Many times, certain things happen unexpectedly wrong. The place where we live burns so rapidly all in one go, there comes an earthquake, our car strikes into something, or we get bit out of sorts, there comes a possibility that we have to suffer such loses for which we have to pay heavily that even we can’t afford. Due to efforts of some people in the past years, we are now able to overcome those storms without being involved in any risk factor. We can help each other by spreading the risk among us as a group, and that’s what insurance does.
Let us first tell you what exactly is insurance and how does it work?
What is insurance?
Insurance is a promise by the insurance companies that they would compensate for specific losses occurred by ill-fate i.e. any natural disaster, illness, death, fire etc.
If we buy an insurance policy it will reduce the rate of risk factor by being transferred from us to the company. In actual, the there is no complexity in Insurance. It’s a simple way to proceed. We have to pay a particular amount to as insurance company that is known as Premium. In case, if certain tragedy happens, that can be enveloped by policy words, either lost or damaged items can be repaired or replaced by our insurer or they pays wholesome amount of it.
Kinds of insurance you need
Everyone knows many kinds of insurance exist such as life insurance, health insurance, car insurance, rental and home insurance, etc. but you do not need every kind of insurance. The exact type of insurance you need can be decided by your circumstances and your outlook. Before buying any insurance, you must mention following four questions directly;
- Explain the risk I would be insuring averse to?
It could be a sudden death factor, burning at home or car being stolen or being severely sick and under treatment.
- Mention the number of chances for it being occurred
There exist a small probability of fire at home but if it happens, you have to pay heavily for it. The risks of car being stolen are high but it won’t cost you as high as losing your home.
- What will happen if it occurs?
What happens if you die or your home gets fire or your car gets stolen? Will you be able to bear the expenses?
May be you have enough balance saved to overcome the cost or maybe you surely want to use your balance for this.
Purchasing insurance from the providers of insurance will help you to buy around and compare quotes and cover. Maximum tasks for this are being done online. There are many different types of insurance covers and insurance policies. The insurance brokers and companies are always available for you help. They will explain how the policies work; they can find you one suited to your circumstances and even help in claiming. All these insurance companies, insurance brokers and financial advisors have to follow the protocol and get registered on the official government website Financial Service Providers Register (FSPR). Please note that this is for New Zealand only and varies from state to state and country to country.
Here are the few tips that you must keep in mind when buying a policy.
- Read the policy carefully.
- Always choose the right excess.
- Have an emergency fund.
- Be honest and tell the truth.
- Shop around.
- Don’t double up.
- Combine insurance.
- Look for a credible.
- Take precautions.
Right cover is the key
All the insurance policies are not same. They have different rules and regulations. It’s better to compare policies as the decision will become easier for you. Go for the right cover as two policies can have same price. For example, a trauma policy will only cover certain named diseases, not all illnesses or injuries. There are few cheaper house policies which cover specific events such as fire, theft etc. but not all risks.
Also, some policies will pay for the damaged or stolen items. Others may only pay ‘present value’. If you want to know all the details, go to Insurance Council website. All insurance policies have different conditions and exclusions. These exclusions are for unfavorable events that take place without your control.
The crux of this discussion is that read the policy carefully. Know the terms and conditions in detail. Clear your mind; otherwise you may be paying money for policy that will not help you when you need it the most.
In a perfect world, you would call an insurer and get fixed what is broken. But the world we live in is not perfect. Here, the process of claim is a little more complicated than that. There should not be any misunderstanding about the claim. Your claim will vary according to the type of insurance you need (home, life, health etc.).
The procedure for every insurance claim is quite same with a slight difference. Claims for home owners and car insurance require same basic steps. Claims for health insurance are slightly different.
Make the right phone call. No matter what kind of claim you are filling, get in touch with your insurer as soon as possible. The faster you get the ball rolling, the sooner you will receive the outcome.
Fill out the required forms. After you have contacted your insurer, they will send you few forms to fill. Many insurance companies give facility to fill online forms which makes process much smoother and quicker.
Get your damages assessed. Most insurance companies will ask you to get damages priced by an approved party to make sure that they are paying you a right amount.
Cover your deductible. You have to cover your deductible in full before insurance company will fork over its share of the total cost.
Make sure that you contact your insurer soon after the damage happens. The settler may choose to settle the claim by paying a sum of money. They may or may not repair or replace the items that have been damaged. In most policies, there is a value you have to pay as the first step of the claim. Be honest as insurance companies are wary of fraud and they will investigate if they have a slightest doubt of betrayal.
The amount of time it takes to settle a claim depends on different factors. It also depends on the severity and complexity of damage, how you quickly contact the insurer, how soon an adjuster is available, whether the company is handling multiple claims at once such as in case of natural disaster and so on. Considering all these factors, it is hard to tell the average time for claim settlement. The best thing you could do to settle claim in a timely fashion is to file as soon as possible and stay in constant contact with your insurer.
Nowadays, car fuel prices are on the rise and consumers are suffering. Gone are the days when you can carelessly drive your car without worrying about burning up too much gas.
There are important procedures that you, as a car owner, can take in order to improve gas mileage. The following are practical tips to conserve gas:
Close Windows – Windows that are open can create air drag that can decrease the fuel consumption by 10%.
Avoid Bumpy Roads – Rough roads should not be taken as much as possible. Dirt, bumps, rough roads and gravels can cause 30% increase in fuel consumption.
