still somewhat skeptical about using the web to purchase their auto insurance. However, there are companies that will offer discounts if you purchase directly from their website. Our service compares actual discount auto insurance companies in your area, not just internet exclusive insurance companies.

The key to finding little known discounts for your auto insurance is to do your research and ask. Browse all articles pertaining to information you need and use the Sponsors links to help start your LOW COST INSURANCE search. We trust that saving on your car insurance will be a painless process with these tips.

Life Insurance: What It is ?? And How It Works?

Life Insurance: What It is ?? And How It Works?

Life insurance guarantees the financial security of your family and near & dear ones, no matter what happens. Life insurance helps in:

* Paying off any final expenses or personal debts (credit cards, car loans or a mortgage) * Compensating the loss of your earnings for your dependents.

* Contributing to the future education of your children * Protecting your estate by helping to pay the taxes due on an estate upon death * Leaving a legacy to your preferred charitable trust.

Who needs Life Insurance? The association of life insurance has always been with major life events like marriage, purchasing a house, or having kids. However, if these aren't associated with you, then try answering these questions. If YES is the answer to any of them, you'll want to consider life insurance:

* Is anyone financially dependent on you? Whether it's your other half, kids, grandchild, parents or dependent adult, life insurance will help them in protecting their financial well being in case any mishap. * Do you have a mortgage, or are you on any other debts? If yes, a life insurance policy can help you take care of these outstanding bills along with any other expenses, like legal fees and taxes, and medical expenses. * Are you the owner of any business? o For sole proprietors, you're liable for the debts your business owes. Not having enough life insurance to cover these debts, may cost your personal assets to be liquidated to pay them off, possibly leaving little or nothing left for your dependents. o If you're in a partnership, and the other partner is the beneficiary of the life insurance policy then the surviving owner has the cash easily available to buy out your portion of the partnership from the estate. * Do you want to leave a legacy? Life insurance policies can be used to leave money to your favorite charitable trust.

What's the cost of life insurance? There's nothing like a standard cost for the insurance policy. Insurance professionals closely review various factors like your age, gender, whether you're a smoker, and your past and current health record and family history before they come up with a final insurance rate. Then all these are balanced with the amount and type of policy that you're applying for.

Do you know the different types of life insurance available ?

There are two main categories of life insurance:

Level life insurance or term life insurance &

Decreasing life insurance or mortgage life insurance.

Level life insurance, as the name itself says, is a level cover that stays constant during the full term of the insurance and a level lump sum pay out would occur after death. The sum assured is decided from the beginning of the policy.

Decreasing life insurance is used most often to cover a mortgage and works exactly the same as level life insurance, however the sum assured decreases over the term of the policy. This is ideal to cover a mortgage or decrease any debts that maybe paid off over a period of time.

In this era of Internet, life insurance is more accessible than ever. The instant online insurance quotes offered by the best online brokerages avoid any hard sell tactics the industry was associated with in the past.

To Know more about Insurance, Visit www.6FigureVenture.com

About the Author:
Just a Wannabe Author!!!

The Secret of Auto & Home Insurance

The Secret of Auto & Home Insurance

There is a stringent competition on the insurance market and various companies are using their best resources in order to attract interested customers. The truth is that many people are confused when it comes to picking out an insurance policy suitable to their needs and preferences.

A proper research is required to find affordable insurance policies. The Internet is one of the best places to compare auto insurance quotes and various types of coverage. Locating a reliable website is important as there are a lot of concepts to grasp about the subject of auto insurance.

The websites that present the possibility to compare auto insurance also provide a lot of other information including the necessary requirements for the policy. One should always know that the driving record can severely affect the auto insurance policy. Breaking traffic rules and being involved in any kind of accident can only have serious consequences resulting in the difficulty to purchase cheap insurance policies.

