It’s important to keep your financial livelihood in mind when planning for the future. A common way to do so is to ensure that all of your assets are well-insured. Liability automotive insurance and homeowner’s insurance are common measures of precaution, but they aren’t always enough. Some people opt for extra protection with a product called umbrella coverage. Read on to find out what an umbrella policy is, what it covers and whether you should consider buying one.

What is an umbrella policy?

An umbrella policy protects you from liability in the event that you are legally responsible to pay for more than what your primary insurance policy will cover. Homeowner’s and vehicle insurance will cover most claims, but in the event that costs exceed your policy’s limit, an umbrella policy pays the difference. Most insurance agencies offer some form of umbrella policy that can usually be bought in million-dollar increments. The likelihood of using an umbrella policy is low, since most claims will be covered by your primary insurance, so the yearly premium for an umbrella policy is significantly less than for a homeowner’s or automotive insurance policy.

What does an umbrella policy cover?

Since umbrella coverage is a general liability product, it can be applied to a range of financial obligations. For example, if you are found at fault in a car accident that resulted in $500,000 in damages, and your vehicle insurance policy has a payout limit of $300,000, an umbrella policy for $1 million would cover the difference by providing a combined liability coverage of $1.3 million. This is especially useful in legal settlements: In the event that you are sued, an umbrella policy can be used to pay a settlement amount not covered by insurance, as well as legal fees.

Do you need an umbrella policy?

The decision to take out an umbrella policy is one you should discuss with your insurance agent or financial planner. Having a regular source of income is one reason you may want to consider an umbrella policy. If a judgment is made against you, and you are unable to pay the settlement, a court can seize your wages and use future earnings to pay your debt. Umbrella coverage might also be beneficial to a landlord or building owner. In the event that a tenant sues and wins, an umbrella policy can cover the portion of a settlement that regular insurance will not. If you’re interested in taking out an umbrella policy, speak with your financial advisor about the amount of coverage you need and which policy options will keep you protected.

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Umbrella Policies 101 is a post from: Narrow Bridge

Related posts:

1. Business Insurance 101 for Young Entrepreneurs
2. Annual Insurance Check Up
3. All Insurance is Not Created Equal

If you read the news today or listen to talk radio, you will most likely hear some mention of unemployment and how bad the economy is. I disagree, the economy is in great shape. You just need to look after yourself to ensure your personal economy stays on top.

Education

Education is the core to most people’s financial success. If you look at top CEOs today, almost every single one has a college degree. Many of them have master’s degrees. Most of them went to business school or have an MBA. This is not a coincidence.

If you want to keep your economy stable, you need an education and a degree that will lead to the future you want. I am thrilled that so many people want to be social workers, but a $60,000 master’s in social work from a private university will likely make you $25,000 per year. Is that warm fuzzy feeling worth it?

The same university offers an MBA for the same cost. That degree will leave you making double what a social work degree will make you.

History degrees, art degrees, English degrees, and other liberal arts do not have a bright future today. Unless you want to be a teacher or go to grad school, these degrees will help you land a job with good benefits at Starbucks. Make sure you know what you are getting into when you pick a major.

If you don’t believe me, this graph from the Department of Labor breaks down the numbers.

Savings – Emergency Fund

Even the strongest economies often hit hard times. The United States has had a Great Depression and a handful of recessions to keep us on aware of what can happen if you do not have strong momentum.

But, just like a strong economy, you can hit hard times. I know a whole lot of people from my former employer that were laid off after it was purchased by another company. People with law degrees, accounting and finance degrees, and MBAs were laid off just like everyone else.

While these people have better odds of finding a good job than someone with a high school diploma, they still have to pay the bills and support their families in until that happens.

If you are young and single, you need an emergency fund that can cover at minimum three months expenses to have as a backup for a rainy day. If you have a family to support, you should build an even bigger cushion to ensure you can make it through tough times.

