Seven best decisions you can make about money
By Al Jacobs
On the Money Trail
More from this author
When this title was first suggested to me, I instinctively blurted out, “I can think of only one best decision… acquire as much of it is you can!” I’ve since reconsidered; and indeed, there are others.
1. Don’t spend what you don’t have. First and foremost, regularly spend less than you make. Failing to do so is usually a self-deceptive blunder, such as refusing to consider time deadlines. Consider a local mattress dealer that advertises on radio and TV. His madcap skits offering “No deposit, no interest and no payments until… whenever,” are hilarious. However, I shudder at the thought that some people actually purchase an unaffordable product, gambling that in a year or so the full purchase price can be paid to avoid scheduled fees and retroactive interest. It’s a recipe for disaster. It is far better to operate on the age-old principle cash on the barrelhead.
2. You’ll find your financial helping hand at the end of your arm. A half century ago the average American anticipated retirement through an employee pension fund, supplemented by Social Security. But the times have since changed. Many employers, for sheer survival, are under-funding their pension programs and ridding themselves of employees. And with Social Security rapidly evolving into a welfare system, one can count on little outside assistance. The significance of this is clear: Fund your own retirement through regular savings and sound investments. Fashion your life so that part of your income is not consumed, but available for the future. You must do this yourself; don’t expect help elsewhere.
3. Arrange to make your money grow. The adage that time is money is accurate; it depicts the earning power of money invested astutely. Let me suggest a method. Open a self-directed brokerage IRA account — preferably a Roth, if you’re eligible — in which you accumulate certificates of deposit, treasury notes and high-grade corporate bonds. Begin at an early age and pursue this program systematically throughout your working years. An annual contribution of $4,000 invested at 7.5 percent, compounded semiannually over the 40-year period from age 25 to 65, results in more than a million dollars. It’s the compound interest that brings this about, a phenomenon as close to magic as you’ll ever encounter.
4. Don’t be taken advantage of. There is no limit to the ways your money can be misspent or the persons who will take it from you. Don’t let this happen. Delete spam e-mails without opening them. Recognize that all advertisements qualify for the admonition: Ninety-five percent of everything is nonsense. Purchase nothing from uninvited salesmen. Ignore random solicitations for charitable contributions.
5. Plan for the changes that will surely come. Life is a constantly evolving process, with significance at each stage. In your twenties it’s acceptable to live on a shoestring while dreaming and scheming for the future. By your thirties, as family or professional obligations take precedence, closely control your spending and savings habits. During your forties, assiduously concentrate on asset accumulation. I recommend that by age fifty you be able to subsist on passive investment income if necessary. By your sixtieth birthday, you qualify as wealthy, meaning that you can live in a style you choose with no employment required. Remember, things will work out this way only by your early decision to make it happen
6. Don’t expect money to make you happy. You’ve heard the old saying, “Money isn’t everything.” That’s true. Like it or not, wealth brings with it certain demands and responsibilities, and if you ignore them you’ll regret it. As you become wealthy - recognizably wealthy - certain aspects of your life change, and not always for the better. Although the problems of meeting the mortgage and financing the children’s education may no longer exist, other problems move in to take their place. Your relationships with friends and relatives begin to change as you are viewed as something apart. It seems that admiration and envy are opposite sides of the same coin, and as your perceived fortune grows, you will be the recipient of both emotions. Merely possessing money doesn’t ensure happiness: Only its prudent use results in satisfaction. As Ben Franklin said, “The wise use of money is the only advantage in having it.”
7. Give away what you don’t need. In the final analysis, there is a practical limit on personal consumption, beyond which satisfaction is marginal. At some point in our lives there must be more than mere acquisition. There are deserving people in this hostile world and the opportunity to share your bounty in a meaningful way is exactly that * an opportunity. There is satisfaction in giving back a portion of your good fortune.
Let me suggest how. Imagine you are an architect with a love for your profession. What better gift might you make than to pass your learning on to young engineering and architectural students, and encourage the talented ones to pursue that career? Establish a private non-profit educational foundation into which you contribute sums of money. These funds become available for scholarships to students chosen by the foundation directors whom you select, perhaps faculty members of a nearby college. The chosen students receive payments as long as they perform satisfactorily, and it’s your task to monitor their performance. Not only do deserving students benefit directly to the extent of nearly 100 percent of your contributions, but your donations qualify as tax deductions. This is a fine way to fund a philanthropic enterprise in which the value to the actual recipients can be seen and appreciated. What finer way might you spend money?
Wednesday, January 30, 2008
Tuesday, January 29, 2008
Domestic Violence Help
Brought to you by The Allstate Foundation.
Click To EmpowerShow your support for survivors of Domestic ViolenceFor every click received, $1 will be donated by The Allstate Foundation to the Education Job Training and Assistance Fund with a total donation of $300,000.
Click to Empower Now. 28120 clicks With the New Year comes new beginnings, but for many in domestic violence relationships it is a continuous struggle to survive. You have a chance to make a difference.
For many domestic violence survivors, economic empowerment is critical to their long term self-sufficiency. The Education and Job Training Assistance Fund enables survivors to pursue long-term financial security by providing much needed financial assistance for education, training and job-related expenses such as books and supplies for school, tuition and registration fees.
http://www.clicktoempower.com/
Click To EmpowerShow your support for survivors of Domestic ViolenceFor every click received, $1 will be donated by The Allstate Foundation to the Education Job Training and Assistance Fund with a total donation of $300,000.
Click to Empower Now. 28120 clicks With the New Year comes new beginnings, but for many in domestic violence relationships it is a continuous struggle to survive. You have a chance to make a difference.
For many domestic violence survivors, economic empowerment is critical to their long term self-sufficiency. The Education and Job Training Assistance Fund enables survivors to pursue long-term financial security by providing much needed financial assistance for education, training and job-related expenses such as books and supplies for school, tuition and registration fees.
http://www.clicktoempower.com/
Monday, January 28, 2008
Get Paid to Travel
King of the road: How to be an RV courierby Ken and Daria Dolan Jan 10th 2008 @ 8:00AM
Filed under: Extracurriculars, The Dolans, Health, Travel
Ken and Daria Dolan are widely known as America's First Family of Personal Finance.
Wow...
Daria and I were shocked at the number of you who emailed us in response to our Four creative ways to travel for free post . Seems lots of you are intrigued by the idea of traveling the country for free as an RV courier.
Then again, what's not to like about getting paid to travel?!
So today let's talk about whether being an RV courier is right for you and how you can get started. We called America's number one expert on the subject to get the full story and we've got some great tips for you.
Let's start with 3 things you need to know about being an RV courier...
1.) This may be the best job no one's ever heard about! Who DOESN'T want a job with good pay, flexible hours, steady work and a chance to travel the country for free? Even in this tough economy, there are about 5,000 new drivers needed each month.
2.) Becoming an RV courier is easier than you think. If you are over 18, have a valid driver's license with a good driving record, and like to drive, you're in! Unless you are going to drive something about as big as a Greyhound bus, you don't even need a special commercial license.
3.) It's a job for the ages. Are you a student? RV couriering is a great summer job. Have a regular 9-5 job? Make some extra money on the weekends. Retired? Grab your sweetie, see the country and put a little extra money in your pocket.
Now for some nitty-gritty. The company you work for will pay for insurance, fuel and (if it's a one-way drop off) your trip back home. They'll also pay you, of course! Most companies pay by the mile, and you can use 35 cents/mile as a good average.
Unlike truck drivers, this is a low stress endeavor. You won't be pressured by the company to deliver your vehicle on a crazy schedule. They want safe drivers who will come back again and again.
Still reading? If so, sounds like this might be serious. That means our expert Craig Chilton is your next stop. Craig started as an RV courier 30 years ago on his summer break from teaching and has stayed with it ever since. He literally wrote THE book on the subject "How to Get Paid $50,000 a Year to Travel" and has developed a driver placement network that connects wannabe drivers with companies that need them.
Visit www.roadrat.com to learn more and to take his job aptitude test to find out whether becoming an RV courier is right for you!
If you do decide to hit the road, send us a postcard or email us your pictures to aolquestions@dolans.com. And be sure to email us with your experiences so we can share them here!
Ken and Daria Dolan have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
Filed under: Extracurriculars, The Dolans, Health, Travel
Ken and Daria Dolan are widely known as America's First Family of Personal Finance.
Wow...
Daria and I were shocked at the number of you who emailed us in response to our Four creative ways to travel for free post . Seems lots of you are intrigued by the idea of traveling the country for free as an RV courier.
Then again, what's not to like about getting paid to travel?!
So today let's talk about whether being an RV courier is right for you and how you can get started. We called America's number one expert on the subject to get the full story and we've got some great tips for you.
Let's start with 3 things you need to know about being an RV courier...
1.) This may be the best job no one's ever heard about! Who DOESN'T want a job with good pay, flexible hours, steady work and a chance to travel the country for free? Even in this tough economy, there are about 5,000 new drivers needed each month.
2.) Becoming an RV courier is easier than you think. If you are over 18, have a valid driver's license with a good driving record, and like to drive, you're in! Unless you are going to drive something about as big as a Greyhound bus, you don't even need a special commercial license.
3.) It's a job for the ages. Are you a student? RV couriering is a great summer job. Have a regular 9-5 job? Make some extra money on the weekends. Retired? Grab your sweetie, see the country and put a little extra money in your pocket.
Now for some nitty-gritty. The company you work for will pay for insurance, fuel and (if it's a one-way drop off) your trip back home. They'll also pay you, of course! Most companies pay by the mile, and you can use 35 cents/mile as a good average.
Unlike truck drivers, this is a low stress endeavor. You won't be pressured by the company to deliver your vehicle on a crazy schedule. They want safe drivers who will come back again and again.
Still reading? If so, sounds like this might be serious. That means our expert Craig Chilton is your next stop. Craig started as an RV courier 30 years ago on his summer break from teaching and has stayed with it ever since. He literally wrote THE book on the subject "How to Get Paid $50,000 a Year to Travel" and has developed a driver placement network that connects wannabe drivers with companies that need them.
Visit www.roadrat.com to learn more and to take his job aptitude test to find out whether becoming an RV courier is right for you!
If you do decide to hit the road, send us a postcard or email us your pictures to aolquestions@dolans.com. And be sure to email us with your experiences so we can share them here!
Ken and Daria Dolan have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
Thursday, January 24, 2008
Wednesday, January 23, 2008
Update & Correction
Yesterday's blog omitted a very important link. My apologies to the author for not including it in the post.
Written by David B. Bohl of Slow Down Fast.
Thanks David for understanding that I am new to the whole concept of blogging.
Written by David B. Bohl of Slow Down Fast.
Thanks David for understanding that I am new to the whole concept of blogging.
Tuesday, January 22, 2008
2008 Resolutions
Are Your 2008 Resolutions Alive?
Posted on 1/21/2008 |Join the Discussion (6 comments) A few weeks ago I wrote about the importance of planning and keeping your New Year’s resolutions. For many of us, New Year’s resolutions give us a chance to set personal and career goals that we want to achieve throughout the year. Setting goals, as we know, helps us achieve success because they are measurable and finite – you can look back and say “Yes, I did it!” or “No, I have a ways to go yet!”
So now that we are a few weeks into 2008, it’s time for a health check. Are you doing everything you can to keep your resolutions – your goals – alive and in focus? If you find yourself slipping already, don’t throw in the towel just yet. You wrote your goals down, and that is half the battle. Now you have to put actions to your words and make them happen. Here are a few ways I’ve found to keep New Year’s resolutions alive throughout the year:
Set up milestones, or mini-resolutions. A milestone is a way of tracking progress. Let’s say your resolution was to advance in your career by either getting a promotion or a substantial raise in the year ahead. Set up milestones such as “Attend workshop on career development” or “Complete Project XYZ by April 1st”. Then as you complete each milestone, mark it off and realize you are now that much closer to making your goal a reality!
Keep note cards, Post-Its and other little notes where you can see them – in your briefcase, on the refrigerator, or on your monitor at work with your goals written on them. Use them as your daily reaffirmation of the goal. If your goal is to “Lose 30 lbs by 2009,” having these notes serves as a reminder each morning that perhaps eating some toast and a banana is better than having eggs, bacon and hash browns.
