One of the caveats of riding a motorcycle is that riders face a higher risk of getting into an accident when compared to drivers of standard cars. Yes, there is nothing that can compare to riding a motorcycle on an open road with the wind hitting your face, but you have to remember that you’re also subject to a greater amount of personal risk due to the lack of sufficient protection from external forces. Motorcycles are also harder to control when compared to a standard car, which is even more apparent during hazardous road conditions, such as when it rains or if there’s snow on the road. If you use a motorcycle on a daily basis, you need to know about the different types of insurance plans out there and which ones would be the most suitable for your needs.
Comprehensive Physical Damage Insurance (CPDI) for Motorcycles
While most states require a motorcycle rider to have some form of liability insurance, what happens when your bike gets damaged in a non-accident related event? Instances like this occur not as a result of the actions of the motor vehicle owner; rather, because of external events outside of their control. For example, hitting a deer is considered a frequent motorcycle accident in Georgia, especially during night biking. Theft and vandalism of particular motorcycle models is rampant in Los Angeles. Severe weather and hail are also other common external culprits behind why bikes get damaged. If you live in a state where these incidents occur, it is highly recommended that you acquire comprehensive physical damage insurance for your motorcycle since this can help immensely in paying for damages to your bike.
Collision insurance is another type of insurance that you should consider getting since it involves damage resulting from hitting another vehicle. This type of insurance will either help you pay your bike repairs or give you the equivalent cash value of your motorcycle in case it was damaged irreparably during the accident. Do note though that the cash value uses the current value of the bike based on usage. The present value is calculated using the number of years that the bike has been in use, divided by the estimated lifespan of the motorcycle. The percentile outcome of the calculation is the amount that the insurance covers.
Bodily Injury Liability Insurance
This type of insurance covers the medical bills of the injured party during a motorcycle accident. For example, if you suddenly lost control of your vehicle and hit a pedestrian, their medical bills would be covered by your liability insurance. However, bodily injury liability insurance does not cover your medical expenses. If you also sustained injuries in the accident, you will need to rely on your personal health insurance coverage to pay for the treatment of your wounds.
Nearly all U.S. states require liability insurance for motorcyclists. Before you consider any other type of insurance package, you should have a good liability insurance plan in place. Without it, you’re likely to be sued by the person you accidentally hurt, and this can lead to a lengthy, expensive court case.
These are the top three types of insurance that all motorcycle riders should at least consider before using their hogs on the road. If you want a more extensive motorcycle insurance comparison, you can visit sites like CoverHound, which shed further details on other types of motorcycle insurance available. Medical payments insurance and uninsured motorist coverage for motorcyclists are some of the other insurance options that could be useful depending on your needs.
Should I get them all?
The best possible scenario for any motorcyclist is to have a comprehensive protection package that includes liability, replacement, accident and physical injury insurance. However, not everyone can pay for such a thorough policy. You should first get liability insurance, and then accident insurance, since this helps to cover the most common incidents that you’re likely to encounter. More extensive insurance plans can be added on an “as needed” basis depending on your perceived needs.
Just remember, while riding a motorcycle down an open country road is one of the best experiences imaginable, you should not be reckless in traveling without any form of insurance.
While some of these insurance plans are optional, hopefully this comparison guide has enlightened you to the different types of policies available. Remember, don’t be foolish and leave home without a proper insurance package. You may think that you’re an excellent rider, but accidents can happen to the best of us, no matter how careful we are.Comments: 0 Read More
If you are on a fixed income, your options are limited as far as life insurance policies go. The most affordable life insurance for you is always the one you can get earliest at the best price. This article will discuss some of the ways in which you can get an affordable life insurance policy while on a fixed income.
A whole life insurance policy is only worthwhile if you are already extremely young and likely won’t meet your end for some decades. This is because you will be entitled to the lowest premiums. Never wait to take out life insurance because the longer you wait the more it will cost you. For most people, term life insurance offers better value for money as it only covers a set number of years. This set period is enough for the majority of people thinking about AARP life insurance.
It seems like the most common piece of advice around, but it remains the best form of advice around. Always shop around for the best deals because the premiums differ between every insurer. You will find that even five local insurers can have wildly different prices. This is down to the way insurance costs are calculated. It’s all about calculating the amount of risk the company takes on by insuring you. Each insurance company lends different weights to each point, such as whether you smoke and what sort of health complications you’ve experienced in the past.
Generally, you want the best prices. But you also want to make sure the insurance company is going to last out the policy. The insurance industry is more crowded than ever before. There are more new insurers than ever before. They may offer more affordable policies, but there are no guarantees they are still going to be there twenty years from now. Stay on the side of caution and go with a company with a solid reputation of success.
In order to get affordable life insurance on a fixed income you have to go out of your way to shop around. Make it clear what your income is using an online calculator so only policies you can actually afford come up. This will save you a lot of time and effort. Finally, remember to call the insurance company to double-check the terms and conditions and to ensure the offer is still valid.
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With CNN echoing what a lot of us have long felt – that insurance premiums are seemingly getting higher with each passing year – it’s become increasingly more important to comparison shop car insurance quotes before you finally settle on a coverage. And thankfully today, it’s much easier to research car insurance costs than ever before. The Internet is packed with solid car insurance comparison websites that can help you find the right coverage at the right price – no matter your type of vehicle or situation.
Let’s make sense of online car insurance comparison sites below.
