1) Some of the most helpful coverages are the cheapest.

The coverage you are required by law to buy -- liability insurance -- typically is the most expensive. It should be. The most common coverage limits can mean your insurance carrier is on the hook for hundreds of thousands of dollars for any damage you do.

Most other coverages are capped by the value of your car, though.

While collision, which pays to repair your car if you are at fault, can be pricey, other optional coverages such as gap coverage, roadside assistance, rental reimbursement, uninsured/underinsured motorist coverage, and comprehensive coverage can provide a lot of protection for a little price increase. Comprehensive coverage will normally be the most expensive of these other optional coverages, but is usually about only half the price of collision coverage and a third the price of liability coverage. It's worth the cost of comprehensive to cover your car for things such as theft, fire and vandalism.

Uninsured motorist coverage is especially important, considering the benefits it offers and the number of uninsured drivers on the road. Take a look at your coverage options. Paying a little more now may save you a lot in the future.

2) Many factors can affect your car insurance rate.

Auto insurance companies use many different criteria when evaluating an insurance application during a process called underwriting. Each car insurance company has many guidelines regarding which groups of drivers they want to accept and how much they will charge those groups they consider a greater risk. The guidelines are different for each company, meaning that two companies comparing the same driver can arrive at vastly different conclusions.

During the underwriting process, car insurance applicants are placed in a group based on how much money and how many claims the insurance company believes it may have to pay. Underwriting is done automatically by software behind the scenes.

At this time, the insurance company will look at motor vehicle records to see how many accidents or tickets a driver has received. Many insurance companies also use an insurance history report to see if the driver has made any car insurance claims, and how much money was paid. Although accidents and violations can only affect the rates you receive for three years, many companies will look back five or more years when deciding if they want to offer you insurance.

In addition, many auto insurance companies look at the credit history of the applicant. Typically,drivers with bad or no credit history pay more. But that means you can save money (quite a bit) by shopping around as your credit improves.

3) Insurance prices vary (a lot) by company.

Car insurance rates differ significantly from one insurance company to another. That's because each insurance company uses its own formula to assess risk and decide what you pay for coverage. This means no two insurers will have identical prices for the same policy -- often, the difference is hundreds of dollars. So, if you don't compare rates, you can wind up overpaying. 

"Auto insurance is a highly competitive business and one of the most effective ways to reduce insurance costs is simply to shop around," according to Jeanne Salvatore, senior vice president of the Insurance Information Institute. "Drivers should look for an insurance company that will provide a good price along with excellent service."

The best plan is to decide what coverages and options you need and comparison shop so you can find cheap auto insurance that still provides sufficient coverage.

4) If you let your policy lapse, you'll pay more in the long run.

Most insurance companies view drivers who are licensed but don't have insurance as risky or irresponsible. Because of this, if you let your policy lapse, you'll probably pay more when you go to buy car insurance. To avoid this, if you don't want to pay for insurance or are planning to let your policy expire because you want to switch car insurance companies, make sure to purchase car insurance before your current policy is cancelled.

5) Higher deductibles can lower your premium.

Insurance prices are based on how much money the insurance company believes it could have to pay. If you agree to pay for a larger portion of your own damages by raising your deductibles, your car insurance company automatically knows they won't have to pay as much for your claims. Because of this, they will usually give you a lower premium. If you decide to raise your deductibles to save money, be sure you can afford to pay the deductible if you have to make a claim.

6) Insurance discounts can make a difference.

Most insurance companies offer auto insurance discounts for things like a safe driving record, car safety features, anti-theft devices, electronic payments, payment in full, and more. Make sure you're getting rewarded for being a safe driver and for having a safe car by shopping around for car insurance that appreciates your record.

7) Coverage affects what you pay.

The majority of your car insurance premium generally goes toward the legally-required liability portion of your policy. It's typically not a good idea to reduce this portion in an attempt to save money, because you'll be responsible for any amount of damages above your policy limits.

However, other coverages, although generally helpful, could be reduced or eliminated to lower your premium. If you have an older car that's not worth very much, or if you won't have a problem paying for a new car, collision and comprehensive coverages may not make economic sense.

Use our coverage calculator to see how much car insurance coverage you need.

8) The car you drive can affect your auto insurance rates.

The Highway Loss Data Institute compiles insurance accident statistics for most types of cars. Many insurance companies use data like this when setting prices on your insurance. For example, if the car you drive is very expensive to repair, the company is going to have to pay more if you get in an accident. Conversely, if the car you drive is extremely safe and protects occupants well, your insurance company will not have to pay as much if you're involved in a crash. If your model of car is generally less likely to be stolen, your car insurance company is less likely to have to pay to replace it.

