What’s Car Insurance?

If you have a car, you must have car insurance. Car insurance protects you from any potential liability should you get into a car wreck.

There are two different types of car insurance. There is liability insurance which covers you should you be in a wreck and another vehicle or someone property is involved, and there is full coverage which covers your vehicle and the other vehicle as well.

If you have a car loan, you’ll be required to have full coverage on your car as this will protect their vested interest in your car. It’s also great because should you be in a wreck, full coverage will cover any dents, dings or other damages to your car.

All states require liability insurance. However, they don’t require full coverage. If you have liability insurance your premium is going to be lower, however, if there is damage done to your car such as running or backing into a tree or hitting an animal, you will have to pay all of the repairs on your car out of pocket.

If you have liability insurance and another vehicle hits you, even if you have Medicaid, their insurance will have to pay for the repairs to your car, however, if you hit them, your insurance is going to pay for the repairs to their vehicle and you’ll still have to pay for the damages done to your vehicle unless somehow you’re both at fault for the wreck.

Car insurance rates will vary and when you pay your premium you’ll receive a document call proof of insurance. You’ll need to keep this with your registration in your car at all times to show to a police officer should you be in a wreck or pulled over for a speeding infraction or some other reason such as a headlight out or something. You can contact your insurance agency for full rates and options on car insurance.

What’s Homeowners Insurance?

If you own your own home you’ll want to have homeowners insurance. Homeowners insurance covers your personal property inside of the home as well as damages to the house should any occur. It also covers you if someone is injured at your home or while on your property.

Some homeowners policies will also cover such things as fire, wind, theft, hail, lightning, and vandalism as well. However, you’ll want to make sure that you read the fine print and fully understand the circumstances surrounding such coverages as not all of them are the same.

Many homeowners policies will exclude specific things such as floods, earthquakes, and volcanic eruptions. Be sure that you fully understand what is and isn’t covered in your policy before you sign and pay your premium.

You can also opt out of specific coverages by signing a waiver to exclude those specific situations. However, you can’t opt out of the coverages to the structure itself as this is a requirement by the mortgage company to help protect their vested interest in your house until you’ve paid your mortgage off.

You’ll never want to exclude the clause that protects you should someone injure themselves while at your home or on your property. If someone fell down the steps, for example, you may find that their insurance company bills you directly for their injuries and they have to file a claim.

You would be held liable for such fees as their medical care, lost wages and anything else that pertained to their injury while they were on your property. For this reason, this is a must have any homeowners insurance policy.

You can find a lot of different rates for homeowners insurance so do your homework through your insurance agent and get several quotes before you sign on the dotted line.

Explanation of Health Insurance

Health insurance is a kind of insurance coverage which covers the costs of my medical and surgical expenses the individual who is insured may incur. Depending on the kind of health insurance coverage, the insurer either makes direct payments to the provider, or pay costs out-of-pocket and is later reimbursed. There are private insurance companies as well as government insurance programs.

Medicaid for example is state run government insurance program which helps those with lower incomes to pay for the medical care. Medicaid will pay the healthcare provider directly and a small amount may have to be paid by the insured for certain medical care. Medicaid however is only available to certain low income families and individuals who are found to be eligible. Rules about who is and who is not eligible as well as what services are covered vary from one state to the next.

Medicare is another example of health insurance which the government provides. Medicare however is only for those age sixty five or older. Others who may also be eligible for Medicare are individuals suffering from certain health issues or disabilities, such as chronic (long-term) kidney failure that require treatment with dialysis or a transplant. For those who qualify, Medicare cover some, but not all medical costs but at least it provides some protection.

At some point or another in their life, and oftentimes on many occasion, everyone will require some kind of medical treatment, medical devices and attention. When medical care is necessary, ideally it is best for a patient to place their focus on recovering and becoming well, as opposed to trying to figure out whether or not they have the needed resources to cover all of their medical bills. This is why it is very important for people to be covered by some kind of health insurance. Even if you are healthy and feel you do not need it, it is better to be safe than sorry.

Explanation of Landlord Insurance

If you are planning on renting out a home that you own, you are probably a candidate for landlord insurance. Typically this type of insurance included two different kinds of coverage: properly and liability protection. Both of these coverages are meant to protect you, as the landlord, form and financial losses.

