Auto Insurance: 8 Savings Secrets

Everybody has a reason. Maybe they're telling you what you want to hear. Could be they'll get a bonus if they sell you product "A". Heck, they may simply have forgotten to mention it. Bottom line, there's something your car insurance company or agent isn't telling you that might save you money. And it could be one of these 8 things:

1. Older car? Drop collision.
Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.

2. Buy home and auto with different companies
With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.

3. Minimum liability? Not enough.
You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.

4. Shop around for lower rates
A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.

5. Go green; keep green
Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.

6. Consider paying that claim yourself
Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.

7. Your car makes a difference. Don't buy that turbo convertible.
All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.

8. Teenager turned 16? Don't add them to your policy – yet.
If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.

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Do Your Homework When Buying Group Health Insurance

With any group health insurance plan that you choose, there are always going to be limits to that plan, and before you purchase a particular group health insurance plan for your company, you will want to do your homework. For instance, you will want to find out what is offered and covered under the proposed group health insurance policy and if the health insurance company is financially sound. If they are in the midst of a merger for example, or not as financially stable as you would like, their delivery of service may not be as good as is promised.

It is also important to understand what kind of features and benefits will be provided in the health plan that you are buying. In some cases, a group health insurance plan will be presented with a summary of benefits, but this is just a summary. For complete details as to what the plan consists of, or to get information on the exact ins and outs of the plan, you will need to request the information from your health insurance representative.

To help you narrow down your decision between health insurance plans, we have listed some questions and helpful tips below. These questions and tips will help keep you on track with what kind of plan you initially set out to purchase for your organization.

• What happens with claims and appeals?
  Traditional health insurance plans and PPOs may require employees to file claims for reimbursement. HMOs typically require less paperwork. How fast can claims and appeals be taken care of?
• Emergency room services.
  Is prior approval needed for an emergency room visit? Or does the plan follow the "any prudent layperson" standard-that means that if any person reasonably believes he or she is suffering from a medical emergency, the HMO cannot deny payment?
• What is considered an out-of-pocket expense?
  Are there expenses for different kinds of health care? What are the co-pays and deductibles? What is the maximum annual and lifetime payout?
• What is the grievance and appeals process?
  Is the appeals process internal or external? Is there a third-party arbitration for difficult issues? How much time does it take to settle a problem? What is the process for members to appeal claim denials or file other grievances?
• What are the limitations or exclusions?
  Be sure to read the fine print. Know what services are covered under the particular group health insurance plan you are looking to purchase. Make sure you ask your healthcare provider if there are limitations or exclusions on things like experimental procedures, transplants, infertility treatments, laser eye surgery, bariatric surgery, preventative scans, mental health coverage, rehabilitation, drug therapies, and durable medical equipment.

Check with the Better Business Bureau (BBB) or the state insurance department, or ask for the latest member-satisfaction survey and see if there are any complaints against the health insurance company you are considering working with. In addition to calling the BBB, request the names and phone numbers of other companies and organizations who have the group health insurance plan you are considering. Call and find out why these companies have this group health insurance plan, why they like it, if they've encountered any problems, and if so, how the health insurance company handled it.

If you are interested in receiving a group health insurance policy quote for your company, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class health insurance providers-helping find the best group health insurance coverage for your employees and yourself.

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Health Insurance Reform in 2009

"Let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year."

President Obama made this bold promise to hopeful Americans in his recent address to Congress. Few listeners debate the importance of health care, but providing quality affordable health care for every American will clearly challenge Democrats and Republicans to work together to meet this goal.

As unemployment rises, even fewer Americans will have health insurance through an employer. And, rising medical costs are forcing small and large businesses to reduce coverage, increase co-pays and deductibles and raise the amount that employees must pay each month. Some small business owners have even converted traditional health insurance plans to high deductible plans.

Insurance.com offers these tips for evaluating your health care options and saving money on your medical bills.

My employer offers an HMO and a PPO. How do I decide?
Both provide excellent care, but you may want to choose an HMO if its network of doctors and hospitals matches your needs. Health insurance with a Health Maintenance Organization (HMO) is generally less expensive. You're required to select an HMO physician to be your primary health care provider. This doctor will coordinate all of your medical care, including referrals to specialists within your HMO network. If you seek treatment from a non-network physician, you will generally pay most of the cost yourself.

