insurance tips

There are lots of ways to use mobile technology that involve thinking outside the box -- such as using or driving for Uber, renting a car by the hour, or renting out your car to others. In this case, the "box" happens to be your personal car insurance. If you're involved in any of these creative uses of automobiles, discover the limitations and exclusions you will face and my suggestions for protecting yourself.   2 coverage gaps with TNCs Transportation network companies, or TNCs, recruit drivers who use their own car for a fee. Drivers for companies such as Uber and Lyft pick up passengers and deliver them on demand, all arranged through the TNC's mobile app. Unfortunately, personal car insurance almost universally excludes all coverage, including when the car is carrying a passenger and when the driver is looking for passengers. This exclusion applies to liability, uninsured/underinsured motorists and collision coverage. If you're a driver for a TNC, such as U...

Getting health-care claims paid can be an arduous process, made worse by the penny-pinching of insurers, the complexity of policies, and inefficiencies in the health-care system, says Joseph Ditré. His advice: "Don't give up. And get help."  Ditré's nonprofit Consumers for Affordable Healthcare, in Augusta, Me., is one of the organizations funded as "consumer assistance programs" by the 2010 federal health-care reform.  Although not available in the 17 states that didn't apply for funding, the  programs  work with consumers one on one, helping them resolve difficult health-care claims.

There are generally two kinds of life insurance: term coverage that pays out for a specified time period, and permanent coverage that builds up a cash value, much like an investment. Although some may get tax advantages from permanent life policies, consumer advocates say term coverage makes better financial sense for most people.  "If you're not being told by a tax accountant to consider some cash-value product, you probably don't need it," CFA's Hunter says. "There are much better and lower-cost ways to invest" than through your life insurance policy, says adviser Knox.

When disaster strikes and a house is damaged, homeowners have two contradictory priorities: Prevent further damage, and preserve the evidence. They might need to put up tarps or make minor repairs, but they shouldn't make any permanent repairs or clean up debris until after their insurer's claims adjuster makes a visit. "It's important for the adjuster to see the damage in its worst state," says Altieri, the public insurance adjuster. Otherwise, homeowners might not be fully compensated for their loss.

Many automobile insurance companies use special software to determine payouts in bodily injury claims, and the Consumer Federation of America's Hunter warns that these computer systems often shave 20 percent off the claims. The CFA says customers should ask if their auto claim offer was evaluated by computer and, if so, ask for the range of offers generated. "Don't accept any offer that is less than the high end of the range," the CFA advised in a Dec. 2010 consumer alert.

When making a big claim with an insurance company, Rutgers's Feinman says it's important to remember: "It's a business relationship. "Despite marketing campaigns to the contrary,"they're not your neighbor, and they're not your friend." Sometimes professional help is necessary in negotiating with an insurer. A public insurance adjuster can help with a time-consuming claim process, as when a house is damaged. If you're facing a fight with an insurer over a big claim, a lawyer may be necessary, says Hunter of the Consumer Federation.

Insurance policies with high deductibles not only save money on premiums; they prevent policyholders from being penalized for submitting many small claims. "The more claims you file, the more you're going to pay for insurance," says United Policyholders' Bach. Too many claims can prompt insurance companies to refuse to renew your policy or to raise your rates. Other insurers will also know about the frequency of your claims, because insurers use shared databases, she says.