Landlord Property Protection

Typically, this helps to cover the physical property related to the property that is being rented. This may include the dwelling itself as well as equipment kept on site for maintenance. Generally coverage includes:

  • Dwelling
  • Other Structures
  • Personal Property Utilized to Service the Dwelling

Landlord Liability Protection

This aspect of a landlord insurance policy can help to cover another person’s medical bills as well as your legal expenses if someone were to be injured on the property you are renting, and you were to be found responsible. For example, if a tenant were to fall down stairs at your rental and the court were to determine that it was due to your failure to maintain the stairs and/or the railing, then you may be held responsible to handle the legal, medical or other costs of your tenant. In this case, your landlord liability coverages can help to cover these expenses.

Additional Coverages to Consider

Depending on the condition, neighborhood, or geographic area of your rental, adding on certain optional coverages to your landlord policy is something you may want to consider. For example:

    • Vandalism and Burglary
    • Personal Umbrella Policy
    • Rental Property Under Construction
    • Building Codes

If you are considering renting out a property that you own, it is important to take the time to talk with a local agent and find out more about what options you have available to you. This is the best way in which you will be able to determine which coverages will best suit you and the property that you will be renting.

What is the Purpose of Gap Insurance?

Gap insurance is a type of insurance that financial institutions recommend when someone takes out a loan to purchase a vehicle without a sufficient down payment amount. This situation happens quite often since people sometimes decide to trade in their car on a new or better one while they still owe on their previous loan. There are various reasons people make this choice, but they often end up trading a vehicle that has a lower trade-in value than the amount they owe.

Automobile dealers are able to make the trade and help them get a loan for the new vehicle, but they end up in yet another “upside down” loan. If the borrower has good credit and adequate income, they are able to get a better vehicle. However, the financial institution that holds the loan feels they must protect their interests, so they recommend or even require, the addition of Gap Insurance to the contract.

Most people are aware that automobile insurance companies do not cover the full value of the vehicle in the case that it has been damaged beyond repair in an accident. The principle paid on a vehicle loan does not typically keep up with the depreciation value of the automobile, so the loan holder, even if they are on worker’s compensation insurance, will not be fully compensated in the case of a “totaled” vehicle.

When there has been an accident serious enough to damage a vehicle beyond repair, it is likely the driver has suffered serious injury as well. This may mean a temporary loss of income, so the loan holder may not be able to pay off the balance of the loan. Gap insurance takes care of this problem by paying off the balance of the loan in the case of a serious accident where the loan holder cannot do so.

What’s Payment Protection Insurance?

Payment protection insurance or PPI as it’s typically referred to is a type of insurance that will help you to pay your monthly expenses including mortgage, credit cards, loans and other expenses should you be ill, injured or lose your job and are unable to work for a period of time.

It’s very important to keep in mind that payment protection insurance has many exclusions that can apply and you’ll likely have to prove that you’re unable to work and why with full and complete documentation.

Payment protection insurance prices will vary greatly from one policy to another and depending on what they cover. If you foresee that you may become unemployed in the near future and already have payment protection insurance you may wish to ensure that it’s fully covered.

Many payment protection policies will also have a waiting period so make sure that you’re aware of these specific stipulations.

Payment protection insurance will vary on how long it will carry you over while you’re unemployed. If your injured or unable to work due to illness you may also wish to consider a long-term disability policy to cover the gaps that you’ll have in your coverages.

Payment protection insurance can be a good thing to have when you have it for the right reasons. To get more detailed information set up an appointment with your insurance agent and ask to discuss your options regarding payment protection insurance and what all it will cover.

You’ll have to keep up with your premiums to ensure that you have this coverage when you need it and you may have to prove your inability to work to receive your insurance from this type of policy.

Not all policies are the same so again, read the fine print and make sure you fully understand what you’re signing before you sign and pay your premium.

What Is Pet Insurance? – A Basic Overview

As the name suggests, pet insurance is an insurance policy somebody takes out on his or her pet. Just like medical insurance for people, this policy will help to cover medical costs in case they are needed. This might be due to an accident, or if the pet might have fallen ill.  The policy will cover some (if not all) the cost depending on the nature of the policy.

However, pet insurance isn’t limited to medical cases. There are companies with several options for covering the death of a pet, or when it goes missing. It’s a market that’s rapidly growing and pet owners really appreciate it.

Is Pet Insurance Offered By The Government?

No, the government doesn’t provide pet insurance. Instead, the people who control pet insurance policies and influence the laws regarding these policies are called the North American Pet Health Insurance Association.

As it stands, pet insurance is only offered by private companies.

Who Needs Pet Insurance?

Nobody can deny that the price of a vet can easily equal that of a general MD, and it’s understandable. There are many people who love their pets like family members, and rightfully so. Which also means they only want the best for them if something happens.

Pet insurance makes it more affordable for people to keep their pets in good condition, and it’s incredibly handy in situations when money is very tight.

