Why do I need renter’s insurance? While it is true that your landlord should have property insurance, that insurance only covers the landlord’s property. For example, if the property is flooded, the landlord’s insurance policy will cover damage to the property, itself (flooring, fixtures, etc.), but not any of your ruined furniture.

What are named perils? “Named perils” is the term for those incidents that are covered by your renter’s insurance policy. They include things like fire and smoke damage, lightning, vandalism and theft, water damage from accidental leakage, wind/storm damage, and loss or damage caused by other “acts of God.” Your insurance policy will cover any personal property that is damaged in your rental unit due to these circumstances.

What else is covered? In addition to the named perils, your renter’s insurance will also include liability protection in the case that someone gets injured on your property; this liability protection includes legal fees, should you have to appear in court because of someone else’s injury on your property. In cases like this, your renter’s insurance policy will also cover medical expenses of those injured on your property.

How is my policy premium determined? Of course, the more property you have and the more valuable it is, the more your insurance policy is going to cost you. You can use an online property value calculator like the one on Geico.com to estimate the amount of coverage you will need. Your premium will also be determined by your deductible (how much you agree to pay out of pocket for damages before the insurance company must pay), and by additional coverage for circumstances that aren’t on the basic policy.

What is the difference between replacement cost and actual cash value (ACV)? You must decide how you want to be compensated for property in the event that it is damaged by a covered incident. You can choose either ACV or replacement cost. ACV is what they property is actually worth at the time of the incident, whereas replacement cost is what it will cost you to go out and buy a brand new item.

As you can see, there is a major difference between your landlord’s insurance policy and renter’s insurance. Protect your hard-earned property when you rent or lease a place with a good renter’s insurance policy.

About the Author: Rupert Hema has worked in the insurance industry for several years and cautions that all companies have different ways of writing their policies. He also enjoys writing about homeowners insurance, car insurance, education, and grants for college students.

1. Any accidents?   Moving violations?  No?  Good for you—you just saved yourself a bundle.  The better your driving record is, the better your rates.  You knew that anyway, didn’t you?
2. Moving?  Consider the crime rate in the neighborhood you plan to move to.  Insurance companies do!  They base rates on your zip code, and how crime-free the area where you live has been in the past.  Insurers, after all, are in the business of risk—and low-risk zips mean savings for you.
3. Credit score good?  That means—so are your rates.  That’s right, that credit score even affects your car insurance!
4. Here’s something that may make you happier about getting older—the more age, the better and cheaper the insurance.  Young drivers (under 25) pay the highest rates around for their car insurance.  Don’t you feel better about middle age, now?
5. Should you marry that devoted girlfriend or boyfriend?  Your heart says yes, so go for it.  Married couples pay less on car insurance than singles.  If you were living together and got married, tell your agent, so he can consolidate policies.  You’ll save big money!  (Didn’t you want to use that for the honeymoon anyway?)
6. There’s still a lot of gender inequality in this country, but there’s one area where it balances the other way.  Women are awarded lower car insurance rates!  First, they are better drivers than men.  No brag, just statistics.  Second, they are definitely in better shape health-wise, lasting 5 years longer than a man will.  They are simply a lower risk.  Sorry, gentlemen.
7. Job in town, family in town, girlfriend or boyfriend in town?  Good for you!  The fewer miles you travel, the more you save on car insurance.  You’re at less risk for accidents, and that translates into dollars back in your wallet.

Chances are you found some good news in this list.  So—smile!  Happy motoring!

One thing that may confuse car owners and driver who want to avail of car insurance is the type and cost. There are different types of car insurance, each with varying features, limitations and coverage. For a complete protection that offers a wide scope of coverage, the comprehensive car insurance is the answer.

Comprehensive car insurance provides many protective schemes for the policy holder. While it’s true that there are insurance plans that offer basic protections like third party, collision, uninsured, underinsured, and others, none of these is as complete as that of the comprehensive car insurance.

The comprehensive car insurance can cover the expenses to repair damaged cars from an accident. It can even provide for the complete replacement of a total wreck with a brand new car. It can provide funds for medical expenditures. All of these benefits are extended to both parties who are involved in the accident, regardless of who is at fault. These are just part of the key features. Taking a closer look will make one realized that a comprehensive car insurance actually combines most of the features of the other insurance plans into one solid package.

There is one major drawback with a comprehensive car insurance, which is pricing. Being a complete full featured insurance package, it is the priciest as well.  Customers pay more to avail of this type of car insurance. Furthermore, there are some exemptions in the policy that may not necessarily cover some of the previsions of an accident. It is a good idea to consult this with an insurance broker in order to get the complete details in the policy being offered, before making a move to visit them to seal the deal.