"Companies are taking longer to pay claims and paying fewer claims," says Rutgers's Feinman. Getting information on how quickly a company will pay claims is hard, because state insurance commissioners collect but don't disclose such data, says Daniel Schwarcz, a University of Minnesota law professor. States do post data on complaints. Also valuable, says Feinman, can be customer satisfaction surveys by J.D. Power and Consumer Reports . J.D. Power gave its highest customer award in car insurance to Auto-Owners Insurance Group and the top homeowners' insurance honor to Amica Mutual. A 2010 Consumer Reports car insurance survey gave high marks to Amica, Auto-Owners, USAA, and NJM Insurance Group. Source:

Many forms of insurance, especially life insurance and annuities, represent a relationship between an insurer and a customer that can last decades. It's important to make sure a company is likely to survive that long. You can check on the financial strength of insurers through rating agencies such as Moody's , Standard & Poor's and A.M. Best . Headley, the insurance agent, recommends picking only companies with the top three or four ratings from each agency. Companies receiving A.M. Best's top financial strength rating of A++ include USAA, State Farm, Northwestern Mutual, New York Life, Chubb Group, and Berkshire Hathaway.

Disability insurance replaces income lost if you can't work, and it's a necessity for most people, University of Texas's Kitt says. Workers are far more likely to become disabled than they are to die early. Many companies already provide short-term disability policies that usually cover two-thirds of employees' salaries. If you're forced to buy your own individual policy, it will probably cost more than a group policy, but you won't lose it if you leave your company, and the benefits won't be taxed. Disabled workers' insurance payments will generally be reduced if they receive other income, such as pension payouts or Social Security disability payments.

Most experts warn against buying any insurance policy with extremely narrow coverage. Cancer insurance, for example, makes no sense when other policies can cover a broader array of health ailments. Industry experts generally recommend a life insurance benefit of five to 10 times annual income, depending on how many debts and dependents you have. With enough basic life coverage, you can avoid unnecessary life insurance gimmicks, Rutgers's Feinman says. For example, there is no need for extra life coverage folded into travel insurance products or for credit life insurance that pays off debts when you die.

When Bill Wilson's son was in high school and college, his above-average grades lowered Wilson's auto insurance premiums. Generally, a B average or better qualifies for a discount, he says. Homeowner premiums can be lowered by something as simple as putting a fire extinguisher in the garage or something as expensive as a new roof. Life insurance can be four times more expensive for smokers than for nonsmokers, so it's important to get your policy redone if you quit, says Byron Udell, founder of AccuQuote, an online life insurance broker.

Another important addition to homeowner policies is umbrella liability coverage. Without it, you could be bankrupted by a lawsuit, whether from someone injured on your property or from someone slandered by your Internet blog. Such coverage is rare but important for renters who live in large buildings, says Wilson of the Independent Insurance Agents & Brokers of America. A fire started in one apartment can easily spread to other units, potentially putting a renter on the hook for a big bill for damages. Each $1 million in liability coverage generally costs $100 to $200 per year in premiums, Headley says.

If your older house is destroyed by a fire or disaster, you can't just blow the dust off the original construction plans and build again. In most of the U.S., building codes have become much more stringent, requiring upgrades of everything from electrical systems to the thickness of walls when you rebuild. To pay for these extra costs, public insurance adjuster Raymond Altieri Jr. of Altieri Transco American Claims advises all owners of older homes to get so-called ordinance and law coverage added to their homeowners policy. A typical policy boosts premiums 3 percent to 7 percent.

Long-term care insurance has become more expensive. Customers who bought policies in the past should hold onto them, University of Texas' Kitt says. Although premiums may rise, those policies are likely more generous and less expensive than current products. Buy between ages 40 and 55, and "the premium is much more manageable," says Terry Headley, an insurance agent and president of the National Association of Insurance & Financial Advisors. Adviser Knox acknowledges that buying while premiums are high is a tough decision. "There's a lot of uncertainty around the premiums and how much they'll rise," she says. Balance that against the uncertainty you'll face with no long-term care coverage.

A dangerous way to lower premiums is to get too little coverage. Homeowners who can afford it would be smart to insure enough to cover the contents of a house–including artwork or other expensive items–and the full cost to rebuild a home on the site.  This construction can be much more than the market value of a house, says public insurance adjuster Jack Kunz, president of Alex N. Sill.  Also, many young families fail to get enough life insurance, says financial adviser Brenda Knox. Insurance agents sometimes won't present a policy with full coverage for fear that the high premiums will scare off customers.

