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Auto Insurance Coverage Basics

Even a slight fender bender in a parking lot can ruin your day. Road accidents can turn a good day into a wild one, but you should not let it ruin your life. You pay auto insurance coverage not only to comply with the law, but you pay it to protect your assets. If you drive a car, you need to have auto insurance coverage. There are different types of auto coverage; the states require you to have some, but insurance companies suggest you to purchase more. The following passages explain key features of the most important auto coverage.
· Liability Coverage: this coverage comes in two different types including Bodily Injury and Property Damage. In the event of road accidents for which you are liable, the insurance company will pay for the damages and injuries that you cause. Liability coverage prevents you from spending too much on medical payments or repairs for someone else's injuries and property damage.
· Personal Injury Protection (PIP): it covers medical payment and other expenses for your injuries regardless of who is at fault in an accident.
· Medical Payments: in case the PIP coverage reaches its limit for other expenses following an accident, separate medical payments coverage can be helpful. Sometimes you can use it in conjunction with your health insurance as well.
· Collision: it covers repair cost for any damage to your vehicles due to an accident. It may include paint job, replacement parts, broken windscreen, and engine repair.
· Comprehensive: this coverage covers damages to your vehicle due to non-accident causes. Some common causes are fire, theft, vandalism and falling objects.
· Underinsured and uninsured motorists: in case you are involved in an accident with another driver who does not have enough insurance or no insurance at all, this coverage requires your insurance company to remunerate for the damages to your vehicle.
Every state has different rules regarding auto insurance. Depending on where you live, you may need to purchase all the above coverage or only some of them. The limit of each coverage policy is subject to insurance laws too. This table lists the recommended limits for common types of coverage.
Deductibles & Limits
Bodily injury: $100,000 per person, $300,000 per accident
Property damage: $100,000 per accident
Personal Injury Protection: Either deductible or no deductible; it can be optional or mandatory depending on the state. Either deductible or no deductible; anyone with an existing health insurance may not need to purchase this coverage.
Collision: $500 to $1,000
Comprehensive: $500 to $1,000
Uninsured motorist: $100,000, but if this coverage is less
Underinsured motorists: $100,000
More Optional Coverage
Collision and Comprehensive are optional, but they are important. Even when the state does not list them as mandatory, they are still necessary and worth the money. Apart from those two, insurance companies also offer other optional coverage including:
· Rental Reimbursement: your insurer provides an amount of money as compensation for transportation expense during the period when your car is in the shop for repair after an accident. The amount depends on the company's policy. The money should be enough to rent a car until your car is ready to go again.
· Roadside Assistance: it can be helpful in case your engine breaks down in the middle of nowhere that you need towing service to a repair shop. Some car manufacturers provide this service free of charge with the purchase of a car, so you may not need to buy this coverage.
Money-saving Tips
Auto insurance does not come cheap, but there are ways to save money on premium. One of the ways is to make use of insurance discounts available from most insurers. Even when you are not eligible, you can reduce the premium by increasing deductible or use a car that meets the insurer's safety requirements.
A deductible is like reserve cash from you for the insurance company. You can consider this a down payment for the premium. If you pay more for down payment, your monthly installments for premium will be less. Increasing deductible from $250 to $500 can reduce up to 30% of the premium. If you can afford it, going for more deductible is a good decision. Many types of coverage allow for the deductible, but you should focus on Liability Coverage.
The financial impact of an accident for which you are liable can be devastating; total cost of car repair and medical payments can reach hundreds of thousands. By increasing the limit of liability coverage, you have better financial protection from the insurance company. However, higher limit means higher premium, and this is why you should consider increasing deductible.
Collisions and Comprehensive are optional.
The basic rule is that you should purchase both if your car is worth at least ten times the amount you pay for those two coverage types. For many older cars, Comprehensive and Collision coverage are not worth the money. Omitting them can save much money.
New cars are not always more expensive to insure than old ones.
New cars have better safety equipment and protective features to keep the driver and passengers save for examples airbag and restraint system. Alarm system and anti-theft equipment are good safety features as well.