Nevertheless, there has always been a certain issue between paying more and having a certain degree of security – you see, a full-featured insurance package is most desired by everyone – after all it includes things you might not even thought of insuring yourself for, however might come in handy in time. But then again, if money is an issue it won’t be the most comforting choice on the market since one might thing that those hazards aren’t but little likely to happen thus making them a very poor investment. The rule of the thumb when picking insurance options is to weigh the issue to the possibility that it may or may not happen – if a certain event is very unlikely to happen, however being insured for that particular issue will save you a lot of money in the event that it happens, it might be wiser to include it after all.

Comprehensive car insurance is most ideal for people who bought a brand new car, especially if the car is prone to catnapping or if the car is a vintage model.

Thinking that All Damages Will Be Covered

Cars can be damaged in ways that happen other than through a car collision. In order to have coverage for the repairs needed after these events take place, people need to purchase optional coverage. For example, in the event that the vehicle has water damage due to a flood, the policyholder’s collision coverage wouldn’t pay for the repairs. What would pay for these repairs is comprehensive coverage but if the policyholder didn’t purchase it, he will have to pay for his own repairs.

The Belief that a Rental Car Will Be Included in the Coverage

Collision coverage and comprehensive coverage doesn’t pay for a rental car. This, too, is optional coverage that policyholders have to specify they want when they purchase their auto insurance. Rental Reimbursement Coverage will pay for the rental car while the owner’s car is being repaired.

Believing that an Accident Isn’t Their Fault

Each insurance company has to perform a thorough investigation to determine who caused a collision. It can take a long time because each insurance company wants to ensure that they come to the correct conclusion. Doing this successfully means that they need to spend ample time interviewing everyone who witnessed the accident. In this time, people can begin to believe that they aren’t the ones who have been given the blame, and can be surprised when they find out months later that they actually were the ones responsible for the accident.

The Belief that the Policyholder Isn’t Liable When the Car Is Loaned to a Friend

A policyholder can loan his car to his friend for the day. This friend proceeds to cause an accident. The injured party’s insurance company contacts the policyholder’s insurance company, not the friend’s, for payment through his liability coverage. The policyholders often believe that they aren’t liable if a friend causes the accident, but the insurance policy covers the vehicle and not the people who drive it. Therefore, the car’s insurance policy is the one responsible for payment.

The Belief that They Will Receive the Full Purchase Price for a Totaled Vehicle

When insurance companies decide that a vehicle is a total loss, they are only obligated to reimburse the policyholder the market value of the car at the time of the crash. People often believe that they are entitled to the amount of money they paid to buy the car but over time, the vehicle’s value depreciated and it is worth much less than the original price. The insurance company is only required to offer the policyholder the fair market value of the vehicle.

Miles Walker writes about car insurance quotes over at CarinsuranceComparison.Org. His latest article looked at the best Washington car insurance.

One of the most common forms of fraud is claiming damages for people or objects that weren’t there. In 2002 a private bus company filed a claim to settle 34 personal injury complaints from passengers on the bus, as well as claims on their lost and damaged luggage. The insurance company became suspicious when, at the trial of the driver who’d caused the accident, the driver reported that he hit a bus with 31 seats that was no more than “half full.” Subsequent investigation revealed that most of the passenger list, and their injury complaints, were fictitious.

Another common form of fraud is to manufacture an accident in order to claim damages. A bride, for example, claimed a personal damages claim on her wedding dress, saying it had been ruined by paint and was unsuitable for her wedding. When the claims department managed to get a hold of the dress a month after the wedding had occurred, the paint was so wet it came off on the claim’s adjuster’s clothes, ruining them as well.

A third form of fraud is to overstate the value of an item when it is lost and conveniently away from where inspectors can appraise it. A wealthy investment banker filed a claim for a Rolex watch he’d lost in a water skiing accident. A slip of the tongue from his wife during the claims process revealed that the watch was not a genuine Rolex, but a cheap counterfeit that he’d purchased on a business trip.

The last popular form of insurance fraud is to claim that a person was injured or killed when in fact they were not or never existed. In a rather complex form of insurance fraud, a couple in Wyoming managed to purchase insurance for the husband’s father, despite the fact he had been dead for years. Their plans unravelled when they claimed he had been killed in an auto accident, then provided a death certificate which was dated over a decade ago.

1. New, expensive cars are the most likely to be stolen.

While it’s more likely that a Ferrari will be taken out for a joyride than a minivan, thieves mostly target popular cars. The National Insurance Crime Bureau releases a list of the ten most stolen vehicles each year; their picks are always everyday cars between ten and twenty years old. Why? Thieves aren’t selling cars, they’re selling parts. The highest demand is for high volume cars that are old enough to need replacements. An exotic sports car might cost a lot to buy, but it’s difficult to service and highly noticeable – hence, less interest from the criminal class.