A great and fun summer activity for the family is a road trip. Even though road trips are fun, frustration and stress often accompany families while out on the road. Make certain that you keep the following tips in mind to help make your family’s road trip a good one:

The best possible thing you can do to get ready for a road trip is to get the family car in the best shape possible. Give the car a proper tune-up so that you don’t have to worry about the car breaking down while you are out on the road. Make sure that you have an auto warranty for your car so that the maintenance and repairs that need to be performed on your car will not drain your wallet.

In addition, make sure that you plan ahead for the trip so that your family is prepared and knows exactly where you are going and what you are doing. This can alleviate stress and help make the trip go smoothly. Also, invest in a GPS that will help you get to your planned destinations with ease.

Though you can plan for road trips, you cannot always predict when you will run into problems such as road construction or traffic. These things are almost inevitable so make sure that you relax and do not stress out so that you and your family can have a good time on your road trip.

A vehicle’s power train consists of all of the parts that make it run. This includes parts such as the drive train, the engine, and the transmission. It is a big system that is made up of numerous moving parts. If any part in the power train system fails, there is a greater chance that your car will not actually get you to your destination. A vehicle’s power train features and engine specs are essential to making the car run.

A powertrain warranty covers the powertrain components if they are defective or damaged during a certain period of time. Therefore, the manufacturer will pay to replace or repair the components that are faulty. The powertrain warranty generally has a mileage or year (whichever arrives first) period of coverage and this expires when the allotted period is up. This auto warranty usually lasts for a longer period of time than other manufacturer warranties such as the bumper-to-bumper warranty.

Powertrain warranty coverage usually does not include parts that wear like the boots and CV joints, clutches, and other parts that have a short lifespan and that need to be replaced regularly.

Insurance is having a close link-up with uncertainty. As people can’t see their future they try to protect with some insurance policy. Whether it is a nonliving product like a car or it about our own health, we don’t want take any chances and hence we go to shop for an insurance. In fact we all know that we are going get some kind of benefits out of our investments. Now when it comes to life insurance we people tend to become reluctant. This mainly happens as life insurance is somewhat related to death and people don’t like to imagine about their own passing over.

In reality lots of people don’t have a proper knowledge about the benefits of provided with a life insurance policy. Once you know it all you will surely buy one for you. Let’s check the obvious advantages of life insurance

• Your precious family worth it: After a long weary day when we come back to our nests we feel relaxed with our family. It is true that we tend to stay blind towards our death, but it is not that we totally forget about it. A sting of anticipation makes us worried about our loving family and their situation after our demise. The moment you take out a life insurance you know that they are have the protection now. Even if you are not around your dear ones have it all.

• Intelligent investment choice for all: If you contemplate your life insurance policy as another investment option, it won’t disappoint you. You can do the simple math on your own and you will find that you are getting substantial return on investment. If you calculate the amount you are investing and the amount you are getting back you will be fairly satisfied with your decision. So now you know that your hard earned money is going to the right bucket.

• Benefits you can enjoy within your lifespan: If you think that your family will get the sum out of your life insurance policy after your death then you don’t have full knowledge about it. Companies, selling life insurance know that people want enjoy the benefits of their investment while they are still living. So they provide some additional benefits or add-ons with the policy which you can enjoy before you die. These are add-ons or riders basically cover different type of illness such as terminal, chronic, or critical illness. Under these circumstances you get a percentage of the total amount of your life insurance policy and can spend that amount as you wish. Even if you get out of your illness, you are not liable to return the amount you got, it will only get deduct from the total amount your family will get as death benefit.

• Safeguard your finances: We understand our financial situation and work day in day out to make it better. Now this is not wise not to opt for a life insurance while making a stronger financial base. As bread earner of the family it is your liability to protect all you have already earned or else your family suffer. You have a life insurance and everything you have earned is under protection.

While home insurance policies are sometimes known as “all-risk” policies, they do not always cover all risks that may cause damage to your home. One of the more commonly excluded perils on most policies is earth movement, which includes earthquakes. The reason it’s called “earth movement” is that the exclusion itself is much broader than just earthquakes. Many types of shifting or moving earth are not covered by your policy, and you may be surprised to find that some of these cannot easily be insured, no matter how much premium you may be willing to pay. Earth movement coverage is not something that is needed in California alone.