Join a support group – either in your local community or virtually. There is no doubt about it: we all follow through on our goals better if we have others supporting us. Thanks to the internet, there are many virtual support groups you can join where likeminded individuals gather to share ideas and encourage each other on. Likewise, in your local community there might be support groups for career development, small business owners, weight loss and the like that meet every month. Not only will you gain motivation to make your resolutions a success, but you will also expand your personal network by getting to know people who might be in a similar industry or group.
Realize your mistakes and learn from them. If you find you are straying from your goals, examine what causes you to stray and jump right back on them. Learning from our mistakes is one of the best ways we grow as a person. You’ll find that once you’ve identified the roadblocks to your success you can much more easily avoid them the second time around.
Four simple tips, but for those who are serious about achieving their goals they can be significant words of wisdom to help them change their life. Are you ready to change your life in 2008? Are you ready to keep your resolution and achieve your life and career goals? It’s not too late – the only thing missing is your determination!
Written by David B. Bohl of Slow Down Fast.
Posted on 1/21/2008 |Join the Discussion (6 comments) A few weeks ago I wrote about the importance of planning and keeping your New Year’s resolutions. For many of us, New Year’s resolutions give us a chance to set personal and career goals that we want to achieve throughout the year. Setting goals, as we know, helps us achieve success because they are measurable and finite – you can look back and say “Yes, I did it!” or “No, I have a ways to go yet!”
So now that we are a few weeks into 2008, it’s time for a health check. Are you doing everything you can to keep your resolutions – your goals – alive and in focus? If you find yourself slipping already, don’t throw in the towel just yet. You wrote your goals down, and that is half the battle. Now you have to put actions to your words and make them happen. Here are a few ways I’ve found to keep New Year’s resolutions alive throughout the year:
Set up milestones, or mini-resolutions. A milestone is a way of tracking progress. Let’s say your resolution was to advance in your career by either getting a promotion or a substantial raise in the year ahead. Set up milestones such as “Attend workshop on career development” or “Complete Project XYZ by April 1st”. Then as you complete each milestone, mark it off and realize you are now that much closer to making your goal a reality!
Keep note cards, Post-Its and other little notes where you can see them – in your briefcase, on the refrigerator, or on your monitor at work with your goals written on them. Use them as your daily reaffirmation of the goal. If your goal is to “Lose 30 lbs by 2009,” having these notes serves as a reminder each morning that perhaps eating some toast and a banana is better than having eggs, bacon and hash browns.
Join a support group – either in your local community or virtually. There is no doubt about it: we all follow through on our goals better if we have others supporting us. Thanks to the internet, there are many virtual support groups you can join where likeminded individuals gather to share ideas and encourage each other on. Likewise, in your local community there might be support groups for career development, small business owners, weight loss and the like that meet every month. Not only will you gain motivation to make your resolutions a success, but you will also expand your personal network by getting to know people who might be in a similar industry or group.
Realize your mistakes and learn from them. If you find you are straying from your goals, examine what causes you to stray and jump right back on them. Learning from our mistakes is one of the best ways we grow as a person. You’ll find that once you’ve identified the roadblocks to your success you can much more easily avoid them the second time around.
Four simple tips, but for those who are serious about achieving their goals they can be significant words of wisdom to help them change their life. Are you ready to change your life in 2008? Are you ready to keep your resolution and achieve your life and career goals? It’s not too late – the only thing missing is your determination!
Written by David B. Bohl of Slow Down Fast.
Monday, January 21, 2008
Insurance Bargains
Top 10 Least Expensive to Insure Cars of 2007
By Warren Clarke
Email
If you own or lease a vehicle, the related insurance expenses can take a huge chomp out of your finances. However, there are decisions you can make that could ease your burden. In many cases, the factors that impact your insurance rate — which have to do with where you live, your accident history, your yearly mileage and so on — are difficult to control.
If you haven't yet decided on that new car, though, know that there's one crucial factor affecting your insurance expenses that you can control: the kind of car you drive. Your insurance rate will be heavily impacted by the make and model of your vehicle. Without a doubt, then, you're going to want to go into your next purchase armed with all the relevant facts.
Here are the 10 cars most likely to command the lowest insurance premiums based on five-year projections of the Edmunds.com True Cost to OwnSM (TCO) pricing system. Each model's ranking reflects that of the trim level with the lowest projected insurance expense.
2007 Pontiac Vibe
2007 Chrysler PT Cruiser
2007 Saturn Aura
2007 Subaru Outback
2007 Chrysler Pacifica
2007 Subaru Legacy
2007 Toyota Matrix
2007 Buick Lucerne (tie)
2007 Ford Focus (tie)
2007 Saturn Ion
By Warren Clarke
If you own or lease a vehicle, the related insurance expenses can take a huge chomp out of your finances. However, there are decisions you can make that could ease your burden. In many cases, the factors that impact your insurance rate — which have to do with where you live, your accident history, your yearly mileage and so on — are difficult to control.
If you haven't yet decided on that new car, though, know that there's one crucial factor affecting your insurance expenses that you can control: the kind of car you drive. Your insurance rate will be heavily impacted by the make and model of your vehicle. Without a doubt, then, you're going to want to go into your next purchase armed with all the relevant facts.
Here are the 10 cars most likely to command the lowest insurance premiums based on five-year projections of the Edmunds.com True Cost to OwnSM (TCO) pricing system. Each model's ranking reflects that of the trim level with the lowest projected insurance expense.
2007 Pontiac Vibe
2007 Chrysler PT Cruiser
2007 Saturn Aura
2007 Subaru Outback
2007 Chrysler Pacifica
2007 Subaru Legacy
2007 Toyota Matrix
2007 Buick Lucerne (tie)
2007 Ford Focus (tie)
2007 Saturn Ion
Thursday, January 17, 2008
Successful Life
20 Qualities for a Successful Life
Posted on 1/16/2008 |Join the Discussion (12 comments) How do you define a successful life? Is it by how much money or stuff you have amassed, or is it by the legacy you leave behind? All too often we equate a successful life with material possessions. Yet, there are millions of people out there who lead successful, fulfilled lives who may be of modest means. They may not be rich in the financial sense, but they are rich in life and values.
So what are the things we should strive for to make our lives successful and have a positive impact on those around us? Here is a list of traits that I think defines what true success in life is all about. Does your list differ?
Sincerity. Be sincere in your actions. Don’t try to deceive or impress others. Be yourself, and do what you feel is right based on your values and beliefs. You will be surprised at how people accept you when you stop trying to be someone you aren’t.
Unfeigned. Be genuine in what you do; your actions speak louder than your words. Don’t falsify or embellish events that may have happened. Don’t say one thing and do the other.
Wholehearted. Be enthusiastic about what you do. Show it. Be committed to life and everything that you set out to accomplish in life. Devote yourself to your family, friends, and community and commit yourself to being the best father, husband, wife, mother, friend, and neighbor you can be.
Honest. Be honest in your dealings with yourself and with others. When others interact with you, let them see someone who is reputable, respectable and genuine. Do what you say you will do and never use fraud or deception to get ahead in life. Let ethics, morals, and honor be your compass.
Heartfelt. When you do something for someone, or they do something for you, let your thanks and emotion be openly and outwardly expressed towards them.
Hearty. Be someone who displays an honest, warm, and exuberant personality to those around them. Let your feelings show and let them be genuine when they do.
Humility. Don’t lead a life thinking you are better than others or are superior to those around you. Modesty and humbleness will leave a far more ever lasting impact on people than trying to show off.
Personal integrity. Always follow your heartfelt values, and never let a situation or anyone steer you away from doing what you know is right. Be someone that people can look up to and respect and not someone who trades his or her moral values for material gains in life.
Incorruptibility. Let it be known that you stand firm for what you believe in and that your morals, values and actions are not for sale. Don’t let outside forces corrupt the person you are.
Sound. Show good judgment and sense in life. Don’t let prejudices or emotions cloud your judgment.
Whole. Be focused on what you want to achieve in life. Give everyone you interact with your complete and undivided attention.
Courtesy. Practice good manners even though others around you may not.
Civility. Graciousness and respect go a long way in life. What is more, they are viral – when people see you doing it they are more apt to practice civility themselves. Be kind to others and extend courtesy towards them. Don’t interrupt people when they speak and don’t dominate the conversation.
Wisdom. Gain from the wisdom that is inside you. Understand the inner qualities of people and learn how to understand situations that might be different than we are used to.
Charity. Practice kind, gentle, and compassionate treatment of others – especially those who may be undeserving. Learn to extend a hand to help others, even though they themselves may not have helped you.
Empathy. Be aware that each person is different and may have different values and beliefs than those that you hold. Be understanding of the feelings and thoughts of others without having to be told or reminded of them.
Sympathy. Share your feelings with others and understand the emotional situations that people go through. Put yourself in their shoes.
Compassion. When someone is in distress, reach out with a genuine interest in helping alleviate their suffering.
Altruism. Think of others without thinking of yourself. Do good things for people without expecting something in return for yourself.
Magnanimous. Be generous in life. Give of your time, money and wisdom. Share with others so they can see the true joy and adventures of life themselves.
There are the qualities I think helps lead a person to life a successful life. Clearly everyone's views will differ, as they should. What are some qualities that you think define success in life?
Written by David B. Bohl of Slow Down Fast.
Posted on 1/16/2008 |Join the Discussion (12 comments) How do you define a successful life? Is it by how much money or stuff you have amassed, or is it by the legacy you leave behind? All too often we equate a successful life with material possessions. Yet, there are millions of people out there who lead successful, fulfilled lives who may be of modest means. They may not be rich in the financial sense, but they are rich in life and values.
So what are the things we should strive for to make our lives successful and have a positive impact on those around us? Here is a list of traits that I think defines what true success in life is all about. Does your list differ?
Sincerity. Be sincere in your actions. Don’t try to deceive or impress others. Be yourself, and do what you feel is right based on your values and beliefs. You will be surprised at how people accept you when you stop trying to be someone you aren’t.
Unfeigned. Be genuine in what you do; your actions speak louder than your words. Don’t falsify or embellish events that may have happened. Don’t say one thing and do the other.
Wholehearted. Be enthusiastic about what you do. Show it. Be committed to life and everything that you set out to accomplish in life. Devote yourself to your family, friends, and community and commit yourself to being the best father, husband, wife, mother, friend, and neighbor you can be.
Honest. Be honest in your dealings with yourself and with others. When others interact with you, let them see someone who is reputable, respectable and genuine. Do what you say you will do and never use fraud or deception to get ahead in life. Let ethics, morals, and honor be your compass.
Heartfelt. When you do something for someone, or they do something for you, let your thanks and emotion be openly and outwardly expressed towards them.
Hearty. Be someone who displays an honest, warm, and exuberant personality to those around them. Let your feelings show and let them be genuine when they do.
Humility. Don’t lead a life thinking you are better than others or are superior to those around you. Modesty and humbleness will leave a far more ever lasting impact on people than trying to show off.
Personal integrity. Always follow your heartfelt values, and never let a situation or anyone steer you away from doing what you know is right. Be someone that people can look up to and respect and not someone who trades his or her moral values for material gains in life.
Incorruptibility. Let it be known that you stand firm for what you believe in and that your morals, values and actions are not for sale. Don’t let outside forces corrupt the person you are.
Sound. Show good judgment and sense in life. Don’t let prejudices or emotions cloud your judgment.
Whole. Be focused on what you want to achieve in life. Give everyone you interact with your complete and undivided attention.
Courtesy. Practice good manners even though others around you may not.
Civility. Graciousness and respect go a long way in life. What is more, they are viral – when people see you doing it they are more apt to practice civility themselves. Be kind to others and extend courtesy towards them. Don’t interrupt people when they speak and don’t dominate the conversation.
Wisdom. Gain from the wisdom that is inside you. Understand the inner qualities of people and learn how to understand situations that might be different than we are used to.
Charity. Practice kind, gentle, and compassionate treatment of others – especially those who may be undeserving. Learn to extend a hand to help others, even though they themselves may not have helped you.
Empathy. Be aware that each person is different and may have different values and beliefs than those that you hold. Be understanding of the feelings and thoughts of others without having to be told or reminded of them.
Sympathy. Share your feelings with others and understand the emotional situations that people go through. Put yourself in their shoes.
Compassion. When someone is in distress, reach out with a genuine interest in helping alleviate their suffering.
