Did you know that many life insurance underwriters consider your driving record when determining your term life insurance rate?

Why? You’re lifestyle plays a major role in how a life insurance company determines your risk of death. So although you may be in excellent overall health, if you’ve had two speeding tickets in five years, your life insurance company may classify you as “high risk.”

Following are how life insurance carriers classify you based on your health and lifestyle:

1. Preferred Plus – In order to qualify for preferred plus rates you cannot use any tobacco and you must be in overall excellent health with no history of drug or alcohol abuse. In addition, you must not engage in hazardous activities.
2. Preferred – Generally, to qualify for preferred rates you must be in excellent overall health and you must not participate in any hazardous activities.
3. Standard – Standard risks refer to people who have had some minor health impairments. Examples of someone that would qualify for standard rates would include people who have elevated cholesterol levels or who are overweight.
4. Substandard – This rate class encompasses people that have more than minor health problems. An additional charge will be added to these people’s premiums depending on the risk factors involved.

Keep in mind that underwriting guidelines vary greatly among life insurance carriers. But, it’s important to maintain the best health and lifestyle you can to get an affordable term life rate at a life insurance company you know and trust.

So the next time you’re in hurry to get somewhere, consider slowing down because a less than adequate driving record won’t only affect your auto insurance rate.

For more information about how your health and lifestyle can affect your term life insurance rate, talk to one of AccuQuote’s licensed agents. They will compare life insurance rates with top-rated life insurance companies to make sure you get the best rate possible based on your unique information.

Here I go again, writing about something other than term life insurance.  Consumer Reports has a great section that can help lead you through the new car buying experience.  It’s a guide that provides the essential information you need to choose, buy, finance, and maintain a new car.

They recently wrote an article that talked about leasing a car.  They provided three rules of thumb to determine if leasing makes sense.  Here they are:

Leasing generally makes sense only if:

• You don’t exceed the annual mileage allowance–typically 12,000 to 15,000 miles, but sometimes as little as 10,000 miles a year.
• You keep the vehicle in very good shape. Excess wear and tear charges can be steep.

You plan to get a new vehicle every two or three years. If you keep it much longer than that, you’re better off buying it from the start.

This article appeared in the Associated Press the other day.  I like to give people a variety of insurance information, even if it’s not about term life insurance.  It’s important to get all kinds of information.  So here are the six mistakes you should avoid when shopping for auto insurance.

1. Driving without uninsured motorist coverage.

If you’re in an accident with an uninsured driver, this insurance will pay damages for you, your car and passengers. It also pays in hit-and-run accidents if the other driver flees the scene. It will likely increase your premiums by 7 to 10 percent, but could help you avoid financial ruin if you’re in a serious accident.

2. Carrying too much/too little uninsured motorist insurance.

How much should you carry? Typical coverage is $100,000 per person in an accident up to $300,000 for any one accident. “Everybody needs to evaluate their own financial situation,” said William Pearse, a vice president at The Travelers Cos. Inc. “Make sure you have enough protection there so you don’t have to dip into your assets.”

3. Failing to consider insurance costs when car shopping.

If you are in the market for a new vehicle, consider how the design of your car, in terms of safety and reparability, and the likelihood your model will be stolen, might impact the cost of insurance. Some car equipment, such as antilock brakes, air bags or motorized seat belts can actually provide savings through equipment discounts.

4. Insuring your home and car separately.

Many leading insurance companies offer significant discounts on your home and auto insurance if you carry both with them. Allstate, for example, says car insurance premiums could be as much as 10 percent lower if you also have homeowners insurance with them.

5. Buying insurance with the lowest deductibles.

You can save money on your monthly insurance premium if you increase the deductible on your policy. It may be worth considering increasing your deductible from $500 to $1,000, for example, to save on your premium payments. You must weigh, however, whether paying $1,000 out of pocket is worth the savings on your premium payment.