Retirement and Investments

New businesses open everyday, and old businesses close everyday. Whether they were forced out by competitors or decided to close up shop to pursue other adventures, if they were run the right way, they have a good nest egg behind the operation.

You need a strong nest egg too. When you are ready to close up shop and take up a full time golf and sailing career, you need to have the cash in the bank to get you where you want to go.

I invest over 10% of each paycheck automatically into a combination of savings, investments, 401(k), and Roth IRA accounts. If you do that for the duration of your career, you should be in good shape when retirement comes around.

Insurance – Health, Life, and Everything Else

If the economy gets hit with a terrible event, the government and taxpayers have to foot the bill to keep things going. Unfortunately for you, the government and your neighbors will not hand you money to keep going when times get tough.

Make sure you have health, life, auto, homeowner, and any other insurance you need to protect yourself and your family from unforeseen catastrophe. As I recently learned, a $600 illness can cost thousands if you are not adequately covered.

Budget

If you are wondering how you are going to pay to keep your economy going strong, look no further than the trusted budget. If you keep your spending under control and focus on the end goal, you can find a balance between income and expenses that should keep your economy chugging along no matter what life brings you.

If you have never used a budget, take a look at Mint.com or Adaptu as great personal finance tracking tools that will automatically keep you on the right path.

Multiple Income Streams

Okay, okay. I know everyone’s situation is different. Maybe you don’t make enough money to support your lifestyle. While I strongly believe everyone has the ability to live below their means, many people live beyond what they can afford anyway.

You can be like me and try to turn hobbies into income and make multiple income streams. I know many stay at home moms that have built successful blogging businesses. I know full time workers that have a photography gig or weekend business. I even run a flash mob business when I am not working.

You can easily come up with a way to make more money. If you are struggling, I recommend Ramit Sethi’s Earn 1k course as a good place to start.

Don’t Forget to Have Fun

I know all of this might sound stressful and difficult, but if you make a list and knock things out one at a time, you will be all fixed up in no time.

Image by epicharmus.

Fixing Your Own Economy is a post from: Narrow Bridge

Related posts:

1. Investments in a Bad Economy
2. Why Layoffs Are Good For the Economy
3. It Doesn’t Take a Rapper to Save the Economy… Or Does It?

It is no secret that I am a huge fan of automation and aggregation. The fewer places you have to look for your financial information, the less time you will use and the less likely you are to mess up. Simplee simplifies and automates your insurance just like Mint or Adaptu does with your finances.

What It Does

Simplee works with your insurance account to make sure you really understand where your money is going and gives you reminders when a bill is due. The site also helps create an understanding of how your healthcare costs are distributed (you vs. insurance) and understanding what your true costs are.

Cost Tracking and Breakdown

This year I had a more complicated insurance plan than ever before. Since I started working and paying for my own insurance, I have always been on an HMO. HMOs, for those who don’t know, are a for-profit company that includes the insurance, treatment, pharmacy, preventative care, doctors, and hospitals under one umbrella. Now I am on a PPO where the doctors are separate from my insurance company.

With a PPO, I have a lot more to deal with. I have a deductible, a flex spend account, out of pocket maximums and minimums, and other complexities. It is a lot to wrap your head around. Simplee makes it simple.

The site has a dashboard that tracks everything (I have linked both my PPO and dental plans). It tells me what the deductible is and what I have spent toward that amount. It tells me what I have paid and what the insurance company has paid. It tells me everything. It also makes pretty graphs.

Who This Is Good For

This site is useful for anyone with health insurance. Period. You don’t have to spend a lot of time on the site to get a great value. And, as a bonus, it checks your insurance account daily and sends you an email whenever bills are due or services have been processed. I just jump on, take a glance, and have a better idea of what is going on with my insurance and healthcare costs.

This site is a great supplement to the personal finance arsenal. And, like all other automation tips on this site, it is 100% free.

Simplee Automates Your Insurance is a post from: Narrow Bridge

Related posts:

1. What to Do If Your Job Does Not Give You Insurance
2. Annual Insurance Check Up
3. All Insurance is Not Created Equal

I recently had two major insurance changes, and it reminded me of how important it is to shop around when renewing or finding a new policy.

