A Comprehensive Home Insurance Buyer's Guide

Many people treat their home as their very own castle and their possessions as crown jewels. When you look at your home in this way then it is only reasonable to treat home insurance like a troop that stands guard around your castle. Much like a well-trained troop of guards, a good home insurance can give you a much-needed peace of mind.

But of course, you will have to take several things into consideration before purchasing a home insurance. Here we provide you with a comprehensive home insurance buyer’s guide to help you gauge if you need a home insurance and if so, how much you need. As an added bonus, we have provided a discussion on umbrella policies and how you can benefit from it.

Who Needs Home Insurance?

There is much debate going on regarding the need for home insurance, especially in view of the fact that there are several different types of insurance and each has its pros and cons. In the end, however, you alone can make the decision as to whether you will have your home insured or not. Here are some things you should consider in making this decision.

The first thing you need to do is identify how much your house is worth. It is more practical to buy a home insurance if you have a relatively expensive home, or if your house is worth more money than what you currently have in the bank. It may not be practical as well to buy insurance if your home is not located in a high danger area.

Another consideration is if you had to borrow money from a lender in order to buy your home. Most lenders require the homeowner to purchase insurance on the property, with them as one of the beneficiaries. This is because the lender considers your home an investment and they have vested interests in it...

How Much You Need

The amount of insurance you need depends on a lot of things, but in general, you need enough insurance to cover a hundred percent of the replacement of your house, coverage for the contents of your house, the cost of living somewhere else while your house is being repaired, and the cost of your liability to others. The cost of replacing your house is not the same as the amount that you paid for it; neither is it the market value of the property. Rather, it is the current cost of rebuilding the structure.

Coverage for the contents of your house or your personal property includes mostly furniture, but there are some policies that cover jewelry, electronic equipment and other valuables up to a particular value. You may want to do an inventory of your belongings so that you will have an idea of how much they are worth. Coverage for the cost of living somewhere else during rebuilding must cover the cost of meals, house rental or hotel bills and other living expenses. The need for coverage for your liability to others is very important in case someone is hurt within your property.

Umbrella Policies

This type of policies can be directly related to the coverage of your liability to others. Umbrella policies protect you against the likelihood of lawsuits in case someone gets hurt in your house or anywhere within your property. Of course, like any insurance policy, there are things to be considered in making the decision of whether to buy an umbrella policy or not.

For example, if your home has recreational features like a swimming pool, Jacuzzi, or children’s playground then it is definitely a good idea to get an umbrella policy. But if you don’t normally have a gathering in your house, or if you feel that your home doesn’t have features and fixtures that are prone to hurt anyone then an umbrella policy may not be that important.

If you do decide to get an umbrella policy then you should get one that has a broad range of coverage. Your policy should not only cover bodily injury and property damage caused by you, your dependents, or your pets, but it should also protect you in cases of false arrest and imprisonment, defamation, malicious prosecution, invasion of privacy and wrongful entry, among others.

Umbrella policies normally kick in after your regular liability insurance has run out, at which point they cover the amount above what your regular insurance has shelled out. Take note that umbrella policies usually do not cover punitive damages, since these are generally used to punish you for your conduct. These policies also do not cover damages arising from intentional acts.

With these guidelines in mind, you should now be more confident when consulting an insurance agent regarding the purchase of a home insurance. Now you can be sure that the insurance policy you get is just the right one for you and your home.

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Home Insurance

What is Homeowners Insurance?

Homeowners insurance provides financial protection against disasters is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

Home Insurance Policies

HO-1 is the most basic coverage and covers against damage caused by fire and lighting. HO-1 is not widely available in insurance companies because of its narrow coverage.

HO-2 is referred as broad coverage. HO-2 offers coverage that is caused by windstorm, aircraft, vehicles, vandalism, and riot. In addition, it will offer compensation caused by freezing of the plumbing system, and household appliances.

HO-3 offers insurance against damage that is caused by natural disasters. The HO-3 is the most preferred choice of home insurance among the consumers.