6. Never evaluating coverage.

You may be paying too much for the collision coverage on your car if it’s an older model. If your car is 10 years old, for example, it may be worth only a few thousand dollars. But if you haven’t revisited your collision coverage, you may be paying too much to insure it for more than it’s worth.

Like many things, auto insurance rates are on the increase.  However, there are many ways to get discounts. As with life insurance policies, consumers should shop around for auto insurance using the web.

When reviewing your current auto insurance policy, you should consider if your eligible for several discounts that are often overlooked including:

– Low Mileage discounts if you drive less than 10,000 miles each year.

– Hybrid discounts if you’ve recently purchased an eco-friendly car.

– Early shopping discounts if you renew two weeks before your policy expires.

– “Good student” discounts for high school and college students with a B or better average

As millions of Americans host and attend holiday parties across the street or across the country, many are unaware of the risks they may be taking or of their own responsibilities to ensure their guests don’t hit the road drunk, according to a new national survey on homeowner’s insurance issues by Trusted Choice® and the Independent Insurance Agents & Brokers of America (the Big “I”).

For the survey, homeowners were asked if they believed they were legally liable if a guest caused an alcohol-related traffic accident after leaving a holiday party at the respondent’s home. Additionally, they were questioned about the liability responsibility of a guest destroying a house with a careless act such as leaving a candle unattended or smoking indoors. Respondents were also asked if they thought they would be legally liable if a guest was injured on the sidewalk in front of their property or suffered food-poisoning from catered food while attending a holiday party at their home. Alarming percentages of homeowners either thought they could not be held liable in these situations or admitted they didn’t know.

The Big “I” and Trusted Choice® provide the following tips for holiday hosts and guests.

Is a party host responsible if a guest drives drunk?

The Trusted Choice® survey found that about one-third of homeowners did not think or did not know if they could be held responsible in the event of an alcohol-related accident. In fact, in many states, individuals hosting holiday parties can be held liable. Many courts have found hosts liable for the damages their party guests cause as a result of consuming alcohol at their social gatherings and then driving motor vehicles. Many states have also enacted statutes that can be interpreted as mandating non-commercial social host liability. In these situations, if a guest or third party is injured in an accident that is related to alcohol consumption and the drinking can be linked to you, you could be held responsible for the payment of medical bills, vehicle repair costs, lost time from work and – in the worst case – claims for wrongful death resulting in huge monetary settlements.

Do Your Homework:  When hosting a holiday party, individuals should look to the liability portion of their homeowners or renters insurance policy to protect them if they are sued and found liable for an accident involving a guest who drank at their home. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident occur.

Consider an Umbrella Policy: While holiday partygoers and hosts alike should act responsibly and know their limits, consumers need to acknowledge that most risks cannot be entirely eliminated. But planning ahead and learning about what’s involved in hosting a reception is the best defense. Purchasing a personal “umbrella” liability policy – providing $1 million or more in additional coverage over the limit of a standard homeowners or renters policy – may be a prudent move for the frequent party host.

Consider the following tips to prevent holiday party accidents and protect yourself:

• Limit your guest list to those you know.
• Host your party at a restaurant or bar that has a liquor license, rather in a home or office.
• Provide filling food for guests and alternative non-alcoholic beverages.
• Schedule entertainment or activities that do not involve alcohol. If the party centers around drinking, guests will likely drink more.
• Arrange transportation or overnight accommodations for those who cannot or should not drive home.
• Stop serving alcohol at least one hour before the party is scheduled to end.
• Do not serve guests who are visibly intoxicated.
• Consider hiring an off-duty police officer to discretely monitor guests’ sobriety or handle any alcohol-related problems as guests leave.
• Stay alert, always remembering your responsibilities as a host.

Review your insurance policy with your agent before the event to ensure that you have the proper liability coverage.

I’ve written about this topic in recent weeks, but with gas prices through the roof it’s worth repeating.

