Insurance Facts vs Fiction

Safe Driver Cities

2008-07-01T15:41:00.000-07:00

4th Annual "Allstate America's Best Drivers Report™"
Signals Where the Safest Drivers Cruise
Additional Information:
2008 Data | 2007 Data | 2006 Data | 2005 Data | Allstate Safety Leadership Award®

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NORTHBROOK, Ill., July 1, 2008-

Residents in Sioux Falls, S.D., continued to top the chart as the safest drivers in the U.S., according to the fourth annual "Allstate America's Best Drivers Report™." The average driver in Sioux Falls experiences an auto collision every 14.6 years. Compared to the national likelihood of a collision every 10 years - Sioux Falls motorists are 31.6 percent less likely to have an accident than the national average.

"I am happy to know that our residents are continuing to drive safely, particularly with the July 4th holiday approaching," said Dave Munson, mayor of Sioux Falls. "The quality of our community driver education programs, combined with the careful consideration of our traffic engineering department, goes a long way to make our roadways safe for everyone."

Holding fast to the number two spot for the third consecutive year is Fort Collins, Colo. On average, motorists in Fort Collins experience a car collision every 13.4 years.

For the past four years, Allstate actuaries have conducted an in-depth analysis of company claim data to determine the likelihood drivers in America's 200 largest cities will experience a vehicle collision compared to the national average. Allstate's auto policies represent about 12 percent of all U.S. auto policies, making this report a realistic snapshot of what's happening on America's roadways. This year's report also includes data on male vs. female drivers, and compares drivers in different generations: pre-baby boomer, baby boomers, generation X and generation Y.

"Allstate's America's Best Driver's Report was created to boost the country's discussion on safe driving. Each year, we hope that the report will increase awareness on the importance of being tolerant and attentive behind the wheel. This is also a critical message we must communicate with teen drivers," said Mike Roche, senior vice president, Allstate's Claim Organization.

America's Safest Cities based on Gender And Generation

To add to the country's interest of comparing male vs. female, pre-baby boomer vs. boomer, generation X vs. generation Y, Allstate's Best Drivers report delivers a new category and recognizes the safest cities based on gender and generation. Allstate compared the top 20 cities where Allstate writes auto insurance policies to determine the safest cities based on gender and generation. Tucson, Ariz. received top honors as the safest city for males, females, pre-baby boomers, baby boomers and Gen X. El Paso, TX, landed the number one spot as the safest city for Gen Y drivers, according to Allstate's data.

Males Females
City Average Years
Between Collisions City Average Years
Between Collisions
1. Tucson, Ariz. 11.8 1. Tucson, Ariz. 10.1
2. El Paso, TX 10.6 2. El Paso, TX 9.5
3. Salt Lake City, UT 10.0 3. Jacksonville, Fla. 9.2
4. Jacksonville, Fla. 10.0 4. Salt Lake City, UT 9.1
5. Fort Lauderdale, Fla. 9.7 5. Fort Lauderdale, Fla. 8.8
6. Fort Worth, TX 9.2 6. Fort Worth, TX 8.8
7. San Diego, Calif. 8.9 7. San Diego, Calif. 8.7
8. New York, N.Y. 8.9 8. New York, N.Y. 8.6
9. San Jose, Calif. 8.5 9. Charlotte, N.C. 8.3
10. Charlotte, N.C. 8.4 10. San Jose, Calif. 8.2

Pre Baby Boomers Baby Boomers
City Average Years
Between Collisions City Average Years
Between Collisions
1. Tucson, Ariz. 11.9 1. Tucson, Ariz. 12.2
2. Salt Lake City, UT 11.9 2. Jacksonville, Fla. 11.0
3. El Paso, TX 11.8 3. Salt Lake City, UT 10.8
4. Charlotte, N.C. 11.0 4. El Paso, TX 10.4
5. San Diego, Calif. 10.9 5. Fort Lauderdale, Fla. 10.3
6. Jacksonville, Fla. 10.9 6. Fort Worth, TX 10.1
7. Fort Worth, TX 10.8 7. Charlotte, N.C. 9.8
8. San Jose, Calif. 10.7 8. San Diego, Calif. 9.8
9. Orlando, Fla. 9.7 9. Orlando, Fla. 9.1
10. Fort Lauderdale, Fla. 9.6 10. New York, N.Y. 9.0

Generation X Generation Y
City Average Years
Between Collisions City Average Years
Between Collisions
1. Tucson, Ariz. 11.2 1. El Paso, TX 7.5
2. El Paso, TX 10.5 2. Tucson, Ariz. 7.0
3. Salt Lake City, UT 9.7 3. Salt Lake City, UT 6.9
4. Jacksonville, Fla. 9.6 4. New York, N.Y. 6.6
5. Fort Lauderdale, Fla. 9.3 5. San Diego, Calif. 6.3
6. Fort Worth, TX 9.1 6. San Jose, Calif. 6.2
7. San Diego, Calif. 8.8 7. Jacksonville, Fla. 6.2
8. New York, N.Y. 8.7 8. Fort Worth, TX 6.0
9. San Jose, Calif. 8.5 9. Chicago, Ill. 5.8
10. Orlando, Fla. 8.5 10. Fort Lauderdale, Fla. 5.8

"Arizona is one of the fastest growing states in the country, and over the years, vehicle miles traveled have naturally increased. In 2004, Governor Napolitano created the Governor's Traffic Safety Advisory Council (GTSAC) to bring together safety organizations to develop, promote, and implement cost-effective traffic safety strategies to save lives on all public roads in Arizona. The increased educational programs from state agencies and community safety partners, along with law enforcement details and activities to remove dangerous drivers, have helped create safer motorist behaviors," said Richard Fimbres, director of Governor's Office of Highway Safety in Arizona.

The Top 10

Drivers from Sioux Falls maintained their status as the safest city in this year's report, in addition to increasing their average years between collisions, from 13.7 to 14.6. However, four cities, including three from Michigan, have found a spot on the top 10 list for the first time in the history of the report. Midwestern drivers appear to continue to recognize the importance of driving safely. Half of the 10 top cities are in America's heartland, according to the report.

Rank/City Collision Likelihood
Compared to National
Average Average Years
Between Collisions
1. Sioux Falls, S.D. 31.6% less likely 14.6
2. Fort Collins, Colo. 25.5% less likely 13.4
3. Chattanooga, Tenn. 25.1% less likely 13.3
4. Sterling Heights, Mich. 24.4% less likely 13.2
5. Warren, Mich. 24.0% less likely 13.2
6. Knoxville, Tenn. 23.4% less likely 13.1
7. Grand Rapids, Mich. 22.7% less likely 12.9
8. Cedar Rapids, IA 22.3% less likely 12.9
9. Lexington, Ky. 22.0% less likely 12.8
10. Detroit, Mich. 19.5% less likely 12.4

2007 Competent Commuters by Population

Cities with More Than One Million Residents...

For the fourth consecutive year, drivers in Phoenix, Ariz., are the safest big city commuters, according to Allstate. Phoenix motorists can expect to bump into another vehicle on the roadway every 9.8 years - slightly more frequently than the national average.

Rank/City Collision Likelihood
Compared to National
Average Average Years
Between Collisions
84. Phoenix, Ariz. 1.5% more likely 9.8
112. San Diego, Calif. 9.9% more likely 9.1
126. New York, N.Y. 13.2% more likely 8.8
153. Houston, TX 23.5% more likely 8.1
161. San Antonio, TX 25.7% more likely 8.0
167. Dallas, TX 27.6% more likely 7.8
176. Chicago, Ill. 32.3% more likely 7.6
182. Los Angeles, Calif. 41.5% more likely 7.1
187. Philadelphia, Pa. 50.4% more likely 6.6

Cities with 500,000 to One Million Residents...

Detroit drivers kept their motors roaring safely and topped the list of safest drivers in mid-sized cities with populations between 500,000 to 1,000,000 residents. In addition to making the top 10 list for the first time, drivers in the Motor City increased their average years between collisions to once every 12.4 years. Drivers in all the top 10 cities in this list for mid-sized cities are less likely than the national average to experience a collision.

Rank/City Collision Likelihood
Compared to National
Average Average Years
Between Collisions
10. Detroit, Mich. 19.5 less likely 12.4
25. Milwaukee, Wis. 15.0 less likely 11.8
30. Louisville, Ky. 12.2 less likely 11.4
33. Nashville, Tenn. 10.0 less likely 11.1
39. Tucson, Ariz. 9.3 less likely 11.0
44. Memphis, Tenn. 8.6 less likely 10.9
48. Denver, Colo. 6.6 less likely 10.7
54. Oklahoma City, Okla. 4.9 less likely 10.5
60. Indianapolis, Ind. 3.6 less likely 10.4
67. El Paso, TX 2.2 less likely 10.2

All Pumped Up For Free Gas!

Allstate pumped out free gas today to reward Sioux Falls residents for three consecutive years of safe driving habits according to "Allstate America's Best Drivers Report." Eager drivers lined up before dawn for the chance to get free gas, compliments of Allstate Insurance Company. The mayor of Sioux Falls and other city officials joined local Allstate agents to pump petrol for happy commuters - delivering some unexpected relief from record high gas prices.