HO-4 offers coverage against the belongings inside the house.

HO-6 is used to provide coverage for an condominium unit. The owner can apply for the HO-6 home insurance to protect items that are not covered by the policy of the association.

The HO-8 offers coverage for older home. If you have an old home, you may be ineligible for a replacement policy. Instead of purchasing the replacement policy, you can purchase the modified replacement policy. If you purchase the modified replacement policy, the insurance company will pay for the modern building materials rather than paying for the outdated.

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Health Insurance Buyer's Guide

There is nothing in this world that is truer than the old adage – ‘health is wealth’. Our health is primarily our responsibility for numerous reasons. We all have loved ones that depend on us. To fulfill our responsibility of looking after them, we need to be in good health ourselves. In order to maintain good health and to counter any unforeseen medical expenses, health insurance ought to be your first step towards fulfilling your responsibilities. We need to make a smart health insurance decision because of the protection that it offers us.

Why You Need Health Insurance

The most important reason is to protect your finances. Medical treatment and bills are, for the most part, unaffordable for a majority of the population. Health insurance entitles you to discounted rates, a factor that insurance companies negotiate with your health care provider. Moreover, health insurance gives you easy access to a vast network of health providers, which results in you maintaining better health. Regular checkups ensure that you lead a healthier lifestyle rather than one of neglect. Any life-threatening condition that you may unexpectedly encounter, will entitle you to treatment without having to pay anything upfront. With monthly premiums ranging for $50 – $150, individual and family health insurance is affordable...

Understanding Health Insurance

Prior to signing up for any policy, it is essential that you understand the terms and conditions of the coverage, and of course, health insurance terminology. To begin with, there are four types of plans for individuals as well as families.

1. Indemnity
An indemnity plan gives you the option of visiting any hospital or doctor of your choice. The insurance company will pay a portion of your total bill. However, you may need to pay an advance towards some services and can apply for a reimbursement from your health insurance provider, later. This type of plan is generally more expensive, and will suit you if you want to the preference to choose doctors, and have the ability to pay upfront, if necessary.

2. Preferred Provider Organization or PPO
This plan covers medical care by a list of health care providers enlisted with the insurance company. PPO is the most popular plan and is ideal if your doctor is part of this plan. However, it is important to check the list of providers prior to seeking medical care.

3. Health Maintenance Organization or HMO
An HMO plan entitles you to seek medical care from a list of providers that contract with or agree to provide medical services to those covered by this policy. You can choose a primary care physician for most of your health care needs, who in turn may refer you to HMO specialists if necessary. Choose this plan if you agree to have your primary care physician coordinate your treatment with HMOs.

4. Health Savings Account or HSA plans
This plan involves opening a special bank account where you can deposit money to be used for future medical expenses, and save money. You earn interest on the deposit and save on taxes too. This account is similar to a 401(k) account and is normally a PPO plan with higher deductibles. HSA plans are ideal for younger individuals or if you prefer lesser premiums with higher deductibles in case of any unexpected illness or injury.

Insurance Terminology

• Premium - A premium is a pre-determined sum that you need to pay your health insurance company on a monthly basis. Premiums depend on a number of factors that include your age, present health condition etc. Premiums are generally lower for younger individuals and increase with age. To save money, choose a lower premium with higher deductibles.

• Copayment - Copayment is a fee you may need to pay upfront when you visit a provider or purchase a branded prescription drug. Your insurance provider will pay the balance amount.

• Deductible - Deductibles are your out-of-pocket expenses that you need to pay prior to the insurance company paying for any medical claims. Deductibles do not include premiums and copayments. To maintain a reasonable level, make sure your deductibles are less than 5% of your annual income.

• Coinsurance - Coinsurance is the balance amount you are required to pay after any deductibles.

Whatever plan you choose normally cover medical care which includes physician expenses, hospital expenses, surgical expenses, preventive care, prescriptions, maternity, emergency room services, pathology lab reports, emergency room services and more. Always make sure you check with your health insurance provider for the extent of your coverage.