Earth Movement Exclusions

The standard home insurance policy’s definition of excluded earth movement includes sinking, rising, shifting, and the expanding or contracting of earth. And all of these exclusions can be combined with water or not. This means if you think of earth movement only in terms of earthquakes and other seismic activity, you are missing some key exclusions that can cause substantial uninsured damage to your home. Let’s look at each of these excluded movements in a little more detail:

• Sinking – If the ground under your home settles, it is generally defined as sinking. This can be the result of many factors, such as erosion due to water or poor compaction when the home was built.
• Rising – The opposite of sinking, if the soil under your home rises, bulges, or heaves, it will cause damage to your foundation and the house itself. While water can cause erosion, too much water in the soil can also cause it to expand.
• Shifting – With sinking and rising covering the vertical movement of earth, shifting covers the potential lateral movements that will also impact your home.
• Expanding – As if rising earth was not broad enough of an exclusion, the policy includes expanding earth as an additional exclusion. These exclusions are similar to each other, but the redundancy of the policy exclusion leaves no ambiguity of its intent to exclude earth movement damages.
• Contracting – Sinking earth is similar to contracting earth, but as with expanding and rising earth, the home insurance policy seeks to broaden its exclusions, allowing no room for potential coverage.

The earth movement exclusion includes all of the above directions in which the earth can move and cause damage that is not covered by your policy. In addition to these definitions, the policy also excludes the following types of phenomena that are more commonly understood: earthquake, landslide, mudflow, mudslide, sinkhole, subsidence, erosion or movement resulting from improper compaction, site selection, or any other external forces. Additionally, the policy further excludes earth movement resulting from volcanic explosion or lava flow.

Essentially, virtually anything that causes your house to move or shift is excluded by the home insurance policy. However, direct fire caused by any of the above is usually still covered. For example, if a mudslide moved your house several inches and severed a gas line, which then resulted in a fire, the loss of your home due to fire would be covered. However, if the movement resulted in a cracked or shifted foundation, those specific damages would still not be covered, as the foundation is not a loss resulting from the ensuing fire.

Getting Coverage for Earth Movements

Unfortunately, many homeowners recently found out just how far-reaching earth movement exclusions can be after Hurricane Sandy. Even those who had purchased flood policies were still uninsured because their flood policies contained exclusions for earth movement, even if they were caused by floods. The Insurance Journal reports that the State of New York is now using some of its emergency funds to help the affected homeowners. But homeowners cannot always rely on a governmental agency to step in on their behalf if they are not properly insured.

To avoid many of the earth movement exclusions, homeowners can purchase insurance that will add the coverage back to their home insurance policies, or they can purchase separate policies separate from their existing policies. In some states, insurance companies may even be required to offer you the option of purchasing earth movement coverage.

For instance, in California, insurance companies selling home insurance policies must offer earthquake coverage to their customers, though customers do not have to elect that coverage. But this is helpful in that it reminds homeowners that they must make a conscious decision to accept or reject coverage.

Much like national flood insurance policies, California earthquake insurance is available through a special agency set up to handle the unique risk. Insurers in California can choose to offer the coverage through their own resources, but the majority elect to participate in the California Earthquake Authority (CEA) program for insurers. If you are a California resident and elect to purchase coverage from your home insurance company, it’s possible they are still providing the coverage to you through the CEA. However, you have issued a policy directly from your insurer.

Specialty Exclusions Homeowners Should Understand

Even with agencies such as the CEA setting up special programs to cover earth movement, there are still some circumstances under which no policy will insure a loss. A common example of excluded earth movement is loss due to a manmade condition. Insurance companies are particularly uncomfortable with these risks because they are unpredictable, and therefore difficult to underwrite. So even though no one can really predict an earthquake, scientists do have some information about where faults are located and therefore the expected severity of damages. This amount of data assists the insurance companies in modeling potential losses and helps them to set what rates to charge.

However, with manmade conditions, it’s impossible for the insurance company to foresee when such an activity might take place. The most common types of manmade earth movement are those from nearby construction activity. In these situations, your only recourse is usually to pursue a liability claim against the party responsible for causing damage to your home. While that process is challenging and not nearly as straightforward as a first-party home insurance policy, it’s certainly better than no recourse at all. If you have a particularly valuable home, you might be able to find an insurance agent that has the ability to access Lloyd’s of London, where virtually any risk can be insured – albeit for a price.