Insurance protects consumers--while also maddening them. Shopping for the right policy can quite confusing and "consumers are really at a disadvantage," says J. Robert Hunter, director of insurance at the Consumer Federation of America. Getting paid for claims is sometimes no easier: "It has become a war of attrition," says Joseph Ditré, executive director of Consumers for Affordable Health Care. Bloomberg.com consulted consumer advocates, academics, financial advisers, insurance agents, and adjusters for advice on how to avoid overpaying, underinsuring, or missing out on claims you deserve to have paid. Click ahead for tips and tricks of the trade. Use Buying Guides Agents are paid by insurers to sell their products and often sell only certain companies' policies. Some insurers offering lower prices, such as Geico and USAA, sell directly to the public. Before meeting an agent, read buying guides on state insurance regulators' websites, such ...

Start the Countdown How much you pay for auto insurance depends o­n several factors, including your age and marital status, where you live, and what you drive. You can't do anything about your age, and few people will move just to lower their insurance premium. You can, however, choose a vehicle that costs less to insure. In this article, we'll give you all of the helpful tips you need when getting car insurance. 1.- Know Your Coverage Types What is your car insurance actually insuring? Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost: Bodily injury liability : Covers injury and death claims against you, and legal costs, if your car injures or kills someone. Property damage liability : Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states. Medical payments : Pays for injuries to yourself ...

General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance. It is called property and casualty insurance in the U.S. and Canada and Non-Life Insurance in Continental Europe. In the UK, insurance is broadly divided into three areas: personal lines, commercial lines and London market. The London market insures large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, P&I Clubs, brokers and other companies that are typically physically located in the City of London. TheLloyd's of London is a big participant in this market. The London Market also participates in personal lines and commercial lines, domestic and foreign, through reinsurance. Commercial lines products are usually designed for ...

What is 'Homeowners Insurance' Homeowners insurance is a form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. In the U.S. there are seven forms of homeowners insurance that have become standardized in the industry; they range in name from HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner. Also known as "homeowner's/homeowners' insurance." BREAKING DOWN 'Homeowners Insurance' While homeowners insurance covers most scenarios where loss could occur, some events are typically excluded from policies, namely: earthquakes, floods or other "acts of God" and acts of war. For people who live in certain parts of the country, adding an extra policy for earthquake insurance or flood insurance can be a good idea to offer f...

The cost of insurance (ie. premiums) is determined by the claims experience of the company. This is why young drivers, who have a high claims rate, may pay higher car insurance premiums than drivers over 25 years of age. This is also why female drivers, who are considered a lower risk, may get cheaper car insurance than males. If claim numbers and the cost of claims increases, then so may insurance premiums. For risks that involve a high severity of loss and a low frequency of loss, then risk transference (ie. insurance) is probably the most appropriate protection technique. Insurance is appropriate if the loss will cause you or your loved ones a significant financial loss or inconvenience. Do keep in mind that in some instances, you are required to purchase insurance (i.e. if operating a motor vehicle). For risks that are of low loss severity but high loss frequency, the most suitable method is either retention or reduction because the cost to transfer (or insure) the risk might be c...

Insuring an automobile is more than just a good way to protect an investment.  It's also a good way to protect people too.  In most states, owners are legally required to carry insurance to protect passengers, people that might be injured by the car, and damages it might cause to property. In this article, we're going to discuss why consumers need automobile insurance, as well as the categories of protection offered to individuals.  We'll also talk about some of the factors companies will use to determine policy premiums. Nobody sits behind the steering wheel and intentionally rams into another car, deer, or telephone pole (criminal exceptions noted).  The vast majority of individuals have accidents, and they can even happen when pulling out of a driveway. In many countries throughout the world, it is mandatory, or compulsory, to purchase insurance before driving on public roads.  In the United States, there are penalties for not having a valid policy including ...