2. Red cars are charged higher premiums than other colors.

There is a persistent myth that red cars are more likely to be ticketed by police. Statistically, a red car is no more likely to get a ticket or be involved in an accident than any other color of car. Insurance companies know this so they have no reason to charge higher premiums based on color. It’s possible that this myth is based on the simple fact that red cars are quite common in comparison to other colors.

3. If someone else drives my car and gets in a wreck, their insurance covers it.

You are buying car insurance, not driver insurance. If something happens to your car, responsibility falls on you and your insurance policy. Therefore, you should make sure that anyone who will drive your car is covered by your insurance specifically.

4. Insurance rates are determined solely by the type of vehicle and the type of driver.

The most overlooked factor in determining insurance premiums is the driver’s credit score. Like loan companies, the insurance company wants some assurance that you will pay your bill. A low credit score suggests an increased risk of nonpayment and therefore comes with a higher rate.

5. Car insurance premiums automatically go up if you get a speeding ticket.

In most cases a speeding ticket will have no effect on your premium. Unless you were going far above the posted limit, you normally must get at least two tickets within a short period of time for the insurance company to raise your rates.

Steven Farrell is the administrator of ReversePhoneLookup.org.

This article discusses the four states with insurance premiums of over $1,000.00 and the two states with insurance premiums of under $600. The other states fall between the $600 and $900 range.

Depending on how high your state’s average premiums really are, you may find yourself considering a move to the state with the lowest premiums or at least leaving the state with the highest ones, if that’s where you live. You’ll find out which ones these are as you keep reading.

The Highs and the Lows

As of October 2010, the four states with premiums that were over $1,000 were New Jersey, with an average premium of $1,146.39; Washington, DC, with an average premium of $1,143.71; New York, with an average premium of $1,091.43; and Massachusetts, with an average premium of $1,091.43. The two states with the lowest premiums were Maine, at $599.88, and Iowa, at $557.67.

Why is there such a difference between these states? The reasons are as varied as the sights you can see in each state. In Maine, for example, auto insurance premiums are low because the state has a low population rate, which means fewer cars on the road. In addition to that, there are at least 30 separate insurance companies in that state which are competing for insurance dollars. Talk about a buyer’s market!

Why So Low?

In Iowa, there are a lot of rural areas. These areas are less-populated, which makes insurance rates lower. Also, Iowa takes into consideration how much and how far you drive when determining insurance rates. So, they may vary some depending on where in Iowa you live, but the average premium is still lower that Maine’s.

Why So High?

But why are they so high in New Jersey? Well, New Jersey is mainly an urban state, and those areas are extremely crowded. In addition, residents who live in urban areas, such as those in New Jersey, are said to drive more than those in other areas, such as New York. (This may be because much of New York City can be accessed by public transportation or simply walking to one’s destination.)

The same reason – more urban areas, thus more drivers, as well as higher cost of living and higher cost of health care are the reasons Massachusetts auto insurance premiums are so high. In addition, more auto insurance claims are filed in Massachusetts than in any other state. What about the nation’s capital? Premiums are so high there because you must buy uninsured motorist liability coverage at the same amount as your own liability coverage.

So, now, you know. And, if you live in one of the states with very low or average insurance premiums, you’re probably feeling pretty good right now.

Annie is a finance blogger and eco-conscious writer collecting DIY gadgets online. Chck out her recent post on planning and building a greener home.

If you are one of those passionate car owners, you know that antique cars are expensive investments, so you need the right insurance coverage to protect that asset. Here are some tips for finding the best insurance for your antique car.

Is Specialty Insurance Necessary?

In most cases of restored antique cars, specialty insurance is needed. The value of these cars can soar into the hundreds of thousands of dollars and traditional car insurance normally is not enough to protect your investment. Although you can usually insure your car through a traditional agent, the wisest move is to use a company that caters to antique car owners.

How Specialty Insurance Companies Determine the Value of Your Car

There are a variety of factors insurance companies take into consideration when determining the stated value or ‘agreed value’ of an antique vehicle. Some of the things they consider include:

• What type car do you have?
• How often is the car driven?
• Both the interior and the exterior condition of the vehicle
• The age and number of drivers
• Monthly mileage
• Do you own another primary vehicle?

The insurance company will want to take photographs of the car and have it inspected inside and out before settling on the value of it.

Things You Need to Know About Your Specialty Insurance

Specialty insurance carriers have certain requirements you will need to meet. You will have to provide proof that you have another car you use for daily driving and your driving record and those of other household members will be scrutinized. Age is taken into consideration and they will set a maximum number of miles per year your car may be driven. You will also need to tell them about how you drive your car. Is it only driven to car shows or in parades or do you also use it for pleasure rides?