Altruism. Think of others without thinking of yourself. Do good things for people without expecting something in return for yourself.
Magnanimous. Be generous in life. Give of your time, money and wisdom. Share with others so they can see the true joy and adventures of life themselves.
There are the qualities I think helps lead a person to life a successful life. Clearly everyone's views will differ, as they should. What are some qualities that you think define success in life?
Written by David B. Bohl of Slow Down Fast.
Wednesday, January 16, 2008
Going to the Dogs!
28 Aug 2007 09:33 AM
Dog Bite Liability
by Anna Glendenning | More from this Blogger
There has been a growing popularity since the mid-1990s, of people choosing to own the more aggressive breeds of dogs. This is a security concern because dog attacks are now the largest single cause of homeowner insurance policy claims. Dogs and their bites have become a major concern for homeowner insurance companies and considering the statistics it's not hard to see why:
The Centers for Disease Control and Prevention, reports that more than 4.7 million people are bitten by dogs every year with an estimated 800,000 injuries requiring medical treatment. More than 50 percent of the bites happen on the owner's property, often to visitors and family members.
During 2006 insurance companies paid out $351.4 million, for dog bite claims. This was up an astounding 10.8 percent from 2005.
The actual number of dog bite claims paid by insurance companies actually fell from around 20,800 in 2002 to only 15,000 in 2005 but the cost of the average dog bite claim sky rocketed from about $16,600 in 2002 to more then $21,200 in 2005.
Just about 4 percent of all homeowner claims are dog bite Liability claims and dog bite claims accounted for nearly 15 percent of liability claims paid under homeowner insurance policies during 2005.
Several states have laws with stiff penalties for owners of dogs that cause serious injuries or deaths.
About one-third of states dog owners are "strictly liable" for their dogs' behavior, and in the other states owners are liable only if they knew or should have known their dogs had a propensity to bite. This is known as the "one free bite" principle.
Insurance companies may send underwriters or inspectors to check a home owner's property. When there is a dog the insurance company may check the environment. The home will be checked for things such as:
Fenced yards
Clean groomed area of the yard (is the doogie-doo picked up?)
Is the animal well cared for, or left out in the yard all day?
After an insurance inspection the insurance company may send a letter to the policyholder asking questions about the dog such as:
Whether the dog is licensed?
Is the dog neutered or spayed, male neutered dogs are much less prone to biting and females are common for breeding.
You may be asked if the dog has been provided an special training
Insurance companies can impose a dog breed exclusion and they can cancel a homeowner insurance policy, for or any breed bans there may be in place.
Some homeowner associations have rules and regulations that disallow some dog breeds
Dog Bite Liability
by Anna Glendenning | More from this Blogger
There has been a growing popularity since the mid-1990s, of people choosing to own the more aggressive breeds of dogs. This is a security concern because dog attacks are now the largest single cause of homeowner insurance policy claims. Dogs and their bites have become a major concern for homeowner insurance companies and considering the statistics it's not hard to see why:
The Centers for Disease Control and Prevention, reports that more than 4.7 million people are bitten by dogs every year with an estimated 800,000 injuries requiring medical treatment. More than 50 percent of the bites happen on the owner's property, often to visitors and family members.
During 2006 insurance companies paid out $351.4 million, for dog bite claims. This was up an astounding 10.8 percent from 2005.
The actual number of dog bite claims paid by insurance companies actually fell from around 20,800 in 2002 to only 15,000 in 2005 but the cost of the average dog bite claim sky rocketed from about $16,600 in 2002 to more then $21,200 in 2005.
Just about 4 percent of all homeowner claims are dog bite Liability claims and dog bite claims accounted for nearly 15 percent of liability claims paid under homeowner insurance policies during 2005.
Several states have laws with stiff penalties for owners of dogs that cause serious injuries or deaths.
About one-third of states dog owners are "strictly liable" for their dogs' behavior, and in the other states owners are liable only if they knew or should have known their dogs had a propensity to bite. This is known as the "one free bite" principle.
Insurance companies may send underwriters or inspectors to check a home owner's property. When there is a dog the insurance company may check the environment. The home will be checked for things such as:
Fenced yards
Clean groomed area of the yard (is the doogie-doo picked up?)
Is the animal well cared for, or left out in the yard all day?
After an insurance inspection the insurance company may send a letter to the policyholder asking questions about the dog such as:
Whether the dog is licensed?
Is the dog neutered or spayed, male neutered dogs are much less prone to biting and females are common for breeding.
You may be asked if the dog has been provided an special training
Insurance companies can impose a dog breed exclusion and they can cancel a homeowner insurance policy, for or any breed bans there may be in place.
Some homeowner associations have rules and regulations that disallow some dog breeds
Monday, January 14, 2008
Crash Tests
Crash Ratings Don't Accurately Reflect Trucks' Real-World Safety, Study Says
by Hilary Johnson
Tuesday, January 1, 2008
provided by
Crash tests conducted by the government and insurance industry may be a poor indicator of how safe -- or unsafe -- pickup trucks are, an independent study suggests.
The trucks that performed badly in simulated crashes may be safer than their ratings suggest and those that performed well may be more dangerous, according to research conducted by economics professors at Virginia Commonwealth University in Richmond. The study appeared in the journal Accident Analysis and Prevention.
The professors compared crash test data from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) with government data on fatal crashes. They concluded that the tests seem to be an accurate guage of car safety: Cars with higher crash-test ratings show fewer driver fatalities and those with lower ratings show more. But the same does not hold true for trucks.
"Something about trucks makes them different," said David W. Harless, who co-authored the study with George E. Hoffer.
The Study
More From ForbesAutos.com:
• Porsche 911: Quick and Breezy
• Bragging Rights of Mercedes-Benz
• Ford Mustang: Modern-Day Muscle-Car
The study looked at changes in crash test ratings for all cars and trucks tested at least twice by the NHTSA from 1987 through 2001 and by the IIHS from 1995 through 2001. It compared the ratings with government data on fatal crashes over the same period to determine whether improvements in crash-test ratings translated to fewer driver fatalities.
The study found that higher crash-test ratings often correlated with fewer driver fatalities for cars, but not for trucks. The NHTSA ranks vehicles on a scale of one star (the worst rating) to five stars (the best). The IIHS uses labels that range from "poor" to "good."
"We had trucks with one-star NHTSA ratings being 3 percent safer than those with five-star ratings," Harless said. "With the IIHS, which was a relatively small sample, trucks with a 'poor' rating had 30 percent less risk [of driver fatality in wrecks] than trucks with a 'good' rating."
To reduce the likelihood of variables such as a vehicle's size and weight skewing the results, the study compared changes in crash data only within vehicle lines and not between different types of vehicles. For instance, Ford F-150 pickup trucks were only compared to other Ford F-150 pickup trucks.
The NHTSA would not comment on the Virginia Commonwealth study.
Russ Rader, an IIHS spokesperson, took issue with the findings. Rader said that the IIHS's own research shows a strong correlation between crash-test ratings and fatalities for all kinds of vehicles, including trucks. "It doesn't make sense that there would be a difference" between cars and trucks, he said. "The things you do to a car for crash safety are the same things you do for SUVs and pickups." For example, all vehicles now incorporate crumple zones and reinforced passenger-cabin structures.
Conflicting Views
George E. Hoffer, a co-author of the study, said the body structure of trucks may be one reason why their crash test ratings failed to correlate with driver fatalities.
Unlike cars, pickup trucks have stout steel frames underneath, often called "ladder frames." Hoffer said a ladder frame might act like a "pronged battering ram" in a real-world crash where a truck collides with a lighter, smaller vehicle. This might make a truck more likely to withstand the impact of an actual crash better than it does when striking a stationary barrier such as in some crash tests.
Ford safety spokesman Dan Jarvis disputed the study's findings and methodology. He said the idea that a truck's ladder frame has any discernible impact on crash test ratings is "at best uninformed."
Harless cited the Ford F-150 two-door pickup truck as an example of how improvements in crash test ratings do not result in fewer driver fatalities. For the 1992-1993 model years, the F-150 received an NHTSA rating of three stars, Harless said, but the driver death rate was about one death per 10,000 registered vehicles. For the 1994-1996 model years, the F-150 received a five-star rating, but the driver death rate rose to nearly 1.2 driver deaths per 10,000 vehicles.
Independently of Harless, Rader of the IIHS also used the F-150 to illustrate his opposing view that a noticeable improvement in crash test ratings between the 2001 model and the 2004 model correlates with fewer driver fatalities. According to the IIHS's own analysis, the 2001 Ford F-150 had 118 deaths per million per year between 2002 and 2005 when it was rated as "poor," Rader said. But the 2004 F-150, with an improved crash test rating of "good," had a much lower driver death rate of 58 per million vehicles per year.
This is a good indicator of how evaluating crash-test ratings can be confusing. In this case, the study authors pointed to the NHTSA ratings for the F-150, not the IIHS ratings. The study also looked at the F-150 in different years than those cited by Rader.
When asked about the IIHS findings, Hoffer said that he did not doubt their accuracy, but that the model years that Rader gave were different than those used in his own study.
The results for any one particular vehicle aside, Hoffer said the data for cars and trucks overall is what offers the most telling insight. He said there was no relationship between improvements in crash test ratings and driver death rates for "the entire population" of trucks they evaluated, which include model years 1987-2001.
Drawing Conclusions
The conclusion the professors reached was that NHTSA and IIHS crash test data shouldn't be as important of a consideration for pickup truck buyers as it is for passenger-car buyers, because for cars the correlations between ratings and fatalities are stronger. "The architecture of trucks is so different that it overwhelms any information that the consumer can glean from the crash test," Hoffer said.
Anne Fleming, a spokesperson for the IIHS, said that the institute had no evidence that ladder-frame construction, also called "body on frame" construction, typically used in pickup trucks, has any effect on crashworthiness.
Though Ford's Jarvis also disagreed with the professors' conclusions, he did think the study illustrates something important. "The point is well taken that it's indeed very difficult to correlate [crash-test ratings] and real-world crash events," he said. "But that difficulty arises from several factors, including the complexity of the real-world crash environment, and a variety of non-vehicle factors, like was the occupant wearing a safety belt, or was the vehicle pulling a trailer?"
Charles Territo, director of communications at the Alliance of Automobile Manufacturers, also agreed that directly correlating crash test ratings and fatalities is tough. "We don't know what percentage of accidents involved people not wearing seatbelts, being under the influence, being ejected from their vehicles," he said. "There are so many different factors at play that it's just difficult."
The bottom line, Territo said, is that regardless of any conclusion the VCU study made, crash test ratings are still a valuable resource for consumers, but shouldn't be the only consideration when shopping for a vehicle.
Jim Somborovich is an insurance agent for Allstate Insurance Company and can be reached at: js@allstate.com
by Hilary Johnson
Tuesday, January 1, 2008
provided by
Crash tests conducted by the government and insurance industry may be a poor indicator of how safe -- or unsafe -- pickup trucks are, an independent study suggests.
The trucks that performed badly in simulated crashes may be safer than their ratings suggest and those that performed well may be more dangerous, according to research conducted by economics professors at Virginia Commonwealth University in Richmond. The study appeared in the journal Accident Analysis and Prevention.
The professors compared crash test data from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) with government data on fatal crashes. They concluded that the tests seem to be an accurate guage of car safety: Cars with higher crash-test ratings show fewer driver fatalities and those with lower ratings show more. But the same does not hold true for trucks.
"Something about trucks makes them different," said David W. Harless, who co-authored the study with George E. Hoffer.
The Study
More From ForbesAutos.com:
• Porsche 911: Quick and Breezy
• Bragging Rights of Mercedes-Benz
• Ford Mustang: Modern-Day Muscle-Car
The study looked at changes in crash test ratings for all cars and trucks tested at least twice by the NHTSA from 1987 through 2001 and by the IIHS from 1995 through 2001. It compared the ratings with government data on fatal crashes over the same period to determine whether improvements in crash-test ratings translated to fewer driver fatalities.
The study found that higher crash-test ratings often correlated with fewer driver fatalities for cars, but not for trucks. The NHTSA ranks vehicles on a scale of one star (the worst rating) to five stars (the best). The IIHS uses labels that range from "poor" to "good."
"We had trucks with one-star NHTSA ratings being 3 percent safer than those with five-star ratings," Harless said. "With the IIHS, which was a relatively small sample, trucks with a 'poor' rating had 30 percent less risk [of driver fatality in wrecks] than trucks with a 'good' rating."