Before you start to compare auto insurance quotes, you should make a list of all the deciding factors. Be sincere and do not let anything out. Every insurance company takes into consideration the age of the driver, the driving record and the car driven. The mileage is an important factor and so is the city the car is driven in.

When you think about purchasing an auto insurance policy, you ought to think first about what you are looking to obtain with it. If you want just the basic stuff, then it is easy to compare auto insurance plans and pick out a policy. On the other hand, if you are in the market for full services the best thing to do is to spend some time researching and checking out diverse websites.

Many people enjoy the ability to compare auto insurance quotes online. They use the Internet to shop for auto insurance policies, see all there is to know about the risk factors and services offered. The price is also significant as a lot of people are looking for affordable policies. Still, it is crucial to keep in mind that the price is just one factor and should not be the main thing you should be looking into.

Lately, home insurance policies are purchased on a high scale. People who travel a lot prefer the option to go online and compare home insurance quotes before making a final decision. Being away from home most of the time they feel the natural instinct to protect their home and personal belongings from various elements. As weather conditions are more and more unpredictable, a lot of people choose home insurance in order to protect their home from wind, hail, storms and snow damage.

Aside from people who travel, there are a lot of other people choosing to use the Internet in order to compare home insurance policies and take the best decision. They know how important is to have a good insurance policy just in case. The future is not ours to see, a famous song used to say. That is the truth. We should always be prepared for natural disasters, vandalism and earthquakes. And one of the best ways to do that is to purchase a home insurance policy.

The opportunity to compare home insurance policies is being employed by people searching for inexpensive home insurance policies. There are diverse types of coverage depending on the person's necessities. The limited coverage includes protection for theft, fire, lightning and explosion. The next option is for a coverage offering security for water damage, falling objects and smoke. Some of the most common policies are for landslides, weather elements and vandalism.

You have to take some serious time and compare home insurance quotes. This is the only way to choose the best policy for you and benefit from its advantages. You have to figure out if the basic insurance is enough for you or if you will require additional options. Use the Internet and specialized websites; you will discover how easy it is to find the right insurance policy for you.

by Clint Jhonson

About the Author:

Our mission is to provide you with various insurance quotes. We can help you compare auto insurance policies and not only. Keep in mind that in order to obtain the best policy you need to compare home insurance quotes. Please feel free to utilize our website and ask for future references if you are unclear on certain terms.

The Best Approach to Auto Insurance Quotes

Auto insurance quotes are generally free so don't just take out an auto insurance policy based on the first auto insurance quote you get.

The best possible way for saving money on your auto insurance is to get at least three insurance quotes. Granted, getting multiple insurance quotes will take you time but if you compare your hourly rate at work to the amount you could save on your auto insurance I think you will agree that getting several auto insurance quotes is a valuable use of your time.

One of the best ways to get as many auto insurance quotes as possible in the shortest period of time is on the internet. You might have to trawl through a few user unfriendly insurance quote sites but there are several little gems out there where you can get multiple auto insurance quotes in one go and most of the main providers of auto insurance not only offer online quotes but also provide consumers with discounts when they get their insurance quotes online.

A decent auto insurance broker is well worth their weight in gold. Using a broker to get your insurance quotes will mean that you only have to fill out one form and then the auto insurance broker will trawl through loads of insurance quotes until they find the best possible insurance package for you. What's really neat is that nowadays you don't even have to leave the comfort of your own home as there are more and more insurance brokers offering their services on line.

As you can tell I love the online approach, for those that hate the sales pitch that accompanies a 'face to face' or telephone insurance quote online insurance providers are the answer to your prayers.

Don't wait until you change cars every year that better offer could be available. Just because you got the best possible auto insurance quote last year it doesn't mean to say you can't beat it when the renewal notice comes through your door. With online insurance, it's easy, spend a little time one evening getting comparable auto insurance quotes, there's loads of deals out there with so many auto insurance providers fighting for your business and you could save yourself wads of cash.