Most auto insurance companies offer discounts for such features.
If your car does not have them, consider installing third-party safety equipment to be eligible for the discounts. A safer car is less risky, and insurance companies are grateful for that.
Some insurers provide auto insurance with other products such as homeowner insurance and personal liability. Purchasing multiple policies from the same company comes with bundling-discounts. In additions, it is easier for you to manage payment and file claims if needs be.
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Proper Information Aids You in Making Smart Decisions

Life gives you many alternatives. The most important decision you have to make is to choose among those alternatives. This task becomes even more complex when there are a large number of alternatives. It is a known fact that you are able to take good decisions when you have decent subject knowledge. With proper knowledge you are at a higher perspective. You are able to compare the options and go for the one which weighs highest amongst its competitors.
When we talk about buying insurance policies, you would find that there are so many companies selling nearly similar products. Thus, here you would have to scrutinize carefully which company or product gives you the best deal. Having proper knowledge about the company liquidity, claims settlement ratios and their services would make your comparison better and would aid you to take the best possible decision. Analyze your needs and decide how much insurance you need. Calculate the premium charged by various companies for your type of insurance requirement. You would be surprised to know that there is significant difference in the premiums charged by companies. Newer companies generally charge lower premium to win the competition in their favour. Here you have to decide whether you would trust a new company for lower premium. Calculate your risk hunch. These days most of this information is available online. Online sources give adequate and mostly unbiased information to aid your research for taking the optimum decision. Surely, you would like to get good value for the hard earned money spent by you. It hurts when you know later that you could by a better product for the price spent by you. Thus, do thorough research prior to buying an insurance product.
When you have your valuable assets insured you get a peace that is unmatched. To attain that peace do a little research and get a plan that best fulfills your needs and ambitions. You can concentrate better on your core duties when you have arranged to safeguard your assets. Proper comparison weeds out weak insurance policies from the market and companies are forced to upgrade their offerings.
Online portals provide a good base to compare the plans of various companies and let the customer buy the best. They are able to take well informed decisions. This openness forces insurance companies to withdraw their bad products and bring out modified plans with competitive features. With healthy comparison you can chose plans that suit your needs and requirements best. As it is a well understood fact that every individual has different needs and expectations from insurance. Thus, be well informed. As earlier said there are many people in the market who would cheat you and induce you into buying a weak insurance plan. By comparing plans online people save significant amounts of money and avail plans with good coverage. When you purchase plans online everything is documented and recorded. Thus, the propensity to cheat reduces significantly.
Comparison always promotes quality. When the customer is well informed the companies are driven to constantly improve their offerings. It ensures better service. You get the maximum value for the money spent by you. You get to know your insurance requirements by online research.
Akanksha is an expert in insurance sector. She has more than 10 years experience in insurance as well as investment field. Currently she is working with a reputed company and shares her experience through blogs and articles. And she is very helping nature, so you can ask /put the questions regarding insurance and investment. She will definitely provide solution of all questions regarding Insurance Policy Compare
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Unemployment Insurance - Purpose and Summary

Unemployment insurance (UI) is a form of insurance that American society has with itself. Its purpose to create a savings pool from which qualified workers can draw if they are out of work under certain circumstances. By receiving an income during periods of unemployment, recipients can afford basic necessities until they can again be productively employed. Considering how dependent the American economy is on consumer spending, the inability of people to engage each other economically can have drastic and eventually far-reaching consequences.
The UI social safety net differs somewhat from other welfare type programs in that it is not based on economic need, but upon past employment history and the circumstances surrounding the worker's separation from their previous employment. People that have been in the workforce for longer periods of time are generally able to receive benefits for more weeks. Since UI is a form of replacement income, the dollar value of benefits a person can receive is tied to the wages they received while working.
Viewed from one perspective, UI functions as a type of government mandated savings plan for workers, by requiring liable companies to "hold back" revenue that could otherwise be distributed to them. Viewed from another perspective, unemployment insurance is a type of tax on the economic prosperity that the workers create. Either way the cost of UI to business is determined largely by the amount of potential future benefits workers might receive and the taxing policies adopted by those in charge of each state's UI program.
