Cheap Insurance

When shopping for cheap insurance, the one thing that can always be counted on is that the surest way to get a cheap insurance plan is to buy insurance that is a bare-bones policy with no optional coverages. Some policies may be cheaper than others depending on the amount of coverage and the amount of risk that the underwriter will have to assume, but based on the current economy, nothing is as cheap as it would have been in previous years. In ordaer to find cheap insurance that at least has minimum coverage it could take a good bit of research and comparison shopping.

Underwriters have tightened up the reigns on writing new policies and have increased premiums accordingly because of a floundering economy. In late 2008 and early 2009 AIG, a world leader in insurance and the former #1 insurance company, was at the precipice of bankruptcy until the United States Government bailed them out with taxpayers’ dollars. However, competition is still strong and companies still vie for the consumer’s business. Discounts and promotional offers can still be found and online research can be an invaluable tool for getting quotes and comparing rates side by side. Sometimes online insurance companies take contact information and have a live representative contact the interested party, while other sites allow users to enter information into an online calculator to get an immediate quote. Those calculators allow the individual to add and subtract coverages in order to find a plan that is within their budget.

One of the main reasons why many people choose to remain uninsured is the cost involved. Unfortunately, living without insurance is like playing Russian roulette; at any given moment that bullet can hit the chamber and life can spiral downward from there. Whether talking about health insurance, automobile insurance, life insurance or even travel insurance, the one thing that can always be factored in is that something can happen at any moment to cause some form of loss to self or others. It is for this reason that insurance is necessary and if cost is a factor; take advantage of the available tools and resources to find a cheap insurance policy that can still provide adequate coverage.

How to get a Cheap Car Insurance

Because insurance rates are based on perceived risks, finding cheap car insurance might be difficult if the insured driver falls into any one or more categories that are considered to be high risk. Some factors that would place drivers within the high risk group would be driving offenses, age and at-fault accidents. The funny thing about age as a risk factor is that in most cases federal law makes it illegal to discriminate based on age, however, in matters of car insurance they actually encourage age as a basis for premiums. Statistics indicate that teenage drivers and elderly people are at a higher risk for accidents. Teenagers pose a higher risk because of their relative inexperience while seniors over a certain age have slower reflexes and potentially reduced mental clarity. Although cheap car insurance will be difficult to find for individuals in these high risk groups, it is possible with some amount of research and comparison shopping by getting rates from several companies.

One way to ensure that rates can be kept as low as possible is to keep a clean driving record. Every mobile offense carries points in most states and with each point there is a price tag. Not only are there traffic violations to be paid for, but insurance rates rise accordingly. The longer a driver can maintain a clean driving record, the easier it will be to get the lowest rates possible. Many states mandate discounts for drivers who complete safe or defensive driving courses. In fact, in some states teenagers are refused licensure until they reach majority, complete high school or show proof of being registered in high school and/or successfully complete a driver’s education course.

Another factor that weighs heavily on car insurance rates is the automobile itself. The year, make and model are significant because they impact the relative safety of the vehicle. For instance, small sporty cars that are built for speed pose a greater risk so premiums are adjusted upwards as a result. It might seem like those huge old dinosaurs of the 80’s and early 90’s would fall into the safe category, but in many cases they don’t. The reason for this is because they just don’t have onboard safety devices that the newer mid-sized vehicles include such as air bags and ABS. However, there is one thing about older model cars that could help to get cheap insurance and that would be to waive collision and comprehensive coverage. Since the amount paid in the event of loss is based on the replacement value of the vehicle, some older cars are not worth the premiums paid to carry comp or collision.

In addition there are many steps which can assist in acquiring cheap car insurance. By adding certain safety devices such as an immobilizer or alarm, it is possible to significantly bring down a premium. It might be possible to partner with a member of family who has a lower insurance rate and get included on their policy; in this respect the combined policy will be a lot cheaper than an individual policy. There are other factors which are considered in most states that can have an impact on the cost of car insurance. This might include the area in which the insured driver lives, whether the vehicle will be used in the line of employment (i.e. as a taxicab, or to be driven to carry persons or materials to and from various work-related locations), how many miles per day/week/month/year the car will be driven and also if other licensed household members will have access to the vehicle, even if not named on the policy.

Sometimes rates are directly related to state laws and sometimes they are at the discretion of the underwriter. Because there is so much flexibility in coverages and rates, cheap car insurance can be found. By far the best way to do this is by using a comparison website online to check out the leading contenders in the market today.

How to get a Cheap Health Insurance

The absolute best way to get cheap health insurance would be to take advantage of a group plan that is either offered at a place of employment or through one of many organizations that are set up to provide group plans nationally or locally. Sometimes it is even possible to find an insurance plan that costs less than the plan offered through the consumer’s place of employment. Often business associations offer health care insurance to members such as a Board of Realtors or other societies that exist through membership.

One way to reduce the cost of health insurance is to pay the premium annually because monthly service and/or administrative fees can be eliminated and some carriers offer a pre-payment discount. Another cost saving idea would be to raise the deductible. If the current deductible is set at $500, raise it to $1,000 if that is an allowable option. This will significantly lower premiums. Also, it may be possible to find coverages that just aren’t necessary and eliminate them altogether. All types of coverage carries a price tag so dropping some that aren’t totally necessary could yield significant savings. Thoroughly read the coverages on the policy that is being considered to make sure that all unnecessary coverages are dropped. Many times consumers carry coverages and optional features that just are not necessary.