When looking for alternative auto insurance quotes make sure that you check that the lowest auto insurance quotes are for a similar level of cover to those that are more expensive.

Always know what you are buying, don't leave yourself exposed by paying for a cheaper but relatively useless auto insurance.

One last word of advice, the lowest auto insurance quote isn't always the best to go for even if it does provide you with the right amount of cover. Low cost auto insurance is good but it's also important to use a reputable insurance provider. There is no point getting really cheap car insurance if the company that you are insuring with either messes you around, or even worse, doesn't pay out!

About the Author:

For more on auto insurance quotes visit http://www.24-7-insurance.com/.

8 Things You Should Know About Auto Insurance

Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can’t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.

1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and “that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you’ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage.”

2) Shop around for insurance.
“In most states,” Snyder reports, “there are hundreds of insurers competing for business, so it’s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers.” Picking up on Snyder’s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. “It pays you to shop around, especially if you feel you’ve been paying too much.”

3) Look for insurance discounts.
“Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance,” confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: “Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices.”

4) Consider taking a higher deductible.
“You could lower your insurance bill by increasing your deductible,” Mahrt says. “But just make sure you can pay the higher deductible if you file a claim.”

5) Look into “stacking” coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means “you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation,” according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. “Be sure to check your auto insurance contract to see if it's allowed. “Be advised that you’ll likely pay a higher insurance premium if you have stacked coverage. “It could be 10% to 30% more depending on the litigious nature of the state in which you reside,” says Kummer.

6) Check with your insurance provider BEFORE buying a car.
“Your premium is based in part on the car’s sticker price, the cost to repair it, its safety record and the likelihood of theft,” answers Selective’s John Marchioni. Remember to avoid shopping by price alone. “You want an agent and a company that answer your questions and handle claims fairly and efficiently,” emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.

7) Notify your auto insurance company as soon as you change companies.
“Be sure to cancel your old policy,” suggests PCI’s Dan Kummer. “Do it the same day, but don’t cancel your old policy until you’ve lined up a new contract. That’s important because some states like New York will fine you for the number of days you go without insurance.” One last thought from Kummer on the subject: “Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.

8) Pick the insurance payment option that best fits your budget.
“Generally, most companies will give you the ability to pay over time, but that comes at a price,” says Kummer. “Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up.” (article from insurance.com)

How much life insurance do I need?

In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need any life insurance.If you want to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals.
If you have dependents, buy enough life insurance so that, when combined with other sources of income, it will replace the income you now generate for them, plus enough to offset any additional expenses they will incur to replace services you provide (for a simple example, if you do your own taxes, the survivors might have to hire a professional tax preparer). Also, your family might need extra money to make some changes after you die. For example, they may want to relocate, or your spouse may need to go back to school to be in a better position to help support the family.

You should also plan to replace “hidden income” that would be lost at death. Hidden income is income that you receive through your employment but that isn’t part of your gross wages. It includes things like your employer’s subsidy of your health insurance premium, the matching contribution to your 401(k) plan, and many other “perks,” large and small. This is an often-overlooked insurance need: the cost of replacing just your health insurance and retirement contributions could be the equivalent of $2,000 per month or more.

Of course, you should also plan for expenses that arise at death. These include the funeral costs, taxes and administrative costs associated with “winding up” an estate and passing property to heirs. At a minimum, plan for $15,000.

Other sources of income

Most families have some sources of post-death income besides life insurance. The most common source is Social Security survivors’ benefits.

Social Security survivors’ benefits can be substantial. For example, for a 35-year-old person who was earning a $36,000 salary at death, maximum Social Security survivors’ monthly income benefits for a spouse and two children under age 18 could be about $2,400 per month, and this amount would increase each year to match inflation. (It drops slightly when the survivors are a spouse and one child under 18, and stops completely when there are no children under 18. Also, the surviving spouse’s benefit would be reduced if he or she earns income over a certain limit.)