To reduce the likelihood of variables such as a vehicle's size and weight skewing the results, the study compared changes in crash data only within vehicle lines and not between different types of vehicles. For instance, Ford F-150 pickup trucks were only compared to other Ford F-150 pickup trucks.
The NHTSA would not comment on the Virginia Commonwealth study.
Russ Rader, an IIHS spokesperson, took issue with the findings. Rader said that the IIHS's own research shows a strong correlation between crash-test ratings and fatalities for all kinds of vehicles, including trucks. "It doesn't make sense that there would be a difference" between cars and trucks, he said. "The things you do to a car for crash safety are the same things you do for SUVs and pickups." For example, all vehicles now incorporate crumple zones and reinforced passenger-cabin structures.
Conflicting Views
George E. Hoffer, a co-author of the study, said the body structure of trucks may be one reason why their crash test ratings failed to correlate with driver fatalities.
Unlike cars, pickup trucks have stout steel frames underneath, often called "ladder frames." Hoffer said a ladder frame might act like a "pronged battering ram" in a real-world crash where a truck collides with a lighter, smaller vehicle. This might make a truck more likely to withstand the impact of an actual crash better than it does when striking a stationary barrier such as in some crash tests.
Ford safety spokesman Dan Jarvis disputed the study's findings and methodology. He said the idea that a truck's ladder frame has any discernible impact on crash test ratings is "at best uninformed."
Harless cited the Ford F-150 two-door pickup truck as an example of how improvements in crash test ratings do not result in fewer driver fatalities. For the 1992-1993 model years, the F-150 received an NHTSA rating of three stars, Harless said, but the driver death rate was about one death per 10,000 registered vehicles. For the 1994-1996 model years, the F-150 received a five-star rating, but the driver death rate rose to nearly 1.2 driver deaths per 10,000 vehicles.
Independently of Harless, Rader of the IIHS also used the F-150 to illustrate his opposing view that a noticeable improvement in crash test ratings between the 2001 model and the 2004 model correlates with fewer driver fatalities. According to the IIHS's own analysis, the 2001 Ford F-150 had 118 deaths per million per year between 2002 and 2005 when it was rated as "poor," Rader said. But the 2004 F-150, with an improved crash test rating of "good," had a much lower driver death rate of 58 per million vehicles per year.
This is a good indicator of how evaluating crash-test ratings can be confusing. In this case, the study authors pointed to the NHTSA ratings for the F-150, not the IIHS ratings. The study also looked at the F-150 in different years than those cited by Rader.
When asked about the IIHS findings, Hoffer said that he did not doubt their accuracy, but that the model years that Rader gave were different than those used in his own study.
The results for any one particular vehicle aside, Hoffer said the data for cars and trucks overall is what offers the most telling insight. He said there was no relationship between improvements in crash test ratings and driver death rates for "the entire population" of trucks they evaluated, which include model years 1987-2001.
Drawing Conclusions
The conclusion the professors reached was that NHTSA and IIHS crash test data shouldn't be as important of a consideration for pickup truck buyers as it is for passenger-car buyers, because for cars the correlations between ratings and fatalities are stronger. "The architecture of trucks is so different that it overwhelms any information that the consumer can glean from the crash test," Hoffer said.
Anne Fleming, a spokesperson for the IIHS, said that the institute had no evidence that ladder-frame construction, also called "body on frame" construction, typically used in pickup trucks, has any effect on crashworthiness.
Though Ford's Jarvis also disagreed with the professors' conclusions, he did think the study illustrates something important. "The point is well taken that it's indeed very difficult to correlate [crash-test ratings] and real-world crash events," he said. "But that difficulty arises from several factors, including the complexity of the real-world crash environment, and a variety of non-vehicle factors, like was the occupant wearing a safety belt, or was the vehicle pulling a trailer?"
Charles Territo, director of communications at the Alliance of Automobile Manufacturers, also agreed that directly correlating crash test ratings and fatalities is tough. "We don't know what percentage of accidents involved people not wearing seatbelts, being under the influence, being ejected from their vehicles," he said. "There are so many different factors at play that it's just difficult."
The bottom line, Territo said, is that regardless of any conclusion the VCU study made, crash test ratings are still a valuable resource for consumers, but shouldn't be the only consideration when shopping for a vehicle.
Jim Somborovich is an insurance agent for Allstate Insurance Company and can be reached at: js@allstate.com
Save Money on Auto Insurance
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AdvertisementSix Ways to Save on Auto Insurance
by Stephanie AuWerter
August 20, 2007
Updated on August 8, 2007.
GOOD NEWS, DRIVERS: insurance premium hikes have hit the breaks. The Insurance Information Institute (III) projects a 0.5% decrease for 2007, bringing average annual costs to $847. This marks the first decline since 1999.
But just because prices aren't breaking the speed limit doesn't mean you should be complacent about costs. With a few relatively painless steps, you can probably find yourself a cheaper policy. Here are six ways to save:
1. Shop Around
You've heard it before: When looking for a new policy, get at least three quotes. And if you really want to save, gather several more than that. According to a 2004 survey of more than 100,000 consumers across the country, conducted by Progressive Insurance, rates for comparable coverage can vary by more than $500 for six months' worth of coverage.
When shopping around, it's crucial that you understand the lay of the land. Broadly speaking, the auto-insurance world is divided into three camps. There are the direct writers (like Geico and Amica), that use in-house employees to sell insurance directly to consumers via the Web or phone. Other insurers, like State Farm and Allstate use captive or "exclusive" agents to sell their products. (These are independent contractors who work predominantly on commission and can sell the products of only one company.) Finally, there are the independent agents who sell the insurance of various different companies. These folks also earn their keep based on commission. (To find a local independent agent, visit the Independent Insurance Agents & Brokers of America.)
Assuming you have a decent driving history, you should get the best deals from the direct agents, since they remove the middleman (who often receives a commission of 15%). But these folks can be picky. So if you've had recent entanglements with the law or another car's fender, your best bet is probably to check with the major providers, such as State Farm and Allstate (which hold 18% and 11% of the market, respectively), and then head to an independent agent to see if he or she can beat your best quote. You also can comparison shop at Web sites such as InsWeb, which operates as an independent agent and a lead generator.
One note of caution: Don't let your quest for a bargain lead you into the dark woods of substandard companies. Make sure you go with a company that has a good credit rating with a rating service such as Standard & Poor's or Moody's. You might also want to check with your state's department of insurance to see if a particular company has a high number of consumer complaints, says Sally McCarty, commissioner of the Indiana Department of Insurance. (Click here to find the Web site of your state's department.)
2. Get All Available Discounts
Discounts can vary widely by company as well as by state. Some to ask about are:
Combination Discounts
You can often knock off 10% to 20% from your premiums if you insure both your home and your car with the same company, or by insuring more than one car with the same company.
Defensive-Driving Classes
This can often merit a 10% discount on premiums.
Good-Student Discounts
Students with GPAs of 3.0 or higher can be eligible for discounts of as much as 25%. In some cases, young male drivers may benefit from this more, since their premiums are typically higher, says Dick Luedke, a State Farm spokesman.
Retirement Discounts
Be sure to let your insurer know when you retire — particularly if you retire at a relatively young age. Since you're likely to be driving less once you're working days are over, this can often earn you a break on premiums.
Association & Group Discounts
Discounts may be available for affiliation with all sorts of associations — your alma matter, a military group, a professional organization, even Mensa. If you work for a large employer, that could earn you a discount as well.
College-Kids-Who-Are-Far-Away Discounts
If at least 100 miles separate your kid from your car, you could save up to 40%.
Safety Discounts
This varies by state. In some states, including New York and Florida, drivers must be rewarded for having certain safety features on their car, such as antilock brakes, airbags and automatic seat belts. Certain antitheft devices could be eligible for a discount as well.
Loyalty Discounts
Stick with the same company for more than one year, and you could earn a break of 10% or more on your premiums.
3. Increase Your Deductible
Your deductible is the amount you'll pay out of pocket when making a claim before your insurance starts picking up the tab. It applies to your collision and comprehensive coverage (not your liability) and is the insurance that specifically covers your car. (For more on the different components of an auto-insurance policy, click here.)
Increasing your deductible can cut your premium dramatically. And since insurance is meant to cover the big stuff you can't handle comfortably on your own (not the small things), having a higher deductible can make a lot of sense. In general, increasing your deductible from, say, $200 to $500 could reduce your premium by 15% to 30%, according to the III. Raising it to $1,000 could save you 40% or more.
4. Drop Some Coverage
If you have an older car — one that's worth less than 10 times the amount you'd pay for coverage — you may want to consider dropping collision and comprehensive coverage altogether, according to the III. Collision and comprehensive can account for 40% or more of the cost of your premium, and covers only the car's replacement value. If any claim payment you'd receive wouldn't substantially exceed your premiums minus the deductible, then it's probably not worth it to get the insurance.
5. Clean Up Your Credit Report
Like it or not, your credit report can affect whether a company is willing to insure you — and at what rate. "Somebody who is extremely poor in their payment habits could pay 30% to 40% more than somebody without those problems," says independent agent John Costello, a partner at Costello Dreher Kaiser Insurance, based in Rochester, N.Y.
While credit-data usage varies by state, most insurers use something called an "insurance score" to assess your risk as a driver. The score is similar to a credit score, except that, generally speaking, an insurance score places a heavier weighting on bill-paying consistency than on the overall debt the person carries, says Jeffrey Skelton, assistant vice president of personal insurance at ChoicePoint, a company that calculates insurance scores.
For $12.95, you can pull your insurance score plus a copy of your credit report at Choicetrust.com, a consumer-oriented Web site run by ChoicePoint. Be sure to keep an eye out for any errors or omitted information that could negatively affect your score.
6. Get the Right Car
If you're in the market for a new car, keep in mind those with the highest theft rates and repair costs will cost more to insure. So if you're debating between two models, it may be worthwhile to give your insurance agent a call to see if there is a notable difference in the insurance costs. Alternatively, you can visit the Web sites of the insurance companies. Many of them, such as State Farm, list which cars are considered safer than average (thus qualifying for a discount) as well as those that have higher collision and theft rates.
Jim Somborovich is an Allstate Insurance Company agent in Bellevue, WA and can be reached at: js@allstate.com
Markets
Stocks
Funds
Portfolio
Personal Finance
Overview Retirement Real Estate College Autos Debt Health Care Insurance Taxes ADVERTISEMENT
AdvertisementSix Ways to Save on Auto Insurance
by Stephanie AuWerter
August 20, 2007
Updated on August 8, 2007.
GOOD NEWS, DRIVERS: insurance premium hikes have hit the breaks. The Insurance Information Institute (III) projects a 0.5% decrease for 2007, bringing average annual costs to $847. This marks the first decline since 1999.
But just because prices aren't breaking the speed limit doesn't mean you should be complacent about costs. With a few relatively painless steps, you can probably find yourself a cheaper policy. Here are six ways to save:
1. Shop Around
You've heard it before: When looking for a new policy, get at least three quotes. And if you really want to save, gather several more than that. According to a 2004 survey of more than 100,000 consumers across the country, conducted by Progressive Insurance, rates for comparable coverage can vary by more than $500 for six months' worth of coverage.
When shopping around, it's crucial that you understand the lay of the land. Broadly speaking, the auto-insurance world is divided into three camps. There are the direct writers (like Geico and Amica), that use in-house employees to sell insurance directly to consumers via the Web or phone. Other insurers, like State Farm and Allstate use captive or "exclusive" agents to sell their products. (These are independent contractors who work predominantly on commission and can sell the products of only one company.) Finally, there are the independent agents who sell the insurance of various different companies. These folks also earn their keep based on commission. (To find a local independent agent, visit the Independent Insurance Agents & Brokers of America.)
Assuming you have a decent driving history, you should get the best deals from the direct agents, since they remove the middleman (who often receives a commission of 15%). But these folks can be picky. So if you've had recent entanglements with the law or another car's fender, your best bet is probably to check with the major providers, such as State Farm and Allstate (which hold 18% and 11% of the market, respectively), and then head to an independent agent to see if he or she can beat your best quote. You also can comparison shop at Web sites such as InsWeb, which operates as an independent agent and a lead generator.
