Insurance Blog, Home Insurance Blog, Life Insurance, InsWeb Insurance Blog

About a year or so after I graduated from college, I lived in Chicago. My apartment was right off the Blue Line train in Logan Square. For those who are not familiar with the area, Logan Square is characterized by fenced in mansions intermixed with, what was at the time, inexpensive housing and rent. Due to its centralized location it was a natural fit for young, fresh out of college people, students, “artsy” types, and, of course, crime. In the one year I lived in Logan Square I witnessed a variety of criminal behavior and malcontents, including a drunk person passed out on a front lawn, and my girlfriend being robbed. I also had the unfortunate experience of having my car stolen.

Yes, I am among the 1 in 10 Americans who is a victim of vehicle theft (According to a NICB/Gallup study). I was a statistic and was treated as such by the apathetic police department I contacted after I arrived at the conclusion that my car wasn’t where I had parked it two days earlier before the start of the 4th of July weekend. While I did roll-up the windows and lock the doors, there were a couple of extra things I could have done to possibly deter this unfortunate event from happening — such as anti-theft devices (like a steering wheel lock) or decals placed in the window of my car as mentioned in the article “Vehicle Theft Prevention Devices”

Even though these things would have cost me a couple of extra bucks, in the end it could have saved me anguish of having to recover my car and it could have possibly saved me some money on my auto insurance. The police department eventually told me that my car had been found and gave me the street address to where it was. However, I came to find that the street address they supplied didn’t exist. I contacted the police again to discover it had been towed and was now impounded. I quickly discovered that it was going to cost some money to bail my car out of jail. Something like $50 to get it out of impound and then another $200 to get it towed again since the steering column had been broken and hot-wired.

The car was close enough to death that I decided to transfer the title to the tow company. I have a conspiracy theory that the whole system was in on my car getting stolen and it’s no secret that Chicago is rife with corruption. In the end the City got its money from having the car impounded and the tow company got its money from me eventually signing over the title. I came to find out that my car’s title was never properly transferred. I started getting parking tickets in the mail long after I gave the car to what I thought was a legitimate tow company. Needless to say, it cost me time and expense to get the parking tickets dismissed and have the ownership of the car properly recognized as being terminated. In any case, I had a couple of things that made my car more susceptible to theft. Car insurance premiums are typically higher if you live in a city or park your car on the street at night.

Thankfully, now that I work in Sacramento and live out in the “burbs” with a garage, the risk of having my car stolen has dropped a bit. The biggest risk of my auto insurance rates going up nowadays is getting speeding tickets with all the driving I do.

Another interesting read:
Is Your Car On The Most Stolen List

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We were in Maui, renting the King of all rental cars: The Chrysler Seabring! I reserved the car through my favorite travel site three months prior, and felt satisfied that I actually got a great deal. At the time that I reserved the car, I selected the ‘add-on’ insurance protection without hesitation. From an online shopping perspective, this was my impulsive “Add gift wrapping?” behavior of which I’ve recently become much more liberal. Without another thought, I printed my confirmation number and called it a day.

Meanwhile, back at the rental car agency counter, I was asked if I wanted the standard auto insurance package. With an online shopping hubris, I held a printed confirmation and claimed that I already had it; blocking the rental company from further depleting my then “hard cash” travel budget. I was annoyed (mostly at myself) to learn that the insurance that I previously purchased was nothing more than a general form of Travel Insurance with Rental Car “Loss” protection. Failing to read the 25-page ‘Certificate of Insurance,’ which only provided $72.00 of insurance that didn’t meet my immediate vacation needs, I was forced to purchase the rental company’s house insurance package for both myself and my wife.

To add the proverbial insult to injury, after I returned from Hawaii, I read the March InsWeb Newsletter Article titled “Do You Really Need Rental Car Insurance?” The article simply explained how I failed as an insurance consumer to understand my primary auto insurance policy, and how I need to pick up the phone sometimes and ask my insurance carrier about what I’m already covered for, so I can save my money for an overpriced beverage at an overpriced hotel in Hawaii!

Although it was after the fact for me, the article taught me about the importance of communicating with your carrier or agent before you purchased rental car insurance. Many auto insurance policies already provide various types of protection for rental cars. The article advised consumers to check with their agent or policy before purchasing unnecessary rental coverage.

