Category Archives: Insurance

How Students Can Get a Better Deal on Car Insurance

The money drain begins even before a student steps foot on campus. Deposits for housing, tuition fees, parking permits, and dining hall dollars are just the tip of the iceberg. College students also have to budget for gas, car maintenance and vehicle insurance as well, and these charges seem to come due at just the wrong moment. Those wise enough to realize just how much car insurance can hurt their bottom line should work hard to make sure that they are getting the most for their money. The tips listed below will help students lower their car insurance costs so that the cash they save can be applied to other living expenses:

Prepare Early

Teenagers should know that they start determining their future car insurance costs when they choose their first vehicle and get on the road for the first time. For this reason, it is necessary to know the following facts:

  • Grades matter and good ones can reduce insurance costs in the future.
  • Vehicle make and model is important to insurance providers so choosing a safer, less expensive model will help control insurance costs.
  • A driving record begins the minute that a driver first gets behind the wheel so keeping a great safety record by obeying all traffic laws is important.
  • Neglecting to take driver’s training classes may be a costly mistake.

Shop Smart

 Shopping for vehicle insurance is more like other types of shopping than most consumers are aware and students should go about it in an organized manner. The following steps might result in significant savings:

  •  Students should decide just how much insurance is needed to purchase new transportation if the old vehicle is destroyed. Also, they should consider how much out-of-pocket cash they will have available to pay deductibles for any damages that their vehicle sustains. With these numbers in mind, they will be able to determine a dollar figure for the amount of insurance they wish to purchase.
  • Once the needed amount of insurance has been determined, students should use an online insurance comparison website to get a good idea of the price of this insurance offered by each of the reputable companies. Then, they should personally visit the local agent of the three companies with the lowest quotes and explain that they are searching for the best bargain. Most agents will work through all of their available company discounts and look for insurance bundling opportunities in order to earn a new client’s business or keep that of an established customer.
  • Finally, students should use the information and quoted figures offered by one agent to deal with the next. Although agents are bound by some company rules and do have to comply, they will work harder to find savings if they know that people have done their homework and have the figures to prove it.

Good planning and methodical shopping should result in lower insurance costs for years. The money saved should make paying those other college bills much easier.

About the Author: Jennifer Lewis writes for a site that help female students find financial aid for college, including chemistry scholarships and nursing grants for women.

Life Insurance 101: The DIME Method

Life insurance is one of those topics that can often be taboo.  Why?  Because nobody likes to talk or think about death but it’s the one thing we can’t avoid.  As a result it is very important that we plan for the inevitable by purchasing some form of life insurance.  It’s just smart and gives you and your loved ones peace of mind.

Purpose of Life Insurance

The primary purpose of life insurance is for income protection in the case of premature death.  If you’re the sole or main provider for your family or someone depends on your income for survival, then you should definitely have insurance.  If there is no need for a death benefit there is no need for life insurance.  For example, if you are single, have no kids.

The amount needed depends on your living situation as well as other pertinent details…it can get complicated.  However, a great way you can ensure that you have the basics covered is by using the DIME method.

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How I Saved Money on my Car and Homeowner’s Insurance

The other day I received a renewal notice for my homeowners insurance and guess what?  It went up by $110 dollars!  Needless to say, I was not happy at that so I immediately called the insurance company and asked why.  Their response really wasn’t a response at all or shall I say; it was a cop out response at best. The customer service agent told me that claims,  in my state had risen over 100% in the last year and as a result that $110 increase was my share of the burden….then he said, “that’s how insurance works”.

I was not amused.  🙁

The increase only resulted in a hike of about $9/month on my mortgage. I guess when you look at the big picture, it’s not that bad….it’s the principle…the goal is to save money not shell out more, however, some things are beyond our control.

Luckily the customer service agent suggested that I get an auto insurance quote through them which could result in lower homeowner’s insurance.  This is called bundling policies.  So basically, instead of my homeowner’s insurance going up $110, it would only go up $35…that’s a savings of $75.   I didn’t know if it would work but it was worth a try.

Well to my surprise…it did work!  Not only did I save $75 dollars on my homeowner’s insurance, but my car insurance went down by $25/month!  That’s unbelievable.  All this time, I could have saved a ton on car insurance (I sound like a commercial) by switching and bundling.  In a year’s time I will save a whopping $300 dollars in car insurance which will more than cover that $35 hike in homeowner’s insurance.

So take a lesson from me….bundle your policies (car, mortgage and life, etc.) with one company, or at least do the numbers by getting a quote to see where you stand and then make an informed decision.

Unfortunately, I’d been lazy and never thought about bundling my insurance policies.  Now, I’m thinking of switching my life insurance to this same company or at least getting a quote just to see if I can save more money.  Every little bit helps…right?

Here are some tips to go by when bundling policies:

Continue reading How I Saved Money on my Car and Homeowner’s Insurance