Allstate Safety Leadership Award®

Allstate will honor motorists in Sioux Falls, SD., today by presenting Sioux Falls Mayor Dave Munson with the Allstate Safety Leadership Award® as recognition for the safe driving habits of the city's residents.

The City of Sioux Falls will accept the Allstate Safety Leadership Award in recognition of the contributions made by the city to create and foster a safe driving environment for its residents. The award is Allstate's highest public honor, recognizing and promoting public awareness for successful public safety programs. Allstate presents the "Allstate America's Best Driver's Report" and the Allstate Safety Leadership Award to inspire others to take a leadership role in the safety arena.

Crashes Happen

According to the National Highway Traffic Safety Administration (NHTSA), more fatal crashes occur on Saturdays than any other day of the week. Sunday ranked second and Friday came in third. Additionally, most collisions happen between 6 and 9 p.m. From 3 to 6 p.m. ranked second, and 9 p.m. to midnight finished third. The fewest crashes occur between 3 and 6 a.m.

Safe-Driving Tips

Auto crashes in general have declined over the last few years, but crash fatalities still average around an alarming 40,000 every year (source: NHTSA), despite technological advances. A much higher number of crashes result in permanent disability. With the main accident causes being human errors, following are some basic but life-saving reminders drivers should consider:

Avoid disastrous distractions - Safe driving takes concentration. If a driver is talking on a cell phone or changing the radio station, that driver isn't paying enough attention to the road. Distracted driving is a factor in 25 to 30 percent of all traffic crashes (source: Network of Employers for Traffic Safety). Take extra care in wild weather - Sometimes, bad weather conditions will contribute to an accident by interfering with visibility, diminishing traction on the surface of the road, or otherwise making it difficult to keep the car under control. A driver always should take the effects of the weather, such as strong cross winds or slippery roads, into consideration when driving. If you snooze, you lose - Drowsy driving causes more than 100,000 crashes each year, resulting in 40,000 injuries and 1,550 deaths on average (source: Network of Employers for Traffic Safety). On summer road trips, set realistic goals for the number of miles traveled each day. Stop at regular intervals when driving long distances. Steer clear of road rage - If one tailgates, flashes high beams, changes lanes without signaling or drives on the shoulder, then he or she is practicing aggressive driving or road rage. Reduce stress on the road by allowing plenty of time for travel, planning your route in advance, and altering your schedule or route to avoid congested roads. Remember not to challenge aggressive drivers and stay as far away from them as possible. Maintenance matters - Ultimately, safety also depends on the maintenance of one's car. Ensure that car brakes, exhaust system, tires, lights, battery and hoses are in good working order. Safety Can Save Money

Allstate is recognizing drivers within Sioux Falls with a celebratory free gas giveaway today. It is also rewarding safe drivers across the country by offering its Allstate® Your Choice Auto® insurance product (not available in California, North Carolina, North Dakota or South Dakota). Allstate® Your Choice Auto® Insurance rewards safe driving through optional features such as a Safe Driver Bonus(SM) where policyholders can get cash off their renewal bill, and Deductible Rewards(SM) where accident-free drivers get $100 off their deductible just for signing up. And for those not able to stay out of harms way, Your Choice Auto® provides enhanced protection through accident forgiveness, where rates don't go up just because of an accident, and new car replacement, where policyholders can get a new car if they total their car in the first three model years. (These features are subject to terms and conditions.)

The Math Behind the Rankings

To create the report, Allstate researchers analyzed internal property damage reported claims over a two-year period (from January 2005 to December 2006) to ensure the findings would not be impacted by external influences such as weather or road construction. A weighted average of the two-year numbers determined the annual percentages. The report defines an auto crash as any collision resulting in a property damage claim.

To view the "Allstate America's Best Drivers Report" in its entirety or to see previous year's results, log onto www.allstate.com.

About Allstate

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,900 exclusive agencies and financial representatives in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. Encompass® and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.

Motorcycle Insurance

2008-05-20T15:28:00.000-07:00

Motorcycle Insurance
Coverage Options

To Get a Quote, contact an Allstate Agent or call 1-877-379-BIKE
There's no way around it: Anytime you're on the road, there’s a chance you might get injured. One of the most important things you can do is make sure your motorcycle insurance coverage can help with medical bills if you should get into an accident.

Medical Payments
Medical Payments typically covers reasonable and necessary medical expenses that are the result of any injury to you or your passengers. Some examples of expenses that might be covered include ambulance, hospital, x-ray, dental, and surgical.

Personal Injury Protection
If you're hurt in an accident, or worse, expenses could add up faster than you imagine. That's where this coverage can help, with reimbursements for:

Medical and hospital expenses
Lost income
Services you would normally do yourself
Funeral expenses
Child care expenses
You're typically covered regardless of who was at fault. Personal Injury Protection is only available in certain states.

Take care of your bike and it’ll take care of you, right? There are three kinds of motorcycle insurance coverage that typically help get your bike back on the road.
Collision
A collision almost always means damage to your motorcycle. And that’s just what this coverage is for.
It typically covers damages to your motorcycle that result from a collision with another object, which could include another car or motorcycle, a tree, or a building.

Comprehensive
It doesn't always take two vehicles to make an accident. Comprehensive Coverage typically covers your bike if it's damaged by:

Flooding
Wind
Vandalism
Theft
Some other reason that doesn't involve a crash with another vehicle
You get to choose the amount of your deductible (the amount you pay before eligible coverage kicks in). Comprehensive Coverage typically covers the cost of repairing or replacing your bike, up to the actual cash value.

Uninsured/Underinsured Motorist Bodily Injury
If an accident isn't your fault, you don't want to pay for the other guy's mistake. Especially if he doesn't have enough insurance coverage or any at all. This coverage typically covers damages that result from the injury or death of you or a passenger on your motorcycle caused by an uninsured or underinsured driver. Different states have different requirements for which coverage to have and how much.

If you’re in an accident, there’s a good chance someone else was involved. And if you’re at fault, you’ll want strong motorcycle liability insurance.
Property Damage Liability
If you're at fault in an accident and cause damage to others’ property, Property Damage Liability Coverage typically covers damages that result from the damage to another person’s property when you are at fault. Some of the things you may be liable for include vehicles, private residences, and storefronts and other structures.
Bodily Injury Liability*
If you’re at fault in a crash, it might be your responsibility to cover the medical bills for your passenger or the other driver. In a case like that, Bodily Injury Liability typically covers damages that result from the injury or death of another driver or a guest passenger on your motorcycle when you are at fault.

Some of the things you may be liable for include medical expenses, lost wages, and pain and suffering. (In most states, bodily injury to guest passengers on your motorcycle is automatically provided under this coverage. In other states, you can pay an additional premium so that Bodily Injury Liability also applies to guest passengers.)

*In some states, bodily injury to a passenger is covered separately under Passenger Liability coverage.

Teen Drivers

2008-05-14T10:50:00.001-07:00

"Allstate America's Teen Driving Hotspots" Study Highlights Metro Areas With Highest Rates of Deadly CrashesStudy release launches Allstate's "Action Against Distraction" campaign, stresses dangers of distracted driving, calls for uniform, national Graduated Driver's License (GDL) laws
Downloads
Teen_driving_hotspots_release.doc05/08/2008 Northbrook, Ill. -

Metro areas in the southern United States scored lowest in a study released today by Allstate Insurance Company that identifies "hotspots" where fatal teen driving crash rates are highest. The release of the study, which includes data for metropolitan areas around the country, kicks off the company's national "Action Against Distraction" safe teen driving campaign.

The "Allstate America's Teen Driving Hotspots" study found that the 10 deadliest hotspots among the nation's 50 largest metro areas are concentrated in the southern United States and include three in Florida. According to the study, the metropolitan areas (a central city and its surrounding counties) that were the deadliest hotspots for fatal teen crashes are:

Tampa/St. Petersburg/Clearwater, Fla.
Orlando/Kissimmee, Fla.
Jacksonville, Fla.
Nashville, Tenn.
Birmingham, Ala.
Phoenix, Ariz.
Kansas City, Mo. (and Kan.)
Atlanta, Ga.
Charlotte, N.C.
Louisville, Ky.
The study examines recent federal crash statistics, Allstate claims data on teen collisions, and U.S. Census bureau statistics to score metro areas across the nation on rates of fatal crashes involving teen drivers.

"The study shouldn't just concern parents and leaders in the nation's deadliest hotspots - car crashes claim the lives of more American teens than anything else coast-to-coast," said George Ruebenson, president, Allstate Protection. "Although some cities post better scores than others, the whole country must take responsibility for addressing this crisis. We feel that state and federal leaders should enact uniform national standards for graduated drivers licensing laws. Further, we must have better conversations with teens about safe driving and set good examples through our own good driving behavior."

Interestingly, the markets scoring best in the study include some of the nation's largest cities. While these metro areas generally had more total fatal accidents than others - including the New York City area with a nation-leading 869 fatal accidents involving teen drivers from 2000 through 2006 - the scores were lower when factored against the size of local teen populations. The best scoring cities are:

San Francisco/Oakland, Calif.
San Jose, Calif.
New York City (including Long Island and northern New Jersey)
Los Angeles, Calif.
Cleveland, Ohio
Milwaukee, Wisc.
Boston, Mass.
Portland, Ore.
Salt Lake City, Utah
Chicago, Ill.
The study also found that, across the U.S., fatal crash rates for teens are double in rural areas compared to cities and suburbs. Nationally, of the 43,437 fatal crashes involving teen drivers from 2000 through 2005, 29,998 were in metro areas. But the average rate of fatal teen crashes in rural areas nationally is 51.5 annually per 100,000 teens, compared to 25.4 in metro areas. The greatest disparities in rural over metro crash rates was seen in Florida, with Delaware and Utah also posting significant differences.

