You finally received your auto loan financing. So what’s next in the life of a car owner? Why wondering how to get car insurance, of course!

It really never ends, does it? The list of things we really need to get educated about seems endless. With every purchase or change comes a new inventory of things to understand and make decisions about.

With an auto purchase comes the questions surrounding car insurance. It’s something we’re required to have, by law: once you become a car owner, you’ll need to get car insurance as well. This is one time we can’t bury our heads in the sand and just not buy. Unlike the extended warranty on my laptop, car insurance is a necessity.

We all should know how auto insurance works and how to deal with insurance companies. I have gathered up some quick facts about auto insurance and hope they help you before you buy.

Car Insurance Guide

Here are a few common questions most people have about their car insurance:

1. Why is car insurance required?

Different laws on coverage can apply based on the state you reside and drive in. However, we’re still all required to have and show proof that we have car insurance before we can drive. Auto insurance is necessary as a way to protect us from any kind of liability (legal or financial) if we ever do get into an accident.

2. What kind of coverage can you expect to have?

Car insurance typically includes three coverage areas that aim to give us protection from liability and loss:

• Medical coverage: This type of coverage covers your medical bills and treatment, and may extend to covering your any work pay that you lose or even funeral costs that may stem from an accident.
• Property coverage: Any losses you experience from theft or damage to your vehicle may be covered through this clause.
• Liability coverage: Damages or injury that occurs to anyone else due to an accident you are involved in (or may have caused) may be covered through this clause.

3. How are your auto insurance rates set?

In order to set your insurance rate, your insurer looks at several things: your age, your vehicle’s make and model, your driving record, what type of driving you do, where you drive, how you maintain your car, where your car is located, and surprisingly, even your credit history.

4. Why do insurance rates vary across different companies?

You may be surprised to find that depending on the insurer you approach, you can receive different quotes for auto insurance rates. This is because each insurer’s rates are based on the history of claims made to their outfit and can also depend on their business and operational costs. It is therefore advisable that you shop around and ask for quotes from many car insurance companies in order to compare rates and so that you can make the right choice for your needs.

5. What can you do to keep your auto insurance rates down?

• The cleaner your driving record, the lower your rates.
• You can get discounts by being a good driver, by installing anti-theft mechanisms in your car, having a fuel efficient car, having multiple cars with the same issuer and being a loyal customer. Speak to your issuer about what discounts you are eligible for.
• Get a policy that allows you to have a higher deductible. This would mean that you’ll pay more out of pocket, but your premiums will be cheaper.
• Pick safer cars to drive.
• Trim your coverage to only what’s necessary. Many people have more than they need in coverage and they’d be able to lower their rates by simply dropping the unnecessary extras.
• Shop around and compare policies across different issuers. Get quotes from different insurance companies to get a sense for how much the policies cost.

6. Who can cancel my insurance policy?

Well, aside from yourself, you may be surprised to learn that your insurance company can actually cancel your insurance policy under certain conditions. They can cancel your coverage if you are unable to pay your premium or if you lose your driver’s license. The consolation here is that they are required by law to give you a heads up before they yank your insurance from you. You’ll receive at least 30 days notice plus any refunds due you if you’ve paid your premium in advance.

Selecting an Auto Insurance Company

Selecting an auto insurance carrier is not always an easy thing to do. Some research on an auto insurance company can really pay off in the long run. You may need your insurance company at a time when you are vulnerable, physically and financially. To help consumers out, many companies — such as A.M. Best and Moody’s Investor Services — rate insurance carriers.

The insurance company’s customer service and satisfaction rating will be key in any decision. You can check a car insurance company’s customer service record by calling your state department of insurance and the Better Business Bureau (BBB). Ask around and check with your coworkers, friends and family. Find out what auto insurance companies they are using and what type of service they have encountered with those companies.

What Car Insurance Should You Get?

There are many options for buying car insurance in this day and age. You can buy a policy online, over the phone, or face to face by using an agent. Some people are comfortable purchasing insurance over the Internet or over the phone, and some would prefer to have a local insurance agent they can meet with in person. Decide which method suits you best, and make sure your insurer of choice can accommodate your style and needs.