Funding for unemployment insurance comes from two sources - separate state and federal UI taxes. Liable companies pay a UI tax to their state government, creating a trust fund for the payment of future benefits. These same companies pay a federal unemployment tax to the IRS each year. Annually, each state receives a grant of these federal taxes to fund the employees and UI services that their UI agency provides.
This dual funding mechanism mirrors the dual approach to administration that operates UI programs across the nation. Since the federal taxes pay for UI employees and services, the federal government sets out broad program requirements that the states must operate within as well as operating goals and targets that they must meet. For example, states must operate in such as way that a certain percentage of submitted UI claims are adjudicated and paid within 21 days. Since state UI taxes pay for benefits, state agencies decide tax provisions that fund the benefits as well as rules that allow or deny individual UI claims.
This structure, both for funding and operating the UI program, allows for a healthy tension to exist between the large and diverse stakeholder populations that can be impacted by the UI program.
Charles E. McCormick, CPA
View my site, http://www.cemcpa.com, for more information and to purchase my book on Georgia UI - An Employer's Guide to Georgia Unemployment Insurance
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Insurance Quotes in a Digital Age

Insurance is great. Yes, it can be a hassle to find. Sorting out the pricing and policies can be complicated. So what if the whole thing could be made as easy as pushing a button? The great news is that it almost has.
What Makes it Frustrating
Making the monthly payment on a premium can be frustrating, but it's easy. Once you file a claim, you realize how much that monthly payment was worth it. Finding the right policy, on the other hand, can be a challenge. There are policies for your home, condo, apartment, motorcycle, car, and health. Also, there are many different companies. Getting insurance quotes from each carrier can take much more time than you have available. Once people find coverage, they rarely re-evaluate it to see if it is still the best option available.
Technological Evolutions
Luckily, the Internet has revolutionized insurance quotes. Trained agents can help you identify what your priorities are and which policy best meets your individual needs. Filling out a simple form online can generate quotes from several major carriers at once. Many agencies are also now able to incorporate smaller, more specialized carriers into their networks as well. The ability to organize and sort through so much information so quickly has made getting insurance quotes almost push-button simple.
Working Closely with an Agent
Getting a variety of insurance quotes is just the first step. The most affordable policy may not be the one that best meets your needs. Understanding the often complex policy language can be a daunting task. At this point, it is essential to get a trained agent involved. Like many service professionals today, agents are highly trained and strictly regulated. They are a personal part of their clients' lives because they are helping to protect the most valuable aspects of a client's life: their health, home, and family. You should be able to work closely with an agent who knows you and understands your priorities.
Your agent can sit down with you and evaluate each of the quotes individually. Together, you can structure a comprehensive package that addresses your coverage needs and financial commitments. The package may consist of the best policies from several carriers or a single umbrella. The use of digital technology allows for highly personalized packages of coverage. With access to so many quotes and coverage options at your fingertips, what you decide to do is up to you.
Obviously finding a safe level of coverage is not something you want to put off until you need it. The task of obtaining insurance quotes and sorting through coverage packages used to prevent people from shopping for insurance. New technology and highly trained agents have simplified the process. Highly personalized packages can provide better coverage and save you money. If you haven't looked at your insurance lately, now is a great time.
When considering insurance quotes, West Bloomfield, MI residents visit Phil Klein Insurance Group. Learn more at http://www.philkleininsurance.com/get_a_quote/default.aspx.
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What Is Executive Pension Plan?

As the name implies, an executive pension plan is a tax-efficient savings plan designed especially for executives, senior executives, key employees and directors of a company. It is one of the best forms of pension schemes that enable the executives to get a tax-free income after retirement.
How does this work?
Executive Pension Plan is regulated by the Pensions Regulator. In most cases the employer pays into the plan, in others, both the employer and the employee pay in the plan. Thus a tax-efficient fund is designed for the employee. This is used to provide tax-free cash and a pension income to the executive after his retirement. Executive pension plans are similar to any other pension schemes in which they function as money purchase occupational pension schemes.