The study was conducted by Allstate in conjunction with Sperling's BestPlaces (www.bestplaces.net), a Portland, Oregon research firm specializing in demographic studies and analysis. A more detailed breakdown on the study results - including other market and state comparisons - can be found here: "Allstate America's Teen Driving Hotspots" Study

Today's release of study findings by Allstate Insurance Company kicks off the company's new national "Action Against Distraction" public awareness and policy campaign, which also calls for a national federal standard for graduated driver licensing (GDL) laws and urges Congress to enact the Safe Teen and Novice Driver Uniform Protection (STANDUP) Act.

In addition, throughout May and June - months leading up to some of the deadliest driving days for teens - Allstate will be conducting teen distracted driving training courses aimed at reducing the impact of distracted driving practices such as texting and talking on the phone while driving. Teens in over a dozen cities throughout the United States will participate in the distracted driving training courses.

According to the National Highway Traffic Safety Administration (NHTSA), an average of more than 17 teens a day die on American roads during June, July and August - the three months with the highest teen crash rates. Nearly 6,000 teens die in car crashes every year, a statistic that hasn't changed in more than a decade. While research shows that both parents and teens believe alcohol is the cause of most crashes involving teen drivers, the primary causes of most teen crashes - between 2003 and 2005 - was driver error (87 percent).

To help teens stay safe through prom, graduation, the summer and beyond, parents should initiate a conversation about smart driving. This conversation can include completion of a Parent-Teen Driving Contract, which helps set guidelines for smart driving and consequences for not living up to those expectations. Parents and teens can fill out the interactive contract - setting their own expectations and consequences - online at www.allstate.com/teen.

Research conducted by the National Institute of Child Health and Human Development indicates intervention materials, including parent-teen driving agreements, increase parental restriction of high-risk teen driving conditions among newly licensed drivers.

Allstate also urges state lawmakers to enact better state-level GDL laws that allow novice drivers to gain driving experience gradually and under low-risk situations. An effective tool for saving lives, GDL laws typically involve longer periods of supervised driving, restrictions on late-night driving, limits on teen passengers and cell phone bans for drivers.

Social Security

2008-05-13T13:46:00.000-07:00

5 Things to Know About Social Security
When it comes to something as important as Social Security, it’s good to know you’re getting as much from it as possible. Here are five key facts to remember:

1. Your payments will be bigger if you wait until your full retirement age.
You can start taking Social Security payments as soon as you turn 62, but your benefits will be reduced 20 to 30%. That’s a big chunk, especially if you expect to spend many years in retirement. You might consider working a bit longer or relying on your retirement savings to help cover your living expenses until you can receive full benefits.

What's Your "Full Retirement Age?"

If you were born in... It's...
1937 or earlier 65
1938 65 + 2 months
1939 65 + 4 months
1940 65 + 6 months
1941 65 + 8 months
1942 65 + 10 months
1943-1954 66
1955 66 + 2 months
1956 66 + 4 months
1957 66 + 6 months
1958 66 + 8 months
1959 66 + 10 months
1960 or later 67

2. You can work while getting Social Security.

As long as you’re 62, you have the option to take Social Security. If you earn more than $13,560 a year between age 62 and your full retirement age, your benefit payments will be temporarily lowered, based on how much you earn. Say you earn $10,000 over the limit. Your benefits would be reduced by $5,000. If you make $20,000 over the limit, they would be reduced by $10,000. (The limit gets updated each year.)

The good news is that you don’t actually lose out on those benefits. Instead, your payment amount is recalculated so that you receive more money later on. It’s another way working in retirement can help stretch out your income over time.

3. Your payments won’t start automatically.
The two rules above mean it makes the most sense for you to tell the Social Security Administration when you’re ready to start receiving monthly benefits. You can do that over the phone (1-800-772-1213), in person, or through the Social Security online application.

4. Your benefits could be taxed.
Only a third of Social Security beneficiaries end up paying taxes on their benefits. It all depends on the earnings listed on your income tax return. If you file with more than $25,000 as an individual (or $32,000 jointly), you’ll have to pay federal income taxes on your benefits. The rules for state income taxes vary from state to state.

5. Your payments can help your family, too.
Let’s say your monthly benefits turn out to be three times as much as your spouse’s. (It’s a common scenario, especially in families where one spouse paused their career to stay home with the kids.) If she waits until her full retirement age to start getting benefits, her payments will be raised so they equal half of yours.

After you die, your spouse will get either your monthly benefit check or hers—whichever is more. And if you have disabled children, kids under age 19, or elderly parents who depend on you for at least half their income, they could receive "survivor benefits."
Read more on the Social Security Administration’s website.

Protection

2008-05-13T13:43:00.000-07:00

4 Simple Ways to Protect Your Home
It could be the biggest purchase you ever make. Here are four simple, but crucial, ways to protect your home for the future.

Protect your mortgage.
Thirty years is a long time, and life is full of surprises. Do you know how you’d make your mortgage payment if you were out of work for several months, if a health crisis drained your savings, or if you or your spouse were to die? Make a back-up plan now, and you’ll thank yourself later.

Many families rely on life insurance or annuities to protect their mortgage. They factor in the mortgage balance when deciding what level of benefits they need. You can also use savings accounts and money-market funds to make sure funds are available for short-term needs.

How about your home equity loan? If you have a line of credit, you can use the money for anything you want—to fund vacations, pay off credit cards, or cover other shortfalls. But keep in mind that you’re putting your house on the line. Decide ahead of time how large a monthly payment you can afford, and make sure you stay below that amount.

Learn to love preventive maintenance.
Cleaning out air filters and testing smoke alarms are no one’s idea of fun, but they could save you big bucks (and headaches) in the long run.

The biggest hurdle is often organization—knowing what to do and when to do it. There are standard recommendations for how often to do most repair and maintenance tasks. (Clean your furnace or air filter every three months. Test your circuit breakers twice a year. Drain the sediments from your water heater once a year. You get the idea.)

A good home-maintenance guide will tell you what you need to do and how often each task should be done. Browse through a couple books at the library or bookstore. Then grab your calendar, and you’re ready to get started. Mark down the date you do each task, then count forward and mark the next "due date." Follow the schedule and your house will stay in great condition for decades to come.

Here are three popular books to get you started: How Your House Works, The Ultimate Guide to Home Repair & Improvement, and Home Maintenance for Dummies.

Don’t skimp on insurance.
If you haven’t taken a close look at your homeowners insurance policy, now is the time. Homeowners insurance is required whenever you have a mortgage. Your house is collateral for the loan, so your lender wants to be sure it’s protected. But you should make sure that the policy fits your needs, too.

Make sure your belongings and your valuables are protected, not just the home itself. Clarify exactly what the insurance does and doesn’t cover. Take note of the coverage limits on your current policy, and be sure they’re still appropriate. While you’re at it, see if you qualify for new discounts—especially if you’ve had a theft-protection system installed.

Keep the home’s resale value in mind.
Buying a home opens up all kinds of exciting possibilities, but unless you plan to live out your days in that house, you’ll need to keep its future market value in mind.

Watch out for hot housing markets whose prices could plummet suddenly. Be honest with yourself about how much house you can afford. Use a mortgage calculator ahead of time and stick to that number even if your lender pre-approves a higher amount. And later on, keep future owners in mind when you renovate. (They might not love that aquamarine kitchen tile as much as you.)

Life Documents

2008-05-13T13:39:00.000-07:00

5 Financial Documents You Need to Have
Don't wait until an emergency happens to start getting your affairs in order. Start with these five key documents:

Will
You need a will. It will properly explain your wishes to everyone you leave behind, sparing your family emotional strain during an already difficult time. If you have children, a will is an absolute must. If you and your spouse were both to pass away, this is the document that will say who you want to become their legal guardians. That’s definitely not something you want left up to the courts.

A lawyer can help you draw up your will, or you might consider using a will-making computer program. Once you have the will, take a look at it every few years and update it whenever there’s a significant change in your life, like marriage or divorce, a new child, or a change in your preferences.

Health Care Proxy
A health care proxy gives the person you choose the legal right to make health care decisions for you if you aren’t able to make them for yourself (for instance, if you’re unable to communicate). Be sure the person you choose knows your wishes and will respect them, regardless of their own views.

Living Will
Living wills are more specific than health care proxies. Their purpose is to clearly explain to hospital staff what sort of medical treatment you want if you’re terminally ill or can’t communicate on your own. Say you had a life-threatening health problem and were rushed to the hospital. They would provide you with a form like this to fill out, but if you were unconscious you wouldn’t be able to. It’s really important to have this document ahead of time.

Durable Power of Attorney
This document makes the person named in it your “attorney-in-fact” and gives them permission to make legal and financial decisions in your place. Just like with a will, this is incredibly important if you have children. As with all these documents, name your choice carefully.