The article warns readers about how various rental car agencies can overwhelm their customers with different types of auto insurance coverage types that will add money to the base rental rate. Again, you may already be covered for this under your primary auto insurance policy.

The article explained why everyone should understand CDW (Collision Damage Waiver) protection which can cost an extra $8-11 per day. CDW covers both the cost of damages to the rental car if you are involved in an accident and the “loss of use” that the rental company will charge you. “Loss of use” means the time and money the rental car company lost since the vehicle could not be rented. While the damage to the vehicle itself may be covered by your personal auto insurance policy, the “loss of use” very likely will not be.

The article went into detail about rental car insurance and credit cards. This is a subject of much misunderstanding and travel myths.

The article touches on renting cars in foreign countries and the implications of your personal insurance coverage, which may not extend to a rental car.

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A lot has happened in my life the past eight months, which has led me to making some important decisions. For nearly seven years I lived in the Pacific Northwest; receiving my college education and working several different professional jobs. There came a point this past Fall when I realized that I was ready for a change. I was seeking bigger and brighter things in my life, and the dreary Northwest was not providing me the opportunities I was seeking. I left my job, packed my SUV with all of my possessions (yes, amazingly I fit everything in and on top of my car), and said good bye to my friends. It was California or Bust!

It wasn’t like this was a totally risky or “out of the blue” move. I had spent my childhood in Northern California and a large portion of my family still resides there. During early winter I moved down to the Sacramento area and began the hunt for job in the marketing field. It wasn’t long before I landed a great position with an established company. As in with most new jobs you are given thick offer packets containing all the information regarding the company, government documents and participating insurance company information. That’s when it hit me; I had never really made any long term decisions regarding my healthcare coverage. I was covered under my parents insurance until I turned 25 and after that I purchased just major medical insurance on my own, covering myself only in case of a major injury or hospitalization. It was now time to sit down and figure which health insurance plan was going to fit my current lifestyle.

Where do I start? Being “tech” savvy, the first place I looked was the Internet. I was overwhelmed by the amount of health insurance information out there. There were so many options; HMO, PPO, Point-Of-Service and Indemnity. Each of the different health plans has its pros and cons. It’s a matter of finding which one fits your needs. I was fortunate to run across an article titled, “Health Plans- What’s the Difference”

The article laid out very simply the basic differences in the health plans. I was mainly looking for the differences between an HMO and PPO
- HMO: Low cost, easy/simple paperwork, physician refers you to specialists.
- PPO: Costs more, greater flexibility in the doctors you can see.
After careful thought and research I decided to go with the HMO plan that was being offered by my employer. It meets all my medical needs and so far has been a pretty good choice.

I would highly recommend visiting InsWeb’s Learning Center to read more of the informative articles they have regarding health and other insurance services.

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We hear and read about it in the news every day: Rising interest rates are punishing home owners that participated in the adjustable-rate home loan phenomenon over the past half-decade. According to a study performed by USAToday, almost 25% of mortgages (10 million) carry adjustable interest rates. Attracting consumers with low down payments, and interest-only payment options, adjustable-rate loans afforded millions of borrowers the opportunity to refinance their existing homes at historically low rates, and even qualified them for homes that were otherwise beyond their financial means. Today, many borrowers are sinking in these very mortgages as their loans are resetting to higher rates. In fact, experts estimate that the number of homeowners in financial trouble, specifically those facing foreclosure, will increase over the next two years, peaking in 2008.

In the struggle to escape foreclosure, some will make simple adjustments in their daily lives by conserving energy and vacationing closer to home. Others, unfortunately, will be forced to sacrifice on grocery spending — going as far as surrendering essential healthcare expenditures just to make ends meet. Surprisingly, homeowners insurance policies are a common bill that many borrowers fail to save on; instead accepting insurance as just another cost of owning a home.

As far as many new home borrowers have been concerned, their homeowners insurance policies are bundled into their mortgage payment. Satisfying the lender's prerequisite that the premium be paid for the first year at closing, shopping around for the best rate may not have been a reasonable option at the time. Given the current state of rising interest rates though, the opportunity for shopping for a new homeowners insurance policy has never been more reasonable. It's easier than shopping for a mortgage and there are dozens of ways homeowners can save, easing the pinch created by skyrocketing mortgages.