Normally, Executive Pension Plans (EPPs) are designed by the company directors for their personal benefit. But it can be utilized by their favoured key employees with the same levels of income that this investment can offer. In such cases, the pension fund is held up under a trust in which the trustees are responsible for the day-to-day administration activities like ensuring if the payment contributions and the payout benefits are maintained regularly. Under this scheme, each employee can have the liberty to retire early or to work past the company's retirement date.
Benefits:
The executive pension plan has huge benefits for the employers when it comes to recruiting potential employees. Employers can attract and motivate the employees and reward them with EPP schemes based on their performance. Showering performance incentives for your employees can be a good idea. But still offering them a long term benefit, something which they could count on even after their active working years allows them to understand that they are your important business assets.
Another benefit of executive pension plan is that certain schemes are eligible for a top up. With an increase in the life expectancy of the applicant, topping up the plan can help in building a larger fund that guarantees a high level of income post retirement.
Moreover, the employees feel comfortable as most of the schemes do not require their regular contribution. Their company will contribute a particular sum of money that goes into their executive pension plan which will mature at the time of their retirement. This is the extra benefit from executive pension schemes that are more advantageous than other forms of plans. With this plan in hand, each employee is guaranteed of tax-free returns for the rest of their life. It also forms part of their main income source which they can depend on at all times.
When it comes to the retirement date, each employee can choose their own year of retirement. They can either choose to retire early or to work past the company's set date of retirement. Whatever the choice is, the employee will still be able to enjoy a worry-free income for the rest of his life. All these advantages attract a large number of executives to sign up for a pension plan that guarantees long time tax-free income.
Check out Manning Financial, the leading financial advisor in Ireland. They provide an advice regarding life cover & business protection, retirement planning, saving & investments, personal pension and also about life insurance.

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A Good Auto Insurance Policy

Insure your home and car with the same company - Insuring your car with the same company that is insuring your home makes you legible for a discount that is referred to as multi-line discount. Thus, you pay less than you would if you insured your car and home with separate companies. Even then, you need to be sure about the possible discount before making a commitment to get your auto insurance from the company that is insuring your home because not all companies offer the multi-line discount.
· Insure all your cars in one policy - If you have more than one car, you can insure them all under one policy to qualify for the multi-vehicle discount. This lets you enjoy savings on both auto mobiles. Just like the multi-line discount, you need to check if the discount if offered before signing up.
· Maintain a clean driving record - Your driving records are a factor when calculating your auto insurance rate. Consequently, your insurance rates are affected by traffic tickets spanning up to three years and six years for accidents. Having a bad driving record means that you pay extra premiums making your auto insurance expensive.
· Go for a low risk car - Your auto insurance premiums is determined on the basis on the car's history. If your car is highly likely to be stolen or be involved in an accident then you will pay more in insurance premiums.
· Opt for a Pay-As-You-Drive Policy - This is especially recommended if you do not drive for long distances. Therefore, consider going for a policy based on your annual or monthly mileage. The pay-as-you-drive policy lets your premium to fluctuate depending on your frequency behind the wheel as a record of your mileage is kept through monthly and annual reports that are shared with the policy provider.
· Take precaution against possible theft - Installing an anti-theft device in your car may also contribute to lowering your auto insurance premiums as it lessens the risk of theft.
· Let insurance companies bid for you - When you shop for your vehicle's insurance and deliberately let companies that offer insurance know that you are not settled yet can get you a better deal. That is, you can choose to tell one business what the other is offering so that they give them a chance to counter the offer to your advantage.
In conclusion, there are many factors that determine how much you will pay in premiums. Thus, it is possible to lower your auto insurance premiums yet enjoy great service.
A good auto insurance policy will not only cater for your protection as a vehicle owner in the event of an accident but also take into account damages that may be caused to third parties.