Since I was 16, I had paid my parents for my part of the car insurance. I was always paying my own way, but I had never shopped around for my own policy. My Dad recently decided to kick me off and force me out on my own.

First, I called the company I was using for my renter’s policy for a car insurance quote. I also called the company that I had been using for a quote. I compared the two and asked for apples to apples policies so I could get a fair judgment on the price. It turned out my original car insurance company was significantly cheaper so I stayed there.

Just a few months later, I was getting ready to buy my new condo and had to shop for insurance again. I called the same two companies I was already working with that had quoted me for the auto policy. Much to my surprise, the company I had my renter’s policy from was cheaper than the company my auto policy was from even with a bundle discount.

This exercise taught me that brand loyalty means little in the insurance industry. Just like when you search online for a plane ticket, you need to shop around for insurance policies with good coverage for a fair price.

In addition to auto and home coverage, it is important for young people to have adequate life insurance coverage too. You can get much better rates on a valuable policy if you sign up when you are young.

[Disclaimer: This post contains promotional links]

Annual Insurance Check Up is a post from: Narrow Bridge

No related posts.

I have really good insurance. I work at a great company with great healthcare benefits. My monthly cost is only about $60. Even with that, things are not always as they seem.

A few weeks ago I got sick. Really sick. I had a fever over 101. I was coughing, sweating, freezing, vomiting, had a headache, and just felt like crap. After a couple of days of my symptoms only getting worse, I went to the doctor. I didn’t have a primary care doctor (I know, irresponsible of me), so I went to a local clinic. $107 after my insurance paid its part. The prescription was another $15.

The next evening (a Friday), my temperature was on the rise. When it broke 102, we called the doctor I saw the day before. She said I needed to go to the hospital. $481. There is also a charge of $17 for tests. A follow up doctor visit (I had passed my deductible by this point) cost $8.

It turned out I had a nasty virus. They were not sure what kind. But that virus cost me $628. Good thing I have a good job.

But here is what makes me livid. What did it really cost for me to be sick. I paid $628 and my insurance company paid $3362 (glad I have insurance). So apparently being sick cost a total of $3990.

BUT WAIT! DOES IT REALLY COST $3990?

The doctors and hospital billed my insurance company for $5650. Apparently it costs $1660 more than I cost to be sick? That can’t be right. Can it? Why would it cost an uninsured person $5650 to be sick but only cost me $3990 to be sick? I would like to think I got the ‘good looking person’ discount, but no matter how attractive I am, I know that is not the case.

The fact of the matter is that we take advantage of people who do not have the financial insight or means to take care of themselves. If someone who can’t afford insurance walks in with the same problem as me, they are charged thousands more just because they don’t have insurance. That is disgusting, wrong, and should be illegal.

I don’t know why we allow this sort of atrocity to continue in this country. We are allegedly the most developed and powerful nation in the world, yet we can’t even take care of our own sick people without sending them into bankruptcy unless they are privileged enough to have insurance.

To me, going to the doctor is a human right, not a privilege for the wealthy. I usually try to keep politics to my personal blog, but I know that when I vote in 2012 and every year after, I will always vote for the person that thinks every single American deserves top quality healthcare no matter what.

Photo by lydiashiningbrightly.

The Disgusting State of American Healthcare is a post from: Narrow Bridge

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1. American Express Starwood Rewards – My New Credit Card

Welcome to the 321st edition of the Carnival of Personal finance. I had a lot of fun reading everyone’s submissions and added a few new folks to my reading list. I am excited to host this carnival for my first time. If you are new to Narrow Bridge Finance, be sure to check out some of my best posts and read about why you should listen to me.

This month I dealt with the single most bizarre experience of my life. I became friends with someone, started a company with him, and found out he was not who he claimed to be. It made me think about the millions of people who have been in similar situations. From Bernie Madoff to  Frank Abagnale, this week we are going to highlight some people who used finance for a very different purpose than the bloggers of today.