Homeowners insurance rates can vary by hundreds of dollars from company to company, therefore, homeowners should shop for insurance the same way they would shop for any other product. Homeowners should compare prices, policy coverage and conditions, and even consumer complaint reports.

Look for Multi-Policy Insurance
Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy the Homeowners Coverage You Need
Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings. Further, homeowners shouldn't spend money for coverage they don't need. For example, if you don't live in a flood-prone area, you may not need costly flood insurance.

Consider Raising Your Deductible
Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000, you may to save nearly 25% on your premium.

Look For Discounts That May Apply to You
There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Other common homeowners insurance discounts include:

• A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older home, therefore new homes are usually charged lower rates than older homes in the same price range.

• Seniors often enjoy discounts on their homeowners insurance if they are over 55 and retired, or if they've been a long-term customer.

• Strong home security in the form of security systems, alarms, gated communities, double locks on both doors, etc. often afford you lower rates.

• Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Insure Your House, Not the Land Under It
Consumers often overpay for homeowners insurance by including the value of the land that their home resides. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

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In summer car buyers flock to dealerships during the pleasant afternoons and evenings to check out the new models and take advantage of those heavily advertised model year-end sales extravaganzas.

Automobiles are generally the second largest purchase (next to a house) that a person makes, and there are many factors that a consumer should consider when making a decision. Before you become distracted by the myriad of incentives, rebates, extended warranties and convoluted financing terms, do not overlook the cost of insuring the vehicle that you are considering. Insurance rates differ greatly between cars. If the car is safe and performs well in crash tests, is not frequently stolen, and/or has certain safety or anti-theft features, it will generally cost less to insure. If on the other hand the car is flashier, has a history of being frequently stolen, or is more expensive to repair, you can bet your insurance rates will be higher.

Many people overbuy on cars, leaving them straining to make ends meet and forcing them to severely alter their current lifestyle. It is always a good idea to prepare a budget before you even begin looking for a new car. Figure out how much you can afford and keep in mind that just because you get approved for a certain loan amount does not necessarily mean you can realistically afford the monthly payment. In your budget, include the cost of gas, vehicle maintenance, and of course, the cost of insurance. Determining the ideal monthly payment without recognizing the corresponding cost of insurance is a mistake that will deliver a financial rude awakening with an unpleasant feeling of buyers’ remorse.

It is recommended that you purchase a car using sound shopping principles of research, comparison, and preparation. Print out any research, including price quotes and trade-in values, and carry it with you when you begin test driving cars. Use the Internet to find multiple sources for shopping, financing and insuring the various vehicle models that you are interested in and follow the following tips to help you in your car buying process:

1. Determine how much you realistically can spend on a car (loan payment, insurance, gas, maintenance, etc).

2. Identify which dealers or sellers are offering incentives or rebates.

3. If you are trading in your current vehicle, be sure to check the trade-in value. Remember, there are two different trade-in values: one for selling it to the dealer, and one for selling it privately.

4. Make sure to test drive all the cars you are considering buying. You may be surprised to find you like the way the less expensive (or safer) car drives just as much as the models on your wish list.

5. Shop around and don't impulse-buy. Remain emotionally indifferent and never show Larry the Dealer your excitement.

6. Dealerships are not the “end all, be all.” Don’t rely exclusively on them for financing and all other related products and services.

7. Take your time to carefully read all the contractual paperwork during the purchase process. Be aware of all the extra charges the seller might build into your contract. If you become confused or overwhelmed, ask for another explanation or give yourself time to discuss with a trusted friend or family member.

8. Although additional safety and anti-theft devices add to the price of vehicle, consider additional devices as their initial cost may be offset by the savings on your insurance premium.

Ultimately, when you purchase your new vehicle, be sure shop around for auto insurance. This is the best way of saving money on insurance. Many people find it easy to stay with the same company for years, but fail to realize they have the potential to save hundreds of dollars each year by comparing quotes from multiple companies. You should shop around at least twice a year to see if you are getting the best deal possible.