Emergency Information Sheet
If something happens unexpectedly, this will give all the information someone needs to contact your family, find your other four key documents, and take care of the things that need to be taken care of. Include names, phone numbers, and addresses of your doctor, your hospital, and the person you’ve chosen as your health care proxy. Label everything clearly. Even a stranger should be able to understand.

Life Changes

2008-05-13T13:31:00.000-07:00

How Often Should You Adjust Your Life Insurance Policy?
The whole point of life insurance is that you never know when you’ll need it. So even though your policy might be long-term, you need to make sure it offers the right amount of benefits for your current situation.

A good rule of thumb is to recalculate your life insurance needs once a year, or more often if there’s a major change in your life. Here are some examples:

The Things You Own
Whether you’re married or single, it’s good to know that your finances will be resolved if you should die unexpectedly. That could mean paying off loans or a mortgage, and it’s especially important if you have a lot of debt or want your family to keep living in your home.

Take another look at your policy when:
You buy or sell a home
You take on new debt

Family Matters
You'll want to know that your family's financial needs will be covered if you’re no longer able to provide for them. You'll need the most life insurance when your kids are growing—enough to last them until they become adults and cover their college education. This is even more important if you're the main breadwinner.

Consider raising or lowering your coverage when:
You get married or divorced
You have a baby
Your children become financially independent
Your children finish college
Your long-term goals change

Work Life
The general rule for life insurance is that your policy’s “death benefit” (the amount that gets paid to your beneficiaries if you die) should pay seven times your annual salary. The idea is that as your salary changes, your family’s lifestyle changes to match. If you’re self-employed or own a business, you might also have business-related expenses to cover.

Think about adjusting your policy when:
Your salary changes
You start or sell a business
Your spouse’s job changes

10 Most Stolen Cars

2008-02-21T10:59:00.000-08:00

10 Most Stolen Cars

A car is stolen every 26 seconds in America. Nearly half of these are never recovered, having been scrapped for parts or smuggled to another country. Anti-theft devices can help deter criminals, but as the technology of car alarms progresses, so does the crafty nature of auto thieves.

The chances of your car being stolen are approximately 190 to 1. Of course, this number fluctuates based on where you live and what sort of car you drive. The chances that someone wants your rusted El Camino are pretty slim, but that shiny new Escalade in the driveway is awfully tempting to a would-be car thief. Cars with a good market value, whether they are flashy or just practical, are always the most coveted.

The following is a list of the most stolen vehicles in America in 2005, according to the National Insurance Crime Bureau (NICB). These cars are model years 2003 – 2005.
1. Honda Civic
2. Toyota Camry
3. Honda Accord
4. Dodge Caravan
5. Chevrolet C/K 1500
6. Ford F-150
7. Dodge Ram Pickup
8. Acura Integra
9. Toyota Pickup
10. Nissan Sentra

Life Insurance

2008-02-14T14:57:00.000-08:00

What are accelerated benefits?

Since the 1980s, many life insurance companies have offered terminally ill insureds an what has been come to be known as an “accelerated death benefits option”. The Accelerated Death Benefit allows the policy owner to receive, in advance of the insured person’s death, a significant portion of the death benefit that otherwise would be paid after death to the beneficiaries. Often as much as 80%, and sometimes more, is available at any time within the last year or two of the person’s projected life.

The funds received from accelerated benefits can be used by the policy owner for any purpose he or she chooses, whether to pay for extra or experimental medical care, to take a trip, to improve a home, hire nursing staff, or anything else.

As accelerated death benefits originally were created as an act of grace (sometimes terms a “policy liberalization”) by the insurance companies, long after the policies were issued, many policies do not mention them. While more recent policies are more apt to have accelerated death benefits provisions built in, do not let the absence of a provision deter you from asking the company if it offers such a benefit if the policy is silent, or a more attractive benefit than the policy itself provides. While practices vary from company to company, sometimes the accelerated death benefits take the form of “loans” and an “assignment” with the balance of the face amount, less any interest, to be paid to the insured's estate on death.

Save Money on Homeowners Insurance

2008-02-13T10:38:00.000-08:00

18 Ways To Save Money On Your Homeowners Insurance

Call an agent today and review all 18 ways to save money on your Homeowners insurance or any Property insurance. There is a good chance that you may be missing some important discounts that you are entitled to. An agent can help you get the lowest possible premium.

1). Age of Home – If you have a newer home, you may be eligible to pay lower premiums. Also, if you have recently renovated your home and updated your heater, plumbing, wiring and roof, your insurer may now consider your homes age to be only as old as the most recent update on your home. Call your agent for the details.

2). Blanket Endorsement for Jewelry – Insuring jewelry can be expensive if you list each item individually on your policy. Consider a blanket endorsement on your policy that will cover many items of jewelry up to a specified limit on the policy. Often there will be a specific limit per piece of jewelry in addition to the total amount covered. For example, the policy may insure all jewelry in the home up to $10,000 but no more than $2500 for any one piece of jewelry. Contact your agent for more details.

3). Claim-Free – To be eligible for this discount you must be claim free for a period of time. Usually 3 or 5 years.

4). Credit – Your credit plays a major role in determining what your final policy premium will be. Many insurers can no longer give you an accurate quote for a policy until they actually check it out. Insurers used to look at things like your loss or claims history and a few other factors to determine your rate. However, in recent years, insurers have added your credit as a major tool in evaluating what your final premium will be. Generally with these companies, a good insurance score (or good credit score) means a more favorable rate. This practice has gone on in the banking industry for as long as most folks can remember. The philosophy is that a group of risks with good credit in the same area will have fewer losses than a similar group in the same area with bad credit. In today’s insurance marketplace, good credit can mean lower policy premiums.

5). Dead Bolt Lock – Do all exterior doors in your home have a dead bolt lock? If yes, you may qualify for this discount.

6). Dwelling Coverage Amount – Review the dwelling coverage amount on your homeowners’ policy. You could be over-insured. Many insurers base this amount of coverage on the purchase price of the home. If the home is completely destroyed and must be replaced, the land will still be there and the insurer will be rebuilding from the ground up. The land value is often a big part of the purchase price of a home. Also, obtain the exterior square footage of your home, and call your agent to have he or she assess the correct replacement cost of your home. The insurer often obtains the square footage from you and if it is not accurate, your home could be over insured or even worse, underinsured. You want it to be just right. You bear the ultimate responsibility for insuring your home to the proper amount. The dwelling coverage amount is the single most important area of your policy to review with your agent. Call today.

7). Employee Discount – If you are an employee of your insurer or of a company that has a special program with your insurer, you may qualify for a discount or a discounted rating plan.

8). Fire Extinguisher – Homes equipped with fire extinguishers afford the homeowner a great tool to help put out a small fire before the whole house burns down. If you have one, you may be eligible for a discount.

9). Have Your Policy Re-Written – Many insurance companies periodically develop different rating plans and premiums for the same policies. If your policy was re-written with the exact same coverage in the new plan, your rate would likely be different in this newer rating plan. You could pay more or less in the new rating plan. Also, most companies will charge an extra premium for a claim and will continue to charge you until the end of the policy term. This could mean that you could pay significantly more than necessary if you had your policy re-written after the loss is over 3 to 5 years old. Often, there may be some disadvantages to having your policy re-written so check with your agent.

10). Increase Your Deductible – Many policies carry a standard $500 deductible , but you can request a higher deductible such as $750, $1000 or higher and often save a substantial amount of money. By agreeing to be responsible for a bigger part of the total amount of the claim, the insurer will reward you with a lower premium. For many, this is one of the best ways to save money over time. Call your agent for all of your options.

11). Jewelry in Vault – If you insure jewelry on your policy and store it in a vault or safe deposit box when not in use, you may be eligible for a significantly lower premium on those items listed on your policy.

12). Multiple Policies With the Same Company - Many insurers will give you a multi-policy discount if you have more than one line of insurance with them. Consider purchasing your auto, home and life insurance from the same insurer. This will generally also put you in a more favorable position with the company from claims to underwriting.

13). Previous Insurer – Many insurers will give you a discount if you are currently insured with specific insurer and switch to a new insurer. Some insurers do this to try to induce clients to move their company.

14). Rate Territory - Most insurers develop rating territories or areas to help determine what premiums to charge you. You would expect to pay more if you live in a big city than if you live outside the city is an example of this. Check with your agent to make sure that you are being properly rated for the territory that you live in. Often, many rating territories have more than one zip code and even though your policy shows the correct zip code, you could be rated in the wrong county and paying the wrong premium! Call your agent today to explore this often over-looked option.

15). Retired Discount – If you are a certain age (usually 55 or 65 years old & up) and are retired, many insurers will give you a discount on your policy. Don’t miss out on this one if you qualify, it can be a big one and you must call your agent to get credit for the discount.

16). Roof Type – Depending on what type of roof you have, you may qualify for different types of policies from the insurer. For example, if you have a flat roof on your home you may not qualify for the same type of policy as you would if the roof was pitched or an "A" shaped roof. Your roofing material could also be considered as well.

17). Security System – If you purchase a security system for your home, almost every insurer will give you a discount. If your home alarm system is capable of notifying the police and/or the fire department directly should either be triggered, you will generally get a bigger discount for having both. Having either will generally give you a discount as well.