Keep Your Car Light – Take out unnecessary baggage. The trunk should be kept clean, any gadget, tools or loads that are not needed should be taken out. 100 pounds of extra baggage can affect fuel economy by two percent.
Drive Efficiently – Just drive reasonably within the speed limit. Remember that speeds of more than 60 miles per hour increase fuel consumption. Do not do sudden starts, accelerations and stops. Acceleration should be done gradually. The gas pedal should not be stepped on more than one fourth of the way down. This will allow the engine to function most efficiently. Gas conservation could reach up to 5 percent if sudden stops, jerks and accelerations are avoided. Make use of gears for overdrive and cruise control as needed.
Check Your Car Regularly – The car should always be maintained. The engine should be given a regular tune up, the tires should always have the right air pressure and efficiently aligned, the oil should be changed when needed and air filters replaced regularly. Clogged filters can affect gas consumption adversely by up to ten percent.
Don't Burn Gas Unnecessarily – Turn off the engine whenever there is an opportunity. Idle engine wastes fuel. There are instances where the engine could be turned off; stopping for gas, waiting for someone, changing tire pressure, caught in traffic and a lot more.
Don't Warm Up Too Long – Lengthy warming up of the engine should be avoided. 30 to 45 seconds should be enough time. Also check if the automatic check is removed after warming up the engine. This is usually stuck which could usually cause poor gas and air combination.
By following these simple tips, you will be surprised at how much money you can save on your car fuel. And guess what? The money really adds up if you continue to follow these simple practices for conserving car fuel!
Cars are expensive, yet almost everyone pays for them with borrowed money. To minimize the cost of ownership, it’s essential to shop for the lowest-priced loan you can get.
Here’s a good car buying rule: Make a down payment of 20 percent or more and finance your vehicle for no longer than four years. You can easily get into trouble when you put little money down and sign on for an auto loan of five years or more. Before you know it, you’re “upside down,” owing more on a car than it’s worth.
When deciding on a loan term, it’s helpful to see what happens to your payments when you stretch them out over a longer period.
Here’s another way to cut your interest cost over the long run: Opt for more-frequent loan payments. Instead of paying once a month, ask the lender if you can pay weekly, every two weeks or twice a month. Financial institutions calculate the interest on the declining balance. Since your principal goes down each month, the interest you pay also goes down. If you make 26 biweekly payments, instead of 12 monthly payments, more of your money goes to paying off the principal. As a result, your interest costs shrink.
Installment loans come in two types, fixed rate and variable rate. You’re better off with a fixed-rate loan when interest rates are rising. Variable-rate loans are best when interest rates are stable or falling.
Buy-back loan is another way to reduce costs. It’s structured like a lease and provides lower monthly payments than a conventional loan. Here is how it works: The bank of financing company establishes the future resale value for your car at the end of the term you choose. Then it deducts that from the amount to be repaid.
Like leases, buy-back loans suit people who want to drive more expensive cars than they can really afford. The “owners” never really own the vehicle. Instead, they refinance every few years.
If you want to get off the revolving debt bandwagon, consider downsizing and driving a less expensive car. That way, you can pay off the loan and still have something to sell at the end of your time of ownership.
If you're fed up paying too much for your car insurance, we have put together the top ten ways you can reduce your premium without reducing the level of coverage:
Buying online can save you time and money. Companies who spend millions of pounds on advertising or run large call centers have to cover these costs somewhere, and they do so by adding these costs onto the price of your insurance premium. Although online insurers do have overheads, they are much less than high street and telephone insurers, which means they can offer car insurance at up to 60% cheaper than other companies.
2.Drive a cheap and less powerful car
Car insurance companies calculate their premiums on the basis of the car engine size, the probability that it will get stolen and the cost of repairing it. Although smaller cars such as Ford Fiestas and Renault 5s are more prone to being stolen than larger saloon cars, they are cheaper to repair or replace and are therefore cheaper to insure.
3.Build up a no claims history
Car insurance companies give discounts for safe drivers with a good no claims record. By building up your no claims history you can benefit from a reduction (up to 60%) off your premium, and this discount can be transferred from company to company.
4.Increase your car security
More security means lower risk for your insurance company and you can benefit from cheaper rates by locking your car in a garage a night, or installing an insurance company approved immobilizer or tracker.
5.Increase your voluntary excess
By deciding to pay a higher excess it also means you're less likely to make a small claim on your insurance and are therefore considered a lower risk.
6.Obtain more driving qualifications
The Pass Plus qualification costs between 100-150 and involves taking lessons in different driving conditions such as at night and on the motorway. By becoming a more skilled and experienced driver most insurance companies reward their customers by reducing their premium. As a result, the qualification usually pays for itself within the first year of qualifying. Another option is the advanced driving test, but this can take much more time to pass than the Pass Plus.
7.Use your car less
Clearly, the more you use your car the higher the probability is that youll be involved in an accident. As a result people who travel hundreds of miles every week are likely to have a higher car insurance premium.
8.Don't get on the wrong side of the law
Insurance companies don't like motoring convictions as they mean a driver is seen as a higher risk. Certain motoring convictions are considered worse than others, for example drink driving offences mean that your premium will be double the usual rate.
9.Reduce the number of people under your policy
The more people on your insurance the more you'll have to pay. So, if possible try to have as few drivers on your policy as feasible.
10.Live in the countryside
As a general rule, the further you live away from a city the cheaper your car insurance is likely to be. By living in the city your car is more likely to be stolen or be involved in car accident. You can save up to 50% on your car insurance by moving from the city to a rural location.