Image from Dreamworks film Catch Me if You Can

To begin, the con artist that makes fraud sound sexy. Frank Abangale Jr. was the subject of the popular film ‘Catch Me If You Can.” Based on the life of Abangle, Leonardo DiCaprio makes fraud look fun as he travels the world as an airline pilot, saves lives as a doctor, and eludes an FBI agent hot on his trail as he cashes fake checks and finds beautiful women.

Editor’s Picks:

Sustainable PF examines ways to make money online over four decades. Starting in the 1980s, SPF used innovative methods to create income streams. Some of them have died off and others are still applicable today.

The Financial Blogger thinks that debt is a good thing. How timely can an article be? As Fannie and Freddie are posting losses, the US Government is struggling with its own debt, and I am looking at buying a home, TFB takes a look at things from the other angle.

Mike, aka Oblivious Investor, reminds us that owning a bunch of mutual funds is not the same as diverse investing. Many mutual funds own the same stocks and some even own other mutual funds. Mike helps you dissect your portfolio to balance your investments.

Lindy at Minting Nickels made a few mistakes when she had her first baby. She shares her non-frugal moments in her post How We Didn’t Save Money with Our Babies.

Squirrelers has five easy steps to increase your savings. Sometimes it is good to get back to basics with personal finance.

Budgeting:

My blogging buddy Well Heeled has seven tips for buying an engagement ring at Costco. These are great tips when you are making such a big and important purchase.

Career:

Adam at Rabbit Funds continues a series on starting a home business. This post focuses on important accounting and marketing tasks that most bloggers and entrepreneurs can learn from.

Clint at Accumulating Money put together a list of different types of jobs for finance professionals. As a finance guy myself, I can attest to how important having a direction can be to your finance career.

Mike at Green Panda Tree House wants to help you make a plan to quit your job.

Control Your Cash reminds you that your time is worth something and you should give it a value. Do not give it away for free.

Bret at Hope to Prosper has the secret to success for working stiffs.

Your Life Their Life looks at George Costanza as a case study for how you can succeed at work.

Image via Wikipedia

Don’t forget the infamous Charles Ponzi. Yes, he is the guy Ponzi schemes are named after. Charles pioneered the genius pyramid marketing scheme that has cost so many people so much money. The Italian immigrant swindled people and governments by engaging in mail fraud and investment fraud.

Credit:

Jake at NerdWallet examines the different benefits of American Express cards. From Clear to Centurion, AmEx has a lot to offer, if you are willing to pay the fee.

Jeff from Good Financial Cents reminds you to avoid store credit cards. It is not worth it.

Janet at Credit, Eh thinks you should use income diversity as a insurance for your credit card payments.

Glen at Free From Broke found the best credit cards for college students.

Philip shares ten tips to stay out of credit card debt at Deliver Away Debt.

Debt:

Jeff at Sustainable Life Blog takes a look at what happened so far this year in his finances.

Cathy at Money Health Central has ideas for what to do after your debts are paid off.

Image from US Department of Justice

Bernie Madoff is a new edition to the list of fraudsters. Madoff admitted to operating the largest Ponzi Scheme in history. It is estimated that he cost investors $18 billion when his Manhattan investment firm went bust. He is currently serving a 150 year prison sentence. Sadly, many non-profits were dramatically impacted when Madoff’s house of cards collapsed.

Economy:

My University Money explains the implications of the rising Loonie compared to the US dollar and gives a brief FOREX lesson discussing why exchange rates vary.

Darwin from Darwin’s Money shares what the media did not regarding the debt ceiling vote.

Money Thinker has his own ideas for fixing the national debt.

Finance:

Money Beagle thinks having health insurance can be hazardous to your health. If you are considering a new addition to your family, this post has great insights.

Crystal shares her retirement checklist at Stupid Cents.