A Preferred Provider Organization (PPO) is more flexible than an HMO plan, but it still operates with a list of physicians and hospitals that are "within the PPO network." You may visit an out-of-network provider, but you will pay the difference between the PPO network and out-of-network prices. Both plans usually offer a prescription drug benefit, as well. Some companies are offering options that allow you to combine features of both HMO and PPO plans.

I can't afford full health insurance, but I want coverage for major emergencies.
A high deductible health insurance plan or catastrophic health insurance offer coverage for major illnesses or accidents. For example, a plan with a $5,000 deductible requires you to pay all of your medical expenses up to $5,000 before your insurer begins to pay. If you choose a high deductible plan, try to save a small amount of money each month in a Health Savings Account (HSA) so that you're not overwhelmed by routine medical expenses.

I have health insurance, but it seems like I'm always paying for something.
Sad but true. You may owe a co-payment for doctor's visits or a trip to the ER. Usually, this is a flat fee, but it can get expensive if you don't stay within your plan network.

Secondly, payment for expenses is subject to your annual deductible, which is the amount you pay toward your medical expenses before the insurance company begins to pay claims. Some HMO plans do not have deductibles but do have co-payments.

Lastly, there's co-insurance, which is the percentage of your medical costs that you pay after you reach your annual deductible. 80/20 co-insurance is a common option, and that means that your insurer pays 80% of your bills and you pay 20%—after your deductible. So, anything you can do to reduce your medical bills will help you reduce your out-of-pocket expenses, too.

I don't have health insurance. What can I do?
Almost every hospital has a financial aid office that will evaluate your personal situation and determine your ability to pay for required care. Generally, a hospital will provide sliding scale fees if your income is 400% or less of federal poverty limits and may eliminate bills entirely if your income is 200% or less of federal poverty limits. But hospitals have to make money, too, so they may not publicize these programs or provide much assistance in applying. Be prepared with recent copies of your tax returns and W-2's to prove your need.

We agree with President Obama that all Americans deserve quality affordable health care and look forward to the details of its delivery. What do you think? Looking for different information? Have questions or feedback? Please let us know.

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Finding a Mechanic You Can Trust

Concerns about today's economy and the environment have driven an increasing number of people to keep an old car longer instead of buying a new one. That makes it more important than ever to find someone you can trust to fix your car when something goes wrong. But don't start your search when you already need a mechanic. Instead, establish a relationship. Bring your car in for regular service like oil changes – something you should do anyway. Although normal maintenance won't force your mechanic to flex his or her repair muscles, it will give you a chance to evaluate the shop's customer service.

Searching for a mechanic
Although some people believe that a trustworthy mechanic is as rare as a politician who loves delivering bad news, we disagree. The pressure to fix cars quickly for a low price makes shortcuts tempting, but reputable organizations pride themselves on quality service and customer satisfaction. How can you find the best shops?

Start by talking to family and friends, especially those with car knowledge. If you want more information on a recommended shop, search for online ratings for mechanics, such as the Mechanics Files submitted by listeners of the public radio show Car Talk, or read user reviews at Women-Drivers.com. Remember that one or two bad reviews don't mean a shop is terrible, nor do a few positive reviews prove that the shop always does a good job.

Dealer or independent shop?
You can find good mechanics anywhere, although dealerships usually charge more for services. Any competent mechanic can perform routine maintenance and repairs. A good independent repair shop that offers a warranty on their parts and repairs can use factory or OEM parts recommended by the carmaker – and typically saves you money. However, if you need warranty or recall repairs or have an odd problem, consider a dealership where the mechanics receive factory training from the manufacturer.

Once you've found a repair shop
Start by looking around. Is the shop neat and organized? Is the staff helpful and courteous? Do they have certified technicians and up-to-date equipment? Credentials like the Automotive Service Excellence (ASE) certification and AAA approval don't prove that a shop never makes mistakes, but they do show that the shop meets professional standards.

Asking these questions can help you understand the shop's philosophy:

• Do they specialize in body or mechanical work, and on what makes/models?
• What is their warranty and customer satisfaction policy?
• Are their labor rates posted clearly and how do the rates compare?

For some questions, the answer itself may not tell you as much as the way it's answered. If they dismiss your inquiry or respond with annoyance, this could indicate their attitude toward unexpected customer questions in general. Ideally, you want the shop and technicians to communicate with you and explain everything until you feel comfortable.

Testing the shop
One test requires a little car knowledge and a properly working car part. Simply tell the shop that a new or perfectly good part broke and ask them to fix it. (It may help to add some dirt or grease if it looks new.) If the shop says the part doesn't need repairs, they've either given you an honest answer or figured out you were testing them. If they offer to perform the repair, you'll want to look elsewhere for service.