The Premium Calculation Process

At this point a lot of people are wondering how the premiums are calculated, and it follows pretty much the same formula as traditional calculations. Variables like what type of animal the cover is for, their age and breed, all these things come into account.

As a side-note, pet insurance does extend to various animals, and there are many different policies to choose from. Please be careful when buying pet insurance as their have been companies that needed criminal defense against insurance fraud. When in doubt ask your friends and family if they have gotten pet insurance companies.

What Is Tuition Insurance For?

A college education requires a very large investment of time and money. When you start college, the last thing on your mind is leaving college. But every year, there are a number of students who are forced to quit their studies for a variety of reasons.

Some students may fall ill, or may have to return home to visit or care for a sick family member. Unfortunately, sometimes a student may have to withdraw from studies when a parent or legal guardian passes away. When this happens, often the tuition is not refunded.

It’s difficult enough for these students to deal with the personal struggles that they are facing. But then they must also deal with the consequences of leaving school, including the loss of that large investment of tuition and related costs.

Tuition insurance can protect a student who is attending any high-cost educational institutions from the loss of tuition and other costs that result from the student having to involuntarily withdraw from school.

This type of insurance will usually cover withdrawals for medical reasons or in the case that the student’s legal guardian dies, and will either cover the costs associated with the student’s tuition, or by refunding it. In some cases tuition insurance may cover student loans as well.

Such insurance is often provided through your educational institutions, from insurance providers who offer such policies, or as an option along with a student loan. Coverage will range from policy to policy, but it will usually cover the cost of tuition (in part or as a whole), as well as academic fees, room and board, and possibly some other education related expenses.

There are limitations to this coverage. The reimbursement may be limited to the first few weeks of the semester, and if the withdrawal is due to mental health, most often the reimbursement will only be a maximum of 60 percent of the tuition.

Explanation of Interest Rate Insurance

The holder of a loan or of a variable rate mortgage is the one who would greatly benefit from interest rate insurance. Generally, interest rate insurance is offered independently from the originally borrowing, and typically interest rate insurance is used as an alternative to a remortgage onto a rate which is fixed.

A simple insurance policy will protect only against any risk of the repayments beginning to rise due to the interest rates, keep in mind, however, if they payments are rising because the borrower has been defaulting on repayments then you do not qualify for insurance. There is absolutely no requirement for the insurer to be checking up on the credit status of the purchaser, nor is it required of the insurer to look into the value of any assets that are secured.

Being as there will absolutely be no arrangement necessary and there will be no valuation fees, and/or bank and legal charges means that it is actually quite a bit cheaper to opt for an insurance as opposed to having to turn to a remortgage. What the absence of credit checks, as well as valuations, means is that it is able to be made available to every holder of a variable rate loan, with no exceptions.

Now, not only will an interest rate insurance provide the holder with protection from any rising interest rates, it also will under no circumstances raise the holder’s initial pay rate. As a matter of fact, it the interest rates does fall, what the policyholder will actually see is a great benefit in the form of payments on their mortgage and/or loan that are reduced, this is especially noticeable if you compare it to a fixed rate alternative. This makes interest rate insurance beneficial for those who are taking out a loan or a mortgage rather than insurance for employers.

What’s Expatriate Insurance?

If you’re planning on living or working in a foreign country, you may wish to look into expatriate insurance. Expatriate insurance is a policy that is designed to cover you for financial and other potential losses that you may incur while residing in said foreign country.

Such insurance policies cover personal property and your personal automobile. They will also cover for emergency evacuation should there be a situation where you need to be evacuated. If you’re in need of medical or dental care they will cover this as well.

There are also clauses for short-term travel insurance and for terrorism and war. You can also find clauses that include kidnapping and ransom situations. If you’re traveling to a foreign country that has had any type of civil unrest, you’ll want to make sure that you’re able to cover your needs should an emergency situation arise.

These insurance policies are readily available by most insurance agents and brokerages. You’ll have to pay for them before you leave or arrange for funds to be withdrawn from an account to pay the premium while you’re out of the country.

Keep in mind that these kinds of insurances will go far to help you in an emergency, however, you’ll have to have access to them at the time of the emergency. But if you find yourself in an emergency situation it might take a while to literally get access.

Expatriate insurance companies will vary in the premium costs and the things that they cover so make sure that you read the fine print and abide by all of the requirements for your specific policy. If you have any questions regarding a specific situation be sure that you fully discuss this with your insurance agent at the time of procuring your expatriate policy to ensure that you’re fully covered for such a scenario.