18). Smoke Detector – Homes equipped with smoke detectors save lives and almost all insurance companies will give you a discount if you have them.

Contact Jim Somborovich: js@allstate.com

Long Term Care Insurance

2008-02-07T15:24:00.000-08:00

Long-term Care Insurance

Long-term care refers to the many services beyond medical care and nursing care used by people who have disabilities or chronic (long-lasting) illnesses. Long-term care insurance helps you pay for these services, which can be very expensive. A policy also ensures that you can make your own choices about what long-term care services you receive and where you receive them.

Ordinary health insurance won't cover it.
People are living longer and longer these days. That's good news, but the flip side of that is there are more years in which there's a risk of serious health problems. And that could literally cost all of your remaining life's savings. Unfortunately, ordinary health insurance policies and Medicare usually do not pay for long-term care expenses. Medicaid, a federal/state health insurance program, will only pay for long-term care if you've already spent most of your savings or other assets. So, there's long-term care insurance.

Long-term care insurance typically covers the cost of:

Help in your home with daily activities like bathing, dressing, eating and cleaning.
Community programs, such as adult day care.
Assisted living services that are provided in a special residential setting other than your own home. These services may include meals, health monitoring, and help with daily activities.
Visiting nurses.
Care in a nursing home.
When is the right time to buy a policy?
Many people don't think about long-term care until they get into their 70s and 80s and their health begins to fail. At these ages, you may be too high a risk for an insurer to cover you; or if you do qualify, the premiums can be astronomical. In fact, some long-term care policies have restrictions on age and health status.

The best time to buy long-term care insurance may be middle-age. It's the time when you have the highest likelihood of being eligible for a policy and, just as important, when premiums costs might be lower.

Is a policy right for you?
Long-term care insurance is probably not for everyone, but—with soaring health care costs, insurers increasingly restricting coverage and eligibility, and people's need to stretch retirement savings through more years—it's a good idea to consider it seriously. Your goals should be to protect your assets, minimize your dependence on other family members, and control where and how you receive long-term care services.

On the other hand, consider the cost. Long-term care insurance is expensive. An individual who's 65 years old and in good health can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing home care and home care, with premiums adjusted for inflation. You may not want to buy a policy if the cost of premiums will lower your standard of living or force you to give up other things you need right now. And look ahead, as well. Be sure you'll be able to afford the premiums if your income declines.

Key Issues to Review
Be sure you consider each of these issues:

Coverage. You can choose long-term care policies that pay only for nursing home care, or only for home care. Or, you can opt to purchase coverage for a mixture of care options that includes nursing home, assisted living, and adult day care. Some will pay for a family member or friend to care for you in your home.
Daily or Monthly Benefit. The daily or monthly benefit is the amount of money the insurance company will pay for each day or month you are covered by a long-term care policy. If the cost of care is more than your daily or monthly benefit, you will need to pay the balance out of your own pocket.
Benefit Period. Your benefit period determines the length of time you will receive benefits from your policy. You can choose a benefit period that spans from two to six years, or the rest of your life.
Elimination or Waiting Period. During this period, you must pay all of your long-term care expenses out of your own pocket. This period could last anywhere from 0 to 100 days. The longer the waiting period is, the lower your premiums will be.
Inflation Protection. With health care costs rising to new heights every year, buying a policy without inflation protection is probably buying a policy that won't cover much of your expenses. There are two main kinds of inflation protection: the right to add coverage at a later date; and automatic coverage increases.
Non-Forfeiture Benefit. Policies with this benefit will continue to pay for your care even if you stop paying premiums. This policy feature can add 10 percent to 100 percent to your premium.

Tax Breaks

2008-02-05T09:08:00.000-08:00

Overview Retirement Real Estate College Autos Debt Health Care Insurance Taxes ADVERTISEMENT

by Bill Bischoff
June 9, 2006
THINKING ABOUT PURCHASING your first home? Then you're probably well aware of the potential tax breaks coming your way.

In case you're not, let's review. While the cost of renting is generally a nondeductible expense (except for when part of the home is used for business purposes), homeowners can claim an itemized deduction for interest on up to $1 million worth of mortgage debt used to acquire or improve their principal residence. Ditto for interest on up to $100,000 of home-equity debt secured by their principal residence. Real-estate property taxes can be claimed as an itemized deduction, too. You also can generally deduct any points you paid (or the seller paid on your behalf) to take out the mortgage.

But you probably knew all that, right? Now for the tax-law catches your realtor probably never told you about. Don't worry: What's detailed below probably won't have you running back into the arms of your landlord. But it just might give you a more realistic expectation of how homeownership will affect your future tax bills.

The Standard-Deduction Factor

The first thing to understand is that your actual tax breaks from home ownership may be less than expected if you were claiming the standard deduction before you bought. Why? Because the standard deduction is a tax-law freebie. You don't need to have any personal deductions whatsoever to claim it. For 2006, the standard deduction amounts are $10,300 for joint filers, $5,150 for singles, and $7,550 for heads of households.

When your itemized deductions are less than the standard deduction, you simply forgo itemizing and claim the standard allowance instead. Many folks are in this situation until home ownership triggers deductions for mortgage interest and property taxes. Those write-offs — when added to other itemized deductions for state and local income taxes, personal property taxes, and charitable donations — are usually enough to exceed the standard-deduction amount.

The question is: How much of a tax break did you really reap from your home ownership write-offs? For example, say you're married and would have claimed the joint standard deduction of $10,300. Then you buy a house and pay $12,000 a year for mortgage interest and $2,500 for property taxes. On first blush, you might think you've just lowered your taxable income by a whopping $14,500 ($12,000 + $2,500). Not so fast! Assume you also pay state income taxes of $2,000 and contribute $450 to charities. So your total itemized deductions add up to $16,950 ($12,000 + $2,500 + $2,000 + 450). That's only $6,650 above the standard deduction you would have claimed in the absence of buying a home. So you really netted only $6,650 in additional write-offs vs. the $14,500 you might have expected.

Now, if you were already itemizing before you bought or were very close to doing so, your additional deductions from mortgage interest and property taxes will reduce your taxable income dollar for dollar (or nearly so). The point is: Be sure to consider the standard-deduction factor when calculating your anticipated tax savings. That way, you won't be shocked by an unforeseen tax bill next April.

The High-Income Phaseout Factor

If you're a high earner, you're less likely to be affected by the standard-deduction factor. Why? Because you probably have enough itemized deductions (from state and local taxes and charitable contributions) to exceed the standard-deduction amount even without any write-offs for home-mortgage interest and real-estate property taxes. Instead, you may have to worry about the dreaded deduction-phaseout rule that afflicts high-income types.

Once your 2006 adjusted gross income (AGI) exceeds $150,500 (regardless of whether you file joint or single taxes), the phaseout rule reduces your itemized deductions by 2% of the excess. For instance, say your AGI is $300,000. Your otherwise allowable itemized deductions are reduced by $2,990 [($300,000 - $150,500) x .02]. If your AGI is $500,000, your otherwise allowable itemized deductions are reduced by $6,990 [($500,000 - $150,500) x .02]. You get the idea. Not all itemized deductions are affected by this nasty rule, but mortgage interest and real-estate property taxes are. The law provides that taxpayers can't lose more than 53.33% of their deductions under this rule, but that's small comfort to its victims. In fact, itemized deductions for some high earners are curtailed to the extent they wind up back in the standard-deduction mode. When that happens, they don't receive any actual tax benefit from their mortgage interest and property-tax expenses.

Bottom line: If you expect your AGI to exceed $150,500, you'll need to whip out the calculator to figure your actual home-ownership tax savings. (For 2007, the $150,500 amount will be adjusted for inflation.)

The Home-Equity-Loan Factor

Once you're ensconced in your new home, you may decide to take out a home-equity loan. As mentioned above, you can generally claim an itemized deduction for interest on up to $100,000 worth of home-equity debt. The key word here is generally. The fact is, you can't deduct interest to the extent the home-equity-loan principal plus your first mortgage principal exceeds the value of your home. For example, say your first mortgage is $200,000 and your home-equity loan is $75,000. If your home is worth $250,000, you can deduct interest only on $50,000 worth of home-equity-loan principal. Interest on the remaining $25,000 falls into the nondeductible personal-interest category.

A more likely cause for concern is another rule that disallows any alternative minimum tax, or AMT, deduction for home-equity-loan interest unless the loan proceeds were used to improve your property. For example, say you take out a $50,000 home-equity loan and use the money to pay off a car loan and some credit-card balances. For regular tax purposes, that's fine. You can deduct the home-equity-loan interest on Schedule A, along with the interest on your first mortgage. However, if you're in the AMT mode, you can't deduct any of the home-equity-loan interest in calculating your AMT bill.

On the other hand, if you spend your $50,000 home-equity-loan proceeds on a new pool and covered patio, you're good to go for both regular tax and AMT purposes. And one more thing: The high-income deduction-phaseout rule explained earlier can also whittle down your otherwise allowable home-equity-loan interest deduction.

Home Sweet Home

Now you know all the home-ownership tax angles your realtor was afraid to reveal. Still, buying a home usually works out to be at least a decent proposition taxwise. And it will be much better than decent if you eventually sell for a big tax-free gain down the road. If you're married, you can potentially rake in a federal income-tax free profit of up to $500,000, or $250,000 if you're unhitched. Now that's a sweet deal!