In the past people would search the yellow pages of their phone book for local insurance agents that advertised health care or cheap health insurance. With the explosion of the internet it is far better to do an online search because it is not only faster to find companies and independent agents, but all the necessary information is right there on the screen in real time. It is possible to play with figures to get an idea of exactly how much savings can be acquired if the deductible is raised or if family members are dropped. The best part is that it is not even necessary to buy coverage at the very first site located. An online search will yield literally hundreds or thousands of agents and insurance companies and many sites even offer a side-by-side comparison in premiums. Online calculators are even provided so it is possible to see the changes in premiums as coverages are added and dropped. The best way to find cheap health insurance is, without a doubt, online because of the fact that the consumer can play with the coverages they would like to add or drop to get a good idea of just what the difference in cost would likely be.

How to get a Cheap Life Insurance

When trying to find a cheap life insurance policy, there are several factors that need to be considered. The most important decision will be whether it is best to go with a term life insurance policy or a whole life insurance policy. For the most part, when comparing just those two broad categories, term life tends to be less expensive. In order to understand why term life is cheaper, it is necessary to have a basic understanding of how each is defined. A term life insurance policy is finite in that it begins when the policy is bound and ends at a future date that is specified within the policy. If the insured dies during that ‘term’ the beneficiaries receive the value of the policy as set forth within the terms. Whole life, on the other hand, is in force indefinitely until such time as the insured dies. It could be next week or fifty years down the road as long as the premiums continue to be paid. Whole life policies also have a cash value at some future point, like having money invested for future payout. That is one of the primary reasons why whole life insurance premiums are higher. It is easier to find cheap term life insurance than it is to find cheap whole life insurance.

There are several types of term life insurance policies and depending on the specific needs of the insured, prices will vary significantly. The best way to determine exactly how cheap life insurance will be is to use an online tool in which you can plug in amounts, dates, and other variables. As those variables are added or subtracted from potential coverages, the estimated premiums will also change. Many consumers choose to shop for life insurance online simply because of the user friendly calculators that allow them to ‘play with’ options in order to find a policy that is within their budget.

The current state of the consumer’s health is an issue. For instance smokers and individuals who are overweight with a BMI greater than 25 will pay higher premiums. Cheap life insurance tends to be dependent on the type of policy (i.e. term or whole), the age and type of employment of the insured and of course the insured’s medical history. When it comes to life insurance, the younger and healthier a person is, the lower their premiums will be. Just like any other type of insurance, premiums are based solely on risk. The greater the risk to the insurer, the more expensive the policy will be for the insured.

A person in their 30’s has a life expectancy of at least another 35 to 40 years whereas a person in their 50’s perhaps has a life expectancy of another 20 years. As harsh as it sounds, life insurance rates are based on variables that affect how long the insured can be expected to live under normal circumstances, barring accidents or murder. With this in mind, try to purchase life insurance as early as possible to get the biggest savings in the long run. Cheap life insurance is available, but it may take some time and research to find a policy that offers the financial protection sufficient for the needs of the consumer and his or her beneficiaries.

How to get a Cheap Travel Insurance

Whether you travel a lot or just take annual vacations or infrequent business trips, it is always good to have travel insurance as added protection and it really is possible to find a plan that is affordable. Basically, there are several different types of travel insurance that could be chosen based on what type of trip the consumer will be taking and how long they intend to stay. Online calculators can help to compare rates in order to find a cheap travel insurance policy that meets the necessary requirements. The very most common type of travel insurance is called Trip Cancellation or Interruption. Most of the time this type of policy covers cancellations or interruptions due to inclement weather, sudden unexpected illness, death, sudden or emergency military duty, and even jury duty. Travel insurance may not seem necessary, but a cheap policy protects the traveler against losing a good deal of money should the trip get cancelled for any reason beyond the travelers control.

When looking for a cheap travel insurance policy, there are two places that should provide a starting point. Most travel agents are able to direct consumers to companies or insurance agents who offer travel insurance. Even online travel agents have access to cheap travel insurance carriers. Also, it is possible to get an assortment of quotes online from online insurance brokers. As with any other type of insurance, there are multiple companies competing for business so it is often in the best interest of consumers to do some comparison shopping online. Many sites even compare coverages and costs of premiums side by side for a good graphic visualization of just how different insurance companies stack up against each other and some companies even offer discounts for travelers insurance if the consumer has a health or life insurance policy with their company. In short, there are few things you can to make travel insurance cheaper other than to shop around online and choose plans with less coverage.

Summary of the Considerations

In summary, when searching for how to get cheap insurance, no matter what type of insurance is under consideration, there are four areas that can significantly affect the premiums. The biggest impact on any kind of insurance is the risk factor. When the perceived risk is great, the insurance company will necessarily require higher premiums to offset the potential for payout. Consumers who fall into high risk groups pay higher premiums and there is not an easy way out of it. The second area that impacts premiums is the deductible. Even consumers in high risk groups can lower their premiums to some extent by purchasing a policy that has a higher deductible. Less money that needs to be reimbursed should a loss occur mitigates some of the risk on the part of the underwriter so they can willingly reduce premiums.

Group insurance is the third area that can significantly reduce cost to consumers. Private insurance is always more expensive than group policies so it is always advantageous to try to obtain group coverage. Finally, comparison shopping can yield the cheapest insurance rates. Do a little research either locally or on the internet. Some consumers feel more secure sitting down face to face with a licensed agent while others prefer to browse the internet. Get quotes from as many companies as possible so that rates can be compared. Just like any other business, insurance companies are highly competitive and with a little persistence it is possible to find cheap insurance.