Another testing technique involves presenting a faulty diagnosis and a suggested repair to the mechanic. A responsible shop will perform its own diagnostics to avoid charging you for unnecessary repairs. However, this approach could backfire if the shop trusts you and thinks they're helping by doing what you ask. If you know a car expert, you can ask them to help you come up with a common problem and an incorrect diagnosis or fix for that problem.

Getting good service is in your hands
Simply and clearly describe the problem the car has, any sounds, smells or feelings that accompany the problem and the situations in which the problem occurs. That way, the mechanics will try to determine what they should fix by diagnosing the problem themselves, instead of focusing on the part you may think is broken.

If you choose a large shop or dealership, try to speak with the technician who will work on your car instead of the person at the desk or the service manager. If you can't, submit a written description of the problem and have it attached to the file. That way, you ensure the correct information is transmitted straight to the mechanic in its original form, which can eliminate miscommunication.

After the repair
Be sure the mechanic road tests the repairs and ask to see your old parts before you pay the bill. If you get a part back that looks odd or damaged in a way you don't recognize, take it to another shop or ask a friend if it looks OK.

Finally, once the shop finishes the repair work, make sure that you keep all receipts and service records. Because even the best mechanics make mistakes occasionally, don't immediately assume the worst if the repair didn't fully fix the problem. Share your concerns with the shop and give them a chance to correct any issues. Since all responsible repair shops highly value customer satisfaction, they should make every reasonable effort to resolve the situation.

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Top 10 Most Dangerous Jobs

Do you work in a dangerous occupation? According to the Bureau of Labor Statistics, a job is considered dangerous based on the fatality rate, which is a ratio between deaths and the total number of people employed in the profession. The top 10 most dangerous jobs (by fatality rate) in 2007 were:

1. Fishers and related fisher workers
2. Logging workers
3. Aircraft pilots and flight engineers
4. Structural iron and steel workers
5. Farmers and ranchers
6. Roofers
7. Electrical power-line installers and repairers
8. Drivers/sales workers and truck drivers
9. Refuse and recyclable material collectors
10. Police and sheriff's patrol officers

This list does not reflect the actual number of deaths—for example, the occupation with the highest actual number of fatalities was "Drivers/sales workers and truck drivers" with 908 deaths in 2007.

Do you have the life insurance protection you need?
It's a fact that some occupations are riskier than others. But no matter what you do for a living, take a look at your life insurance needs. Life insurance can help you financially protect your loved ones after you die. If you're single, and no one is depending upon your income for support, you may not need life insurance. But if any of the following is true, consider buying life insurance:

• You're married and your spouse depends on your income
• You have children
• You have an aging parent or disabled relative who depends on your income
• Your retirement savings, pension, or other cash accounts won't adequately support your loved ones after you die
• You have a large estate and expect to owe estate taxes
• You own a business
• You'd like to donate life insurance proceeds to a charity or school

Calculators and worksheets are available to help you determine how much life insurance you need. You may want to contact an insurance agent or broker who can help you determine what type of life insurance is best for you and the amount of coverage you need.

Do you have the disability insurance you need?
If you work in a high-risk occupation, you probably know how important it is to have disability insurance coverage. But don't rely on government programs such as Social Security and workers compensation as your main source of protection. In reality, government programs pay only limited benefits under restrictive terms (e.g. you must meet a strict definition of disability to qualify).

Your employer may offer group disability insurance at low or no cost to you. This coverage is called Accidental Death & Dismemberment Coverage. But you may also want to consider purchasing an individual disability insurance policy. Although you'll pay more for individual coverage than for a group policy, you often get more benefits. And keep in mind that if you leave your job or otherwise terminate your relationship with a group, you can't take your disability policy with you, and you usually can't convert it to an individual disability policy. This means that you may be left without disability coverage when you need it most.

Shop around for coverage
Since many different types of life and disability policies are available, it's important to shop around for coverage to find a life insurance policy that meets your individual needs. Since premium costs vary widely, get quotes from several insurance companies. Just make sure you're comparing policies that offer similar benefits

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How Much Life Insurance Do You Need?

If you're researching your life insurance needs, you might well be getting a lot of complicated information. It's not a simple subject.

Some financial advisors will tell you to multiply your annual income by a certain number, like 20. Others will tell you to buy only enough life insurance to replace the income you are expected to make between now and retirement. Some might recommend you buy only enough life insurance to cover your present debts.