One note of caution: Don't let your quest for a bargain lead you into the dark woods of substandard companies. Make sure you go with a company that has a good credit rating with a rating service such as Standard & Poor's or Moody's. You might also want to check with your state's department of insurance to see if a particular company has a high number of consumer complaints, says Sally McCarty, commissioner of the Indiana Department of Insurance. (Click here to find the Web site of your state's department.)
2. Get All Available Discounts
Discounts can vary widely by company as well as by state. Some to ask about are:
Combination Discounts
You can often knock off 10% to 20% from your premiums if you insure both your home and your car with the same company, or by insuring more than one car with the same company.
Defensive-Driving Classes
This can often merit a 10% discount on premiums.
Good-Student Discounts
Students with GPAs of 3.0 or higher can be eligible for discounts of as much as 25%. In some cases, young male drivers may benefit from this more, since their premiums are typically higher, says Dick Luedke, a State Farm spokesman.
Retirement Discounts
Be sure to let your insurer know when you retire — particularly if you retire at a relatively young age. Since you're likely to be driving less once you're working days are over, this can often earn you a break on premiums.
Association & Group Discounts
Discounts may be available for affiliation with all sorts of associations — your alma matter, a military group, a professional organization, even Mensa. If you work for a large employer, that could earn you a discount as well.
College-Kids-Who-Are-Far-Away Discounts
If at least 100 miles separate your kid from your car, you could save up to 40%.
Safety Discounts
This varies by state. In some states, including New York and Florida, drivers must be rewarded for having certain safety features on their car, such as antilock brakes, airbags and automatic seat belts. Certain antitheft devices could be eligible for a discount as well.
Loyalty Discounts
Stick with the same company for more than one year, and you could earn a break of 10% or more on your premiums.
3. Increase Your Deductible
Your deductible is the amount you'll pay out of pocket when making a claim before your insurance starts picking up the tab. It applies to your collision and comprehensive coverage (not your liability) and is the insurance that specifically covers your car. (For more on the different components of an auto-insurance policy, click here.)
Increasing your deductible can cut your premium dramatically. And since insurance is meant to cover the big stuff you can't handle comfortably on your own (not the small things), having a higher deductible can make a lot of sense. In general, increasing your deductible from, say, $200 to $500 could reduce your premium by 15% to 30%, according to the III. Raising it to $1,000 could save you 40% or more.
4. Drop Some Coverage
If you have an older car — one that's worth less than 10 times the amount you'd pay for coverage — you may want to consider dropping collision and comprehensive coverage altogether, according to the III. Collision and comprehensive can account for 40% or more of the cost of your premium, and covers only the car's replacement value. If any claim payment you'd receive wouldn't substantially exceed your premiums minus the deductible, then it's probably not worth it to get the insurance.
5. Clean Up Your Credit Report
Like it or not, your credit report can affect whether a company is willing to insure you — and at what rate. "Somebody who is extremely poor in their payment habits could pay 30% to 40% more than somebody without those problems," says independent agent John Costello, a partner at Costello Dreher Kaiser Insurance, based in Rochester, N.Y.
While credit-data usage varies by state, most insurers use something called an "insurance score" to assess your risk as a driver. The score is similar to a credit score, except that, generally speaking, an insurance score places a heavier weighting on bill-paying consistency than on the overall debt the person carries, says Jeffrey Skelton, assistant vice president of personal insurance at ChoicePoint, a company that calculates insurance scores.
For $12.95, you can pull your insurance score plus a copy of your credit report at Choicetrust.com, a consumer-oriented Web site run by ChoicePoint. Be sure to keep an eye out for any errors or omitted information that could negatively affect your score.
6. Get the Right Car
If you're in the market for a new car, keep in mind those with the highest theft rates and repair costs will cost more to insure. So if you're debating between two models, it may be worthwhile to give your insurance agent a call to see if there is a notable difference in the insurance costs. Alternatively, you can visit the Web sites of the insurance companies. Many of them, such as State Farm, list which cars are considered safer than average (thus qualifying for a discount) as well as those that have higher collision and theft rates.
Jim Somborovich is an Allstate Insurance Company agent in Bellevue, WA and can be reached at: js@allstate.com
Saturday, January 12, 2008
Identity Theft
Synthetic Identity Theft - a New Spin on Old Crime
We're familiar with traditional identity theft. Someone steals your personal information and opens lines of credit in your name. There's a new spin on that now that's harder to detect - Synthetic Identity Theft.
Synthetic identity theft happens when a thief steals bits and pieces of info from different people and creates a whole new identity. This usually happens when your social security number is used with a different name and date of birth. This is much more difficult to detect because of all the mismatched pieces of information. It can go on for years before you become aware of it.
Using your social security number, thief can open new bank accounts, credit cards and get a job. Because the only piece of info that matches you is the SSN, these accounts and actions don't usually show up on your credit report. That's why it can go on for years without you finding out. All the different pieces of information confuse and pollute the system.
Where is gets serious is when your social security number gets into databases designed to flag criminals. If a background check is ever done, your number shows up and you're accused of the crime. Just because it has a different name attached to the number won't automatically prove your innocence. You'll probably be accused of using an alias. You could easily be turned down for a job even if you're able to prove it wasn't you. An employer may just not want to take the time to listen to you use the TODDI defense - "The Other Dude Did It".
If someone created an identity using your social security number and was accused of murder, your name would pop up in that database search. Ouch…. If taxes haven't been paid on any income for your number, you could be hounded by the IRS for back taxes and fees. Double-ouch…
Here's a couple of things to look for to see if you've been victimized. Don't blow them off. Start digging to find out what's going on.
Look carefully at your yearly Social Security statement. Make sure there's not more income reported than you actually earned.
You get lots of mail in someone else's name.
Jim Somborovich is an Allstate Insurance Company agent in the State of Washington and can be reached at: js@allstate.com
We're familiar with traditional identity theft. Someone steals your personal information and opens lines of credit in your name. There's a new spin on that now that's harder to detect - Synthetic Identity Theft.
Synthetic identity theft happens when a thief steals bits and pieces of info from different people and creates a whole new identity. This usually happens when your social security number is used with a different name and date of birth. This is much more difficult to detect because of all the mismatched pieces of information. It can go on for years before you become aware of it.
Using your social security number, thief can open new bank accounts, credit cards and get a job. Because the only piece of info that matches you is the SSN, these accounts and actions don't usually show up on your credit report. That's why it can go on for years without you finding out. All the different pieces of information confuse and pollute the system.
Where is gets serious is when your social security number gets into databases designed to flag criminals. If a background check is ever done, your number shows up and you're accused of the crime. Just because it has a different name attached to the number won't automatically prove your innocence. You'll probably be accused of using an alias. You could easily be turned down for a job even if you're able to prove it wasn't you. An employer may just not want to take the time to listen to you use the TODDI defense - "The Other Dude Did It".
If someone created an identity using your social security number and was accused of murder, your name would pop up in that database search. Ouch…. If taxes haven't been paid on any income for your number, you could be hounded by the IRS for back taxes and fees. Double-ouch…
Here's a couple of things to look for to see if you've been victimized. Don't blow them off. Start digging to find out what's going on.
Look carefully at your yearly Social Security statement. Make sure there's not more income reported than you actually earned.
You get lots of mail in someone else's name.
Jim Somborovich is an Allstate Insurance Company agent in the State of Washington and can be reached at: js@allstate.com
Thursday, January 10, 2008
Savings - More Important Than Ever!
Ladies, savings shouldn’t be a thing of the past
By Eileen McDonnell
The American College
It seems appropriate to start the New Year by discussing a topic that many women list at the top of their New Year’s resolutions — saving money and reducing debt. I’m not talking about retirement savings, but rather developing good, old-fashioned savings habits. This may seem like a simple goal, but in today’s world many women simply don’t understand some of the basics or have lost the discipline to save and manage debt as a step toward a financially secure future.
Until a generation or two ago, the financial strength of the United States was built on the savings of women. In fact, many women can remember how their grandmothers collected dollar bills in coffee cans. If you asked them why grandma did this, they might answer, “So grandpa wouldn’t spend all of the family’s money.”
For grandmas who lived through the Great Depression of the 1930s or the hardships of World War II, saving some “rainy day money” was essential to family security. Until about 40 years ago, “coffee can savings” helped families make down payments on houses, send children to college, and ward off poverty in old age. Then, it all began to change. The two main reasons for this change were inflation and the introduction of credit cards.
Inflation
During the 1970s and early 1980s, U.S. inflation, measured by annual changes in the consumer price index, soared averaging 8 percent per year from 1970 through 1981.1 Imagine that grandma had socked away $1,000 in her coffee can on the first day of 1970 and then didn’t touch this money again for the next 12 years. By the end of 1981, the purchasing power of her $1,000 had shrunk to just $367. Remember: Inflation is the enemy of savings.
It has now been more than a quarter of a century since the era of high inflation ended. However, financial habits can take generations to form and generations to break. The inflation scare of the 1970s broke the great American savings tradition embodied by grandma and her cookie jar.
Just before and during the high inflation era, Americans saved about 10 percent of their incomes on average, measured by the personal savings rate. Since the end of that era, U.S. personal savings have been on a steady downward slide. In 2005 to 2007, the U.S. savings rate was negative for the first time since the Great Depression, which means that all U.S. consumers together were spending more than they earned.2
Credit
How can Americans persistently spend more than they earn? The short answer: by borrowing it. At just about the same historic moment that Americans began to save less, in the early 1980s, they began to borrow more. And then more and more. “U.S. consumer credit” measures the amount of borrowing on credit cards and consumer loans (for example, automobiles, college edu¬cation, and so forth) but not home mortgages. In 1980, total U.S. consumer credit was about $350 billion, or roughly $3,000 per household. By 2007, consumer credit had grown to $2.4 trillion, or about $23,000 per household, according to the Federal Reserve.3
Of course, mortgages on homes are the biggest source of household debt, and that also has increased substantially. Total U.S. “household credit market debt outstanding,” a measure of consumer credit plus home mortgages, increased from $1.3 trillion in 1980 to $12.8 trillion in 2007, according to the Federal Reserve.4 Not counting home mortgages, American households now spend almost 15 percent of their incomes just to repay debts.
The vast credit expansion that has taken place since 1980 is really the flip side of the inflation story. Just as inflation destroys the purchasing power of savings, inflation makes loans cheaper, because they can be paid back in future dollars that will have less value.
Women, savings and credit cards
In 1950, a world without cash was inconceivable. Today, an economic universe without plastic is just as inconceivable. In just two generations, Americans have gone from coffee can savers to credit card spenders. Today, 76 million U.S. women and 69 million U.S. men carry credit cards.5 And, the average U.S. college student has 2.8 credit cards.6
It can be valuable to understand how generational experience affects savings habits for women of all ages. Remember these points:
Grandma remembered the Great Depression and World War II and saved “rainy day money” in coffee cans. Eventually, she took this money out of the can and put it in banks, credit unions, or savings and loans to earn interest. Subliminally, grandma feared the calamity of being poor.
Mom remembered the era of inflation and how it destroyed the purchasing power of savings while making debts cheap to repay. Mom grew up in the era of credit expansion and credit card mania. Subliminally, mom put more value in what she could purchase than in what she could save.
Today’s women don’t have to imitate the habits of past generations. They can, and should, understand how savings and credit (debt) work together in a disciplined personal budget. Some women think the only way they can afford to save money from month to month is to cut up their credit cards, but that idea makes them feel poor and vulnerable. But there is a better way. Women can set personal goals for how much
Women, savings and CDs
Women find CDs to be attractive savings options for these reasons:
CDs usually pay higher rates of interest than other bank deposits (for example, passbook savings or money market deposit accounts).
They are relatively easy to understand.
They are predictable, with a level interest rate and a fixed maturity.
CDs offer the security of FDIC insurance.
So, advisors who wish to educate women about savings should have two skills:
1. They should be able to explain CDs in general, and FDIC insurance specifically.
2. They should suggest how women can shop for CDs that pay attractive current interest rates or yield.
Savings versus investing: How much savings is enough?
Because many women can remember grandma and her cookie jar, they don’t have much trouble understanding the difference between savings and investments.
The main trade-off between savings and investments is between easy access to cash (in savings) and the opportunity to earn a higher rate of return over time (in investments). So, the issue of “how much savings is enough” can depend on how each woman wishes to balance this tradeoff.
