If you’re like me, and think a pet is a wonderful thing but you prefer to not live a life of debt for him, here are some tips for limiting the vet bill while skipping the insurance.

Seek out low-cost vet clinics for routine shots. Many vets offer them once or twice per year. You can also call your local chapter of the The Humane Society of the United States. You may even get information from your local animal control department.

Get a second opinion for non-emergency conditions. You might even want to check out the Merck Veterinary Manual online for detail about your pet’s condition and treatment possibilities.

When it comes to medication, shop around and ask for samples. Many vets have small, sample size packs of medication that may suit your pet’s need, or at least cut down on the total bill. Also check around on the Internet at sites like Discount Pet Medicines.

Don’t ignore long-term factors either. Cutting costs today on cheap pet food can mean big bills down the road. I had a cat when I was younger who went into full blown kidney failure on a Friday. It being a weekend, our regular vet was closed which meant going to an animal hospital. (read “big money!”)

Anyway, it turns out that the cheap food we had been giving him for years was loaded with “fillers”, like clay. Over the years this led to kidney and urinary tract problems. All told, my parents spent close to 4 figures on that incident and the cat lived for another 8 years or so but we all could have saved a lot of time and money had we known to skip the cheap food.

Also, research breeds and pets before you decide. Dogs make twice as many trips to the vet as cats, and there are a host of chronic problems and hereditary diseases that plague specific breeds. At the very least, you should know what you’re getting into.

Related Posts:

• Is Pet Insurance Worth The Cost?
• When is it Ideal to Drop Collision Auto Insurance?
• How to Check Insurance Companies for Complaints.
• Life Insurance: What kind should I buy?
• Life Insurance: How much do I need?

Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance). Copyright © Simple Debt-Free Finance

Now, the owner is often placed in the difficult position of placing a dollar amount on the life of their pet.

Americans spent $12.2 billion on veterinary care in 2009 alone, according to the American Pet Products Association (APPA). Insurers are advertising through with American Kennel Club and Petco Animal Supplies, and companies like Google and Office Depot provide pet coverage as an optional employee benefit.

Veterinary Pet Insurance, one of the oldest insurers, reported an average annual rate of revenue growth of 26.8% since 2008, and had $149 million in sales in 2007.

The cost of pet insurance over the life of the average pet can run as high as $6,000, but that’s a small price to pay for the peace of mind for many pet owners.

Deciding whether pet insurance makes sense for you is a personal decision. If you’re the type of person who sees your pet as an extension of yourself and an integral part of your family – one for which you would go to any cost (literally) to save, then pet insurance should be a consideration.

Here are some tips for buying the best pet insurance if you decide it’s the right move for you and your family.

Pet insurance comparison and shopping around.

Shopping around is a must, just like buying anything else – competition is your friend, when you’re the customer. Policy coverage and premiums can vary greatly, so look at the whole package and not just the premium.

Compare pet insurance policies by the following:

• monthly premium/annual cost
• deductibles
• coverage
• payout caps
• co-pays

Watch for payout caps that are limited by year or life of the pet. You could easily end up paying for a policy which you’ve already maxed out. That would leave you with no means to provide care for your pet and having to pay premiums – the worst of all possibilities.

Ask about multi-pet discounts.

Check with your employer to see if they offer any discounts or pet insurance as an employee benefit.

Pet insurers should also be registered with your state regulators, so you can check up on their legitimacy.

Related Posts:

• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).
• Is Pet Insurance Worth The Cost?
• Minimalism vs. Simplicity – Are You Missing the Point?
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Notice of Mortgage Protection Insurance, a Scam.

Tips for buying the best pet insurance. Copyright © Simple Debt-Free Finance

Is pet insurance a good idea?

Treatments and diagnostic routines that were previously only available to humans are now available for pets. Conditions that were once fatal are now possible to treat, albeit at costs that run into the 1,000s.

The cost of Pet Insurance can be as high as $6,000 over the life of your pet, but chances are that you would never claim that much in reimbursement costs.

A few years back, my wife and I experienced our 1st financial tipping point which was triggered by a trip to the veterinary hospital for our cat. While that experience prompted us to take a long, hard look at our finances and eventually started us down the road of financial overhaul and debt-free living, we never once thought that health insurance for our pet was a solution.

After careful consideration of pet insurance this time around, we’re taking a pass on it but there may be cases where it makes financial sense. Here’s why it might make sense, and why it’s probably not worth the money.

When Pet Health Insurance Might be Worth it.

If your pet is at high risk to suffer from expensive diseases and the thought of having insurance gives you peace of mind, then you may sleep better at night knowing that you would be covered in such an event.

If that’s you, then you want to be absolutely sure you understand the terms and conditions of the policy and be positive you are getting the coverage you need.

Why Pet Health Insurance is Typically Not Worth the Cost.

Pet insurance is typically not the money saving proposition it seems once you factor in deductibles, co-pays and reimbursement caps. Pre-existing conditions and hereditary conditions are typically excluded from coverage. Some insurers do cover such things, but expect to pay a higher premium due to the increased likelihood of payout. Coverage for older pets carry higher premiums or are sometimes not available. Some insurers simply refuse to cover pets older than 9 years.

Read this cautionary tale from Wise Bread to see one case when pet health insurance is not really worth it.

If your pet is not a purebred, and not subject to an increased risk of serious and costly disease, then you are probably better off skipping the insurance, and saving the amount you would be putting toward a premium. Take that money and automatically save it every month in a savings account (such as the ING Direct savings account ). It will be like paying the premium but you get to keep any interest from the bank and in the very likely case that you wouldn’t file a claim, you get to keep the money too… perhaps for your next pet. Think long term.

Bottom Line: Is Pet Insurance Right For You?

The choice of whether to purchase pet health insurance is a personal one. You have to determine just how far you are willing to go for your pet. If you’re the type of person who would “do anything” to save Fluffy – no matter what the cost – then you may seriously consider health insurance for your pet. This is especially true if the alternative is going into debt.

However, if you’re a more pragmatic sort of person who is willing to provide good, basic care for your pet but find yourself thinking, “it’s only a cat/dog, and he’s had a good life” when faced with the prospect of a 4 figure vet bill, then you’re best off by taking a pass on the pet insurance.

Related Posts:

• Minimalism vs. Simplicity – Are You Missing the Point?
• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).
• Is Gap Insurance A Good Idea?
• Tips for buying the best pet insurance.
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!