Earth movement is an inescapable risk facing all homeowners and there is limited insurance coverage available. Before making any assumptions about what is or is not covered, you should carefully read your policy. If you are concerned about the lack of coverage, ask your insurance company or agent about buying back some of the excluded coverages. In the event of a catastrophic loss, you will be glad you did.

Most of us know by now that our medical care will cost a lot less if we see a doctor who participates in our health plan’s network.

But it’s gotten harder to know for certain which doctors participate and which don’t, particularly if you’re hospitalized. For example, if you visit the emergency room you likely won’t know if the doctors treating you are in your plan’s network. Even if you have surgery or deliver a baby at an in-network hospital, you could be treated by an anesthesiologist or an assistant surgeon who is not contracted with your insurer.

Even if your insurer reimburses out-of-network doctors, the doctor you saw may decide the payment wasn’t enough, and send you a bill for the balance.

That’s when surprise bills show up. According to a recent report by Consumers Union, nearly one-third of Americans with private insurance got a surprise medical bill in the last two years.

So, if you’re planning a surgery or procedure, consider these 5 steps to reduce your risk of getting surprise bills:

1. Know what your plan covers. Surprise bills can often be avoided by simply taking the time to carefully read through your plan’s benefits and by calling your insurer to ask whether the procedure you need is covered.

2. Get the names of your providers. “You should have a firm understanding not only of what is involved in the procedure you’ll be having, but who will be involved in providing your care,” says Dr. Sam Ho, chief medical officer for UnitedHealthcare.

Get in writing the names of all the healthcare professionals providing your care and make sure they are all in the network, including physician assistants, anesthesiologists, and radiologists. “You have the right to request only in-network providers,” Ho says.

3. Call about your health plan. Provider networks change all the time. Before your procedure, get in touch with your health plan to verify that the doctors you plan to see are still in-network, and be sure to take notes on who you spoke with and what you were told. If you receive an unexpected bill after your procedure, contact your health plan again for assistance.

“Some insurers will serve as an advocate on your behalf and negotiate with the physicians to either lower the out-of-network charges or waive them all together,” Ho says.

4. Ask about cost. There are a number of pricing tools available today that can help you research the estimated cost of specific treatments and procedures. Most insurers offer price estimate tools, as do many large employers. There are also plenty of apps and websites available.

Keep in mind, however, that there is no comprehensive database of healthcare prices.
And, despite all the tools, finding accurate healthcare cost information is still generally difficult.

Still, it pays to talk with your physician and/or the hospital about the cost of your care and to request an estimate in advance.

If you receive a surprise bill, ask if your provider will accept your health plan’s payment as payment in full.

5. Know your state’s rules. Federal law does not protect patients from surprise billing. But some states have policies in place that help people with at least some of the common situations that lead to unexpected charges, such as emergency room visits that involve out-of-network doctors.

If you receive a surprise bill, contact your state’s department of insurance to see if there are legal protections against balance billing.

We asked some top advisors what their advice is for being financially fit. Here’s what they shared with us. How many of these can you tick off?

It’s about the flow. Watch your cash flow and live within your means—that’s the starting point. Once that’s under control, plan for the future, including what if something happens to you. What is the impact of that on those left behind and especially if there is debt left behind? That’s where life insurance comes in.

—Aurora Tancock, CFP, FLMI, AIAA, president of Aurora Tancock Financial Services

Set goals. Just as exercise becomes a key tool to achieve health goals, life insurance is the same in your financial fitness program. Among the many goals you can achieve through life insurance are: saving for future projects, plan for retirement and protecting the financial well-being of your family.

—Ana Sofía Rodríguez D, M.B.A., associate director of Grupo Inverseguros

See no evil. Make sure you can leave your family no worse off than they currently are. A lot of people are insurance poor. There’s nothing evil about insurance. It allows your family to maintain same standard of living that they’re accustomed to if something were to happen.

The second is to buy products before the need is there. If you can’t afford all of what you need, start off with what you can afford. For example, start with term life insurance, instead of permanent, and then when you can, change it to a permanent solution.

—Corry Collins, CFP, ChFC, CHS, of Maritime Wealth Management

Get help. I would suggest people start working with an advisor as soon as possible. It’s much easier to fix the financial “mess” of 30-year-old than a 55-year-old. And then, don’t let life get in the way of keeping up with your plan. I think annual reviews are great for keeping people on track.

—Jennifer Mann, LUTCF, CLU, ChFC, CFP, vice president of the Chicago office of Lenox Advisors

Give it a dry run. I’d ask, “Do you have a spending or savings plan?” You need something to help you understand if you are spending more than you’re earning and whether you’re saving enough. It’s great if you can get on a spending plan and stick to it and reevaluate it periodically.