Assess Your Need for Health Insurance

According to your financial status, you ought to set a budget that will take care of your health care insurance needs. Another factor that needs to be considered is the benefits that you actually need. If you find it hard to save regularly then it is advisable to opt for a plan with lower monthly premiums. If you are relatively healthy and haven’t had the need for treatment for a while, you can look for lesser coverage for preventive care. The same is the case if you haven’t spent much on prescription drugs either. Some pre-existing medical conditions may not qualify you for coverage with some insurance companies. Therefore, it is essential to talk to a licensed agent and discuss this prior to signing up for a policy.

Buying Individual Health Insurance Online

Insurance companies offer instant quotes online. It is important that you compare quotes and even consult experienced insurance agents in order to choose the right policy that suits your needs. Since most companies have online customer service support or toll free number, make sure you get answers to all the questions you have. You may even receive a discount for purchasing a policy online. If you plan to buy health insurance along with your spouse then you can negotiate a better deal. Online you not only get to compare quotes but also read the reviews and feedback from other clients. This will give you the opportunity to judge the credibility of the company. This will save you a significant amount of time and money, and of course, find the perfect health insurance policy.

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Life Insurance Buyer's Guide

It is the desire of every individual to guard the financial health of his loved ones. Anybody would want to make sure that his family is secured financially even after he has left earth. This security can be ensured by any person, even one without wealth to leave as inheritance to his loved ones. With life insurance, a person is assured that his family or beneficiaries will receive an amount of cash after he dies or when he becomes critically ill.

Every person has different insurance needs and abilities to pay; therefore, every person would need to buy an insurance fitting to both his requirements and budget. In order to get the best insurance deal, it is important for a person to understand the basic facets of life insurance and the roles they play in the contract.

What is Life Insurance?

As you already know, life insurance is a contract between an insurer and a policyholder. In this contract, the insurer agrees to pay the beneficiaries of the policyholder an amount of cash at the death of the insured or at a time when he acquires a terminal illness. On the other hand, the policyholder is obligated to pay the insurer an agreed amount called insurance premium. This premium can be paid in monthly intervals or in lump sums...

What are Your Insurance Needs?

You are buying insurance because you want to secure the financial strength of your family when you cannot be around to work and find money for them. For this reason, you are advised to know your needs before shopping for an insurance policy. Your insurance policy should be able to render these needs and you should be able to pay the premiums to enjoy the benefits of your insurance.

In thinking about your insurance needs, here are questions that can help you decide which ones should be prioritized and considered.

- How much of your family’s money do you provide? If you die early, would your family be able to get by everyday? Do you have someone who relies on you financially?

- Do you have children who still need to continue their education? Do you want to assure them they will finish their college degree even after you die?

- Do you have debts that need to be paid? Can your family handle paying these debts in the event of your death?

- Do you have state taxes to pay at the time of your demise?

- Would inflation affect the financial strength and future needs of your family?

Once you know your needs, you can choose from among the many kinds of life insurance which best suits your requirements. A match between your insurance policy, insurance requirements and ability to pay should be upheld.

What are The Kinds of Life Insurance?

You should always know the kinds of life insurance before deciding to purchase one. Although all of these serve the same purpose – that is to cover your life, the regulations and policies vary from one kind to another. Some kinds of life insurance cover your whole life while others cover only a specified period of your lifetime. There are a few that accumulate value while there are others that don’t.

1. Whole life insurance – this kind of insurance offers you protection for the whole of your lifetime as long as you pay the correct premiums.

2. Universal life insurance – this kind of insurance is based on cash value. The insurance policy stipulates that any premium payments above insurance costs shall be credited to cash value which earns interest.

3. Term life insurance – this kind of insurance is the cheapest life insurance you can avail. It can cover you for a year or so. It is renewable, but you cannot claim the premiums you paid once the contract has expired. This insurance does not build up cash value.