Is Pet Insurance Worth The Cost? Copyright © Simple Debt-Free Finance

Many insurance policies sold today are simply unnecessary in most cases. Knowing which policies are needed and which aren’t will go along way toward arming yourself with the knowledge needed to protect yourself from less honest agents.

1. Private Mortgage Insurance (PMI).

First up on the hit parade is the onerous PMI. Many homeowners only become aware of this after they buy a home an see their monthly mortgage payment has this extra fee included. PMI has nothing to do with protecting you or your home. It’s insurance for the bank to insure against the possibility that you default on your mortgage.

You didn’t expect the bank to pay for its insurance, did you?

Private Mortgage Insurance is required for loans with less than 20% equity – either a refinance for more than 80% of the value of the home, or a mortgage with less than a 20% down payment.

PMI can only be avoided in the initial opening process of the loan, after you’ve got the loan you have to wait until you have at least 20% equity in the home. This can be due to appreciation in the home’s value, which is unlikely in the current housing market, or by paying down the loan. Homeowners can accelerate this process by making extra payments – just make sure they are principal only payments.

(check out Why A Mortgage Loan Without PMI Is A Bad Idea.)

2. Extended Warranties.

An extended warranty is basically insuring against a breakdown of the product outside what’s covered by the basic warranty. That may mean a breakdown after the basic warranty has expired, or a breakdown of something not covered by the basic warranty.

Unless you’re purchasing a high-ticket item, the warranty is likely to cost almost as much as a total replacement. I paid $115 for my first lawnmower. At the time of check out, the sale clerk tried to upsell me on a 3 year extended warranty. I would “only” cost me 30 bucks a year. That would have been $90 in total – for a $115 lawnmower!

The dirty little secret on most warranties is that they only cover the things that rarely go wrong to begin with. So in most cases, you’re better off playing the odds that it won’t break. This is especially true if you save up the entire purchase price of the item before buying, and don’t buy on credit. Also, waiting for prices to come down helps too. I might be tempted to get the extra warranty on a $5,000 new flat screen television, but a $700 one? Not so much.

But then, the thought of spending so much on a “want” makes my frugal self revolt.

3. Automobile Collision Insurance.

Collision insurance is meant to cover the cost of repairs if your vehicle is involved in an accident. This isn’t necessarily useless. It depends on your financial situation and your car. I drive old cars that I can either pay for entirely or pay for mostly, leaving me with a lower loan amount.

Banks typically require you to carry collision insurance, so if you have a loan you will likely get stuck with this bill. But after the loan is paid off, the car is likely worth less that the insurance premiums you’re paying (are darn close)! In which case, you’d be better off putting that money into a savings account for car repairs (should they arise) or a new(er) car.

4. Rental Car Insurance.

People buy this?

Apparently they do, but they probably shouldn’t. Most people rarely need a rental car while their car is in for repairs, and if they do the cost is far cheaper than what they would pay in premiums. Personally, the few times my car has been in the shop long enough to need alternative transportation, the shop has provided either a loaner car or paid for the rental car.

5. Flight Insurance.

I’m not sure what this is meant to cover. I gather it’s meant pay your survivors should you die in a plane crash, but your life insurance would do that anyway.

6. Water Line Coverage.

Ah, now we’re getting to the really fringe insurance types.

This policy would cover the repair costs of the water line that runs from the street to your house. The likelihood that this would ever become a problem is slim – especially in new neighborhoods and given the relatively short distance covered in most suburban neighborhoods.

7. Life Insurance for Children

Life insurance is meant to cover the income of the insured in the event that they die prematurely. Children don’t have dependents to worry about. Some agents try to sell this kind of insurance as an investment for the child’s future. This gets to the Term Life Insurance vs. Whole (or Universal) Life Insurance debate. (see Life Insurance: What kind should I buy?) The same is true in this case – skip the whole life policy and invest the money that would go toward a premium in a Roth IRA for the child. (See Secret # 2. Make Your Grandchild a TAX-FREE Millionaire!) It will perform better with less fees and he’ll have access to the contribution amounts for his first home, while the rest will continue to snowball toward retirement.

8. Credit Card Loss Insurance.

This is meant to cover your expenses if someone steals your card or makes fraudulent purchases. It’s a complete waste because you’re only liable up to $50 by law, and most credit card companies wave that for good customers.

9. Mortgage Life Insurance.

Mortgage life insurance pays off your house in the event of your death. This is useless, since it’s the purpose of Life insurance to begin with , only life insurance will pay off the mortgage, and your children’s college expense and anything else you need.

10. Unemployment Insurance.

With government unemployment benefits lasting over a year, you’re far better off building an emergency savings account and using that to supplement the unemployment checks. If you can make Unemployment Insurance premium payments, you can make contributions to an emergency fund.

Check out the inspiration for this article and 5 more unnecessary Insurance Policies.

Related Posts:

• Cheat Sheet: How to Buy Life Insurance (Infographic).
• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.
• Is Gap Insurance A Good Idea?
• What Not To Tell Your Insurer.

Save Money on Insurance – Skip These Insurance Policies You Don’t Need! Copyright © Simple Debt-Free Finance

One other thing stuck out to me – no PMI. Not because we had a 20% down payment; we couldn’t afford that at the time. I had thought at the time that my bank was just better than other banks. See, this was a local bank. A small, home town bank – not one of those big evil banks that would catch all the headlines and hate from the public when the bubble burst years later.

It turns out that my sweet hometown community bank wasn’t doing me any favors by offering me a home mortgage with no PMI. PMI is insurance for the bank to cover their loss in the event that the borrower defaults on the loan. Instead of charging me a PMI premium with my monthly mortgage payment, they rolled this premium into the loan itself.

Is PMI included in the APR a good thing?

On the face of it, things looked great. I had a lower monthly payment without the PMI included. But over the long term, it’s more costly to the borrower because that PMI premium adds thousands to the principal of the loan, which in turn adds thousands in interest over the life of the loan (usually 30 years).

Banks love doing this because it juices their return since you’re paying this premium far longer than you would if it were added to the monthly payment.

Here’s a quick example.

Assume a home value of $200,000, with 5% down. This gives us a mortgage of $190,000. Using the CNN Money PMI calculator with these numbers gives us a monthly PMI of $80.