Many also have life insurance through an employer plan, and some from another affiliation, such as through an association they belong to or a credit card. If you have a vested pension benefit, it might have a death component. Although these sources might provide a lot of income, they rarely provide enough. And it probably isn’t wise to count on death benefits that are connected with a particular job, since you might die after switching to a different job, or while you are unemployed.

A multiple of salary?

Many pundits recommend buying life insurance equal to a multiple of your salary. For example, one financial advice columnist recommends buying insurance equal to 20 times your salary before taxes. She chose 20 because, if the benefit is invested in bonds that pay 5 percent interest, it would produce an amount equal to your salary at death, so the survivors could live off the interest and wouldn’t have to “invade” the principal.

However, this simplistic formula implicitly assumes no inflation and assumes that one could assemble a bond portfolio that, after expenses, would provide a 5 percent interest stream every year. But assuming inflation is 3 percent per year, the purchasing power of a gross income of $50,000 would drop to about $38,300 in the 10th year. To avoid this income drop-off, the survivors would have to “invade” the principal each year. And if they did, they would run out of money in the 16th year.

The “multiple of salary” approach also ignores other sources of income, such as those mentioned previously.

A simple example

Suppose a surviving spouse didn’t work and had two children, ages 4 and 1, in her care. Suppose her deceased husband earned $36,000 at death and was covered by Social Security but had no other death benefits or life insurance. Assume the surviving spouse is 36.

Assume that the deceased spent $6,000 from income on his own living expenses and the cost of working. Assume, for simplicity, that the deceased performed services for the family (such as property maintenance, income tax and other financial management, and occasional child care) for which the survivors will need to pay $6,000 per year. Assume that the survivors will have to buy health insurance to replace the coverage the deceased had at work, and that this will cost $12,000 per year.

Taken together, the survivors will need to replace the equivalent of $48,000 of income, adjusted each year for an assumed 4 percent inflation.

Thanks to Social Security, the survivors would need life insurance to replace only about $1,700 per month of lost wage income (adjusted for inflation) for 14 years until the older child reaches 18; Social Security would provide the rest. The survivors would need life insurance to replace about $2,100 per month (adjusted for inflation) for three more years when the non-working surviving spouse has only one child under 18 in her care.

The life insurance amount needed today to provide the $1,700 and $2,100 monthly amounts is roughly $360,000. Adding $15,000 for funeral and other final expenses brings the minimum life insurance needed for the example to $375,000.

What’s left out?

The example leaves out some potentially significant unmet financial needs, such as

* The surviving spouse will have no income from Social Security from age 53 until 60 unless the deceased buys additional life insurance to cover this period. It could be assumed that the surviving spouse will obtain a job at or before this time, but she could also become disabled or otherwise unable to work. If life insurance were bought for this period, the additional amount of insurance needed would be about $335,000.

* Some people like to plan to use life insurance to pay off the home mortgage at the primary income earner’s death, so that the survivors are less likely to face the threat of losing their home. If life insurance were bought for this goal, the additional amount of insurance needed is the amount of the unpaid balance on the mortgage.

* Some people like to provide money to pay to send their children to college out of their life insurance. We may assume that each child will attend a public college for four years and will need $15,000 per year. However, college costs have been rising faster than inflation for many decades, and this trend is unlikely to slow down. If life insurance were bought for this goal, the additional amount of insurance needed would be about $200,000.

* In the example, no money is planned for the surviving spouse’s retirement, except for what the spouse would be entitled to receive from Social Security (about $1,200 per month). It could be assumed that the surviving spouse will obtain a job and will either participate in an employer’s retirement plan or save with an IRA, but she could also become disabled or otherwise unable to work. If life insurance were bought to provide the equivalent of $4000 per month starting at age 60 until 65 and $3,000 per month from 65 on (because at 65 Medicare will make carrying private health insurance unnecessary), the additional amount of insurance needed would be about $465,000.
(iii.org)