Image from US Department of Justice

Kenneth Lay is responsible for the largest corporate collapse from fraud in history. Lay lied to investors and cooked the books at Enron while being paid over $42 million per year to manage the company. The company with a $60 billion market cap with $100 billion annual revenue was exposed in October 2001 and now does not exist.

Frugality:

Kim at Blogging for Change noticed that her child’s school supplies were far more expensive than they needed to be, but most people just pay for convenience.

Free Money Finance takes a look at extreme couponing and wants to know your take.

Britney at TotallyMoney wonders if cost and expectation go hand in hand.

Hunter at Financially Consumed writes about caffeine addiction and how it impacts you, and your finances.

Glen at Parenting Family Money has 9 inexpensive ways to keep your kids entertained over summer vacation.

Jacob from My Personal Finance Journey has five great ways to reduce your car insurance.

Investing:

The Dividend Growth Investor looks at master limited partnerships and the implications of owning these investments.

The Div-Net takes a deep dive analysis into the high dividend yield of Kinder Morgan.

Intelligent Speculator things that Google might have a chance at social media after all. It is not going to happen automatically, but Google is taking steps in the right direction.

The Dividend Growth Stocks blog is on the never ending quest for the perfect dividend stock.

Matt the Dividend Monk will help you build a $150,000 portfolio by the time you are 30.

John at Stock Market Basics helps you discern the many gold ETFs you can purchase.

Ricky at Qwoter can help you decide on the best company for an IRA depending on your needs.

Growing Money has comments on CNBC’s recent list of 20 stocks about to pop.

Jim at the Retire Happy Blog has found the science of building a diversified investment plan.

John from Wallet Blog discusses the difference between money market funds and money market accounts.

Outlaw Finance gives tips on where to invest your money.

Image from ABC's Lost via Wikipedia

Okay, so this one was not a real guy, but I could not make a list of con artists without including James Ford, more commonly known as Sawyer. Sawyer taught the world about the “long con” on ABC’s series Lost. Sawyer also lived under the alias Jim LaFleur. Of course, Sawyer would not have been such a great con man if he had not learned from the man who stole his parent’s life savings.

Money Management:

Ricky at Qwoter discusses financial priorities. Learn about ideas ranging from the popular emergency fund to less known tips for building your own value.

Jen at Master the Art of Saving is taking an extreme couponing reality check. It is important to remember that behind the trendy “glamour” of feeding your family for twenty cents for four weeks that there are big costs. She also notes that guys (such as myself) may not appreciate your fifty boxes of tampons in the garage.

Anabelle at The Year of Shopping Detox wonders why so many financial experts and mean and yell-y. My personal opinion of Suze Orman is not so good, by the way.

Eric (good name!) at DollarVersity reminds us that bank account bonus offers are not always as good as advertised.

RJ at Gen Y Wealth thinks you do have enough willpower to make a difference in spending decisions. He also has strategies to make it easier on you.

MD at Studeneconomics explains why online banking is more popular than ever.

Canadian Finance Blog thinks it is time to start thinking like a wealthy person.

Jason from One Money Design asks the readers if they can live well on less than $40,000 per year.

Elizabeth reminds us to remain calm despite our volatile economic situation at Modern Gal.

Real Estate:

Nicole at Grumpy Rumblings shares her August mortgage update and the broken window hypothesis.

Sarah helps you find out how much your home is really worth at Money Under 30.

Saving:

Chris at Stumble Forward helps you set up a savings account for your child. This is an important step in your child’s financial education and future, so be sure to get them started young.

Mike at Cards Canada examines loyalty programs worth joining.

Ben at Money Smart Life has the best rental car deals for road trips.

Phil at PT Money, our great organizer for the upcoming financial bloggers conference, tells us how to save like a madman.

Other:

Boomer from Boomer & Echo is learning about caring for elderly parents and shares stories from difficult moments.

Junior at Consumer Boomer helps you decide whether funeral insurance is right for you.

Briana at Personal Dividends never travels without travel insurance. She lists of the major benefits of having your trip insured.

