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Usage-Based Car Insurance

Is Usage-Based Car Insurance Right For You?

Usage-based car insurance programs have been talked about on television commercials for the past few years. Companies are promising to reward drivers with good operating habits with lower rates. These companies utilize a plug-in device to track a person’s driving in order to make their assessment.

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Plug-In Devices Track Your Driving Habits 

Companies promote these plug-in monitoring devices like crazy. All their advertisements are focused on what drivers will receive in savings. They explain that having feedback from your car insurance company is a great way to help improve your safe driving habits. Most lead on to their customers that the worst that could happen is their driving is deemed unsafe and they are not eligible for the discounts.

However, many consumers are still wondering if there is a potential catch that is just not said up front on the advertisements. The only company as of 2015 that implemented any sort of charge for those with bad driving habits was Progressive. This car insurance company instituted surcharges to their customers who were deemed to have aggressive driving habits. Those charged were limited to a couple of states that were part of the initial rollout program for this car insurance provider.

When other major Car Insured with Youi providers were asked about the potential of surcharges for aggressive drivers, they responded that they were not as of yet instituting any. However, the potential still exists for this to happen in the future as companies continue to gain perspectives on how to reduce payouts and boost their bottom line. Many experts guess that it won’t be too long before other car insurance providers opt for charging those not-so-safe drivers.

With this valuable information, it’s important to assess your own driving abilities. Even if you are not worried about surcharges that may be implemented in the future, you should be worried about cashing in on the safe driving discounts that are available. By paying better attention to your daily habits, you can work on safer ways to travel down the road.

What Does The Future Hold For Usage Based Car Insurance? 

As we discussed above, the possibility of most insurance companies switching to charging surcharges for those who drive aggressively is very likely to happen in the future. Another change that experts are predicting is that usage-based insurance will be the new driving norm. This means that individual drivers who choose not to participate in the safety program will most likely be charged a higher rate for insurance.

It’s important to realize that insurance companies are in business to stay there. They are always looking for new ways to reduce their risk of insuring drivers. The usage-based insurance is a new trend that is catching on. In reality, if one is watched regularly through the plug-in device they are more likely to adhere to the proper driving safety rules. This means there is less of a chance for an accident to occur. This all boils down to the fact that insurance companies can likely reduce the money they have to payout for claims when they have customers utilize a usage-based policy.

Home and Contents Insurance

Home and Contents Insurance

There’s so much to learn about home and contents insurance it’s impossible to educate people not in the insurance industry in a short timeframe. Most people spend very little time going over their home and contents insurance other than taking the advice of their agent, asking a few questions, and signing on the dotted line. Agents are knowledgeable and understand the process, so most families trust their home and contents insurance agent will help them get through the process with ease. Of course, that leaves families confused when it’s time to renew their policy or file a claim. It’s a lot of information to process, but there are a few excellent pieces of information all homeowners must understand that make the process simpler.

Get Good Replacement Coverage

A simple reminder for any homeowners looking at home and contents insurance is to choose a replacement coverage amount that covers the value of the home. You might not have a big mortgage on your expensive home, but you shouldn’t undervalue the home or you risk not being able to replace it if a fire or other disaster destroys it. The owed value on the home is not the actual value of the home. Look into the market, find out what homes with the same features, size, property, and other upgrades as yours costs. That’s what it will cost you to buy a new home or rebuild the one you have, and it should serve as a great starting point for choosing replacement coverage.

Find the Value of Your Belongings

If your grandmother left you her beautiful diamond necklace that’s been passed from generation to generation for centuries, it’s probably very valuable. Now is a good time to have it appraised so you can insure that necklace for its actual value. It’s not replaceable by any means if something were to happen to it, but you deserve to have the value of the necklace paid to you if something happens to it. The same goes for any artwork, other jewelry, and even antiques you have in the home. Know what they’re worth, and insure them for that amount.

Find Additional Coverage

Your standard Youi home and contents insurance policy covers damage to your home caused by a fire or even a tree that falls on top of it, but it’s not going to protect you from earthquakes, flood damage, and even other natural disasters. Now is the time to find additional coverage for your home and contents insurance policy so your home is fully covered. Depending upon where you reside, your mortgage company might require specific types of insurance to protect their own interest in your home. These riders raise insurance premiums, but they protect against the worst.

Choose Liability Insurance

Home and contents insurance policies come with many coverage, riders, and additions. One is liability coverage. It’s imperative if you want to protect your finances when you have guests. Accidents happen all the time, and they can happen in the home. Anyone who visits your home with an invitation, to solicit their products, to work on the home, or just to check it out when it’s listed for sale is a guest. If they are injured on your property, they can sue you for the cost of their medical bills. You want liability coverage to protect you from being personally sued. This helps the injured party seek financial support for their recovery, but protects you from being the one to pay it to the p arty injured.

Ask for Inflation Guard

All home and contents insurance policies should have an inflation guard (sometimes called a different name depending on where you live and what insurance company you utilize) to protect you financially in case of disaster. Over the years, your home’s value changes. If the housing market increases significantly, inflation occurs, or anything else changes, your home’s value might increase significantly. This rider protects your home if the value is far more now than it was when you originally purchased your policy.

Not Everyone is Easy to Insure

Few families run into problems finding home and contents insurance on specific properties. Their applications are denied if the property has a specific issue. A good example is a home that sits on the side of a beautiful mountain or hill prone to mudslides in the rainy season. Insurance companies don’t want to pay out the damages to a home and contents insurance policy on a home that requires a rebuild or major repair every year or so. The federal government offers insurance programs to those who can’t find insurance in their state.

Finding insurance to cover your home and belongings is one of the most important decisions a homeowner makes in their adult life. The process should take more than a few moments based on the potential financial implications if disaster strikes. Protecting your home starts with educating yourself on the process from start to finish so your home is fully covered, and you understand the process of working with your insurance agent.