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The summer months of June, July, and August are truly the peak wedding season. Brides and grooms have been diligently planning over the past year to create an event of lifelong memories. Whether you’re the bride or groom, a member of the wedding party, or simply a guest, weddings create an environment of love and mutual caring for one another. One’s own understanding of life’s priorities, and their devotion to the people around them is profoundly clear. To love someone with such purpose is to accept responsibility for their well being. For the newly married couple, this is obviously the spouse and any children, and for the parents of the bride, perhaps this is the entire family. But what would those people do if something were to happen to you? What if “until death do us part” became an unfortunate reality? The “what if” explains why marriage is an important time to review your needs for life insurance protection.

Ideally, reviewing your life insurance coverage and making adjustments to meet your new financial obligations should be the first thing that you do as a married couple—even before the honeymoon. If you already have an existing life insurance policy, getting married is the best time to update the beneficiary designation to name your spouse as the beneficiary.

Most newlywed couples do not need extremely high levels of life insurance coverage; however, securing extra coverage at a younger age is a sound financial decision. As you begin to purchase things together (such as a house) and acquire debt, it is important to make sure you are adequately covered in the event of a catastrophe. Many find it easy to pay their mortgage when they are part of a two-income household, but those same people could find themselves in a financial pinch if something were to happen to their partner and they had to survive on their income alone. In any event, you should have enough life insurance to enable your surviving family members to maintain their current lifestyle. They should be left financially secure until they can comfortably provide for themselves.

Term life insurance is the most affordable and cost-effective life insurance protection available. The purpose of life insurance is to “indemnify” (replace financial loss), and what most people should be looking for is income replacement for their beneficiaries. Independent financial planners recommend purchasing an amount of coverage equal to 6-10 times your annual gross income. Term life insurance is simple to understand, and allows for personal choice. You pay a low monthly premium based on the term length and amount of coverage you choose. You can choose term lengths such as 10, 20 or 30 years, and coverage amounts anywhere from $100,000 to several million dollars.

As your marriage happily continues into your golden years, you should review your life insurance policy at least every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating a change in your protection. If you are replacing a policy, make sure you allow enough time to get your new policy in place so coverages won't overlap or lapse.

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I came across an interesting article provided by the NAIC (National Association of Insurance Commissioners) which warned consumers of purchasing flood-damaged vehicles that may have originated from the states that were affected by Hurricanes Katrina and Rita.

According to the warning, thousands of submerged vehicles were abandoned in Louisiana, Mississippi, Alabama, and Texas and were shipped to other parts of the country through car wholesalers. The NAIC warns consumers to take extra precautions to save time and money when buying a used vehicle. They provide five key steps to protecting yourself which is available at:

Used Car Buyers: Beware of Hurricane Flood-Damaged Vehicles

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That was my reaction after I saw my dog chase my neighbor into their house and their guest around his car twice, just two weeks after getting my dog. After rounding up my dog, I apologized to the neighbors profusely and immediately began scouring the “Net” to look for obedience training classes/techniques.

Australian Shepherds are known to be a very intelligent breed and was told that training them would be very easy prior to taking ownership. After trying different obedience training techniques and getting some positive results to getting my dog to sit/stay/come, as well as getting him acclimated to my neighborhood, I thought that it would be ok to let him roam in front of my house (off leash) while I was doing yard work. Needless to say, he found himself getting into a situation where he nipped at another neighbor. Nipping enough to break the skin and leading to my neighbor to go to the local Urgent Care to get treated for a "dog bite".

My neighbor arrived home and immediately asked me if the dog vaccinations were updated and if I had Renter/Homeowners insurance. I told him that the dog was caught up with his shots, but told him that I did not have this type of insurance. I didn't even know that dog bites were covered under these types of policies. Needless to say, I was worried beyond belief of any legal repercussions, fortunately for me I had a pretty good relationship with the neighbor and nothing came of it.

Well, I have Renters/Homeowners insurance today. I couldn't imagine not having it due to the unpredictable nature of my dog.

After reading the article “Dog Bites: The $1 Billion Problem” and reading that there were $1 billion dollars in claims in 1998 alone, I thought it best to write my experience. The article points out Dog Bite Liability as well as Preventing bites that would be a good read for any dog owner. The article pointed out how Homeowners are financially liable for dog bites. Most homeowners and renters policies provide $100,000 to $300,000 in coverage for liability claims. However, anything over the policy limit is the homeowner's responsibility. Further, once a dog has bitten someone, it poses an increased bite risk. A survey among insurance companies showed that 70 percent of insurers would not renew a homeowner's policy after one dog bite.

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