2008 Taxpayer Traps

2008-02-04T14:23:00.000-08:00

NEW YORK (CNNMoney.com) -- Delayed tax returns and late tax code changes are among the most serious problems facing taxpayers today, according to taxpayer advocate Nina Olson in an annual report to Congress Wednesday.

The National Taxpayer Advocate is appointed by the Treasury Secretary and is charged with representing taxpayer interests before the IRS and Congress.

Among 29 of the most serious taxpayer problems outlined in the report, here are five that Olson detailed:

Missed deductions
Late-year tax law changes, and delays in processing those changes, mean some payers could miss out on tax deductions.

The IRS finalizes its Form 1040 and form 1040A in November. If law changes are made later in the year, taxpayers might not receive updated forms and could file inaccurate returns, Olson said. Taxpayers using tax preparation software face the same problem.

While middle-class taxpayers welcome last month's approved alternative minimum tax patch, which shields them from an old tax law for the wealthy not adjusted for inflation, the late tax law change could affect taxpayers claiming the Child and Dependent Care Credit or other credits, Olson said. This also means tax refund delays for millions.

Refund delays
About 80 percent of taxpayers receive a refund when they file their returns, Olson said, citing the IRS, and for low-income families, refunds are particularly important.

Taxpayers who take the Earned Income Tax Credit, for example, could be significantly impacted by refund delays.

"For some taxpayers, a delay of two to four weeks in receiving the refund could mean eviction, inability to pay the high heating bills that arise during winter, or defaulting on credit card bills from the holiday season," Olson wrote in her report to Congress.

Among families receiving EITC benefits for the 2005 tax year, the average refund amount was $3,093.46, or about 20 percent of the average adjusted gross income, $15,484.52, of those taking the credit, Olson noted.

Refund anticipation loans
Refund anticipation loans sold by tax preparers are "disproportionately targeted toward low-income taxpayers and may exploit those taxpayers' trust in their preparers as well as their lack of financial sophistication," according to Olson.

In addition, some tax preparers have a financial incentive to inappropriately inflate refund amounts, and taxpayers might not completely understand that the refund anticipation loan is separate from filing a tax return, she wrote.

The IRS says it is proposing steps to restrict these practices among tax preparers.

Identity theft
Too often, victims of identity theft receive more scrutiny from the IRS than the perpetrators of identity theft, Olson wrote, noting that identity theft could lead to the delay or denial of refunds, the assessment of tax debts reflecting a fraudulent filer's return, and victims being required to prove their identity to the IRS every year.

If a thief uses another's social security number to report false wages, the IRS system doesn't interpret the duplicate filing as identity theft situation, she said. Instead, the innocent taxpayer's refund is reduced, frozen or the system creates a balance due, according to the advocate's report.

If there is a balance due as a result of two returns filed under the same social security number, the IRS will begin collection actions against the innocent taxpayer, her report notes.

While it has made some improvements, "The IRS has not done enough to improve identity theft procedures for victims of identity theft or to secure its filing system from fraudulent filers," Olson said.

Taxpayer assistance troubles
Shortcomings at IRS-sponsored taxpayer assistance centers are making it difficult for taxpayers requiring face-to-face assistance to get help with their tax returns, the report said.

Taxpayers seeking assistance face inconvenient locations, lack of services, payment problems, and questions deemed by the center to be "out-of-scope," or too complex for IRS employees or volunteers to answer, according to Olson.

While the IRS now acknowledges that there will always taxpayers that require face-to-face assistance in order to comply with tax laws, "the next step is to ensure that Taxpayer Assistance Centers are adequately staffed to meet the needs of that population and adequately trained to answer the questions most likely to be asked by that population," Olson wrote.

Additionally, Olson said a taxpayer bill of rights, outlining what taxpayers have a right to expect from their government's tax system and what the government has a right to expect from its taxpayers, will benefit both taxpayers and tax administration.

Your Money - by Sandra Block

2008-02-01T11:05:00.000-08:00

If you're in your 50s, it's time to plan how you'll pay for long-term care
Updated 3/2/2007 2:40 PM ET E-mail | Save | Print |

Getting old is such a drag that most of us don't like to think about it. And we sure don't like to think about who will take care of us if we stumble and break a hip while strutting to our favorite Rolling Stones CD. But even if you're a lot younger than Mick Jagger — and many of us are — you should be thinking about how you'll pay for long-term care.
A study released last month by AARP found that most Americans don't have a clue about the cost of long-term care. Even more worrisome, many Americans believe that if they do need long-term care, the government will pay for it.

That's a dangerous misconception, says Elizabeth Clemmer, director of policy research and development for AARP. Medicare typically covers only three months of nursing home care, and only if you spend time in a hospital first.

Medicaid's coverage of long-term care, meanwhile, doesn't kick in until you've exhausted nearly all your savings, Clemmer says. In addition, while Medicaid covers nursing home care for people who qualify, coverage of in-home health services is limited. And it doesn't cover assisted living at all.

Moreover, qualifying for Medicaid is more difficult than ever, says Donna Bashaw, president of the National Academy of Elder Law Attorneys. A provision in the Deficit Reduction Act enacted last year makes it harder for seniors to qualify for Medicaid if they've given away assets in the previous five years.

That provision was designed to prevent wealthy seniors from hiding assets. Elder law attorneys argue, though, that it will also penalize middle-income seniors who provide financial assistance to children or grandchildren and later need nursing home care. Under the new rules, Bashaw says, such seniors may have to wait months before they'll become eligible for Medicaid.

How to plan

Good long-term-care planning could help you avoid ending up in a nursing home, or at least give you more options if you require institutional care. Steps to consider:

•Long-term-care insurance. These policies are still relatively new, but they're becoming more flexible. Along with nursing home care, some policies cover in-home care and the cost of an assisted living facility.

Long-term-care insurance is relatively expensive. The cost varies, depending on your age when you buy the policy and the types of services covered.

The younger you are, the lower your premiums, which is why many experts suggest buying a policy when you're in your 50s.

But before you buy a policy, make sure you can afford to pay the premiums for many years, because it could be a long time before you need long-term care. Many people never need nursing home care. And even those who do often stay only a few months.

If you buy a policy while you're in your 50s or 60s and still working, Bashaw says, you need to think about whether you can afford the premiums once you retire.

The U.S. Department of Health and Human Services has created a website with information about long-term care and long-term care insurance. You can find it at www.longtermcare.gov.

•Family care. For all the talk about the breakup of the traditional family, most long-term care in this country is provided by family members. But if you're relying on relatives to care for you, there are some key issues to consider. Do children or other family members live nearby? Will you pay them?

Likewise, if your goal is to live in your house forever, with help from family, make sure your home will be accessible. Will you be able to navigate the staircase to the second floor when your joints start to stiffen? Are your doorways wide enough for a wheelchair?

Good Money Decisions

2008-01-30T11:05:00.000-08:00

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?

Domestic Violence Help

2008-01-29T10:15:00.000-08:00

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/

Get Paid to Travel

2008-01-28T09:12:00.000-08:00

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.

My First Car

2008-01-24T22:44:00.001-08:00

Update & Correction

2008-01-23T12:53:00.000-08:00

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.

2008 Resolutions

2008-01-22T14:41:00.000-08:00

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.

Insurance Bargains

2008-01-21T14:10:00.000-08:00

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

Successful Life

2008-01-17T12:49:00.000-08:00

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.

Going to the Dogs!

2008-01-16T11:46:00.000-08:00

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

Crash Tests

2008-01-14T14:42:00.000-08:00

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

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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

2008-01-14T09:02:00.000-08:00

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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

Identity Theft

2008-01-12T11:45:00.000-08:00

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

Savings - More Important Than Ever!

2008-01-10T11:21:00.000-08:00

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 eduÂ¬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

Flooded Damaged Cars

2008-01-09T10:32:00.000-08:00

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

Be Prepared - Accidents Happen

2008-01-08T15:58:00.000-08:00

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.

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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.

Flood Insurance

2008-01-07T08:02:00.000-08:00

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

The Girl's Guide to Retirement

2008-01-05T08:23:00.000-08:00

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.

Save 40% on your Homeowners Insurance

2008-01-03T11:54:00.000-08:00

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.com mitzi@allstate.com

Earthquake

2008-01-02T10:58:00.000-08:00

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.

2008 Money Saver for Homeowners Insurance

2008-01-01T08:55:00.000-08:00

Wishing you a Happy New Year!

Jim

Idol Gives Back Charity

2007-12-31T10:25:00.000-08:00

Allstate helps to give new hope to children in the U.S.

With a generous $1 million donation, Allstate Insurance Company has given new hope to children in need in the United States. As part of the momentous Idol Gives Back charity event that aired in April 2007 on Fox network's American Idol television program, Allstate and Save the Children have partnered to benefit children and young people living in extreme poverty in several locations in Louisiana and Mississippi.

