By state law everyone needs to have a car insurance. If you love your family you should have a life insurance too. These are the two financial products that one cannot live without. It just makes no sense to risk your financial future and your family’s financial future by not having these two insurances.
When it comes to insurance, you have many options to choose from. When I first landed in this country, with no prior driving record, I paid $800 for a 6 months for car insurance through 21st Century, for only one car. Now I pay $450 for two cars at Geico. I constantly watch out for a lower premium, but,equally effective insurance. I plan to reduce the cost further in coming months.
Let’s talk about some of the ways you can effectively use price comparison to drive down the insurance cost.
Gas is expensive and so are the cars and that alone makes it hard for people to afford car insurance. However, the Law is clear; people are obligated to have car insurance to drive their cars in any public road.
There are mainly two types of car insurance policies:
- Minimum Required Insurance Policy
- Full Protection Policy
The first question you need to ask yourself is what kind of car insurance you need.
Minimum insurance policy will only cover the costs associated with the damage done by your car to the other (s) car (s) however, in this case the damage suffered by your own car is unprotected by the policy. This is generally minimum requirement by state law.
While, the full protection policy covers the costs of damage borne by your car due to the accident and the costs associated with the damage done by your car to the other (s) car (s). However, this kind of insurance is quite costly since people who choose this coverage are more likely to experience an accident, as they tend to be careless when driving, for a fact that they know they are fully protected.
The price you pay for car insurance depends on many factors. A few of them are listed below:
- Age is the most important one. The older you are the cheaper your car insurance will be. Car insurance companies use statistical analysis to calculate how much you will have to pay. Their calculation states that the older an individual is, the less likely he is to have an accident since he drives more carefully overall. In other words, it is less likely to have an accident, as one is older, since he/she is very well aware of the fact that they have lesser/fewer number of years left to continue driving your car.
- Another factor is how many accidents you have had in the past. People who never had an accident will always pay less for insurance.
- Another yet important factor is how long one has been having a driving license. People who have their licenses for more than ten years also pay less for car insurance.
- Finally, insurance companies know that the older a car is, the more likely the driver will have an accident, due to factors such as failure in brakes and other mechanical parts. Thus, if the car is five to ten years old, one shall have to pay a higher value for obtaining his/her car insurance.
The simple and best way to calculate how much one shall end up paying for car insurance is to use Google and find car insurance companies near you and to simulate your payments using their online platform. One shall need to enter some details pertaining to his/her car, age, location, number of years of driving experience and others and the simulation will run automatically.
It is critically important to have a life insurance policy to protect the loved ones because life is uncertain. One may have a secure job, some money in savings account, but when the bread-earner in the family passes away, due to unforeseen circumstances or calamities, it is the life of the partner and the children that goes at stake.
Not only does the family experiences great pain from losing a loved one, but also their lifestyle is greatly harmed, as they will have to rely on new source of income stream (s) to pay their bills. Their future will be daunted seriously as well.
If your children are not self sufficient and they plan to go to the university to get a good job, they may not be able to do it on time or even not at all without both parents working to support the university costs (which increase every year). This is where life insurance comes in.
There is protection and the amount of financial protection will depend on how much money you can afford to pay every month for the life insurance policy.
Some policies start for as low as $10 and are able to cover about $10 K but the important ones are those that pay $100 K and more. Think about it for a second! Calculate how much money your family will need before all your children will be self-sufficient and how long it will take them to achieve such status. That is the money one must plan for when investing in a life insurance policy.
Again, there are dozens of life insurance companies with online websites ready to simulate your policy for no cost or commitment and you really need to shop around to see which company has the best offer to your interests.
As you can see there are plenty of options in the market and learning how to compare and contrast them to your best advantage is a not a problem. The market is full of options and with the right promotion; you may even get a few months covered for free or extra healthcare benefits and discounts.
There is always a chance of something going wrong with your health and for a few extra hundred dollars per month you can finally sleep well, knowing that your future (and your family’s) is secured against unpredictable evens but likely to happen as it happens every single day to thousands of people worldwide.
|SB is a husband and working as a software professional for a Fortune 100 corporation in Florida. Thanks for visiting the blog.
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