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Auto Insurance FAQ

In some cases, you will call insurance company when your car breaks down in the middle of the road for towing assistance. When the vehicle arrives at the repair shop, insurance policy covers the damage and provides rental car until your car is ready to go again. There are two main purposes of purchasing auto insurance: to comply with the law and protect yourself from the inevitable. In a modern world where thousands of people are on the road every hour and cars are all over the place, involvement in an accident is one of the inevitable occurrences. It does not happen often, but accident does happen.
Do I need to buy auto insurance?
Nearly all states require drivers or anyone who owns and drives a car to purchase auto insurance. An insurance policy is proof of financial responsibility for using the car and driving it on the public road. Even when you do not want to purchase insurance, you need to provide valid proof of financial responsibility in forms of assets to pay claims in case you are at fault in an accident. Liability insurance is a must in every state.
How much do I have to spend for auto insurance?
Every state has a set of rules regarding auto insurance including the minimum amount you need to pay. In most states, liability policy is obligatory. Those policies cover the amount you have to pay if someone else suffers from injury and property damage following an accident in which you are at fault. They do not cover your medical payment and damages to your property. You have the option to prolong the coverage to give financial protection to yourself through various policies such as Collision, Personal Injury Protection, Comprehensive, and Rental Reimbursement.
How does insurance company determine my premium?
There are many factors to consider, but in most cases the insurer looks into the following:
· Driving record
· Types of car
· Crime rate in your neighborhood
· Distance you cover with your car on day to day basis
· Age
· Profession
· Types of coverage you buy
It is not exceptional for a company to consider your current credit rating too. There is a correlation between credit score and the probability of missing premium payment. Most companies offer discounts to reduce the premium, but eligibility requirement varies. One of the most current discounts is for policy bundling, for example, you purchase insurance for your cars and home from the same company.
What if my friend drives my car?
There is no clear line whether or not your auto policy applies if someone else drives your car. The decision regarding this issue depends on the insurer, and the rules vary among companies. Some types of coverage such as Collision and Comprehensive follow the car, meaning the policies apply regardless of who is driving. Other types of coverage follow the person, for example, liability and medical payment. If your friend does not have the necessary policy, you cannot file claims for your friend's injury.
Why do teen drivers pay more for auto insurance than adults?
Teen drivers pay more expensive for auto insurance because insurance company think they lack experience and tend to commit violations including speeding and other infractions. Parents must educate their teen children about the cost of insurance concerning consumption of alcohol and drugs. Driving under the influence (DUI) of alcohol or drugs is a major violation that affects insurance premium. The insurance company determines the rate or premium by measuring probability and therefore risky behaviors including underage drug use and consumption of alcohol increases insurance rate.
What do I do after a DUI?
Record of a DUI may force insurance company to cancel the policy. After cancellation due to a DUI, auto insurance is hard to come by, but it is available in non-standard market or insurance for high-risk drivers. The premium is more expensive from such market, but necessary to comply with the law.
Does anyone know the way to reduce the premium for teens?
Other factors that affect teen driver's auto insurance are:
· Grades: good academic performance allows for "good grade" discounts. Some companies offer a discount of up to 25% off premium for students with average B score or higher.
· Car models: high-performance cars are risky. They reach high speed in no time, and that increases the risk of accidents. A more conventional model can help reduce the premium as well.
An insurance agent is a helpful source of information. This is the person to consult about cost, possible violation, eligibility for discounts, and coverage options.
What is the best car for teen drivers regarding insurance?
Parents will not always be there to make sure that their teens will drive safely all the time. There are, however, some ways to help your teenagers drive safe, and of them is to pick the right type of car. Some tips you can use:
· A family sedan is a decent car for teenagers. Such car will not embarrass your teenagers when they are driving to college or friends' places. The family car tends to offer much safety features and prevent the temptation to drive fast.
· Not old, but not brand new car is a good choice. A slightly older car still meets the requirement for cheap coverage, but it still offers modern safety features such as anti-lock brakes, airbag, restraint system, daytime lights, and probably GPS.
· Vehicles with additional performance features are bad. Features like a turbo or bigger engine encourage teen drivers to drive faster than normal (speeding).
Article Source : http://ezinearticles.com/?Auto-Insurance-FAQ&id=9221060
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