In summary, advisors can further strengthen their relationships with women clients and prospects by helping them understand how inflation and credit work and by formulating a plan together to build savings that create a sense of security. This will be a stepping stone for women in gaining the confidence they need to become savvy investors.
Notes
1. Consumer Price Index for All Urban Consumers, U.S. Department of Labor: Bureau of Labor Statistics.
2. Personal Savings Rate, U.S. Department of Commerce: Bureau of Economic Analysis.
3. Total Consumer Credit Outstanding, Board of Governors of the Federal Reserve System.
4. Total U.S. Credit Market Debt Outstanding, Board of Governors of the Federal Reserve System.
5. Barletta, Marti, Marketing to Women, 2d ed., Dearborn, 2006, p. 142.
6. College Credit Card Statistics, United College Marketing Service.Pages: 12
By Eileen McDonnell
The American College
It seems appropriate to start the New Year by discussing a topic that many women list at the top of their New Year’s resolutions — saving money and reducing debt. I’m not talking about retirement savings, but rather developing good, old-fashioned savings habits. This may seem like a simple goal, but in today’s world many women simply don’t understand some of the basics or have lost the discipline to save and manage debt as a step toward a financially secure future.
Until a generation or two ago, the financial strength of the United States was built on the savings of women. In fact, many women can remember how their grandmothers collected dollar bills in coffee cans. If you asked them why grandma did this, they might answer, “So grandpa wouldn’t spend all of the family’s money.”
For grandmas who lived through the Great Depression of the 1930s or the hardships of World War II, saving some “rainy day money” was essential to family security. Until about 40 years ago, “coffee can savings” helped families make down payments on houses, send children to college, and ward off poverty in old age. Then, it all began to change. The two main reasons for this change were inflation and the introduction of credit cards.
Inflation
During the 1970s and early 1980s, U.S. inflation, measured by annual changes in the consumer price index, soared averaging 8 percent per year from 1970 through 1981.1 Imagine that grandma had socked away $1,000 in her coffee can on the first day of 1970 and then didn’t touch this money again for the next 12 years. By the end of 1981, the purchasing power of her $1,000 had shrunk to just $367. Remember: Inflation is the enemy of savings.
It has now been more than a quarter of a century since the era of high inflation ended. However, financial habits can take generations to form and generations to break. The inflation scare of the 1970s broke the great American savings tradition embodied by grandma and her cookie jar.
Just before and during the high inflation era, Americans saved about 10 percent of their incomes on average, measured by the personal savings rate. Since the end of that era, U.S. personal savings have been on a steady downward slide. In 2005 to 2007, the U.S. savings rate was negative for the first time since the Great Depression, which means that all U.S. consumers together were spending more than they earned.2
Credit
How can Americans persistently spend more than they earn? The short answer: by borrowing it. At just about the same historic moment that Americans began to save less, in the early 1980s, they began to borrow more. And then more and more. “U.S. consumer credit” measures the amount of borrowing on credit cards and consumer loans (for example, automobiles, college edu¬cation, and so forth) but not home mortgages. In 1980, total U.S. consumer credit was about $350 billion, or roughly $3,000 per household. By 2007, consumer credit had grown to $2.4 trillion, or about $23,000 per household, according to the Federal Reserve.3
Of course, mortgages on homes are the biggest source of household debt, and that also has increased substantially. Total U.S. “household credit market debt outstanding,” a measure of consumer credit plus home mortgages, increased from $1.3 trillion in 1980 to $12.8 trillion in 2007, according to the Federal Reserve.4 Not counting home mortgages, American households now spend almost 15 percent of their incomes just to repay debts.
The vast credit expansion that has taken place since 1980 is really the flip side of the inflation story. Just as inflation destroys the purchasing power of savings, inflation makes loans cheaper, because they can be paid back in future dollars that will have less value.
Women, savings and credit cards
In 1950, a world without cash was inconceivable. Today, an economic universe without plastic is just as inconceivable. In just two generations, Americans have gone from coffee can savers to credit card spenders. Today, 76 million U.S. women and 69 million U.S. men carry credit cards.5 And, the average U.S. college student has 2.8 credit cards.6
It can be valuable to understand how generational experience affects savings habits for women of all ages. Remember these points:
Grandma remembered the Great Depression and World War II and saved “rainy day money” in coffee cans. Eventually, she took this money out of the can and put it in banks, credit unions, or savings and loans to earn interest. Subliminally, grandma feared the calamity of being poor.
Mom remembered the era of inflation and how it destroyed the purchasing power of savings while making debts cheap to repay. Mom grew up in the era of credit expansion and credit card mania. Subliminally, mom put more value in what she could purchase than in what she could save.
Today’s women don’t have to imitate the habits of past generations. They can, and should, understand how savings and credit (debt) work together in a disciplined personal budget. Some women think the only way they can afford to save money from month to month is to cut up their credit cards, but that idea makes them feel poor and vulnerable. But there is a better way. Women can set personal goals for how much
Women, savings and CDs
Women find CDs to be attractive savings options for these reasons:
CDs usually pay higher rates of interest than other bank deposits (for example, passbook savings or money market deposit accounts).
They are relatively easy to understand.
They are predictable, with a level interest rate and a fixed maturity.
CDs offer the security of FDIC insurance.
So, advisors who wish to educate women about savings should have two skills:
1. They should be able to explain CDs in general, and FDIC insurance specifically.
2. They should suggest how women can shop for CDs that pay attractive current interest rates or yield.
Savings versus investing: How much savings is enough?
Because many women can remember grandma and her cookie jar, they don’t have much trouble understanding the difference between savings and investments.
The main trade-off between savings and investments is between easy access to cash (in savings) and the opportunity to earn a higher rate of return over time (in investments). So, the issue of “how much savings is enough” can depend on how each woman wishes to balance this tradeoff.
In summary, advisors can further strengthen their relationships with women clients and prospects by helping them understand how inflation and credit work and by formulating a plan together to build savings that create a sense of security. This will be a stepping stone for women in gaining the confidence they need to become savvy investors.
Notes
1. Consumer Price Index for All Urban Consumers, U.S. Department of Labor: Bureau of Labor Statistics.
2. Personal Savings Rate, U.S. Department of Commerce: Bureau of Economic Analysis.
3. Total Consumer Credit Outstanding, Board of Governors of the Federal Reserve System.
4. Total U.S. Credit Market Debt Outstanding, Board of Governors of the Federal Reserve System.
5. Barletta, Marti, Marketing to Women, 2d ed., Dearborn, 2006, p. 142.
6. College Credit Card Statistics, United College Marketing Service.Pages: 12
Wednesday, January 9, 2008
Flooded Damaged Cars
How to spot flood-damaged cars
By Insure.com
Tips for spotting a flood-damaged car
Check all gauges on the dashboard to look for signs of moisture. Test all the dashboard switches, including the lights, wipers, turn signals, radio, heater, and cigarette lighter. Flex wires under the dashboard. If the wires crack, it likely has water damage.
Check for signs of rust in the interior of the vehicle. Front-seat bolts tend to corrode quickly and they're very visible. Look for signs of rust in the trunk, especially at the lower part of the compartment near the tail lights.
Check for water lines in the carpeting. Look closely at the kick panels in the front seat. Water and silt have a tendency to collect in those areas.
When a car gets caught in a flood, you might expect that once it dries out it simply sputters to the salvage yard. Think again.
Sometimes flooded cars are totaled by an insurance company, sold through auto-salvage auctions, shipped hundreds of miles away, and cleaned up by dealers for resale. Fortunately, you can avoid flood cars and the myriad problems lurking beneath their hoods — if you know what to look for.
It doesn't take a trained nose to recognize a flood-damaged car. If the car doors have been closed and the car has been sitting out in the sun, the interior will have a strong musty odor. Bad odors are mainly due to moisture-laden carpet padding. Unless the carpet is removed and shampooed, the musty smell will never fully disappear.
However, not all flood cars reveal their true nature by aroma. Unscrupulous car dealers will mask water-damage smells with deodorants and the scent of "fresh mountain air." If that's the case, warning bells should sound in your head and you should look for other signs of water damage.
Problems imminent with flood cars
A flood-damaged car doesn't always reveal its shortcomings right away. Engine, transmission, and wheel and brake damage can develop just weeks after you purchase your "new" car.
If the car was totally submerged, it is wise to walk away from it. The vehicle could have been in sewer water, sandy water, or relatively debris-free water. Regardless, if water seeped into the engine or transmission, long-term problems are bound to crop up. For example, if the water carried sand into the engine, misfiring and blown gaskets could be just around the corner.
Additionally, submerged vehicles will often develop electrical problems.
There is also a chance you could get sick if you're driving a car that was submerged in sewer water. Unless your dealer removed the vehicle's carpet and padding and disinfected the interior, high bacteria levels are possible.
Can they all be bad?
Not all flood-damaged cars are pariahs. You can still get a quality car if it has been cleaned and restored properly. That includes: removing the vehicle's interior, including seats; removing the carpet padding and replacing it; disinfecting the car; changing the seat foam and shampooing the carpet; greasing all electrical connections; and replacing any corroded wires or components.
However, you want to make sure that the vehicle has been repaired properly. Take your car for a prepurchase inspection to a reputable mechanic before buying a car that might drown you in problems.
Finally, if you're suspicious about whether or not a car you're thinking about buying has indeed been in a flood, you can pay for a vehicle history from services such as CarFax.com. Keep in mind that the car's title will show that it's been in a flood only if it was officially totaled by an insurance company
By Insure.com
Tips for spotting a flood-damaged car
Check all gauges on the dashboard to look for signs of moisture. Test all the dashboard switches, including the lights, wipers, turn signals, radio, heater, and cigarette lighter. Flex wires under the dashboard. If the wires crack, it likely has water damage.
Check for signs of rust in the interior of the vehicle. Front-seat bolts tend to corrode quickly and they're very visible. Look for signs of rust in the trunk, especially at the lower part of the compartment near the tail lights.
Check for water lines in the carpeting. Look closely at the kick panels in the front seat. Water and silt have a tendency to collect in those areas.
When a car gets caught in a flood, you might expect that once it dries out it simply sputters to the salvage yard. Think again.
Sometimes flooded cars are totaled by an insurance company, sold through auto-salvage auctions, shipped hundreds of miles away, and cleaned up by dealers for resale. Fortunately, you can avoid flood cars and the myriad problems lurking beneath their hoods — if you know what to look for.
It doesn't take a trained nose to recognize a flood-damaged car. If the car doors have been closed and the car has been sitting out in the sun, the interior will have a strong musty odor. Bad odors are mainly due to moisture-laden carpet padding. Unless the carpet is removed and shampooed, the musty smell will never fully disappear.
However, not all flood cars reveal their true nature by aroma. Unscrupulous car dealers will mask water-damage smells with deodorants and the scent of "fresh mountain air." If that's the case, warning bells should sound in your head and you should look for other signs of water damage.
Problems imminent with flood cars
A flood-damaged car doesn't always reveal its shortcomings right away. Engine, transmission, and wheel and brake damage can develop just weeks after you purchase your "new" car.
If the car was totally submerged, it is wise to walk away from it. The vehicle could have been in sewer water, sandy water, or relatively debris-free water. Regardless, if water seeped into the engine or transmission, long-term problems are bound to crop up. For example, if the water carried sand into the engine, misfiring and blown gaskets could be just around the corner.
Additionally, submerged vehicles will often develop electrical problems.
There is also a chance you could get sick if you're driving a car that was submerged in sewer water. Unless your dealer removed the vehicle's carpet and padding and disinfected the interior, high bacteria levels are possible.
Can they all be bad?
Not all flood-damaged cars are pariahs. You can still get a quality car if it has been cleaned and restored properly. That includes: removing the vehicle's interior, including seats; removing the carpet padding and replacing it; disinfecting the car; changing the seat foam and shampooing the carpet; greasing all electrical connections; and replacing any corroded wires or components.
However, you want to make sure that the vehicle has been repaired properly. Take your car for a prepurchase inspection to a reputable mechanic before buying a car that might drown you in problems.