Since the value of the home is $200,000, and PMI is required until there is more than 20% equity ($40k in this case) this means that the outstanding value on the loan needs to be less than $160,000 (200,000 – 40,000).

Next, using the Mortgage Calculator at Bankrate.com, assuming a loan of $190,000 and an interest rate of 5% (currently high, I know, but historically low) and selecting the “Show Amortization table” option shows that it would take roughly 9 years of mortgage payments before the value of the loan would drop below $160,000.

9 years of mortgage insurance payments is: $8,640 (108 payments of $80)

Rolling the premiums into the loan lowers the monthly payments by $80, but adds 8,640 to the overall loan.

$177,185.99 total interest for base loan of $190,000 and $185,243.29 total interest if PMI is added to the loan amount.

That’s a difference of $8057.30.

Add that to the original amount added to the principal:

$8,057.30 + $8,640 = $16,697.30.

So, the bank wants you to think that you’re saving $80 a month by rolling the PMI into the loan, but you’re really spending an extra $8,057.30.

Caveats.

This is a simple example, but I think a compelling one. It assumes that the borrower is keeping this loan for the full 30 years. If you took out this sort of loan and refinanced or moved in 7 years, you’d come out ahead. But then again, you can’t always refinance – as millions of homeowners who owe more than their homes are worth now realize.

Traditionally, a healthy housing market would have some appreciation involved, which would also shorten the time before that magic 20% value is reached, but that would make the PMI included in the APR even worse.

The bottom line is that you never really know how long you’ll have the loan for or what your home will be worth in 10 years time. It’s my opinion that planning conservatively is best. Be at peace with the idea of holding the mortgage for the full term, and don’t count on rising home values to bail you out. That way, you can weather the storms and anything else is gravy.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• What Is a Bad APR?
• Notice of Mortgage Protection Insurance, a Scam.
• Will Refinancing My Mortgage Save Me Money?
• 4 Tips For Applying For a Mortgage

Why A Mortgage Loan Without PMI Is A Bad Idea. Copyright © Simple Debt-Free Finance

1. Can you drop collision insurance?

As your car gets older and depreciates (loses resale value) there comes a point in time where it’s worth less to replace than you would pay in collision coverage. Collision insurance exists to cover repair expenses due to a collision, but the insurance company will not pay more than the car is worth regardless of the repair costs. Once the resale value of the car drops below the amount you pay in your premium for collision, you’re better off dropping the collision coverage and putting that money into a high yield savings account for your next car (or repairs if you can’t afford a newer car).

To find your car’s current resale value, use the Get Your Car Value tool at Kelly Blue Book (kbb.com).

2. Buy used, or buy GAP.

As discussed in the point above, a new car depreciates the minute you drive it off the lot. Now consider what happens if you buy a brand new car for $25,000 and get into an accident a few weeks later. Say this particular car is now only worth $20,000 but you’ve got a loan for $25,000. The insurance company will only cover up to the current value of the auto, which is $5,000 less than you owe. This is where GAP insurance is a good idea because it covers the gap made by the difference in what you owe vs. what the car is worth.

GAP insurance is a good idea IF you buy new. A better idea is to buy slightly used.If you buy a car that’s 2-3 years old, you end up with a car that’s already experienced the bulk of its depreciation, but is still in very good shape. If you’re disciplined and plan ahead you can buy this new-to-you car with little if no financing. Either way, the chances are that whatever amount you end up taking out a loan for will be below the value of the car and so you can skip the GAP insurance and save even more money.

3. Keep your credit score in good order.

Head over to AnnualCreditReport.com and check your credit history. The report is truly free (not free with purchase of some other service, like the credit report site with the catchy commercials..) and you don’t need to buy your credit score, though you can. You basically just want to make sure all the items in your history are up to date and correct. Each agency has its own proprietary score that should give you a general idea of where you fall on the poor to excellent scale.

The idea here is to get to and stay in the excellent range because more and more insurance agencies are checking credit scores of prospective clients, and basing premiums on that score.

Don’t have an excellent credit score? No problem, just follow these tips to improve your credit score and over time you’ll be in excellent shape. After that, you can shop around for a lower rate.

4. Know your worth.

Well, know your car’s worth anyway. It’s a dirty little secret that many insurance companies offer incentives to claims adjusters to minimize the payout to customers when a claim is filed.

It is to your benefit that you be aware of this and don’t accept the first decision if you feel the agency is not meeting their obligation to pay the full amount of your claim.

Know how much your car is worth both as a trade-in and on the open market (again, use Kelly Blue Book’s Get Your Car Value tool) before entering into negotiations with the claims adjuster. If there is an injury involved, have a full understanding of the extent of the injury and speak to an attorney if necessary.

5. “I have this friend who…”

Some insurance companies may view a call as a claim and adjust rates accordingly, even if you’re only asking whether a specific incident is covered. Even worse, the claim may go in a comprehensive report that other insurers use when determining what rate to charge customers for premiums!

In other words, don’t call your insurance agent to ask if the mirror your son broke with his cave-man style baseball swing is enough to meet your deductible. This could be considered a claim by some agencies, as it pertains to an actual event. The better course of action is to be vague in your question. Only ask what your deductible is, or use the old “my friend” ploy. For example:

“I have a friend and his son broke the mirror on his car but his insurance company told him that it didn’t meet his deductible and he’d have to pay out of pocket. This got me wondering about my policy and what might happen to me if I were in his place..”

Keep any discussion as general as possible until you know what’s covered and what’s not and where you stand in the matter. Otherwise, you could end up paying more in the end.

Related Posts:

• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.
• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• How to Find the Best Place To Put Your Savings.

How To Reduce Car Insurance Costs In 5 Easy Steps. Copyright © Simple Debt-Free Finance

The case of the misleading mailing.

The mailing was a nondescript brown envelope with an unfamiliar return address and nothing else on the outside besides my address and red letters that looked as though they were hand-stamped and read:

“Requested materials inside”

Requested materials? I don’t remember requesting any materials from anyone.

At first glance it seemed like a credit card application. I’ve received many in unmarked envelopes like this and even a few with “URGENT” printed in red on the front. But this seemed just different enough to make me curious.

When I tore into the envelope, I discovered a half-page typed form stating in large letters at the top:

“Notice of mortgage protection.”

It looked important, and had “return promptly” printed off to the side in bold lettering. Then I saw that everything below that heading was a bunch of fill-in-the-blank questions, with very detailed information about me and my mortgage.