Price may be your number one concern when purchasing car insurance. While this is understandable, you should always make sure to get a policy that meets your insurance needs. To find the best price on your auto insurance, comparison shop and get quotes from multiple insurance carriers. As with any major purchase, compare policy features and coverage as well as price. While features may differ slightly, try to compare “apples to apples”. Understand exactly what you are insuring and what you are getting for that price.

Want To Get Car Insurance? Here’s An Auto Insurance Guide is a post from: Banker, Saver

Having worked in a financial institution for seven years, I was amazed at how little consumers understand federal deposit insurance. I guess I shouldn’t be so surprised because I myself was not aware of FDIC insurance prior to working at my job in the financial industry. I just assumed I was one of the few who were ill-informed. Sadly no, many people aren’t aware that FDIC coverage exists.

So What Is FDIC Insurance?

Here is the formal description of the Federal Deposit Insurance Corporation (FDIC):

The FDIC is an independent agency of the United States government that protects the funds of depositors that are in FDIC-insured institutions. The FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920’s and early 1930’s. Since the FDIC was put in place, nobody has ever lost any money that’s been covered by FDIC insurance.

Bank funds are insured up to $250,000 for each depositor. You should know that this is in effect until December 31, 2013, at which time, this will decrease back to $100,000 per depositor. However, certain retirement accounts (like IRAs) will still be insured up to the maximum of $250,000 per depositor after January 1, 2014.

Some quick facts to know about your FDIC insurance:

• Coverage is automatic, you need not apply, as long as your financial institution is FDIC-insured.
• FDIC guarantees CDs, savings accounts, checking accounts and other deposit accounts.
• FDIC doesn’t guarantee products such as life insurance policies, municipal securities, annuities, mutual funds, stocks and bonds.
• Deposits held at different FDIC-insured banks are subject to separate FDIC insurance coverage plans.

If you have questions regarding your bank or are curious about particulars, the FDIC has a website with many links and tons of information on this topic. If you wish to confirm that a bank is insured, you can use the FDIC’s Bank Find service or you can call the FDIC toll-free.

Are You FDIC Insured? Make Sure Your Money Is Safe!

There, are you feeling better about the security of your deposits? Good. Now, there are a few things you want to double check. Firstly and most importantly, is your bank or financial institution FDIC-insured? Secondly, understand that traditional accounts are going to be insured: these include your basic deposit accounts, checking, savings, certificates of deposit, IRAs and other retirement accounts.

Financial institutions now offer a multitude of other investment products that are not insured. Life insurance policies, municipal securities, annuities, mutual funds, stocks and bonds are not insured by the FDIC. Prior to purchasing a new investment product, you should make a habit of asking if it is FDIC-insured or not, especially if it is outside the norm of traditional products. Here are steps to protect your money:

• Never purchase a product that you don’t understand.
• Have all the information you need prior to investing. Ask questions until you are satisfied.
• Understand the financial risks that you may be taking.
• Know who is investing your money.
• Select a salesperson who knows your financial goals and who will make recommendations based on your personal financial situation, goals and risk tolerance.

Visiting The FDIC Website

A quick visit to the FDIC website will reveal the many services that the FDIC offers. Not only does this agency protect your money, but they also have an Office of the Ombudsman (OO). This service is available to act as a bridge between the financial institutions, the public and the FDIC powers-that-be.

The Office of the Ombudsman’s purpose is to:

• Act as a resource and liaison for the general public and the financial industry.
• Resolve problems and hear complaints in a fair and impartial way.
• Provide timely and helpful feedback to the FDIC.

The FDIC also provides consumer protection information and industry analysis. The FDIC website contains tons of information, including some things to watch out for (and to be highly wary of):

• High CD rates – be cautious, as many of these suppliers are not FDIC insured.
• Credit card interest rate reduction phone scams.
• Emails that claim to have originated from the FDIC: The FDIC does not send out unsolicited messages to the public. It follows that nobody should attempt to click on links found in suspicious email messages of this sort.
• Federal lending laws.
• Blank checks you receive from your credit card company (they come with a price and carry risks).
• Programs to help you through the current financial crisis.
• Various scams that have come about due to the economic downturn.

In closing, only you can answer the question: is your money safe? Are your deposit accounts held at FDIC-insured institutions, and if not, are you comfortable with that?

Are You FDIC Insured? Make Sure Your Money Is Safe is a post from: Banker, Saver