If you’re like most drivers, you’re seeking ways to drive less and save money. There is a recent new car insurance program that some insurance companies are offering in which you can pay-as-you-drive.  It is emerging as a prominent way consumers can cut car-related costs.

According to a Brookings Institution report, about two-thirds of households would benefit from a usage-based program, with an estimated average savings on auto insurance of about $270 per car per year.

There are currently two companies that offer these types of programs (not offered in every state). Progressive auto insurer and GMAC Insurance.  Drivers who select pay-as-you-drive have a device installed in their vehicles that measures driving behavior through distance, time of day and other factors; the factors are reported to the insurance company and premiums are set accordingly.

Don’t mess with Hurricanes. These violent storms whip up winds anywhere from 74 to 200 mph. They also churn up huge waves and torrential rains that can cause flooding and devastation, not just along coasts, but hundreds of miles inland as well. We see this recently with Hurricane Fay.

We’re in the midst of hurricane season which usually runs from June through November.   So, what should you do if a hurricane is headed your way?

Continue reading “Hurricane Preparedness…”

Those who have car insurance should spend time carefully looking over their policy to be sure that the coverage is exactly what they need it to be.

Recently, many complaints have come to light regarding security measures in some policies. Policy holders are sometimes confused and shocked to find that their automobile coverage does not cover claims after a theft or hijack situation.

Some policies are designed based on the existence of car security systems or car tracking devices. It is essential for the insured to know and understand that, in most cases, there is a time period that those items must be installed into the insured’s vehicle in order for certain claims to be honored.

It is also important that the consumer is familiar with the workings of their insurance holders, the options and policies and conditions and how to make it work for them.

Standards are also set to make sure that the correct device was actually put in the car and put in correctly. If the wrong security system was installed in the car, your policy may not cover a loss claim.

Any personal experiences with this one? Ever filed a claim only to find out that you didn’t have the right security system or that you didn’t install it correctly or in a timely manner?

The Robb Report Vacation Homes notes a rising trend among homeowners who are opting to self-insure their second homes against disaster. Most mortgage lending institutions require homeowners to carry property insurance in order to protect the collateral assets while the loan is being paid off. After that, though, you’re free to decide for yourself if you want protection for your investment.

Considering the rising costs of insurance these days, it might not seem like a bad idea. After all, you have to pay the deductible before a claim can be considered, so why not forego the monthly expense of insurance premiums and put it right into a high-yield savings account in case you need it?

“Self-insurance is more or less synonymous with non-insurance and appeals to those who are wealthy enough to bear the risk of loss themselves,” cautions John Morell.

The average person might be able to save enough to pay for superficial damage – siding, windows, shingles and roof – but couldn’t hope to salt enough away to completely replace the cost of the dwelling and its contents. Self-insuring is a high-stakes gamble, especially for homes that are at risk every single year from wildfire, flooding, tornados, or hurricanes.

Don’t think that switching to a smaller car to save money on gas will keep your insurance rates down. In fact, according to the Insurance Institute for Highway Safety, downsizing can actually increase your car insurance bill.

For instance, if you purchased a new Toyota Camry you may pay an average annual premium of $1,302. However, if you bought a Ford F-series pickup, you’d pay on average of $1,194. Purchase a smaller Honda Civic, and rates shoot up to $1,670 per year.

Small cars are involved in more crashes and are less safe than large cars, according to the Insurance Institute for Highway Safety.

Insurers also maintain that small cars tend to be driven by younger drivers who are more likely to get into crashes.

Drivers of small, lightweight cars are twice as likely to die in a crash as drivers of big heavy cars.

Some small cars won’t increase your insurance rates. Insurers say the Mini Cooper, Volkswagen New Beetle and Volkswagen Golf are three of the small cars that stay at “average” or better for insurance losses.

Jeff Bartlett, deputy editor online for autos at Consumer Reports, says that even though smaller cars are less expensive, injury risks are greater. And it’’s more expensive to repair a person than a car.