No Debt MBA helps you decide if admissions consulting is worth the cost.

Asking About Money interviewed No Debt MBA and had some interesting answers.

Next Week:

Next week the Carnival of Personal Finance will be hosted by Financial Uproar. You can submit your posts by visiting the Carnival of Personal Finance homepage.

Carnival of Personal Finance #321 – The Fraud Edition is a post from: Narrow Bridge

Related posts:

1. Carnival of Personal Finance – Oktoberfest Edition
2. Carnival of Personal Finance #270
3. This Week’s Carnival of Personal Finance

If you are in the market for insurance, you know that it is a jungle out there. You have a huge list of options for auto, home owner, renter, personal property, health, life, and, if you are a famous entertainer, body part insurance.

If you are an entrepreneur, you have a whole different list of needs. You need to understand a whole different side of the insurance world. You need to protect your business, employees, and yourself from accidents and lawsuits.

Indemnity

Indemnity insurance protects you from any major “oops” that can happen when you run a company. Negligence, accidental contract breaches such as confidentiality, copyright, defamation, or libel, loss of data, and loss of goods are covered by this type of policy.

Liability

If your employee goes onto a customer’s property and breaks it, you have to pay for it. That is where liability comes into play. Injuries to third parties and damage to third party property are both covered by a liability policy. Liability also covers you if your product or service injures someone.

Property Insurance

Your company most likely has a physical office, factory, or warehouse. Property insurance covers that location against damage caused by a wide variety of possibilities including weather, fire, earthquakes, and other unexpected events. These policies generally cover the contents of the location, such as computer equipment and manufacturing equipment.

Business Interruption Insurance

If you are struck by a tornado, your office and equipment are covered by property insurance. However, the revenues you lose by now being able to operate are not covered. Insurance policies are available that cover you in case your business has to temporarily cease operations. Your livelihood and your employees’ livelihoods depend on your business operating. Make sure you are covered by a good policy just in case.

Where to Get It?

Shop around for your insurance when you are finding a new policy. Price differences and service levels can vary dramatically between companies. Companies like Markel Direct (www.markeluk.com) have a wide variety of policy options to protect your business from disaster.

Disclaimer: This post contains sponsored links

All Insurance is Not Created Equal is a post from: Narrow Bridge

No related posts.

I mentioned last week that I have been shopping around for car insurance. Many people do not understand the factors that impact their insurance rates, and my research brought out some important things to know in the unknown world of insurance premiums.

Health

Health insurance is a beast of an industry. While I am a big proponent of public healthcare, that is not the world we live in (if you are in the United States). Health insurance rates can be calculated using one of two methods.

If you work for a big company, your employer will negotiate a blanket rate for everyone at the company. This is based on factors such as the average age of employees, fitness levels, and so on. Your employer will generally pay a portion of your premium every month and you pay the rest. Every company is different, and you have little, if any, control over how this is handled.

If you need to find your own health insurance, a formula is used to determine your individual plan rates. The major inputs are your age, weight, family health history, your health history and pre-existing conditions, tobacco and alcohol use, past surgeries, and other major risk factors for health care costs.

Auto

The auto insurance industry has done extensive research to find correlations between people and driving safety. It turns out that the statistics are pretty solid, and the industry prices insurance based on your risk factors.

The major factors for auto coverage are your age, gender, driving history, marital status, credit score, home zip code, and your car’s make, model, and color. If you are a seventeen year old boy that has had several accidents, lives in a dangerous neighborhood, and drives a cherry red Mustang convertible, your rates are going to be higher than a fifty year old married woman driving a 1980s station wagon. It makes sense.

The down side is that you could be a really safe seventeen year old boy and still get hit with high rates because other seventeen year old boys get into lots of accidents.

Renter

I have renter’s insurance. I highly recommend all renters get a policy to cover your belongings. Landlords have insurance to cover the property, but your stuff is not covered by that policy. If there is a floor or fire and your possessions are destroyed, a renter’s policy pays to replace your stuff.