4. Cash value life insurance – this kind of insurance is similar to universal life insurance because it builds up cash value. In this policy, the premiums are higher at the start of the contract. All of the excess premiums that are not used in paying cost of insurance are invested in the company and paid interest.

How to Find The Best Insurance Company?

After having finally figured out your needs and what kind of insurance policy is best for you, you should start looking for an insurance company that will give best value to your money. Almost every insurance company offers the same benefits, but the premiums you have to pay vary. In order to assure that your money is invested in the right place, try comparing companies that offer similar policies by answering the following questions:

- Which company offers the lowest monthly premiums?

- Do the premiums vary every year? Do benefits change?

- Which part of the benefits and policies are not guaranteed?

By looking into different considerations, you can filter the pros and cons offered by each insurance company. If you are not sure about your own evaluation, you can always ask the help of an insurance agent or specialist to help you invest in the right insurer.

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Auto Insurance Buyer's Guide

Car insurance is one of the things that elicit cash from your pocket. Every month, your insurer requires you to pay premiums in exchange of your coverage or protection from loss and liabilities. You may be like the many other people who pay substantial amounts of cash, but do not make claims or be in any traffic accident. However, even if you do not enjoy the benefits just yet, you will do so anytime you get involved in a collision. One of these days, your insurance premiums will pay off.

It has to be clear to you that auto insurance is not optional; you cannot go about living a happy-go-lucky life without carrying car insurance. Almost all states of America require you to have vehicle insurance before you can take out your car and use it in public roads. If you do not comply with the laws, you may be charged a fine or be temporarily detained.

Whether you are shopping for a new insurance or thinking about having your present one replaced, you should be aware of the many things to consider before buying an insurance policy. If you have an existing insurance, look into the premiums you pay each month. Do you think that what you pay is given justice or can you find another insurance company that offers same benefits but requires relatively cheaper premiums? If you are a first-time buyer, do you know how to shop for quotes that will get you the best insurance deal? Are you going to invest in the rightful insurance company?

There is a way to buy an insurance company that can offer you outstanding benefits at the lowest possible premium price. In finding your way to this insurer, you have to make sure you have enough knowledge of the aspects of auto insurance. To help you get there, an auto insurance buyer's guide is written for you... 

What is Meant by Car Insurance?

Car Insurance also termed as auto insurance, motor insurance, or vehicle insurance is an insurance that is purchased for cars and other vehicles. The primary benefit of having this insurance for your car is to have a financial protection against any sort of damage that may arise to the car or the traveller inside due to a traffic collision or an accident. Every country has its own terms and regulations for this type of insurance which varies from a state to state.

In most of the countries it is essential that you have car insurance before you could actually drive your car on the public roads.

Why Do We Need Car Insurance?

As per laws it is mandatory that if you own a car you need car insurance, be it any part of the world that you may live in. Although it is mandatory and you may feel its something forceful compelling you to pay money out of our pocket, it's highly beneficial in nature. In case you have a valid car insurance policy, rather than paying out of your pocket for any damage that your car may cause or suffer after an accident the insurer is liable to pay. Thus this is a protection and no case of fraud can be caused in this situation. Car insurance virtually covers any type of damage which your car may suffer due to theft, accident, fire or any other natural calamity such as an earthquake, flood, or cyclone.

Car insurance is valid for a year and it is to be renewed annually. Although as per law it is essential that a car is covered under car insurance but there are a large majority of cars which are not covered around the globe. The primary cause is people don't feel it is important to have car insurance and like to save the money they spend to take an annual insurance. However it's worth spending a small amount to get a car insurance so that you are guarded against any unfortunate situations of accident and injury.

What are The Legal Requirements?

It has already been made clear to you that insurance is not a luxury item; it is a requirement of the law. The states of America require different minimum coverage for its people. You have to know the minimum coverage amount that your jurisdiction requires you to maintain. It is best to research on the insurance requirements of the law; print them out and save for later use. You are going to need them in the next step.