Then reduce and eliminate your debt—but you’ve have to want to do it! Remember, 98% of the people work for 2% of the people. The lenders are the ones you’re working for.

Then have a dry run, what happens if … You have to go through your plan to see if you have enough life insurance, disability insurance, long-term care … what are the survivor needs going to be? etc. and then create a plan to live on that budget, so you can fund the things for later. By saving to today, you can have your earnings pay for your salary later.

It has been reported that a variety of companies and marketing firms have been making unsolicited calls to offer customers an automotive extended warranty. When a customer is told that the warranty is about to expire, if they are not educated to the warranty business or their vehicles coverage may sometimes believe anything a telemarketing agent says. Unfortunately, in almost every case they are creating this information out of thin air with the hope that they can scare or pressure a customer into purchasing warranty coverage for their vehicle. This is obviously a dishonest practice but is borderline illegal as well.

It is also been reported that a variety of third-party companies have been sending a postcard a flyer in the mail with the same general information hoping to coax a customer into calling them so they can attempt to sell them warranty coverage. This process is a high-pressure process, usually involving several levels of sales professionals to try and close the deal.

What these companies never tell you is that in many cases, your car may still be covered by an existing warranty as they have no knowledge of the vehicle’s actual existing warranty status.

Also, there are many levels of warranty coverage that are available that are generally not explained in clear detail to a customer. They simply sign you up, collect your money, and then send you documentation later where you find out there are many loopholes that would allow a claim to be denied. This is assuming the company even has a claims department and any legitimacy at all.

In most cases, you may have simply given money for a product that either doesn’t exist or is not an actual insurance company product.

If the company does have any legitimacy, not having an underwriter simply means that in the event that they have any type of claims activity at all, they can easily be wiped out as they very rarely leave much money in a claims fund to protect the consumer.

The bottom line is a customer’s best option is to reach out to a legitimate warranty provider that is directly underwritten by a US-based, “A” rated carrier. The other option, of course, is to visit a local dealership and find out what they are offering. The downside to this is that dealerships are generally 50-100% more expensive the same level of coverage you can get in the automotive warranty aftermarket.

The bottom line is you will almost never hear a radio ad or receive a notice by mail from any legitimate warranty company so buyer beware!

If you are looking for warranty coverage a great place to start would be www.amezones.com where you can get wholesale pricing for the industry’s highest level of coverage.

As a homeowner, it’s always a good idea to protect your home from expensive damage or loss, whether it’s caused by extreme weather or daily wear and tear. Investing in both home insurance and a home warranty plan is essential, as they cover different things. 

Why do you need both plans and how do they differ?  

Home insurance policies
The main difference between a home warranty and home insurance policy is what they cover. Home insurance is often mandatory when homeowners buy a new house. The bank will usually require you to purchase a policy before issuing a mortgage and keep it for the length of the mortgage.

Home insurance covers four primary areas of the home, including personal property and general liability if someone were to be injured on your property. In addition to theft, home insurance policies will only cover costs for damages caused by perils like fires, floods and other natural disasters. 

If your basement were to flood due to a storm or an earthquake were to ruin the structure of your home, an insurance adjuster would come to your house and fill out a claim for repair of any damaged belongings. After the claim is approved, your insurance company issues you a payment after subtracting the amount of your deductible from the total balance to cover the cost of the repair. 

Home warranty plan
While home insurance policies are usually required for homeowners, home warranties are not mandatory. However, because insurance policies don’t cover costs when home appliances and systems break down from normal wear and tear, you can save yourself a lot of trouble and money by investing in a warranty plan. Unfortunately, things like your A/C and washing machine breakdown –and when they do they’re expensive to fix.

A home warranty is a plan to help cover the expense of repairing or replacing appliances and home systems when they fail due to normal, everyday use. Warranties generally cover essential items in the home such as your plumbing and electrical systems, major appliances, HVAC system and washer and dryer. 

Similar to home insurance, there are different pricing options available. You can choose the deductible that works best for you. When something breaks down, simply file a claim online. AMEZones will connect you with a pre-screened service provider in your area who will visit your home to diagnose and remedy the problem. Your deductible should cover the repair cost, even if the item needs to be replaced.  

While a home warranty plan and your insurance policy can protect your home in different ways, both give you peace of mind that your home and budget are taken care of when even the most unexpected problems arise.