The question "how much do I need" might not be the most useful way to approach the problem. The question you may want to ask is, "What do I want my life insurance to accomplish?" Then you can start to determine how much life insurance you'll need. Calculating your life insurance needs takes homework. It requires an individual solution, not a one-size-fits-all approach or a throwaway equation.

Why Do You Need Life Insurance?
This is a specific question, not a general topic. Think about why you're considering life insurance, or why you're considering an increase in the amount of life insurance you have. The most common reason for purchasing life insurance is to replace the income of a family member that others depend on. For that need alone, it's usually acceptable to multiply your annual salary by 20 and buy that amount of term life insurance for a period that will cover you until you retire.

If you have additional debts or obligations, you can consider adding those to the amount of insurance you need. However, keep in mind that debts and obligations like mortgages usually decrease over time, while a family's need for income replacement does not. If you and your spouse both work and are financially stable, it might not be difficult for your spouse to pay off a mortgage or debts, as long as you buy enough insurance to replace your income. If you're a single parent, however, you would probably need to purchase enough coverage to pay off all debts so that they're not passed on to your children.

Not Leaving a Burden
For some people, life insurance may seem too expensive, especially if they're just starting a family. If that's the case, it may make sense to initially purchase only enough insurance to cover your debts and obligations. Although you need to realize that it's risky to be underinsured, it's better that not having any life insurance. As your financial situation improves, you can usually purchase more insurance under similar terms.

For single people with no children, purchasing a small amount of life insurance can be an inexpensive way to cover debts and final expenses.

Additional Life Insurance Uses
Not everyone buys life insurance to replace income. If you're wealthy, have a large estate, or simply wish to donate to charity or establish a trust for your family, life insurance can be a smart purchase. If you have a large estate, you may want to consider buying a life insurance policy as a way to pay the estate taxes when you die. Otherwise, your family could be forced to sell off assets in order to pay the estate taxes. Life insurance could also be a good way to donate to a charity without paying taxes, or to establish a trust for your family or for philanthropic purposes.

Regularly Review Your Insurance
Because things change and it's impossible to predict the future, it's important to review your life insurance needs and coverage at least annually. If you make a change in your life, such as getting married, buying a larger house, or having children, your life insurance needs will probably increase. If your salary increases dramatically and your family becomes accustomed to a higher standard of living, your life insurance needs will also become higher. If you're certain of one of these changes before you purchase life insurance, make sure to include your expected circumstances in your insurance calculations.

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Back to School Driving

As summer hits its peak, it's time to start thinking about the beginning of the school year. For many, this means adjusting their morning routine, while for others, it simply means more traffic. How does this affect you, and why should you care?

Increased Time and Decreased Speed
Because of the increase in traffic, it's going to take longer to travel. This means you'll need to leave a little earlier. If you're not stuck in traffic, consider driving more slowly. Besides saving on gas, this helps you stop for school buses, and avoid children who dart into the road.

School Buses and Laws
Even if you don't have kids in school, it's not hard to see the increase in school buses around this time. Laws vary by state, but usually you have to stop if a school bus is loading or unloading—no matter what side of the street it's on. Passing a school bus while its red lights are flashing is illegal in every state.

Make sure to familiarize yourself with the local laws regarding school buses. In their guide, "Reducing Illegal Passing of School Buses," the National Highway Traffic Safety Administration (NHTSA) reports that many school buses are illegally passed about once a day. Some buses are even passed on the right (the side children use).

School Zones
Another thing to keep in mind as school starts is to be alert in school zones. Check your state's laws regarding school zones. If you're unsure, slow down when school is in session, especially if you see children or crossing guards.

School Safety
Although national School Bus Safety week isn't until the third week of October, now is the time to teach children about school safety. If you have kids, talk to them about what's safe and what isn't. For example, do they know how to cross the street safely, where they can and can't walk around a school bus, and how to get help if they need it?

New or Teen Driver
Before your child hits the road as a new driver, make sure they’ve completed a Drivers Education Course, equipping them with the knowledge and practical skills to avoid unnecessary risks and observe proper rules of the road. Many states offer online courses, making it easy and convenient to fit into your schedule.

If your son or daughter is headed off to college, you may be eligible for a Good Student discount or Student Away at School discount (if college is more than 100 miles from home).

For more tips about safe driving programs, driving, and cars, check the rest of our Auto Articles section. You can also get free online car insurance quotes from top insurance companies.

Do you have any questions or comments? Please let us know.

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