Whoever this was knew the exact total outstanding amount of my mortgage. Once I saw that they were asking if I or my spouse use tobacco, I realized what this was – a life insurance product. My eye moved to the bottom and read:

“Pay your mortgage with your life insurance policy!”

I say this is a misleading mailing because I never requested anything from anyone about Mortgage Protection Insurance. Furthermore, the mailing was meant to look like something I should fill out and return ASAP or I might be jeopardizing my mortgage, and hence my home. I have no idea even who the insurance company is or how they got my info, though I assume my bank sold it to them as one of their partner relationships that I cannot opt out of.

What is mortgage protection life insurance?

So enough about this scam mailing, what is Mortgage Protection Insurance, and is it a good idea?

Mortgage Protection Insurance (MPI) is essentially a life insurance policy that will pay off the outstanding balance on your mortgage if you die before your house is paid off. Sometimes disability insurance is included, so your mortgage payments will be made for you in the event you become disabled and cannot work.

It is also sometimes called Mortgage Payment Protection Insurance (MPPI).

MPI vs. PMI – What’s the difference?

The financial services sector and insurance companies love their alphabet soup of acronyms. MPI and PMI sound similar, but they are two very different things.

PMI stands for Private Mortgage Insurance. You are required by law to pay for PMI when you purchase a home with less than 20% down payment. Private Mortgage Insurance is not for you and it’s not to pay your mortgage if you lose your job. It is solely for the bank, and it pays their insurance policy on you in the event that they need to foreclose on the property. Essentially, it helps mitigate the bank’s loss on the property if you default on your mortgage and there is less than 20% equity on the property.

Mortgage Protection Insurance on the other hand has nothing to do with the bank.

MPI is life insurance you buy from an insurance company and its only purpose is to pay your mortgage in the event you die. Another variant of this includes disability insurance, to make your mortgage payments if you become disabled and find yourself without a paycheck.

Reasons not to buy Mortgage Protection Insurance

There may be some cases where Mortgage Protection Insurance makes sense, but I think there are many reasons it doesn’t makes sense most of the time. Here’s why…

The first, and most obvious case is when you own your own home. No mortgage? No sense in paying for an insurance product that you could never benefit from.

Unfortunately, I do not fall into that category as I still have a mortgage I will be paying off for the next 20 years.

So here are the reasons I will not be buying MPI anytime in the foreseeable future:

1. I already have a life insurance policy, and my mortgage was considered when determining the amount of the policy.
2. Mortgage Protection Insurance is a waste of money.

Consider this: one of the main reasons for getting life insurance is to replace your income if you die. The idea being that your beneficiaries can have that money to use as they need. Paying off the mortgage should be one of the expenses factored into the coverage amount. One major problem with MPI is that the when you die, the insurance company will send a check directly to your mortgage company. Your beneficiaries have no choice in the matter.

What if your spouse wants to sell the house instead?

What if paying off the mortgage doesn’t make financial sense?

Consider that today’s mortgage rates are historically low. Rates will eventually rise, and most likely inflation will rise with them. So, it’s entirely possible that someone who takes out a mortgage today or refinances at today’s low rates and who is faced with a life insurance payout 10 or 15 years from now will be in a situation where they would actually make money putting that lump sum in a high yield savings account instead of paying off the mortgage.

Just such a situation happened in the early 1980′s. A person receiving a lump sum could have made 18% a year by putting that money in a money market account. Contrast that with the potential 7-10% mortgage rate and you’ll see why it was a money loser.

But it’s even worse than that. When the insurer pays the benefit for Mortgage Protection Insurance, it’s paid directly to the mortgage company- not the beneficiary. The beneficiary has no control whatsoever over the money, but worse still – MPI is a declining-benefit policy!

It’s called a declining-benefit policy because while the premium payment remains constant, the payout is reduced over time to keep up with the declining outstanding mortgage amount. That means you end up paying a steady amount in premiums, and get less back over time.

Compare that with fixed, lump sum payout of a standard life insurance policy and you see why MPI really only benefits the insurance company, not the insured.

As I see it, Mortgage Protection Insurance is a bad idea (generally speaking) because:

• You have no control over how the benefit payout is used – it pays off the remaining mortgage, and that’s it!
• The amount you receive in payout goes down, while premiums stay constant.
• Standard term life insurance is a better buy because it provides greater control and flexibility over how the payment is used, and provides a larger payout relative to MPI over time.

Given these reasons, and those stated further up, I’m taking a pass on Mortgage Protection Insurance.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Why A Mortgage Loan Without PMI Is A Bad Idea.
• Cheat Sheet: How to Buy Life Insurance (Infographic).
• Life Insurance Settlements: A Bad Deal?
• Mortgage Protection Using Life Insurance from Mutual of Omaha.

Notice of Mortgage Protection Insurance, a Scam. Copyright © Simple Debt-Free Finance

I live in the once great state of New York, and I have to admit I’m quite surprised to find that while NY seems eager to compete with California in the race to bankruptcy, New York is just about in the middle when it comes to auto insurance costs.

Here’s the top 10 most expensive states for auto insurance, and the average cost:

1. Michigan, $2,541

2. Louisiana, $2,453

3. Oklahoma, $2,197

4. Montana, $2,190

5. Washington, D.C., $2,146

6. California, $1,991

7. Mississippi, $1,896

8. New Mexico, $1,896

9. Arkansas, $1,836

10. Maryland, $1,807

I’m not surprised to see that Michigan is #1. After all, they’ve practically been living in a depression for the better part of a decade now, and probably have to tack on hundreds of dollars in fees just to slow the pace of their economic decline. Also, with cities like Detroit that have a reputation for high levels of crime, you’ve got to figure auto theft is going to drive costs up as well.

Also, these costs are a function of the number of uninsured drivers in the state, and Michigan actually guarantees unlimited personal injury protection payments to people injured in auto accidents! That means insurance companies are on the hook for up to $480,000 per case, plus 3 years lost wages and the tax payers foot the bill for the rest. Of course, the insurance companies have to pass those costs on to the insured drivers, causing rates to rise and exacerbating the problem even more. Way to go Michigan.

You see something similar in Louisiana, where courts tend to award larger than average payouts in auto injury cases, driving up the cost of insurance.

Oklahoma blames their high costs on weather related claims.