Save the Children will put Allstate's gift to good use through its Early Steps to School Success initiative, a cradle-to-classroom intervention program for children at high risk of struggling in school. The goals are strong foundations for parenting and school readiness, which are powerful catalysts in helping children achieve a lifetime of learning. The funds will also be used to support Save the Children's CHANGE (Creating Healthy, Active, Nurturing & Growing-up Environments) program to help rural children develop healthy lifestyles and reduce childhood obesity, a major public health concern. The Allstate Corporation is the nation's largest publicly held personal lines insurer. Save the Children is proud to partner with Allstate to create brighter futures for children in the Gulf Coast.

New Year Resolution

2007-12-30T11:55:00.000-08:00

NORTHBROOK, Ill. -
It's that time of the year when Americans set lofty goals to improve their lives by ditching unhealthy habits like smoking or overeating. In that spirit, a survey by Allstate suggests that people start the year off right with a savings plan that they can stick to all year.
Allstate's fifth annual "Retirement Reality Check" survey, which measures Americans attitudes about saving for retirement, gives insight on tactics that can help you achieve your resolutions.
"Our survey asked people what goal is hardest to achieve, and the clear front-runners were saving for retirement, losing weight and stopping smoking," said Casey Sylla, president, Allstate Financial, a business unit of The Allstate Corporation. "A distant fourth-place goal was staying physically fit."
The survey also asked respondents what tactic would be the best first step to achieve the goal they declared was toughest. Regardless what goal respondents cited as most difficult, having a goal or plan was the No. 1 tactic suggested. The second most-mentioned tactic was getting professional help.
Sylla said the growth of smoking-cessation and weight-loss programs demonstrates that people are willing to seek help to find a plan that works for them. Using the same tactics to work out a savings plan that suits individual needs should make it easier for people to achieve retirement goals, he said.
"So often New Year's resolutions are abandoned after only a few weeks because people can't see the light at the end of the tunnel," Sylla said. "Our survey suggests that people are more likely to succeed if they set reasonable goals. Instead of seeing the goal only as the whole piece, saving $50,000 for retirement or losing 40 pounds, doing these things in manageable steps will allow people to be more successful."
Professional advice can help people identify goals that are significant but achievable, he said. "Once people see results, it is easier to stick to a plan or even increase the goal," he added.
Seeking advice might be particularly useful in creating a savings plan because there are so many factors to consider, he said.
"When it comes to saving for retirement, people need to consider a combination of their current income and expenses as well as their long-term lifestyle goals," he said. "When you look at the big picture, it is easier to identify goals that are achievable and trade-offs you're willing to make to get, and stay, fiscally fit."
Allstate recommends that people follow 10 steps to create a retirement savings plan that addresses short- and long-term needs. Those 10 steps are:
Educate yourself on the different savings options available.
Monitor your savings and investments to determine the appropriate investment choices given the time you have left before retirement.
Discuss with your spouse how you want to spend your retirement.
Decide which savings vehicles will help you save more for retirement.
Work with a financial professional to ensure your insurance needs are adequate and keeping up with the changes in your life.
Determine how much money you need to save by the time you retire.
Determine whether you have prepared for life's unexpected events in your retirement planning.
Educate yourself on how to pay for long-term health care.
Determine how much you will spend each year on your retirement lifestyle.
Estimate how much you will receive in retirement from Social Security and your employer-sponsored retirement plan, if you have one.
People need to pay particular attention to their assumptions about Social Security benefits. The Allstate survey showed that the majority of respondents are extremely pessimistic about Social Security, with 57 percent saying they have "major concerns" that their benefits will be reduced or even eliminated. Another 27 percent cited this as a minor concern.
Only 16 percent said Social Security is not a concern at all. But at the same time, only 2 percent of respondents said that drastic changes to Social Security would prompt them to start saving more for retirement.
"It isn't logical to have a concern but then do nothing to address it," Sylla said. "This underscores why it's so important for people to take a hard, critical look at what income they truly expect to have in retirement."
Download the mini executive summary (New Year's Resolution (PDF)) of the Allstate "Retirement Reality Check" survey.
Allstate created the fifth annual "Retirement Reality Check" survey in conjunction with Mathew Greenwald & Associates. Using a random digit dialing methodology, Greenwald & Associates polled 1,601 people born between 1946 and 1978, with household incomes of $35,000 or more. Retirees were accepted with incomes of at least $20,000. The margin of error (at the 95 percent confidence level) for the total number of respondents in this study is ±2.5 percent, ±3.8 percent for information specific to Gen Xers, ±4.5 percent for Baby Boomers.
Allstate Life Insurance Company, Lincoln Benefit Life Company and American Heritage Life Insurance Company (Allstate Workplace Division) are proud members of the Insurance Marketplace Standards Association - IMSA. Our membership signifies our commitment to honesty and fairness in the sales and service of individually sold life insurance and annuity products.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 13,600 exclusive agencies and financial professionals in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. EncompassSM and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.
Jim Somborovich can be reached at: js@allstate.com

New Year's Resolution - 2008

2007-12-28T16:33:00.000-08:00

One of the top resolutions for 2008 should be to get your financial house in order. Like most projects - it's probably a good idea to break this down into smaller tasks - and to do them one at a time - thereby building on your success and increasing your confidence in completing the job.

The list of sub-tasks could be very long or short depending on your life style. My field of expertise is in the insurance area - so let's limit my thoughts to this very important subject.

Schedule an appointment with your insurance professional to review where you are in the area of risk management. That's right - just like a business - you have to manage your assets, income, and even your risks. The insurance company provides tools to help you with this task in the form of insurance policies. Your agent can perform a fact finding audit to determine if the protections you currently purchase are suitable for your situation. Being underinsured can put your assets at risk in case of a serious accident.

Call your agent today and make an appointment - and check this one item off of your to do list!

Jim Somborovich is an Allstate agent in the Bellevue, WA area.
You can email him at js@allstate.com

Reverse Mortgage Questions

2007-12-26T13:21:00.000-08:00

5 Questions To Ask Before Considering a Reverse Mortgage

1) Do you really need a reverse mortgage? Start by assessing honestly why it is that you are interested in a reverse mortgage. If you want some cash to take that dream vacation, a reverse mortgage is an expensive way to pay for it. Taking out a pricey loan to make investments or to purchase insurance products is also not a good idea. Make sure that the needs you want to address are really worth the costs. If anyone is trying to sell you something and recommending you use a reverse mortgage to pay for it, that’s generally a good sign that you don’t need it and shouldn't be buying it.
2) Do you have less costly options? Do you have other financial resources that you could use before taking out a loan? If you could easily make the monthly repayments on a home equity loan or home equity line-of-credit, these alternatives are less costly than a reverse mortgage. Many state and local governments offer low-cost reverse mortgages that can be used to pay your property taxes or make home repairs. Have you looked into the costs and benefits of selling your home and moving to a less expensive one?
3) Can you afford a reverse mortgage? These loans are expensive, and the amount you owe grows larger at an ever increasing rate. The younger you are when you take out a reverse mortgage, the longer compound interest will grow, and the more you will owe. On the other hand, due to high up-front costs, these loans can be especially costly if you sell and move just a few years after taking one out.
4) Can you afford to start using up your home equity now? The more you use now, the less you will have later when you may need it more, for example, to pay for future emergencies, health care needs, or everyday living expenses, if your current needs grow or your income does not keep pace with inflation. Or you may need your equity to finance major home repairs or a move to assisted living. If you are not facing a financial emergency, then consider postponing a reverse mortgage. Homeowners who wait have "a reasonable expectation of securing a better product at a lower cost in the not-too-distant future," according to a report by the Fidelity Research Institute.
5) Do you fully understand how these loans work? Reverse mortgages are quite different from any other loans, and the risks to borrowers are unique. Before considering one, you need to do your homework carefully and thoroughly. Begin by clicking on each of the topics under "Reverse Mortgages," on the left side of this page: Basics, Federally Insured Loans, Other Choices, and Key Decisions.

Long Term Care Insurance

2007-12-24T12:19:00.000-08:00

Why Long Term Care Insurance....
Without proper planning, LONG-TERM CARE can be the greatest threat to our assets today, and we're not just talking about nursing home cost, because 85% of long-term care is extended care at home or in community like assisted living or even adult day care.
The need for long-term care doesn't just affect older people. In fact, 40% of people needing it today are adults between the ages 18 and 64 who've been injured in accidents or suffer from conditions like multiple sclerosis or strokes.
Long-term care is very expensive and costs anywhere from $33,000 to $100,000 a year on up, depending on where you live, for either an eight hour shift at home or a semi-private day in a nursing home with drugs and miscellaneous supplies. This cost is going higher every year. Moreover the life expectancy of an Alzheimer's patient is from three to 20 years, and if both you and your spouse need care, you can see how these numbers explode.
Unfortunately, most long-term care expenses are paid for out of people's pockets, out of savings they have accumulated to enjoy their retirement. Why? Because long-term isn't covered by Medicare and other familiar forms of insurance like group or individual health insurance, Medicare supplements, retiree health plans, HMOs, VA plans or disability income plans. And the odds of the government helping you are so low. You have to be down to $2,000 in assets before Medicaid will help. On the top side of all this, the odds of needing long-term care are greater than 50%, much higher than being in a car accident or losing a house by fire - and often at a greater cost than losing your whole house.
Think about it: You don't look out your bedroom window and see one out of every two houses burning, and then decide not to have homeowner's insurance.
Right now your assets are your insurance policy against a risk that is very expensive, very likely to happen and will not be paid by anything else. Do you see a reason why you wouldn't want to protect yourself and your family so you can have peace of mind in case something happens to you? Plus you are making sure that you can look forward to a comfortable, worry-free retirement with financial security.

