Review of internet auto broker::What Is the Job Role of an Mortgage Advisor
Review of internet auto broker::What Is the Job Role of an Mortgage Advisor
The previous article concluded the discussion on how to save on variable costs. Now, we will move on and explore ways to lower fixed expenses such as insurance. There are four major types of insurances available for your purchase: auto, home, life, and health. If you belong to specific professions, you may also have a particular insurance related to your job added to the bill. With the exception of this last one, let's review the others one by one. Auto When it comes to auto insurance, according to SmartMoney it is better to check on rates every year instead of just blindly renewing with your current company. Checking auto policies on the Internet is easier than ever and, with companies such as Progressive, which claims to check several companies for cost comparison, it will not take long to find out the best deal. Other companies will check and compare different rates on car insurance. For example, Insurance.com offers up to four different rates from up to twelve insurance companies. You can also shop for better car rates at Insweb.com. Aside from shopping around, according to Consumer Reports there are other ways to cut down on auto insurance costs. One way is to raise your deductible. The higher the deductible is, the less money you have to pay on premiums. You do need to make sure you have the money set aside to cover a higher deductible, should you need to file a claim. However, Consumer Reports says it well when it states that insurance premiums are a reality while accidents might not become one. Take a look at your vehicle. If your vehicle is old, chances are its value in the company's book is less than what it would cost you to keep comprehensive insurance. Insurance companies have a formula they use to calculate whether the vehicle is worth repairing or should be considered a total loss. When the value of the repair is higher than the value the vehicle has in their book, you will not recover enough money to warrant the higher coverage. So, if this is your situation, think about dropping your collision coverage. If you have teenagers in the home, consider waiting a little while before letting them get the driver's license. They can still get the permit, and they can still drive with a licensed adult by their side. Holding out for a couple of years on their license might help you get lower premiums. Just make sure they don't drive on their own and let your insurance carrier know you are delaying the licensing process. When your teenager does end up with the license, many insurance companies give discounts for good grades and defensive driving courses. State Farm even has its own program that allows for a discount. The young driver needs to read a book, answer a few questions, and turn it in. The answers are then sent to the central office and the discount will follow, if the answers are correct. Ask your insurance company for more discount options. Home Yearly insurance shopping works for home owners and renters policies as well. The two previously mentioned insurance brokers offer cost comparison for home insurance as well. Whether you are renting or buying, this type of insurance covers you in the event of loss due to theft, fire, and storm damage. Flood insurance is not part of a regular policy but can be purchased separately. If you live in a flood zone area, it will serve you well to cost compare this coverage as well with the different companies. Ask the insurance agent for any additional discounts they may offer. Many will discount the policy if you have an alarm system. However, make sure that the discount will cover the cost of your monthly monitoring system. If you end up paying more in monitoring fees than what you would get off on the premium, installing a system may not be the best idea. There are other ways to secure your home. After all, you are trying to save money. As with the auto insurance, a higher deductible will yield to a lower premium. Check to see what your options are. If you need to file a claim, with both auto and home insurances, before you file it get an estimate on the cost of the repair without insurance. Most repair shops will charge a much lower fee to the individual (possibly even lower than your deductible for certain expenses) than they charge the insurance company. If that is the case, don't file a claim, just pay the out of pocket expense and go on your merry way. This will avoid a possible insurance premium hike due to a claim. Life and Health For these two types of coverage, you need to shop around before you purchase them, but once you have found them, you better cling to them. The older you get, the higher the chances the insurance company has to pay out. This translates to higher premiums. Your physical and mental health play a big role in the calculations of your premium. So do your regular habits, from drinking and smoking to eating and driving. Companies begin questioning your last 12 months, but can go back as far as five years. Most companies will require a basic physical exam, done by one of their contracted nurses, before they accept to insure you. Some companies may offer a second check to possibly lower the premium quoted the first time around. If you are quoted an amount based on your current health and you believe that you could lower it based on a second physical examination, ask your broker if they offer a second exam a month down the road. If you purchased life insurance when the children were young, and they are now grown and gone their way, ask your agent if it might be possible to lower the coverage amount, thus lowering your premium. If you purchased a cash-value insurance policy, ask if you can change it to a paid-up policy. The benefit will decrease, but you will no longer have to pay the premium on it. Here is a last item to consider for all insurance policies. Most companies, if not all, run credit checks on potential and existing customers. To avoid jumps in premium, make sure you are up to date with all bills and check your credit report for any errors. You can check the credit report, free of charge, three times a year (once a year per credit agency). You can request all three at once, if you so choose; however, you won't be able to monitor your credit for the remainder of the year. These fixed costs may be harder to work with, but they may still yield some savings. If your goal is to save as much as you can every month, in order to build your savings, then you may want to look into some of the above mentioned tips. The next article in the series, How Can I Make My Home Energy Efficient?, will take a look at lowering the cost of your utilities. See you next time. |
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