So where is the cheapest place for auto insurance?

Here are the 10 least expensive states for auto insurance:

41. Arizona, $1,280

42. Utah, $1,272

43. Virginia, $1,237

44. Iowa, $1,179

45. North Carolina, $1,154

46. Ohio, $1,152

47. Tennessee, $1,146

48. Wisconsin, $1,128

49. Maine, $1,126

50. South Carolina, $1,095

51. Vermont, $995

There aren’t 51 states in the union, so obviously this list include the District of Columbia (i.e. Washington D.C.), which incidentally is also a high crime site and comes in at the 5th most expensive place to insure your car.

Vermont is by far the cheapest, and it’s no coincidence that they also have the fewest congested roads, and plenty of rural areas so claims are less and tend to be for smaller amounts as well. Cows just don’t sue as much as pedestrians.

Check out the complete list here.

Related Posts:

• When To Switch Car Insurance.
• How To Reduce Car Insurance Costs In 5 Easy Steps.
• Auto Insurance Rates Decline in 2009.
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• When is it Ideal to Drop Collision Auto Insurance?

Average Auto Insurance Costs by State. Copyright © Simple Debt-Free Finance

Well, here’s a concise infographic detailing the basic questions you should ask yourself. It’s courtesy of BankRate.com and it should serve as a very handy starting point on what can be one of the biggest financial decisions for you and your family.

Life Insurance Infographic by Bankrate.com

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Life Insurance: What kind should I buy?
• Life Insurance: How much do I need?
• Minimalism vs. Simplicity – Are You Missing the Point?
• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).

Cheat Sheet: How to Buy Life Insurance (Infographic). Copyright © Simple Debt-Free Finance

Collision Auto Insurance is one of the common car types of insurance people go for. It pays for fixing your car if your car gets involved in a crash or collision with some object or some other car. While buying this insurance, you set a deductible amount on the repairs of the car. And you reap the insurance benefit only after the damages exceed the predetermined amount.

The total amount payable by the insurance company is determined on the basis of two factors– the deductible sum and the total value of the car. The ceiling for this amount is the book value of your car, minus the deductible.

Collision coverage is an essential part of the insurance package when your car is new. However, as your car gets older, the question of whether or not to continue with the insurance becomes relevant.

How to judge that your collision coverage needs to be dropped?

• Estimate the overall value of your car by glancing through the internet. You may also check out the classified ads in your local newspaper for the information. If the value of your car on the open market has dropped below $3,500, it is probably not worthwhile to continue with the collision coverage on your car.

• If your annual premium is above 10% of your car’s total value then dropping your Collision Car Insurance would be wise.

• The overall value of the car usually goes down as your car gets older. Value of an old car is likely to get decreased to such an extent that the insurance company will refuse to payout, even if it is involved in a collision. So, it is advisable that you drop your collision insurance if your car is aged 5 years or older.

• Considering your driving record is also important if you are deciding on parting with the collision insurance. If you have had your car for a few years and have not been involved in a crash, then it is likely you will continue to be safe. And hence you do not require insurance.However if you at all chose to do away with the insurance under these terms, it is better that you start saving money. This is because even if you are unlucky enough to be involved in a crash after you have canceled the coverage, you will be able to meet the repairs costs without curtailing on other essentials. Particularly, if you have enrolled in a debts consolidation program, save up enough money to cover additional damage expenses after paying your monthly interest amount.

• Last but not the not the least, is the question of whether you can afford the repair costs yourself or not. It is the most crucial factor when you decide on dropping your Collision Auto Insurance.If you are living a fairly comfortable life, or could easily manage without the car for a few days if it gets crashed, then you may cancel the policy without any fear. But, if the case is otherwise, it is advisable to continue with the insurance.

If you think your situation fits any of the above categories, then its advisable that you stop wasting the premiums on your collision auto insurance and reap the benefit from the savings in the long term.

Related Posts:

• 5 Small Sacrifices to Save Big.
• When To Switch Car Insurance.
• 6 Things to Know About Car Insurance.
• Minimalism vs. Simplicity – Are You Missing the Point?
• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).

When is it Ideal to Drop Collision Auto Insurance? Copyright © Simple Debt-Free Finance

I never knew this existed until I came across The Trade-offs of Selling Your Life Insurance in SmartMoney magazine.

The process is called “life settlement”, and it works like this…

Would you take cash for your life (insurance)?

For example: Meet Bob, a 68 year old retiree with a million dollar life insurance policy. Bob has some health issues, and not enough money to pay for the care he needs to stay a live a few more years to see his grand kids grow up a little more. Enter a life settlement agent, we’ll call him agent Smith.

Agent Smith offers Bob $400,000 for his life insurance policy. For Bob, it looks like a win-win scenario: he gets the money he needs today, in exchange for a policy that he may not even be able to pay the premium on and that wouldn’t help him anyway since he’d have to be dead to get the money, and his wife has already passed away.

If Bob lives another 5 years, then the investors get their $1 million, which works out to be $120,000 per year (before taxes and premiums are subtracted). For those of you playing at home, that’s a 30% annual return!

So, who owns Bob’s life?

At this stage in the game you may be wondering (as I was): That sounds great, but who owns Bob’s life?

The short answer is: whoever holds Bob’s life insurance policy has become the beneficiary.

So, most likely it’s the investment bank, pension fund or hedge fund since wall street is packaging multiple life settlement policies together into single bonds.

What’s the risk?

For Bob, there is no risk. The risk is assumed by the investors, and the risk is that Bob will live longer than expected. The longer Bob lives, the less return the investors make.

Who wins?

The earlier Bob passes away, the better the monetary result for the investors. So, if Bob dies early, the investors win.

The brokers and agents for the life settlement companies win because they make a commission and earn a fee for the transactions.

Who loses?

The direct losers here are Bob’s children, since they will now not see a dime from the insurance upon his death.

But what if Bob had no children or family to leave behind?

Fair enough. In that case, the insurance company loses since there is now no chance of Bob defaulting on his premium and since the hedge fund, pension fund or investment bank that now owns his life insurance policy will likely outlast Bob, the insurance company is guaranteed to have to pay the original death benefit of $1 million.

In a less direct way, the rest of life insurance customer lose out because to cover the increase in death claim payouts, the insurance companies have to raise premium prices.

Why it’s a bad deal.