Jim Somborovich call be reached by email: js@allstate.com

Blue Ribbon Company

2007-12-21T12:11:00.000-08:00

Allstate named to Fortune 2007 Blue-Ribbon Companies List
Company earned honor by appearing on four Fortune lists during the yearSummary:
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Allstate was one of a select group of companies named to Fortune magazine’s 2007 Blue-Ribbon Companies List. To be included on the list, companies must appear on at least four Fortune lists within a calendar year.
“Fortune magazine lists give us an idea of the pulse of the business world – and where we stand relative to our peers,” said Joan Walker, senior vice president for Corporate Relations. “Being named a Blue-Ribbon company is one more indication that we’re a company that is well regarded both within our industry and in the business community as a whole.”
Allstate earned the Blue-Ribbon designation by being named to four Fortune lists in 2007. It ranked No. 61 on the Fortune 500 and No. 181 on the Global 500. Within the P&C industry category, it captured the No. 5 spot on the Most Admired Companies list and the No. 6 spot on the Global Most Admired Companies list.
Microsoft and Procter & Gamble held the top spot on this year’s Blue-Ribbon list, having appeared on seven Fortune lists during 2007. Rounding out the Top 10 Blue-Ribbon companies are eight companies that each appeared on six lists this year: Apple, Cisco Systems, Citigroup, Eli Lilly, General Electric, IBM and Valero Energy.

Water

2007-12-12T12:34:00.001-08:00

Ask Jim

Water Damage!

The person living above me flooded my apartment when the bathtub overflowed and now my personal belongings are ruined. Will the apartment management insurance cover this type of loss?

The apartment management insurance does not cover your personal property!

Things like your clothes, stereo, furniture, television, bicycle, jewelry, personal computer, artwork and other items are not covered against destruction or loss by your landlord's insurance. Your landlord may be sympathetic about the flood in your living room, but you're likely to be the one who will have to buy new furniture or a stereo system.

If you had Renters Insurance it would replace what was damaged!

Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage. Renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet, and pays legal defense costs if you are taken to court.

Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to js@allstate.com

Shared Expenses

2007-12-11T10:53:00.000-08:00

Ask Jim

Shared Expenses!

My roommate & I share an apartment and each of us pays half of the expenses. We are interested in getting renters insurance but our budget is very tight. Is it possible for us to share a policy or do we have to have separate policies?

My company will allow two unrelated adults to share a renter’s insurance policy making it a very affordable way to protect your belongings!

The average renters insurance policy is usually around $147 for the year and splitting the cost would bring it down to about .20 cents a day. A very small investment for the amount of protection that is provided by the policy!

Can you afford to be without Renters Insurance?

Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage. Renters insurance also covers your property anywhere in the world so if you are planning on taking a vacation – get renters insurance first!

Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to js@allstate.com

Lost Luggage

2007-12-10T11:51:00.000-08:00

Ask Jim

Lost Luggage!

I’m leaving on a vacation next week and a friend has suggested that I get Renters Insurance before I leave – is this a good idea?

Yes, renters insurance is an excellent way to prevent a loss from ruining your trip!

The good news about renters insurance is that it protects your personal belongings at home and while traveling.

Can you afford to be without Renters Insurance?

Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage. Renters insurance also covers your property anywhere in the world so if you are planning on taking a vacation – get renters insurance first!

Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to A032399@allstate.com

2007-12-07T13:39:00.000-08:00

Ask Jim

Loss Assessments!

Am I personally responsible for insurance related losses if my Condo Association doesn’t carry enough insurance to cover the damages?

Yes, losses that are not covered by insurance would be assessed by the Condo Association to the individual condo owners!

If one of the buildings in your condo complex started on fire and the loss totaled $2,000,000 and the insurance paid only $1,000,000, the balance would be divided by the number of condo’s and a special assessment would be made to each owner. A bigger concern would be a personal injury jury award that may produce a judgment in excess of the liability limits and it could result in a very expensive assessment.

If you have Condo Insurance, you can add a loss assessments rider to your policy to provide extra coverage!

This optional coverage pays for the special assessments for insurance losses, which the owner may be responsible for paying as a result of membership in a condo owner’s association. The maximum amount of Loss Assessments Coverage available is $50,000 and the cost of the rider is usually around $10.00 for the year!

______________________________
Jim Somborovich is an Allstate Insurance agent and can be reached at 425-562-3011 or e-mail your questions to A032399@allstate.com

2007-12-06T10:39:00.000-08:00

Ask Jim

Mysterious Disappearance!

After working in the garden the other day I noticed that the diamond in my engagement ring was missing – will my renters insurance cover this type of loss?

Maybe – mysterious disappearance can be a covered type of loss if you have a rider on your policy for jewelry.

A renter’s insurance policy has limitations on certain types of personal property like cash, computers, and the theft of jewelry, watches, and furs. An expansion of the coverages requires that the insured purchase a special rider.

It’s always a good idea to review your policy in detail so that you understand what is and what is not covered.

Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage. Adding additional coverages to take care of a loss like mysterious disappearance can expand the types of losses covered.
Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to js@allstate.com

Big Insurance Savings

2007-11-30T10:21:00.001-08:00

2007-11-29T10:54:00.001-08:00

Homeowners Insurance Update
Get Rid of the Contingent Sales Offer

The Problem:

“Here’s the nightmare: Buyers find the perfect house. They find a terrific mortgage. They’re just about to complete the purchase when – wham!! – they learn their insurance company either won’t insure the house because of its prior-claims history or won’t insure them because of theirs.

And without insurance, the mortgage offer evaporates and the sale falls apart.” The Seattle-Times 03/09/2003

The Answer:

Call Affordable Insurance Solutions!

· No Denials on Credit
· Prior Claims not counted on New Home purchased
· Fast, Accurate, and Affordable Quotes
· Referrals Appreciated
· Free Digital Photos to document personal property

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 customers 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 Phone 425-564-0861 FAX

Get Insurance & Relax while on vacation

2007-11-28T10:20:00.000-08:00

Vacation!

I’m leaving on a vacation next week and a friend has suggested that I get Renters Insurance before I leave – is this a good idea?

Yes, renters insurance is an excellent way to prevent a loss from ruining your trip!

The good news about renters insurance is that it protects your personal belongings at home and while traveling.

Can you afford to be without Renters Insurance?

Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage. Renters insurance also covers your property anywhere in the world so if you are planning on taking a vacation – get renters insurance first!

Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to js@allstate.com

2007-11-27T11:44:00.000-08:00

Golf

2007-11-27T11:37:00.000-08:00

Missing Golf Clubs!

Dear Jim: My golf clubs were taken out of my car while it was parked in the assigned parking spot near my apartment. The landlord denies any liability and my auto insurance company said they won’t cover it either. What’s up?

Answer: Personal property like golfclubs, stereo equipment, and things like Christmas presents are not covered by your auto insurance if they are stolen from your car. The landlord is also not responsible for your personal property. They usually mention this to you when you move into their complex. The answer to your problem would be to have a Renters Insurance policy that would protect your property anywhere in the world. Theft is only one of the perils covered by this type of policy and the premium is very affordable. A basic tenet of insurance planning is don’t risk a lot for a little. Get a Renters Insurance policy – you’ll be glad that you did if you suffer another loss.

A Thousand Words

2007-11-27T11:29:00.000-08:00

Take A Picture! It Will Last Longer!!

I’m in the process of getting renters insurance and wondering how to keep a record of what I am insuring.
Do I have to inventory everything that I have or is there a better way?

Yes, there is a better way. Take some digital pictures of your belongings. Make sure that you have pictures of your jewelry too!

The photos will provide an excellent record of what you have in case of a
loss from fire, smoke, lightning, vandalism, theft, explosion, windstorm, or water damage. Renters insurance also covers your property anywhere in the world so if you are planning on taking a vacation – take some pictures first!

My office provides complimentary digital photos of your belongings when you obtain renters or homeowners insurance from us! Call us to set up an appointment.

Jim Somborovich can be reached at 425-562-3011 or e-mail your questions to js@allstate.com

Umbrella Insurance Policies

2007-04-05T15:31:00.000-07:00

Ask Jim

My attorney advised me to get an umbrella or excess liability insurance policy for $1,000,000 – to protect my assets – is this a good strategy to follow?

Yes! An umbrella policy provides another layer of liability protection over and above your auto and property insurance. According to a USA Today article, the average wrongful death jury award is around $800,000! It can be a good idea to buy an umbrella insurance policy if your assets plus your income over the next few years is greater than the maximum liability coverage you can get through your auto and homeowners insurance policies. Otherwise, a lawsuit could wipe out a big chunk of your savings.

While these cases aren’t everyday occurrences, hundreds of suits are filed daily. And, it could happen to you! Umbrella policies aren’t expensive – usually around $250 per year for $1,000,000 worth of added coverage!

If you would like to increase your liability protection, or simply have questions about your coverages, give my office a call. It’s easy to apply for this type of policy and we can do it right over the phone.

Jim Somborovich is an Allstate Insurance agent and can be reached at 425-562-3011 or e-mail your questions to js@allstate.com