You will need to provide the insurance company with much information but you also need to find out some important facts before you agree to accept their coverage. Ask your agent:

• Does the policy cover damage received at car shows?
• If damaged, may you use your own mechanic to do the repairs or are you restricted to the mechanic of their choice?
• Is the car covered if you must ship it to events a distance away?

The most important information you need, however, is knowledge that the value they have put on your car is enough to replace it if necessary.

There are several reputable insurance companies that focus on specialty insurance for antique cars. Choosing one of those well-known carriers to protect your pride and joy is a intelligent decision.

About the Author: Deborah Blair is a full-time writer with more than 10 years experience in the personal auto insurance industry. She also writes about health, wellness, and education and is a regular contributor at aboutmedicalbillingandcoding.org.

Not all States are the Same

Different states have different laws. There may be different requirements regarding the level of insurance, and there can also be differences regarding how accidents are handled. Some states will fine one party at fault. Other states, like New York, say that no one is truly at fault in an accident, because all drivers have a responsibility to avoid collisions. It is important to understand the requirements of the state you are moving to, so you can be sure that your insurance coverage is adequate.

Staying with the Same Company

There are large companies that are licensed in all states. When you are a customer with one of these companies, making the move is easy. You simply call the company and give them the new address. Be prepared, however, for some changes. Insurance rates are based partly on where you live, so your rates will probably change. They could go up or down, depending on the area you currently live in and where you are moving to. Also, the new state may have different coverage requirements that could change your premium.

Choosing a New Company

Many companies are only licensed in one state or certain regions. Should you be one of these companies, you will have to choose a new company. Typically, you existing company will continue to cover you for a certain time after the move, allowing you to find a new provider. Ideally, you should search for your new company before the move is made so you can quickly make a smooth transition.

You Must Inform Your Company of the Move

Rates are based partly on where you live. If you should decide that you aren’t going to tell your company about the move, you are actually committing insurance fraud. The company can refuse to pay any claims you may need covered based on your failure to report the change of address.

Registering Your Car in the New State

Most states have set requirements regarding how quickly people should change their registration and license when moving to the area. Take the time to contact the local DMV in your new town to find out how much time you will have. This is also a good time to find out what kind of fees you will be expected to pay for the registration and plates.

Moving is stressful as well as exciting. Knowing what steps to take regarding your car insurance can save you a great deal of frustration. The first step is to contact your existing company and see if they can cover you at your new home. Regardless of whether you will have to change companies, the sooner you handle this important change, the better protected you will be.

Miles Walker is a freelance blogger who regularly writes about where to get a car insurance comparison over at Car Insurance Comparison .org. His recent article looked at car insurance quotes.

Mileage Based

Before the pay-as-you-go auto insurance regulations were passed in the State of California, drivers were required to purchase standard auto insurance policies, which determined their premium based on estimated mileage and other factors such as their age, driving history, and location of their vehicle. With the pay-as-you-go auto insurance, your insurance premium is calculated based on how many miles you actually drive in your vehicle each year. The fewer miles you travel, the lower your premium will be if you have a good driving record.

Many insurance companies that sell pay-as-you-go auto insurance provide their policy holders with a range of different mileage brackets to determine their premiums. However, if you drive more than 20,000 miles each year, you may not see much saving under this program.

Mileage Verification Methods

In order to determine the premium, drivers are required to submit their mileage to their auto insurance company when renewing their policy. There are two methods that can be used, which is the self-reporting method and the automatic device reporting method.

For the self-reporting method, the insurance company may allow the driver to submit their own mileage to them online or by paper. Some companies may require that the odometer be recorded by your insurance agent, an auto car dealer, or by a governmental agency such as the California Department of Motor Vehicle.

For the automatic device reporting method, drivers that have a global positioning system (GPS) or remote diagnostics device built into their vehicles such as OnStar can actually sign up to have their mileage sent directly to their auto insurance company when requested.

Restrictions on Automatic Devices

One of the major concerns for consumers purchasing pay-as-you-go auto insurance was the use of the automatic devices. Some people felt that the insurance company may use this data for tracking purposes. However under the insurance regulation guidelines, insurance companies are prohibited from obtain any location data through your device.

Truth be told, the pay-as-you-go concept is one that will change the face of the car insurance industry. Hopefully insurance companies in major metropolitan areas around the country will catch on and offer these fair and affordable options to others as well.

About the Author: Tanya is a full-time writer and blogger with a passion for personal finance, insurance, credit repair, and more. She is also a regular contributor at CreditLoan.com.