I think life settlements are a bad deal because they target the elderly and seriously ill, they potentially increase the cost of life insurance for everyone and they are entirely unregulated which makes this a breading ground for fraudulent and unscrupulous life settlement companies to prey on the hopes and fears of the elderly.

Consider this statement from a NYT article on the subject:

the industry has been plagued by fraud complaints. State insurance regulators, hamstrung by a patchwork of laws and regulations, have criticized life settlement brokers for coercing the ill and elderly to take out policies with the sole purpose of selling them back to the brokers, called “stranger-owned life insurance.”

Besides, it’s a relatively small portion of the population that can really benefit from this. After all, unless you have a large estate or a significantly younger spouse, it rarely makes sense to even carry a life insurance policy this late in life.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Notice of Mortgage Protection Insurance, a Scam.
• Cheat Sheet: How to Buy Life Insurance (Infographic).
• Mortgage Protection Using Life Insurance from Mutual of Omaha.
• Life Insurance: What kind should I buy?

Life Insurance Settlements: A Bad Deal? Copyright © Simple Debt-Free Finance

You can save money when you switch insurance providers at the right time.

Here of five of those circumstances where you might find cheaper car insurance if you switch your car insurance provider.

1. Your credit score has changed you first purchased the policy.

If your credit score is significantly lower or higher than when you originally purchased your insurance policy, then you probably should start shopping around when it’s time to renew. The reason is that many national car insurance companies use your credit score as part of their formula for determining your premium. People with higher credit scores tend to get lower insurance premiums. Conversely, those with low credit scores tend to pay more.

So it makes obvious sense to shop for a better rate when your score has improved, but why shop around if your score has gone down? I mean, aren’t you at a disadvantage and probably pay more?

Yes, but not always.

Some insurance companies weigh your credit score less than your driving history. So, if you have a lousy credit score but an accident free history, you may get a lower premium on your auto insurance if you shop around and find a company that weighs the score less heavily.

If you fit the low credit score category, then you should try to improve your credit score, and contact your state department of insurance for help in finding an insurer who favors driving records over credit histories.

2. You just started working from home.

Many insurance companies charge higher premiums for driving more miles. It just makes sense – the more you drive, the greater the chance of being involved in an accident, and the greater the likelihood you will file a claim.

But if you’ve started working from home, or drastically cut your commute distance it may make sense to either notify your insurer or start looking for a company that will give you a discount on your auto insurance for driving less.

The range of what is considered for the low-mileage driving discount depends on the state.

3. You’re in the middle of a long-term car lease or loan.

With car loans reaching the 60 and 72 month range, people can end up owing more than the car is worth and insuring the car for more than it’s worth. Long lease financing favors lower monthly payments, but the car depreciates faster than the principal is paid on the loan, and the can leave you owing money if your car is totaled since the insurance company will only pay for the market value of the car.

One solution to this problem is GAP insurance, which covers the gap in what the insurance company would pay and how much you still owe on the car loan. Many insurers offer a discount on GAP insurance if you switch your auto insurance to them.

Of course, a better solution would be to take out a shorter term loan and not end up upside down in the first place, but not everyone has the income to manage that.

4. You buy a home, or obtain a company car.

Homeowner’s need homeowner’s insurance, and many insurers offer a multi-policy discount if you buy both homeowner’s and auto insurance from them.

If you recently were given a company car as part of a promotion or new job, then you may even be able to get a multiple-car discount.

5. Your children reach driving age.

Once junior is old enough to start driving, and gets his license you’ll need to notify your insurance company. There won’t be any discount for adding junior to your policy, but some companies are more competitive than others when it comes to insuring younger drivers.

Photo by daniel.sound.

Related Posts:

• When is it Ideal to Drop Collision Auto Insurance?
• 6 Things to Know About Car Insurance.
• Minimalism vs. Simplicity – Are You Missing the Point?
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• How To Reduce Car Insurance Costs In 5 Easy Steps.

When To Switch Car Insurance. Copyright © Simple Debt-Free Finance

Signs like this are common in the U.K., but there is another kind of GAP car buyers need to be aware of.

Is gap insurance worth it?

Well, that depends on your financial situation. Let’s consider a simple example:

You buy a new car that costs $20,000. You have no money for a down payment and finance the entire cost of the purchase – remember, this is a simple example so I’m ignoring all the other taxes and fees involved. A new car loses as much as 20% of its value the minute you drive it off the lot, so within seconds of leaving the dealership your shiny new car is worth $16,000.

With me so far? Good.

Now, on your way home something terrible happens. You get into an accident and the car is totaled. You now owe the bank $4,000. That’s the difference between the amount you owe the bank ($20,000) and the depreciated value of the car at the time of the accident ($16,000).

Gap insurance would pay the $4,000 difference on top of the $16,000 replacement cost.

In this example, gap insurance would definitely be worth it unless you had $4,000 in savings to pay for the difference on your own.

Is gap insurance a good idea?

In general, gap is a good idea if:

• You have less than 20% to make a down payment.

• You “roll” negative equity from a previous car loan into a new car loan.

• You finance for 60 months or more.

• You finance a vehicle that depreciates very quickly, such as a luxury, highly optioned or one of many domestic vehicles.

• You lease a vehicle.

Most of these cases revolve around financing too much, owing too much and not saving enough. Sadly, the type of people who find themselves in such a situation often have few real options but to purchase gap insurance.

Is gap insurance a scam, a rip-off or even necessary?

Strictly speaking, no. It is not a scam or a rip-off, though some car dealerships who offer it may be. It is also not strictly necessary as you can avoid needing it by doing any, or preferably all , of the following:

• Always pay at least 20% of the purchase price as a down payment

• Don’t buy more than you can afford.

• Have an emergency savings account with enough cash to cover any expenses not paid by your auto insurance.

• Don’t lease a vehicle.

• Always buy slightly used vehicles and never buy new.

By following the above, you will position yourself so that gap insurance would be a needless expense and you might even growth your net worth while you’re at it!

Related Posts:

• Minimalism vs. Simplicity – Are You Missing the Point?
• Is Pet Insurance Worth The Cost?
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.

Is Gap Insurance A Good Idea? Copyright © Simple Debt-Free Finance

1. Life Insurance.

Many employers offer life insurance up to one year’s salary for the employee. This is far from adequate for most people. The ball park recommendation for life insurance coverage is 7-8 times your annual salary. And just 1 year’s worth doesn’t even begin to start your coverage because you can’t take it with you when you leave! Whether you quit or get laid off, that insurance coverage ends.