What are The Bases of Premiums?

Insurance companies price the premiums they charge policyholders based on statistics, which is why your premium payments vary. The determinants of bases of premium charges are as follows:

- Gender

- Age

- Marital status

- Years of driving experience

- Classification of vehicle

- Distance the vehicle travels

- Car specifications

The abovementioned articles are usually the ones that determine the price of premiums to be paid to the insurer. However, your driving record can still affect your premium payments – positively or negatively. Before buying auto insurance, you are advised to get a copy of your driving record as it can influence the rate of your insurance. A good driving record can lower the premiums you have to pay, while a bad record can keep premiums up.

What are Your Insurance Needs?

Aside from the set minimum insurance coverage of your state, you still have to buy another form of coverage or insurance policy. In determining your needs, always put in mind that you are looking for a balance between your insurance requirements and your ability to pay insurance premiums.

The coverage amount is the amount that your insurance company will pay the person you are in a traffic accident with. However, you can also protect your vehicle from other forms of loss and damage. For a higher premium, you can shop for comprehensive coverage; this coverage protects your car from damage or loss due to vandalism, theft, flood, or wind. Collision coverage is an insurance policy that will pay you for car repair if you hit or collide with something. These other types of coverage usually come with a deductible; the higher the deductible, the lower your premium payments are.

How Do You Get The Best Rate?

Every insurance buyer wants to get the best value for their money. Every car owner wants to get the best rate for his auto insurance. If you want to get the best rate for your insurance policy, you may have to ask insurance companies whether they are giving discounts for the following:

1. Good driving record
As mentioned earlier, your driving record can positively affect your insurance rates. If you have not received a traffic ticket in three years or have not made an insurance claim, you may avail of insurance discount.

2. Good grades
It may be a form of marketing strategy, but some insurance companies do offer young drivers a form of discount if they maintain at least a B average rating in school.

3. Driving courses
Young drivers may be given discounts once they are able to finish a driving course named Pass Plus. Discounts can also be given to those who complete drive safety courses.

4. Car safety equipment
Cars that have anti-theft and anti-lock brakes have cheaper insurance rates because of their low probability to get stolen or involved in accidents.

5. Higher deductibles
Insurance companies may reward lower premiums to policyholders who are willing to pay higher deductibles. Deductible is the maximum out-of-pocket expense that insurance holders have to incur before the insurance company pays in their behalf.

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Car Insurance for Teenage Drivers