Finally, if you're suspicious about whether or not a car you're thinking about buying has indeed been in a flood, you can pay for a vehicle history from services such as CarFax.com. Keep in mind that the car's title will show that it's been in a flood only if it was officially totaled by an insurance company
Tuesday, January 8, 2008
Be Prepared - Accidents Happen
What to do after a car accident
It's material you'd rather not read. But if you're in a car accident, you'll need to be familiar with the policy, the process and the payments.
advertisement
Article Tools
E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Insure.com
Your heart is beating hard, you're breathing fast and you can't believe you just got into an accident. Look around. You're alive? Good. Everyone else? Even better. Now here's what you need to do once the dust settles.
You should:
Keep your auto insurance information in the glove compartment, including a pre-printed form allowing you to provide the particulars of any accident, including a sketch of the scene. (Even better, use that disposable camera you keep in the car. You don't? You should.)
Stay at the scene of the accident until police have come and gone, making sure you have the name of the officer(s) and that they have your version of what happened. Do not assume a police report will "take you off the hook" or even that one will be generated in the event of a minor accident ("minor" may mean no one is injured even though your car suffers a direct hit).
Exchange names, addresses, driver's license and insurance information with the driver of the other car.
Review your policy to make sure of your coverage. Make a list of questions and related information you want to know.
Report the accident promptly to your insurance company. This may not seem wise or necessary to you. The accident may be minor, you may not want to risk seeing your rates rise or you may live in a no-fault state and think that the other driver's insurance company will pay for everything. But state laws generally protect you from higher rates unless an accident was your fault. And even though you may think no-fault lets you off the hook for the other driver's medical expenses, it does not. It simply says his insurance will pay for his expenses (up to the limits of his coverage), regardless of who is at fault. But rest assured his insurance company will come knocking on your insurer's door seeking repayment if it believes you were at fault in the accident. The point is, your insurer should be informed.
Think that's the end of it? Read on.
The policy
Admit it. You've never read your auto insurance policy, you don't want to read it and even if you're in an accident, you're still not sure if it would force you into those endless lines of fine print and insurance-speak. Assuming you can even find the policy.
If you can, look in the back for what are called the conditions of your policy -- what you are supposed to do in the event of an accident. These requirements are pretty straightforward, although compliance may seem like a hassle when you're already upset by the accident itself. But you may forfeit some of your rights if you don't follow these instructions.
Next, look at the cover sheet of the policy, which is called the declarations page and which lists the types and dollar limits of your coverage, including short-hand references to any discounts or special provisions you have elected to purchase.
Last, there's the actual insuring agreement itself, which explains what your insurer is protecting you against, including definitions of terms used in the agreement and explanations of what's not covered (called the exclusions).
If you don't understand your policy, keep calling your agent and/or state insurance department until you get clear answers to your questions. Most people have heard that ignorance is no defense under the law, but they don't think they'll ever have to find out. Auto accidents are one of the most common ways to discover the sobering cost of ignorance.
The payments
Hopefully, your accident involves only damages to things and not to people. And, hopefully, it wasn't your fault.
Even if it's just your car that's banged up, repairs can be a major headache. This is where the reality sets in that replacement cost is not the same thing as market value. Your car can easily be declared a total loss even though the money you'd receive is nowhere near what it would cost you to replace the vehicle.
The best advice about getting your car fixed is to remember that the money may be coming from the insurance company but you should control the repair process. This means refusing to settle for a repair job you don't like. And it may also mean refusing to accept the use of generic replacement parts instead of the original manufacturer's parts (your policy may give your insurer the right to use generic parts, so it's important to check the fine print to know your rights). Even if your favorite shop doesn't do the repairs, you can still have your mechanic look at the car (although this may be at your personal expense) and provide an assessment of what should be fixed. Ultimately, it's your car and your call about what's done to it.
Talk to your agent and/or insurer about your rights (better still, you should really ask these questions before you buy a policy). And if you don't like the answers, call your state insurance department.
Copyright © insure.com. All rights reserved.
It's material you'd rather not read. But if you're in a car accident, you'll need to be familiar with the policy, the process and the payments.
advertisement
Article Tools
E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Insure.com
Your heart is beating hard, you're breathing fast and you can't believe you just got into an accident. Look around. You're alive? Good. Everyone else? Even better. Now here's what you need to do once the dust settles.
You should:
Keep your auto insurance information in the glove compartment, including a pre-printed form allowing you to provide the particulars of any accident, including a sketch of the scene. (Even better, use that disposable camera you keep in the car. You don't? You should.)
Stay at the scene of the accident until police have come and gone, making sure you have the name of the officer(s) and that they have your version of what happened. Do not assume a police report will "take you off the hook" or even that one will be generated in the event of a minor accident ("minor" may mean no one is injured even though your car suffers a direct hit).
Exchange names, addresses, driver's license and insurance information with the driver of the other car.
Review your policy to make sure of your coverage. Make a list of questions and related information you want to know.
Report the accident promptly to your insurance company. This may not seem wise or necessary to you. The accident may be minor, you may not want to risk seeing your rates rise or you may live in a no-fault state and think that the other driver's insurance company will pay for everything. But state laws generally protect you from higher rates unless an accident was your fault. And even though you may think no-fault lets you off the hook for the other driver's medical expenses, it does not. It simply says his insurance will pay for his expenses (up to the limits of his coverage), regardless of who is at fault. But rest assured his insurance company will come knocking on your insurer's door seeking repayment if it believes you were at fault in the accident. The point is, your insurer should be informed.
Think that's the end of it? Read on.
The policy
Admit it. You've never read your auto insurance policy, you don't want to read it and even if you're in an accident, you're still not sure if it would force you into those endless lines of fine print and insurance-speak. Assuming you can even find the policy.
If you can, look in the back for what are called the conditions of your policy -- what you are supposed to do in the event of an accident. These requirements are pretty straightforward, although compliance may seem like a hassle when you're already upset by the accident itself. But you may forfeit some of your rights if you don't follow these instructions.
Next, look at the cover sheet of the policy, which is called the declarations page and which lists the types and dollar limits of your coverage, including short-hand references to any discounts or special provisions you have elected to purchase.
Last, there's the actual insuring agreement itself, which explains what your insurer is protecting you against, including definitions of terms used in the agreement and explanations of what's not covered (called the exclusions).
If you don't understand your policy, keep calling your agent and/or state insurance department until you get clear answers to your questions. Most people have heard that ignorance is no defense under the law, but they don't think they'll ever have to find out. Auto accidents are one of the most common ways to discover the sobering cost of ignorance.
The payments
Hopefully, your accident involves only damages to things and not to people. And, hopefully, it wasn't your fault.
Even if it's just your car that's banged up, repairs can be a major headache. This is where the reality sets in that replacement cost is not the same thing as market value. Your car can easily be declared a total loss even though the money you'd receive is nowhere near what it would cost you to replace the vehicle.
The best advice about getting your car fixed is to remember that the money may be coming from the insurance company but you should control the repair process. This means refusing to settle for a repair job you don't like. And it may also mean refusing to accept the use of generic replacement parts instead of the original manufacturer's parts (your policy may give your insurer the right to use generic parts, so it's important to check the fine print to know your rights). Even if your favorite shop doesn't do the repairs, you can still have your mechanic look at the car (although this may be at your personal expense) and provide an assessment of what should be fixed. Ultimately, it's your car and your call about what's done to it.
Talk to your agent and/or insurer about your rights (better still, you should really ask these questions before you buy a policy). And if you don't like the answers, call your state insurance department.
Copyright © insure.com. All rights reserved.
Monday, January 7, 2008
Flood Insurance
Flood Insurance
Did you know most home and business insurance policies don't cover flood losses? If your community is a participant in the National Flood Insurance Program (NFIP), you're eligible for federally sponsored Flood Insurance coverage for your home or business.
Allstate Participates in the National Flood Insurance Program
Allstate is an active participant in the NFIP. By selecting National Flood Insurance coverage through a reliable company like Allstate, you can have peace of mind knowing you'll receive a high level of customer service when you need it most.
Excess Flood Insurance Coverage May Be Available
In some states, if you purchase National Flood Insurance through Allstate and find you need more coverage than the maximum limit provided by the NFIP program, you may be eligible to purchase additional coverage through an Excess Flood Insurance* Policy from your Allstate agent.
Contact a local Allstate agent to learn more about your eligibility for Flood Insurance protection.
Floods and flash floods can occur anytime, anywhere
Floods happen in all 50 states: on coasts,
on mountains, along rivers, in the desert,
in towns and cities of every size. In recent years, roughly 25% of all flood insurance claims came from areas not considered
high risk.
You can't rely on Federal Disaster Assistance alone
Many people don't qualify for grants, making the most common form of assistance a disaster home loan. These loans must be repaid: principal plus interest.
Flood insurance may be more affordable than you think
Contact an Allstate agent to learn more
about the Flood Insurance coverage that
may be available in your community.
Jim Somborovich is an Allstate agent in the State of Washington and can be reached at: js@allstate.com
Did you know most home and business insurance policies don't cover flood losses? If your community is a participant in the National Flood Insurance Program (NFIP), you're eligible for federally sponsored Flood Insurance coverage for your home or business.
Allstate Participates in the National Flood Insurance Program
Allstate is an active participant in the NFIP. By selecting National Flood Insurance coverage through a reliable company like Allstate, you can have peace of mind knowing you'll receive a high level of customer service when you need it most.
Excess Flood Insurance Coverage May Be Available
In some states, if you purchase National Flood Insurance through Allstate and find you need more coverage than the maximum limit provided by the NFIP program, you may be eligible to purchase additional coverage through an Excess Flood Insurance* Policy from your Allstate agent.
Contact a local Allstate agent to learn more about your eligibility for Flood Insurance protection.
Floods and flash floods can occur anytime, anywhere
Floods happen in all 50 states: on coasts,
on mountains, along rivers, in the desert,
in towns and cities of every size. In recent years, roughly 25% of all flood insurance claims came from areas not considered
high risk.
You can't rely on Federal Disaster Assistance alone
Many people don't qualify for grants, making the most common form of assistance a disaster home loan. These loans must be repaid: principal plus interest.
Flood insurance may be more affordable than you think
Contact an Allstate agent to learn more
about the Flood Insurance coverage that
may be available in your community.
Jim Somborovich is an Allstate agent in the State of Washington and can be reached at: js@allstate.com
Saturday, January 5, 2008
The Girl's Guide to Retirement
The Girl's Guide to Retirement
by Aleksandra Todorova
September 17, 2007
Updated on September 7, 2007.
FIRST, THE GOOD NEWS: Today's women are just as educated as men — and they're nearly as likely to be working.
In 2006, 26.8 million women age 25 and older held bachelor's, master's, professional or doctorate degrees, compared with 26.9 million men, according to the U.S. Census Bureau. Just over 67 million women were actively employed, alongside 77 million men. And in 2006, 41% of all privately-owned U.S. firms — roughly 10.4 million companies, according to the Center for Women's Business Research — were at least half-owned by women.
Behind these numbers, however, is a disturbing disparity: When it comes to retirement planning, women lag significantly behind. "Women often underestimate how much money they'll need in retirement," says Ginita Wall, a certified financial planner (CFP) and co-founder of the Women's Institute for Financial Education, or wife.org. "They either think they'll cut their expenses or they'll live off Social Security."
But the fact is, a comfortable retirement is a breathtakingly expensive endeavor. Financial planners suggest that one should shoot for an annual retirement income that's roughly 80% of your preretirement income. Translation? Everyone needs to save — a lot. But women — who tend to live five years longer than men — should actually be saving more than men.
And sadly, they aren't. In its 2007 Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI) found that the majority of women (30%) believe they need under $250,000 for retirement, while 22% of men believed they needed anywhere from $500,000 to $1 million. Additionally, nearly half of the women (43%) in a 2006 survey conducted by EBRI said they had less than $10,000 in savings, which included retirement accounts such as IRAs and 401(k)s, as compared with 37% of men.
Retirement planning strategies aren't necessarily different for women than they are for men. But it's particularly important that women take the goal of saving for retirement seriously. Here are three rules to live by.
Start EarlyWomen still earn less than men. In 2006 a female full-time worker earned 77 cents for each dollar earned by a man, according to the Women's Institute for a Secure Retirement, or Wiser. That amounts to $445,000 less in earned income over a woman's lifetime.