Renter’s policies are rated based on the location of the property, construction and building style, size of the property, type of property (apartment or single family home), and certain policy exceptions. Discuss this in detail with your insurance agent to make sure your coverage meets your needs.

Home Owner

Home owner’s policies cover the building and the contents of the building. The factors are very similar to renter’s policies, but the premiums are higher because you are covering the building and the contents.

Generally home owner policies are bundled into mortgage payments so you just make one payment per month for your house. Property taxes are often included as well.

If you live in a neighborhood with high crime rates, your insurance is going to be higher than a safe suburb. If you live in a wood frame house, your policy will cost more than a brick or steel constructed building. These risk factors take into account the likelihood of a loss or claim.

Complex, But You Have to Understand It

The insurance world is complex. While your agent might seem like your friend today, the idea of an insurance company is to make a profit. To make a profit, they try to maximize what you pay in and minimize what they pay out.

Make sure you find a trustworthy, highly rated, well regarded insurance company. All insurers are not alike. Some people have horror stories where companies would not pay out for a claim. Others have stories about helpful agents walking them through the entire process. Read a lot about the company when you are making a selection.

If I missed anything, or if you have a story, please share in the comments.

Photo by Jason Bolonski.

How Your Insurance Rates Are Calculated is a post from: Narrow Bridge

Related posts:

1. Annual Insurance Check Up
2. All Insurance is Not Created Equal
3. What to Do If Your Job Does Not Give You Insurance

For years I knew that one day my Dad would kick me off the car insurance. That day has come, and I have been doing diligent shopping, quality, and price comparisons to help me make a decision.

Price

The first thing that most people look at when shopping for insurance is the price. Obviously that is a major factor, and you should compare several companies to find the best price.

From commercials, we know about companies like Geico, Aflac, AllState, State Farm, e-surance, and a handful of others. Some claim to save you “15% or more” with one call. Others will compare your rate with other companies.

There is no right or wrong way to do this. You can call in and get a quote or you can do it yourself online. Either method has its own advantages and disadvantages regarding time, speed, and discounts.

One caution, however, is your credit. One of the major factors in determining your rate is your credit score. To get your score, some companies use a ‘soft hit,’ which does not impact your credit report, and some use a ‘hard hit,’ which impacts your report and can lower your score. If you get a lot of quotes, ask about how they pull your credit first.

Quality

All insurance companies are not equal. If you read customer satisfaction surveys and check Consumer’s Report, you will find that some of the older, high service companies like Liberty Mutual and All State score higher than the low price focused sites.

Make sure that your plan gives you extensive coverage. I have only taken quotes for low deductible (about $250), high coverage plans that include uninsured motorist, medical, and comprehensive vehicle coverage.

Some companies are able to offer a lower rate because they do not offer as extensive coverage. You have to decide for yourself which is more important, but I would rather err on the side of having better coverage.

Customer Service

If you have ever had to file a claim, you know it can be a miserable process. Dealing with approved shops, quotes, rental cars, repair schedules, surveys, deductibles, and customer service representatives can be a nightmare.

Again, read online customer satisfaction reports and certain trends emerge. You will easily find which companies have good service and coverage and which will leave you angry, upset, or frustrated.

Any Advice?

I have not made the final choice yet, but two companies are the frontrunners. What companies have you been happy with? Which left you with a bad experience? Any other tips that I missed? Please give your thoughts in the comments.

Photo by Dospaz.

Shopping for Car Insurance is a post from: Narrow Bridge

Related posts:

1. Annual Insurance Check Up
2. US Insurance Reforms Start Today
3. How Your Insurance Rates Are Calculated

It has been six months since the Patient Protection and Affordable Care Act became law, and the first wave of changes went into effect today.  According to my local paper, here are the major rules going into effect today:

US Insurance Reforms Start Today is a post from: Narrow Bridge

Related posts:

1. How Your Insurance Rates Are Calculated
2. Annual Insurance Check Up
3. What to Do If Your Job Does Not Give You Insurance