Key factors to consider for Auto Insurance

There are a number of key factors most insurance companies use to calculate how much you'll pay for auto insurance. What's important to remember is that you can control many of these factors. 

Your location, age and driving habits all play a major role, as do the types of vehicles you drive and your record of accidents. In many cases, the choices you make about the coverage you want determine the cost of your premium.

1. Coverage and deductibles

Auto insurance providers allow you to choose your deductible and decide whether to add additional coverage that isn't necessarily required by the laws in your state. Compare car insurance, the specifics of your coverage and deductibles play a major role in your monthly payment.

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Typically, choosing a higher deductible means a lower monthly payment; choosing a lower deductible means a higher monthly payment. Additional coverage gives you added financial protection, depending on the claim, but also adds to your monthly costs.

2. What you drive

By collecting a large amount of data from customer claims and analysing industry safety reports, auto insurance providers often develop vehicle safety ratings and offer discounts to customers who drive safer vehicles. 

Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft, and lower rates for those that fare better than the norm.

Before you head down to the dealership, do some research? Does the vehicle that has caught your eye have strong safety ratings? Is the same particular model often stolen? Knowing the answers to a few simple questions can go a long way in keeping your rates low.

3. How often, how far you drive

People who use their car for business and long-distance commuting normally pay more than those who drive less. The more miles you drive in a year, the higher the chances of an accident - regardless of how safe a driver you are.

Consider joining a car or van pool and other ways to drive less. If you reduce your total annual driving mileage enough, you may lower your premiums.

4. Your driving record

Drivers who cause accidents generally must pay more than those who are accident-free for several years. If you've been accident-free for a long period of time, don't get complacent! Remain vigilant and maintain your good driving habits. As time goes on, the effect of past accidents on your premiums will decrease.

5. Your age, sex and marital status

Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.

If you're a student, your car insurance rates might also be in line for a discount. Most auto insurers provide discounts to student-drivers who maintain strong grades. In some states, younger drivers are also able to take driver safety courses that will lower premiums.

How to act quickly before any uncertainties?

Your health is your asset. Have you ever thought of covering it. You never know what will happen in very next moment. Life is full of uncertainties. Getting hurt or sick isn’t something a person wants to happen, but unexpected medical events do occur. Having a health insurance plan helps pay for some of those unexpected costs, and provides financial protection against ongoing large medical bills 

Here is some advantages of health insurance 

1. Increase in the incidence of lifestyle-related illnesses

Life expectancy has increased.Thanks to advancement in medicines, the average man is likely to live for around 84 years by 2040. And so has stress due to sedentary lifestyle.

This has also given rise to the early onset of chronic diseases like cancer, lung conditions and stroke, claiming younger lives. Health insurance mitigates the financial risk that may befall a person irrespective of age.

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2. Health insurance coverage is more than just hospitalization

Most/Many health insurance plans give coverage for day care procedures and OPD, other than the treatments that involve serious hospitalization. There are also health plans that cover vector borne diseases like dengue.

3. Increase in out-of-pocket expenses

With the healthcare industry in India witnessing double-digit inflation, it is getting extremely expensive to treat common ailments in India. As a result, this has put a dent in an individual’s pocket.

Buying health insurance can double up as your emergency financial fund while preparing you for the troubled times.

4. Your group health cover may not be sufficient

A group health plan may or may not cover all your family members. The sum insured limit in a group plan is also less, which may not be enough to meet all the medical expenses incurred.

And then as you’ll grow older, you might need frequent medical attention. Before that you may not want to put yourself at the risk of being under-insured.

5. Benefits buying health insurance at young

Buying a personal health insurance policy is cost-efficient while one is young and free from medical complications. The premium is lower and the policy offers comprehensive coverage in comparison to a policy purchased at an older age. As an individual grows older, the cost of the cover increases and if one develops health issues, the health insurance company tends to exclude pre-existing conditions which defeat the whole purpose of buying a health insurance. Most health insurance companies have an upper age limit for the policies, which means one would have limited options after retirement. One can enjoy the benefits of cumulative bonus in the form of no claim benefit if they renew the policy without any claims.

6. Tax benefit

The icing on the cake by opting for a personal health insurance policy is the tax benefit. Payments made towards health insurance premiums are eligible for tax deductions under section 80D of the Indian Income Tax Act. Individuals less than 65 years of age can claim a deduction of up to Rs. 15,000 for the health insurance premium paid for themselves, or for their spouse, children or parents.

Things you should know about ULIPs

Whether you have just come into a large lump sum of money or have some money set aside to begin investing, there are a variety of ways to go about investing your money. It is important to do your research prior to investing. There are some mainstream ways to invest that can work for even a novice, but you should always weigh the risks with the probable gains.

As a new graduate, the first thing you should do is to lock down as much money as possible in savings. 

What you should instead do, live like a student a little longer. The first 2 years after graduation is when you should try to secure your financial future. Unless you manage your savings, it is hard to manage your investments.

If you are a single person just out of graduation, your goal should be to save half of your 12 lakhs in the bank. You should have enough bank savings to last 6 months of your monthly expenditure. Keep this in a fixed deposit. Once you are tight enough to manage this, proceed to the next step. 