The statistics about teenage drivers aren't good. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59. No wonder car insurance premiums are so high for this age group.
However, not all car insurance companies take the same dim view of young drivers. And some discounts are available to help you cut costs. Remember, the higher the risk, the higher the cost of insurance premiums. Let this be your guiding principle as you shop for insurance.
Here are 10 suggestions to help lower premiums and keep your teenager's license free of violations:
1. Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean. Make safe driving a family project. In some states, restrictions apply to new drivers. Parents should know what the laws are and insist that their sons and daughters follow them.
2. Set a good example. Do you break the speed limit and tailgate? Do you yell at other drivers when you're behind the wheel? If you do these things, how can you expect your children to act differently? Start watching your own driving long before they get their license and you'll have a much easier time convincing them to be safe drivers. Remember, actions speak louder than words.
3. Put your teenager on your policy. Rather than setting up an independent policy for your teen driver, put them on your auto insurance policy as an additional driver. In this way, all the discounts applied to your policies will be passed on to them.
4. Pay your teenager to get good grades. Here's a creative tip — find out how much you save if your teenager gets a good grade point average and pass it on to them. Usually, having a 3.0 or higher GPA will reduce your car insurance premium by 10 percent. Figure out exactly how much this saves you and give that money to your teenager. This accomplishes two things. First, it provides a direct reward for academic performance. Secondly, it motivates them to continue getting good grades.
5. Enroll them in driver education courses. Discounts are available for teens who take recognized driving classes. But call your car insurance company to find out which schools are covered before paying big bucks.
6. Steer clear of sports cars. Don't try to live vicariously through your teenager by giving them the hot car you couldn't get in high school. Getting your teenager a safe car to drive, with the latest safety equipment, will lower your premiums. Not only will you save money on car insurance, but fast driving will be less of a temptation.
7. Get their support. Don't assume that your teenager wants to vacuum clean your wallet. Ask them for help cutting costs and point out that you will share in the savings (see rule #4). Tell them how much car insurance costs and show them how this fits into the family budget. If nothing else, you will score points for treating them as adults.
8. Talk to your kids about drugs and alcohol. This is a tough subject to broach with teenagers, who think they have everything under control. But the consequences of saying nothing can be catastrophic. Take the time to lay down some guidelines in this important area.
9. Take traffic school to beat tickets. Once a ticket is on your teen's license, it takes months to get the violation removed. Instead, encourage them to take traffic school if the judge allows it. A day spent thinking about the consequences of unsafe driving can bring rewards for years to come.
10. Ride with your teenager. Your teenager was a safe driver last year when he or she got a license. But what's happened since then? Let your son or daughter take the wheel while you sit back and relax in the passenger seat. If you see them doing something that breaks rules or seems unsafe, point this out in a diplomatic way. If they are doing a good job driving, praise them for their efforts.
If you follow the above suggestions, you will find that you can make it through the teenage years safely — and without paying an arm and a leg for car insurance. It just takes cooperation and understanding from both sides of the generation gap.

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How to Choose the Right Insurance Company

If you've read our "10 Steps to Buying Insurance" article, you should have a pretty good idea of how much car insurance to buy and how to find a low-cost policy. But how do you make sure that the company you sign on with is going to be reliable? When we say "reliable," we're talking about how the insurer treats you, the customer. Most importantly, how will the company deal with you when you file a claim?
To help answer this question, we consulted two insurance experts: Dennis Howard, director of the Insurance Consumer Advocate Network (I-CAN) and a retired insurance adjuster, and Doug Heller, a consumer advocate at The Foundation for Taxpayer & Consumer Rights, a California-based consumer advocacy group. Both had several ideas for consumers determined to make sure their car insurance investment is directed toward a trustworthy company, one that will pay on time and in full.
1) Visit your state's department of insurance Web site. Although you may not be familiar with it, your state, and every state, has a department of insurance. Most departments have Web sites, and many publish "consumer complaint ratios" for all of the insurance companies that sell policies in their state. This ratio tells you how many complaints a car insurance company received per 1,000 claims filed.
Both experts recommended that consumers use complaint ratios to screen prospective insurers. "Just because they're a big name doesn't mean that they'll be a 'good neighbor' or that you'll be 'in their hands,'" Heller noted.
If you've done your homework, you should already have a list of car insurance companies with the lowest premium quotes. Now jot down the companies with the lowest (or best) complaint ratios. Then, compare your two lists — the companies that rank best on both lists merit your strongest consideration.
If you can't find complaint ratios for your state, Heller recommends examining the complaint ratios published by other states. Keep in mind that a single insurance company's practices can vary significantly from state to state — a subpar ratio in one state doesn't necessarily mean the situation is the same in your state. But watch for general trends. If an insurer is getting a lot of complaints in several other states, you probably don't want to get involved with this company. The I-CAN Web site provides links and contact information for every state's department of insurance.
Also note that insurance department Web sites often provide basic rate comparison surveys. These can give you a rough idea of which insurers might interest you on a financial basis without the hassle of typing in all your personal information (as you must when you use one of the online quote sites).
2) Find out which insurers body shops recommend. One of the best ways to identify reliable insurers, according to Howard, is to contact local body shops that you trust and ask for their recommendations. Body shop managers have a unique perspective to offer, since they regularly interact with insurance adjusters. They know which companies have the smoothest claim processes, which affects how quickly the work can be completed on a damaged vehicle. And they know which companies are pushing aftermarket parts, in lieu of genuine original equipment manufacturer (OEM) parts, to cut costs.
3) Check the J.D. Power Ratings. J.D. Power and Associates collects data from individual policyholders nationwide and rates them according to coverage options, price, claims handling, satisfaction with company representatives and the overall experience. A quick visit to the J.D. Power Consumer Center will give you a feel for how the major carriers stack up. J.D. Power also publishes an annual survey of major auto insurers — Amica and Erie have finished at the top for the last three years. These are also companies that Howard recommends: "Erie is sold by independent agents, who are very knowledgeable about the product. I like their claims handling approach. Almost all other companies look at a claim and find a way to not pay it. Erie and Amica will look at it and try to find a way to cover it."
4) Consider insurers' financial strength ratings. As a final check, you can take a look at the A.M. Best and Standard & Poor's ratings. Both companies publish financial strength ratings for all insurance companies — these "measure" an insurance company's ability to pay out a claim (they have nothing to do with the way a company treats its customers).
For the general consumer, looking up these ratings is only a formality, since most of the well-known carriers are going to be a safe bet. Moreover, independent agents would be unlikely to recommend a company with dubious financial standing. Still, if you're considering a smaller, unfamiliar insurance carrier, you might consider this research time well spent. Insurance companies often provide this information on their Web sites, but if not, you can run a search at the A.M. Best and Standard & Poor's sites.
The A.M. Best rating is expressed as a letter grade from A++ (the highest) to D. Some companies may be assigned ratings of E (indicating regulatory action regarding the company's solvency), F (in liquidation) and S (suspended). In any case, you should only work with companies that have at least a B+ rating.
The Standard & Poor's ratings range from AAA (the highest) to CC. Additionally, some companies receive ratings of R (under regulatory supervision) and NR, which means "not rated." The letter grades might be modified by a plus or minus mark. Consider only those companies that have at least a BBB rating.
5) Still confused? Consider working with an agent. It used to be that everyone purchased auto insurance from an agent, but now, car insurance companies like Esurance, Geico and others allow you to purchase insurance directly — over the phone from a customer service representative or online. Still, many of the major players have preserved their national networks of local agents — even if you use State Farm's or Allstate's Web site, you will still be assigned a local agent.
There are two kinds of agents:

• a) the captive agent, who represents only one insurance company (major carriers like AAA, Allstate and State Farm sell policies through captive agents).
• b) the independent agent, also known as a broker, who represents several insurance companies and therefore does not have a vested interest in selling you a policy from one particular company.

The main advantage in having your own agent is that this person has a vested interest in keeping you happy. Accordingly, he can become familiar with your situation and guide you toward a suitable policy. Howard favors the use of agents and advised, "Don't rule out direct providers, but my personal preference is to have an agent, preferably an independent agent, write your policy for you.... An independent agent would become aware of less advantageous conditions with one company [and help you move to another]. You can change carriers without changing your agent. I encourage consumers to develop a relationship with their agent."
The prospect of good working relations with an agent may help you to make a decision: When Heller purchased auto insurance for the first time, two insurers gave him similar quotes, but he went for the slightly higher one because the agent had been highly recommended by a friend. "You shouldn't go direct without always checking out other options," he said.
But, he cautioned, "Never feel pressured by a broker or an agent. Take the time to talk with an agent or a broker as well as do your online research. You may not need an agent — you may find a better deal with a company that operates direct."
Independent agents sometimes charge a fee for their services, but you may be able to negotiate that. You should agree upon any fee in writing before making a purchase. Look for agents who are certified by Independent Insurance Agents of America (Big "I") or Professional Insurance Agents (PIA).
Of course, we know you have better things to do with your time than think about car insurance. Realistically, most people won't be able to do everything on this list before choosing an insurance carrier. But if you feel that you've been burned during the claims process in the past, consider at least one or two of these suggestions — you'll thank yourself if you're ever involved in another accident.

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