How to fight back? Start young. Consider this: If you start saving $5,000 a year when you're 25 years old, by the time you turn 65 you will have a comfy $1.3 million to live off. But if you start 20 years later, at age 45, you will have less than $230,000. (That's assuming an 8% annual return. For a more detailed account, crunch your numbers in our 401(k) Planner.)
Too late to start young? Then it's time to make up for lost time. Click here for advice.
Create Your Own Benefits PlanWomen are more likely than men to cut back on their hours of employment to meet family needs. A quarter of working women worked part-time in 2006, compared with about 11% of working men, according to the U.S. Bureau of Labor Statistics.
"Women typically take time out of their careers to raise a family, and they often take lesser-paying jobs in order to have more flexible hours," says Wife.org's Wall. "So a doctor may, rather than have a private practice, end up working in a clinic so she can pick up her kids at 5:30 every night."
Women are also more likely to work for themselves. Female-run businesses are popping up at nearly twice the rate of all firms, according to the Center for Women's Business Research.
The net result is that women are less likely to have an employer-sponsored retirement plan, such as a 401(k). In that case, a traditional IRA can provide an upfront tax benefit — you can make an up to $4,000 tax-deductible contribution for 2007 ($5,000 for those 50 or older), while a Roth IRA allows you to withdraw retirement funds tax-free (but contributions are made with after-tax dollars). For more on the IRA contribution limits and eligibility, click here.
Small-business owners, in the meantime, should consider opening a SEP IRA, which allows you to contribute up to 20% of self-employment income, up to $45,000 a year. For more retirement options for small businesses, read our story.
And what about stay-at-home moms? Women who don't work outside the home can set up a Spousal IRA.
Women and Men in Retirement: The Facts
Life expectancy at 65
Men: 17.1 years (live until 82.1)
Women: 20 years (live until 85)
Population 65 and older living alone
Men: 18%
Women: 38.3%
Population 85 and older living alone
Men: 29%
Women: 57.4%
Median number of years spent in the work force (for workers retired in 2000)
Men: 44
Women: 32
Average Social Security monthly benefit when started at 62
Men: $1,051
Women: $712
Average Social Security monthly benefit when started at 65
Men: $1,195
Women: $824
Population 65 and older living below poverty line
Men: 7%
Women: 12%
Sources: US Census (2006 Current Population Survey & 2005 American Community Survey); Social Security Administration; National Center for Health Statistics; Bureau of Labor Statistics
Stay on Top of the Family FinancesMany women still let their husbands handle the family finances. Should that marriage end in divorce — or should the wife become widowed, that can be a disaster. "At Wife.org we have a saying, 'A man is not a financial plan'," says Wall.
It's an all-too-common situation that leaves many widows and divorcees on the path to bankruptcy: a problem that Muriel Siebert, founder of the Women's Financial Network at Siebert and the first woman to own a seat on the New York Stock Exchange, would like to see change. "You've got women today that are going to be left a big responsibility and they don't know the numbers," she says. "It's not that they're stupid, it's that they've never had to do these things."
To protect yourself, make sure you're involved with investment decisions, stay on top of your debt obligations and make sure you have enough insurance coverage. For advice on how to protect yourself in the event of a divorce, read our story.
What if your husband doesn't like to talk about these things? "Ask the questions and if it doesn't get answered the first time, find another way to ask it," says Stephanie Sherman, a financial planner with Prudential Financial. "Too often women say, 'Oh, my husband said it'll be fine.' That's not always the case." For more on that, read our story, The Five Mistakes Married Women Make.
by Aleksandra Todorova
September 17, 2007
Updated on September 7, 2007.
FIRST, THE GOOD NEWS: Today's women are just as educated as men — and they're nearly as likely to be working.
In 2006, 26.8 million women age 25 and older held bachelor's, master's, professional or doctorate degrees, compared with 26.9 million men, according to the U.S. Census Bureau. Just over 67 million women were actively employed, alongside 77 million men. And in 2006, 41% of all privately-owned U.S. firms — roughly 10.4 million companies, according to the Center for Women's Business Research — were at least half-owned by women.
Behind these numbers, however, is a disturbing disparity: When it comes to retirement planning, women lag significantly behind. "Women often underestimate how much money they'll need in retirement," says Ginita Wall, a certified financial planner (CFP) and co-founder of the Women's Institute for Financial Education, or wife.org. "They either think they'll cut their expenses or they'll live off Social Security."
But the fact is, a comfortable retirement is a breathtakingly expensive endeavor. Financial planners suggest that one should shoot for an annual retirement income that's roughly 80% of your preretirement income. Translation? Everyone needs to save — a lot. But women — who tend to live five years longer than men — should actually be saving more than men.
And sadly, they aren't. In its 2007 Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI) found that the majority of women (30%) believe they need under $250,000 for retirement, while 22% of men believed they needed anywhere from $500,000 to $1 million. Additionally, nearly half of the women (43%) in a 2006 survey conducted by EBRI said they had less than $10,000 in savings, which included retirement accounts such as IRAs and 401(k)s, as compared with 37% of men.
Retirement planning strategies aren't necessarily different for women than they are for men. But it's particularly important that women take the goal of saving for retirement seriously. Here are three rules to live by.
Start EarlyWomen still earn less than men. In 2006 a female full-time worker earned 77 cents for each dollar earned by a man, according to the Women's Institute for a Secure Retirement, or Wiser. That amounts to $445,000 less in earned income over a woman's lifetime.
How to fight back? Start young. Consider this: If you start saving $5,000 a year when you're 25 years old, by the time you turn 65 you will have a comfy $1.3 million to live off. But if you start 20 years later, at age 45, you will have less than $230,000. (That's assuming an 8% annual return. For a more detailed account, crunch your numbers in our 401(k) Planner.)
Too late to start young? Then it's time to make up for lost time. Click here for advice.
Create Your Own Benefits PlanWomen are more likely than men to cut back on their hours of employment to meet family needs. A quarter of working women worked part-time in 2006, compared with about 11% of working men, according to the U.S. Bureau of Labor Statistics.
"Women typically take time out of their careers to raise a family, and they often take lesser-paying jobs in order to have more flexible hours," says Wife.org's Wall. "So a doctor may, rather than have a private practice, end up working in a clinic so she can pick up her kids at 5:30 every night."
Women are also more likely to work for themselves. Female-run businesses are popping up at nearly twice the rate of all firms, according to the Center for Women's Business Research.
The net result is that women are less likely to have an employer-sponsored retirement plan, such as a 401(k). In that case, a traditional IRA can provide an upfront tax benefit — you can make an up to $4,000 tax-deductible contribution for 2007 ($5,000 for those 50 or older), while a Roth IRA allows you to withdraw retirement funds tax-free (but contributions are made with after-tax dollars). For more on the IRA contribution limits and eligibility, click here.
Small-business owners, in the meantime, should consider opening a SEP IRA, which allows you to contribute up to 20% of self-employment income, up to $45,000 a year. For more retirement options for small businesses, read our story.
And what about stay-at-home moms? Women who don't work outside the home can set up a Spousal IRA.
Women and Men in Retirement: The Facts
Life expectancy at 65
Men: 17.1 years (live until 82.1)
Women: 20 years (live until 85)
Population 65 and older living alone
Men: 18%
Women: 38.3%
Population 85 and older living alone
Men: 29%
Women: 57.4%
Median number of years spent in the work force (for workers retired in 2000)
Men: 44
Women: 32
Average Social Security monthly benefit when started at 62
Men: $1,051
Women: $712
Average Social Security monthly benefit when started at 65
Men: $1,195
Women: $824
Population 65 and older living below poverty line
Men: 7%
Women: 12%
Sources: US Census (2006 Current Population Survey & 2005 American Community Survey); Social Security Administration; National Center for Health Statistics; Bureau of Labor Statistics
Stay on Top of the Family FinancesMany women still let their husbands handle the family finances. Should that marriage end in divorce — or should the wife become widowed, that can be a disaster. "At Wife.org we have a saying, 'A man is not a financial plan'," says Wall.
It's an all-too-common situation that leaves many widows and divorcees on the path to bankruptcy: a problem that Muriel Siebert, founder of the Women's Financial Network at Siebert and the first woman to own a seat on the New York Stock Exchange, would like to see change. "You've got women today that are going to be left a big responsibility and they don't know the numbers," she says. "It's not that they're stupid, it's that they've never had to do these things."
To protect yourself, make sure you're involved with investment decisions, stay on top of your debt obligations and make sure you have enough insurance coverage. For advice on how to protect yourself in the event of a divorce, read our story.
What if your husband doesn't like to talk about these things? "Ask the questions and if it doesn't get answered the first time, find another way to ask it," says Stephanie Sherman, a financial planner with Prudential Financial. "Too often women say, 'Oh, my husband said it'll be fine.' That's not always the case." For more on that, read our story, The Five Mistakes Married Women Make.
Thursday, January 3, 2008
Save 40% on your Homeowners Insurance
Homeowners Insurance Update – Help Your People Qualify
Higher Deductibles May Be The Answer!
The Problem:
Higher interest rates eliminate some potential buyers from being able to afford a home in today’s marketplace! They found the perfect house, applied for one of your great loans – and wham!! – They learn about the higher interest rates and higher payments and the dream starts to turn into a nightmare!
The Answer:
There’s no easy answer to the above situation but some relief can be found in getting a higher deductible on their homeowner’s insurance coverage. The savings: 14% to as much as 42% off of their expected premium. The reduced premiums mean that their closing costs are reduced as well as their monthly payments – now and forever as long as they own the house.
Our company offers superior service on real estate transactions providing Binders (usually within 15 minutes) for your closings that are fast, accurate, and affordable. We offer high deductibles that can save your clients hundreds of dollars per year on their homeowners insurance.
We absolutely guarantee the best service – give us the opportunity to assist you on your next real estate transaction.
Se Habla Espanol – ask for Mitzi Majano or Jim Somborovich
425-562-3011 425-564-0861 FAX
js@allstate.commitzi@allstate.com
Higher Deductibles May Be The Answer!
The Problem:
Higher interest rates eliminate some potential buyers from being able to afford a home in today’s marketplace! They found the perfect house, applied for one of your great loans – and wham!! – They learn about the higher interest rates and higher payments and the dream starts to turn into a nightmare!
The Answer:
There’s no easy answer to the above situation but some relief can be found in getting a higher deductible on their homeowner’s insurance coverage. The savings: 14% to as much as 42% off of their expected premium. The reduced premiums mean that their closing costs are reduced as well as their monthly payments – now and forever as long as they own the house.
Our company offers superior service on real estate transactions providing Binders (usually within 15 minutes) for your closings that are fast, accurate, and affordable. We offer high deductibles that can save your clients hundreds of dollars per year on their homeowners insurance.
We absolutely guarantee the best service – give us the opportunity to assist you on your next real estate transaction.
Se Habla Espanol – ask for Mitzi Majano or Jim Somborovich
425-562-3011 425-564-0861 FAX
js@allstate.commitzi@allstate.com
Wednesday, January 2, 2008
Earthquake
It could happen again - Are you prepared?
Powerful Northwest quake injures at least 250
SEATTLE (AP) — A powerful earthquake rocked the Northwest on Wednesday, shattering windows, showering bricks onto sidewalks and sending terrified crowds running into the streets in cities including Seattle and Portland, Ore. Despite the 6.8 magnitude, damage and injuries were relatively minor, a fact experts attributed to the quake's depth. About 250 people were reported injured in Seattle and Olympia, at least three of them in serious condition but none with injuries considered critical, officials said. The earthquake temporarily shut down the Seattle airport, knocked out power to hundreds of thousands of people, cracked the dome atop the Capitol in Olympia and briefly trapped about 30 people atop a swaying Space Needle, 605 feet above the city.
Powerful Northwest quake injures at least 250
SEATTLE (AP) — A powerful earthquake rocked the Northwest on Wednesday, shattering windows, showering bricks onto sidewalks and sending terrified crowds running into the streets in cities including Seattle and Portland, Ore. Despite the 6.8 magnitude, damage and injuries were relatively minor, a fact experts attributed to the quake's depth. About 250 people were reported injured in Seattle and Olympia, at least three of them in serious condition but none with injuries considered critical, officials said. The earthquake temporarily shut down the Seattle airport, knocked out power to hundreds of thousands of people, cracked the dome atop the Capitol in Olympia and briefly trapped about 30 people atop a swaying Space Needle, 605 feet above the city.
Tuesday, January 1, 2008
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