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Start with balanced mutual funds that are fairly less risky. Get your toes in the water through these

Life Insurance

When an investor pays a life insurance company to payback money to them over a period of time in small increments, this is called an annuity. Depending on the specific company, the investor can choose to receive payments until he is deceased or can set up a stop date. Since the insurance company may go bankrupt, there is moderate risk involved, although many states cover up to $100,000 in the event of a company defaulting.

Banking

Bank accounts offer extremely low returns and are better used as a form of storing cash. Some of the types of accounts at banks include personal savings accounts, business savings accounts, personal checking accounts, business checking accounts and Certificates of Deposits (CDs).

Business

Building your own business is an extremely risky investment. Although you could become financially free and your own boss, there is the huge risk of losing everything. When starting your own business, do your research, put together a business plan and seek advice from others with experience.

Properties

Investing in real estate is another popular type of investment. Depending on your method of investing, real estate investing can become extremely lucrative if done in the proper locations and the correct way. You can purchase homes to fix them up and sell them for a higher price, or you can purchase homes to turn around and rent them to tenants for a slightly higher cost

In summary, the first rule of investing is to save. Unless you have sizeable money to invest, your above-market returns would not matter. Once you have built your safety net, go after mutual funds and then to equity funds/stocks.

Tips to manage your money as a teenagers

Parents play an important role in shaping their kids’ financial behaviour and attitude towards money. Many teenagers rely on their mum and dad to set the right example when it comes to managing finances. Of course it’s not always easy to talk to teenagers about money, particularly as they approach adulthood. Bearing that in mind, we’ve pinpointed some areas where you can help prepare your teenagers to navigate the tricky waters of personal finance.

The number one piece of financial advice I can give you is to not spend money you don’t have. This is how people go into debt. Seems easy enough, right? Well, if you keep track of your credit card bill, and make sure you have enough money to make it through each month, you should be fine. It’s recommended that you take out as few loans as possible, as they’re ridiculously hard to pay back because of interest.

Sharing responsibilities with your parent

It is important as a teenager to recognise the value of money and understand that it is not an unlimited resource.

Give yourself a chance a freedom to manage your own budget will teach you valuable lessons about:

• Only spending what you can afford, and
• Avoiding the pitfalls of unplanned expenses.

Always pay yourself first.

With any income you make, set aside in savings first. If you feel tempted to touch it, maybe ask your bank if they have any options for locked savings accounts.

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Invest. 

People don’t make money by having good jobs; they do it by having good investments. Here are some good ones:

Certificates of Deposit.

These can be obtained at whatever bank you currently use. They have pretty good interest rates. You put money in for a predetermined amount of time (ranging from 3 months to 9 years). The longer you put it in for, the more interest it will have. Just remember that once you put the money in, you can’t take it out until the time is up.

Also, the minimum deposit requirement is $2500–$5000, which might be a problem. Just remember to save.

Stocks. 

These are a bit risky, but they’re worth it. Do some research, ask some people about them. They’re expensive to buy, usually around $100 each depending on the stock (unless it’s a penny-stock).

Bonds. 

These can be purchased from the government. They aren’t worth any money until a certain date. I would recommend researching those.

BE SURE TO DISTRIBUTE YOUR INVESTMENTS EVENLY.

Don’t just throw all of your money into a single investment, because if it goes South, you’ll be screwed.

Wants vs Needs.

Before purchasing anything, think about it. Is it something you really need? Or is it something that you just want? Do you really need those new Jordans/Nikes/Adidas/Yeezys? Or the new CoD that came out? I’ve saved exponentially more than before simply by cutting costs on things that I don’t actually need.

Are you Prepared For The Unexpected ?

Best way is to start.

I know that sounds silly, but it’s true. If you spend so much time thinking about emergencies, but never do anything about it, then you’ll never get anything done. So, here’s some ideas on how to get started.

Get all of your important documents

In a single location. If you can, get notarized copies of these important documents and put them at another location (your parent’s house, a bank deposit box, etc.) That way, in an emergency, you can access these documents quickly.

INSURANCE

Insurance provides security

Insurance provides safety and security against the loss on a particular event. Life insurance provides security against death and old age sufferings. Fire insurance protects against loss due to fire while Marine insurance provides protection and safety against loss of ship and cargo. For personal accident and sickness insurance financial protection is given when the individual is unable to earn. In other insurance too, this security is provided against the loss at a given contingency.

In Business, commerce and industry, huge properties are employed. Because of slight negligence, the property may be turned in to ashes. A person may not be sure of his life, health and cannot continue the business up to the longer period to support his dependents. By the help of insurance, he can be sure of his earning, because the insurance company will pay a fixed amount at the time of death, damage by fire, theft, accident and other perils.

Are you looking for a insurance ? 

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Get 3–6 months savings put together.

That’s 3–6 months of your family income. Too many people spend a lot of time preparing for the while neglecting the much more likely event of a personal disaster like loss of a job, etc. Getting together enough money in the bank that you can float for a little while is worth the peace of mind

Learn to use everything in your kit! 

I suggest going on a camping trip with what’s in your bag. You’ll get to road test your kit before you ever need it. I’ve seen plenty of people that have never used anything in their bag, only to realise that they don’t know how it operates, and have trouble using it in the field.

These are some basics, there’s a whole internet full of “Prepper” strategy, with advice on how to prepare your finances for an emergency, gardening, long term food storage, basic first aid, communications by radio, etc. but this is where I would start