Because of this, you’re much better off getting insurance on your own, outside of your employer. You’ll get a much better deal AND it will stay with you regardless of where your career takes you. The one exception to this might be some one who’s single and only needs life insurance to cover their own funeral costs. In that case, one year’s salary is probably adequate.

2. Disability Insurance.

Employers typically provide some degree of disability insurance to employees. The problem is that the coverage is usually no more than 60% of your salary, and is capped at $5,000 – $10,000 per month. That may be fine for you, but if your benefit plan is on the low side, you may be better off getting disability insurance on your own. The benefit to that is twofold – 1. You get to take your coverage with you when you leave your job, 2. if you pay the premium yourself you don’t get taxed on the benefit.

Just some food for thought for this year or next.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Unemployment Rate, Cities With Highest and Lowest Growth (Infographic).
• Notice of Mortgage Protection Insurance, a Scam.
• Most Americans Feel the Same About Job Security as They Did a Year Ago. (infographic)
• Cheat Sheet: How to Buy Life Insurance (Infographic).

2 Employment Benefits That Aren’t Worth It. Copyright © Simple Debt-Free Finance

A resident of New York who pays the 6-month median rate of $970.25 and who earns $42,414 a year (the New York median annual income) pays approximately 4.58% of his gross income for auto insurance. What does all this mean? Simply that New York state’s “affordability factor” ranks it as the 5th most expensive state for auto insurance – a fact that should not come as a surprise to any new Yorker’s out there.

What was surprising to me was that Massachusetts is the most affordable state, with a factor of only 1.96% and Louisiana of all places is the most expensive at 6.70%.

Here’s a breakdown of NY rates by age group:

Apparently experience counts for something when it comes to Auto insurance rates in New York – the under 19 crowd pays more than twice as much (on average) as the 60 – 74 age group.

If you’re interested in how your own state rates, or you’re interested in getting some auto insurance quotes , head over to http://www.insurancerates.com and click the “Shop Rates” button.

Related Posts:

• Average Auto Insurance Costs by State.
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• How To Reduce Car Insurance Costs In 5 Easy Steps.
• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.

Auto Insurance Rates Decline in 2009. Copyright © Simple Debt-Free Finance

Accuquote review.

For those unfamiliar with the concept of AccuQuote.com, it’s a one-stop shopping site for life insurance quotes. It allows you to search and compare offers from various insurers based on your own criteria.

Using the web site is really quite simple. For example, to get started, you simply go to the web site and click the “Get a Free Quote” button.

You then enter basic info like your first name, last name address, phone #, email, as well as your gender, DOB, height and weight.

Next, select the amount of coverage desired. (read: Life insurance: how much do I need?) and select type of insurance (read: Life insurance: what kind should I buy?). Then specify whether you’re looking to buy new coverage, additional coverage, or a replacement policy.

Next comes the most involved (and personal) part of the Accuquote process – your health history!

You’ll have to answer the following questions:

• Do you use nicotine?
• Do you take prescription medication regularly?
• Have you ever been diagnosed with diabetes, cardiovascular disease, cancer or depression?
• Have you had any major surgeries?
• Did any of your parents or siblings have cardiovascular disease or cancer, prior to age 60?

Then there are some questions that aim to gauge your lifestyle risk:

• Do you engage in any hazardous activities such as private piloting or scuba diving?
• In the past 10 years, have you had any DUI’s, or have you had more than 2 moving violations in the past 3 years?
• Have you ever been convicted of a felony?
• In the past 5 years, have you filed for bankruptcy?

It’s important to note that you would be asked these questions by any reputable insurance agent regardless of where you went to purchase life insurance, it’s not just Accuquote.

After the health history and lifestyle questions, you need to select your desired rate class: Preferred Plus, Preferred or Standard Rated.

The Accuquote site has plenty of easy to use references for how best to answer the questions, and how to decide the amount and type of insurance you need. These are interesting and helpful, but you should definitely do your own research before using the first value you see.

At the end of this section, all that’s left is submitting your information. After you click the submit button Accuquote reviews your application info. Next, you will be contacted by email with a list of 5 or so insurance providers detailing their rates, terms and conditions.

In the next couple of days I received a phone call (my preferred type of notification) during the time which I specified was best to reach me. The person on the other end was my AccuQuote agent. He discussed the options available to me and actually recommended the one I had independently chosen – and it was NOT the most expensive! It was the 3rd most expensive option, but the cheapest option with an AA+ rating (in fact it was cheaper than some A rated companies!)

The company rating was important to me because I wanted to be sure that if my wife and kids ever needed the insurance (i.e.: in the event of my untimely demise), they would receive payment in a timely and hassle-free manner.

After selecting the insurance company and policy I desired, it was time to prove that I was really as healthy as I said. This meant blood work. I was expecting to have to drive 20-30 minutes out of my way to the nearest hospital lab. I was wrong. AccuQuote employs local visiting nurses to drive to your home (or place of work if so desired) and do that vampire like voodoo that they do so well. So, a couple of CC’s (it felt like pints!) of blood later, I was on my way to work and verified preferred plus a couple of days later.

After all of that, they mailed out the application and once I signed it and returned it, I was fully insured in the event that I shuffled off this mortal coil. Provided, of course, that it was not by my own hand within 3 months of completing the process. Suicide, it seems, is only covered after the 3 month grace period. Who knew?

Related Posts:

• Minimalism vs. Simplicity – Are You Missing the Point?
• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).
• Tips for buying the best pet insurance.
• Is Pet Insurance Worth The Cost?
• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!

Buying Life Insurance Online With Accuqoute (Review). Copyright © Simple Debt-Free Finance

Here’s how to find out if the insurer does a good job of paying out claims.

State insurance departments keep records of complaints against insurers, and you can get the details at the National Association of Insurance Commissioners website.

At that site, you can search by company name, state and type of insurance(property/casualty for home owners and auto insurance). Once you have the listings for the company, state and type of insurance, select the Closed Complaint Ratio Report link.

This report displays the ratio of complaints compared to the National Median Complaint Ratio. If your company is significantly above the national ratio then there may be a problem. It may just be that the company’s market share is much larger than the average, and they get more complaints simply because they have more customers.

