Auto Liability Insurance Helpful Advice and Useful Tips

• TIPS TO REMEMBER
  Keep in mind that housing market values and construction costs usually increase every year. Therefore, homeowner coverage should be re-evaluated annually.
  When shopping for a policy remember that a home is not considered adequately insured unless coverage is for at least 80 percent of the replacement cost.
  There are limits to homeowners insurance that a policyholder should know. For example, most policies do not cover business property in the event the homeowner conducts a business at home. Only by reading the policy can you be sure how far the coverage extends.
  When comparing home insurance policies, you should look for certain features that can save money. For example, ask if the company offers premium discounts if the homeowner installs security devices such as a burglar alarm system. Other insurers may give discounts if the homeowner uses identification devices to mark television sets, stereos, cameras and typewriters.
  Discounts also may be available for installing smoke detectors. Your home should already have at least one smoke detector, which may lower the premium slightly.
  Some state insurance agencies provide consumer buyer's guides and complaint ratios for insurance companies that operate within the state.
• Replacement Value
  When considering the right insurance policy to buy it's important to know the replacement value of your home--and how insurance companies calculate this figure.
  
  You should have enough insurance to cover the cost of rebuilding your home. This may be different from the market value or assessed value; that's why the most popular policies currently are the ones that guarantee replacement value. They eliminate the homeowner's risk of being caught short.
  
  Some homeowners get into automatic insurance packages that limit homeowner's coverage to the amount they owe on their mortgages. If you have that kind of insurance--and especially if you've paid off a good part of your loan--take some time to review its coverage. It could mean that if something bad happens, your mortgage company will be paid off, but you'll be left with a vacant lot where your house used to be.
  
  Always buy insurance for at least 80% of your home's replacement value. If you buy less, you forfeit the right to collect the full replacement value of the insured property, even for a partial loss.
  
• Exclusions and Other Red Flags
  An important point to remember when buying homeowner's insurance: All types of coverage pose certain exclusions. Some people overlook these exceptions when reading through their policies, later to find that their assets were not protected under their policies.
  
  It is important to know when coverage does and does not apply. You should know the common restrictions of your policy before you purchase it.
  
  Understand the concepts involved in rating procedures. Although there will be variations to contend with for different companies and different states, there will remain many similarities in approaches used. Having a basic understanding of the application of rules under the traditional rating procedures will make it easier for you to understand how rates are charged and adapt to future changes.
  
  The age of a home is an important factor to insurance companies. Companies may charge up to 20% less to insure new homes than to insure older ones, which may be more susceptible to damage in storms and fires. Outdated building standards and old wiring can also make older homes riskier to insure.
  
• Cutting Life Insurance Costs
  There are several great reasons to buy life insurance. Here are a few:
  
  Provides for people who depend on you financially. Whether your spouse works or not, they still rely on your wages.
  To pay for estate taxes.
  To pay off debt.
  However, picking the right life insurance policy for you and your family is an arduous task, so it is important that you at least understand the very basics of the process in order to cut your overall costs.
  
  
• Step 1: The Amount of Coverage
  Determining how much insurance that you need is the first step. How much life insurance do you really need, is the first question that you need to ask yourself. Buying insurance is protection against disaster; and the assumption of that risk is taken on by insurance companies. The amount of risk that you hand over to an insurance company is the amount that you will pay for. If you can assume some of that risk yourself then you can cut the cost of the policy.
  
  Parents should buy insurance to ensure that their children are taken care of if one or both parents die. A couple who is retired or a person who is married and is the sole provider will want to make sure that their spouse will be able to survive financially. The amount also depends on how much money you have saved.
  
  A rule of thumb that many people use when they have a family to consider is to provide survivors with five times their annual income. If you make $50,000 a year then a $250,000 policy is a good recommendation. That will give your family five years to recover from your loss. If the surviving spouse does not work, it will give them five years to get an education or job training.
  
• Step 2: Shop Around
  Talk to three to five companies. Make the insurance agent know that they are going to have to do a little work to get your business. Insurance agents always want to meet you in person; they rarely give you policy information over the phone.
  
  We did an investigation of one hundred agents, asking them to send us policy cost figures and the response was ridiculously low. After six weeks we had only received quotes from eight companies.
  
  The most responsive company at the time with the best rates according to our investigation was USAA Life. For a $200,000 death benefit for a nonsmoking 40-year-old cost $430 a year for a man and $375 a year for a woman.
  
  Find companies that are rated at least an "A" by A.M. Best, a national firm that judges the financial soundness of insurers.
  
  Simplifying the process may include seeking the service of an independent agent. Independent agents often represent several insurance companies and can offer a price comparison chart of four to five companies.
  
• Step 3: Choosing Options
  Agents will offer you a plethora of confusing options. Presumably, there are premiums on all the options, so examine them all with a keen eye. Don't think that the decision has to be made while the agent looks at you with a blank stare. Let the agent know that you want to read through the options and that you will call if you have any questions.
  
  Study all the terms of the contract; do not buy insurance that you will never need, but don't skimp either. Also remember that the advice of an agent must be hedged by the fact that they want to sell you as much coverage as they possibly can.
  
• Other Tips
  Do not buy insurance policies that are narrow, such as cancer insurance, which is usually included within a standard insurance policy.
  The guaranteed rate is different from the projected rate that is used to tally the future cash value of your policy.
  Don't purchase life insurance for the sole factor of using it as an investment. Just get the best coverage for you and your family.
• Save Time
  The amount of time that an individual has to spend on the phone and visiting with agents has been cut ten times. If you consider that the number of agents now available at your disposable with one click of a mouse, you can now be assured of the best rates between hundreds of competing bidders.
  
  Policies are rarely purchased online though. Currently one out of every hundred people buy insurance that way. And it probably wouldn't be smart to do so in most cases. Many policies, especially whole life policies, are very complicated and are best settled in person or over the phone. Also, some policies require a medical exam