Here’s a result for Progressive Direct:

As you can see, Progressive Direct’s complaint ratio is 23% less than the national average.

In addition to the complaint ratio, you’ll also want to look for red flags like the number of complaints rising in the last few months. That would be a bad trend, while a decreasing number of complaints would be a good thing. You can check that by clicking on the Closed Complaint Trend Report link.

Here’s the compliant trend for Progressive Direct:

Not only is the number of complaints trending downward, but it appears that the rate at which complaints are dropping in increasing. This would seem to suggest that Progressive Direct is making a concerted effort to please its customers.

Also, check insurers record at your state insurance department for any history of enforcement actions taken.

All in all, this site makes it very easy to check up on an insurance company before you become a customer. You can see whether that great deal is being offered by a good company, or if that great deal is likely to cost you more in the end than you’re bargaining for.

Related Posts:

• Alternatives To Pet Insurance (Tips For Doing Without Pet Insurance).
• When is it Ideal to Drop Collision Auto Insurance?
• Life Insurance: What kind should I buy?
• Life Insurance: How much do I need?
• Minimalism vs. Simplicity – Are You Missing the Point?

How to Check Insurance Companies for Complaints. Copyright © Simple Debt-Free Finance

Best site for health insurance quotes.

eHealthInsurance.com.

eHealthInsurance.com offers quotes for most major health insurers as well as the ability to compare coverage, and find plans that include your current doctor. If you are without employer provided health insurance, it’s essential that you at least check out this site.

Best site for health coverage information.

CoverageForAll.org.

CoverageForAll.org provides strategies and resources to make it easier for low-income people and people with existing medical conditions find more affordable health coverage.

Best site for life insurance quotes.

AccuQuote.com.
AccuQuote.com allows you to search hundreds of top rated providers and provides half a dozen quotes for you to pick from. I used AccuQuote.com when I was looking for a life insurance provider for my wife and myself. The process was very easy. AccuQuote.com provides a manager to work with you one-on-one and see you through the entire process from selecting a provider to having any required blood tests performed. In our case, the blood tests were done in the comfort of our own home by a sort of visiting nurse paid for by the Insurer. The AccuQuote case manager them ensures that the blood results are filed correctly with the Insurer and gracefully bows out once the contract is signed and you become a customer of the Insurer.

Best site for Medicare Part D.

medicare.gov/mpdpf.

This is an excellent tool for comparing Medicare Part D prescription drug policies. You can check out premiums and co-pays for Part D plans.

Best site for Medicare Advantage.

MedicareNewsWatch.com.

This site’s CostShare report provides analysis of the best Medicare Advantage plans in your area.

Best site for Auto Insurance.

InsWeb.com.

InsWeb, like AccuQuote for life insurance, allows you to search hundreds of auto insurance providers based on your personal criteria and provides several quotes from top rated insurers.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• Is Pet Insurance Worth The Cost?
• How To Reduce Car Insurance Costs In 5 Easy Steps.
• Notice of Mortgage Protection Insurance, a Scam.
• Average Auto Insurance Costs by State.

Best Insurance Sites On The Web. Copyright © Simple Debt-Free Finance

Here’s the list along with some thoughts on each.

1. “I Think …”

I found this one to be enlightening because I could easily see myself saying it without thinking about the implication. The problem is that when you tell an insurer what you “think” happened, it casts doubt on your story no matter how true it may be. This is probably likely in the context talking to your auto insurer after an accident or homeowner’s insurance agent while filing a claim.

The article also says to be careful not to speculate, as you may inadvertently suggest a cause for your damage that isn’t covered by your insurance policy, thus giving an unscrupulous agent a way out of paying the claim. It’s best to stick to the facts, and be concise.

2. “I Got Whiplash”

Apparently “whiplash” is one of the most common injuries used in insurance fraud. Simply using the word, or even indicating a neck injury in general, is likely to flag your claim for further inspection; at best slowing the process down and delaying your payment, at worst resulting in your claim being dismissed entirely.

3. “It’s an Experimental Treatment”

If you’re looking for money to pay a health bill, stay away from these words. Truly experimental treatments are usually not covered by insurance, and using those words will give the insurance company an excuse not to pay.

4. “My Basement Flooded”

“Flood” is another red-flag word in the insurance biz.If it’s truly a flood, then it will only be covered by flood insurance. If it’s a burst pipe, then it may be covered by homeowner’s insurance. The word “flood refers to an act of weather or an overflow from a nearby body of water” in the insurance business. It’s best not to speculate, and let them make the case for the damage being caused by a flood.

5. “Just Send Me a Check”

Wow! Does anyone really ever say that to an insurer? I imagine they’re going for anything that may be in the general sentiment of “show me the money”. Still, it does hi light the importance of choosing your words carefully. Always phrase such sentiments in terms of the claim itself. For example, don’t say “Where’s my check?” Rather say, “I’d like to have this process resolved so I can fix the damaged to my roof.”

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.
• Is Gap Insurance A Good Idea?
• 6 Things to Know About Car Insurance.

What Not To Tell Your Insurer. Copyright © Simple Debt-Free Finance

According to an article from the CW Arkansas, drivers in some states are dropping their auto insurance in an attempt to save money.



This is not a good idea, and in some states it’s even illegal!

As the article states:

“If you’re involved in a crash without auto insurance you will lose your license and face heavy fines and that’s only if no one gets hurt. Police and auto insurers say it’s not worth it “

You’re much better off shopping around for auto insurance quotes online from Insurance.com or Esurance.com. Or even dropping your collision coverage. You’re obviously not concerned with the repair bill if you’re thinking of dropping your coverage altogether.

The risk of not having auto insurance is really not worth the savings. Without insurance, you likely to lose everything you own in the event of a serious accident with any injury to occupants of the other car. If you’re that strapped for cash, take the bus.

Speaking of auto insurance being required by law in some states, here’s a handy site that let’s you view the details for each state. It not only tells you whether insurance is required in the state, but also what the minimum amounts of coverage are for various items.

Related Posts:

• Save Money on Insurance – Skip These Insurance Policies You Don’t Need!
• How To Reduce Car Insurance Costs In 5 Easy Steps.
• When is it Ideal to Drop Collision Auto Insurance?
• When To Switch Car Insurance.
• Is Gap Insurance A Good Idea?

How Not to Save Money on Auto Insurance. Copyright © Simple Debt-Free Finance