Using Insurance Comparison Websites
While shopping online for car insurance, it’s critical that you input the right information. Quotes are only as accurate as the information you provide, and so it is important that you enter your details carefully, and not just rough estimates. Once you feed in your details, you will see a number of car insurance quotes. These are mainly listed from the cheapest to the most expensive. As you review your online quotes, here are a few things you should be on the lookout for:
Many online car insurance comparison sites offer the ‘basic’ insurance policy so it may not have provisions for no-claims benefit, legal expenses or windscreen cover. If you want to cover these risks, go for comparison websites that list offers beyond the minimum and basic policies.
Price isn’t Everything
It’s easy to get attracted to the cheapest coverage you see, especially when you’re comparing several car insurance quotes online. However, purchasing cheap coverage may cost you more in the long run if your policy does not provide the extent of coverage you need. Compare the quality of coverage as well as the price. Quality insurance comparison sites allow you to compare the benefits of each policy by factors such as:
Car insurance shopping means striking a balance between the cost and quality of the coverage. Make sure that you consider all the benefits that are important to you, and remember that most car insurance comparison websites only acquire quotes from a small subset of insurance providers.
If you want to get the cheapest car insurance, you have to gather quotes from multiple car insurance comparison websites and compare the quotes from the insurance providers and not the comparison sites. Then you can go for the cheapest option that offers the coverage you want.
When you use most online comparison sites, you will click through to the insurance provider’s website to complete a purchase. However, there are other sites that offer full service purchasing within them, like CoverHound’s auto insurance quotes online comparison site. But regardless of the comparison or insurer site you use, there’s a good chance they’ll try offering you add-ons before you check out. Be weary of these add-ons. Make sure there are no other alternatives and that you actually need them before purchasing.
Know How the Website Makes its Money
Most comparison websites are not in the business of selling the products themselves; they will usually show you prices and details from insurance providers, and make their money either by:
Of course, as we mentioned above with CoverHound, this is not always the case.
How to Use Comparison Websites
Read policy documentation before you purchase. If the documentation is not included in the car insurance website, go to the insurance provider’s website. If no information is available, don’t buy the coverage. You need to make sure that your insurance coverage does cover when you make a claim.
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Whole Life Insurance… these three words don’t fit right in my head. Actually, the last two words are fine, but I would rather switch the word “whole” by “term” usually ;-). I’ve rarely spoken about my insurance structure on this blog. In fact, the last time I discussed my own life insurance structure was back in 2007! Since then, I’ve upgraded my life insurance structure according to our needs. I’m actually going to tell you more about my personal life insurance structure in another post. Today, I want to concentrate on explaining why I chose a whole life policy to cover a part of my needs.
Hint: if you are an entrepreneur, you want to read this post.
A whole life insurance policy is quite easy to understand:
– You pay X amount of premium per year to get your contract.
– This contract insures you for X amount in the event that you pass away.
– The contract is good for your life.
– If you pay more than the premium, you have the possibility to invest in a tax-sheltered account (let’s say that your monthly cost is $100 and you pay $125, there is $25 being invested in a tax-sheltered account called Cash Surrender Value).
The major downside of whole life insurance is that it’s quite expensive (and brokers are making a lot of money on them! Hahaha!). This is why brokers tend to push this product down your throat based on the fact that they will make more money you need life insurance coverage for your entire life. This is definitely not the right way to get cheap life insurance if this is what you are looking for ;-)é
Technically, your insurance needs are a lot higher when you are younger than when you are 70. So being insured for 500K at the age of 70 is quite useless. Unless you want to play Santa Claus, nobody really needs this money. So in 90% of cases, you are much better off with term life insurance that will cover your needs for a specific period of time. For example, most of my life insurance coverage is in a term life insurance that will last for the next 20 years. After that period, I won’t need much coverage since all my kids will have finished school, my house will be almost paid off, I will have RRSPs and a pension plan big enough to cover my wife’s financial needs. So why would I pay for an expensive whole life policy that will only make my kids rich? But still, I do have a whole life insurance policy… of $250,000!
Okay… but Mike, why the hell have you taken a whole life insurance policy then? Are you that dumb???
Bear with me for a moment, you’ll understand.
There are two things you can’t avoid inCanada: Death and Taxes! The problem is that both of them are quite related. In fact, if you ever pass away, you are considered to have sold all your assets the second prior to your death for tax purposes. Therefore, if you can’t roll your assets to your spouse, there will be a huge tax implication to be paid by your Estate. This is the first reason why you need life insurance if you own a company. This insurance need is there today, but will also exist in 40 years from now. This is why I need a whole life insurance policy that will cover this risk. Since I can roll my company shares to my wife without tax implications, there is another reason why I needed insurance.
I have a partner.
Having a business partner is clearly amazing. It enables the both of us to grow something much bigger in less time. But this also means that I don’t hold 100% of my company shares. If my partner would pass away tomorrow morning, his 50% of the company shares would be transferred to his wife. While I really like his wife and we are very good friends, I doubt I would like to manage “my” company with a different partner. So the easy way would be to buy her shares. But since we valued our company at $263,042 this year, I would need to spit $131,500 to buy back her shares. I obviously don’t have this liquidity!
Without insurance, this could create a big mess. Imagine if his wife would like to receive a dividend of $1,500 per month? Or that she would like to sell half of our sites to get a big fat check? The fact that we each hold 50% of the company would completely freeze the company and would make it very difficult to operate. On my side, I wouldn’t be able to continue growing it as I want and I would not have the liquidity to hire someone to replace my partner’s expertise (remember, I’m a techno retarded blogger, I can’t run this company by myself since I don’t even know what html and php means!). This is where the whole life insurance policy could become your best friend!
In order to be able to buy back my partner’s 50%, we both agreed to purchase a $250,000 whole life insurance policy. We are both insured by the same contract (which means that if I die, my partner will receive the $250K and vice-versa) and we have selected a “first-to-die” clause. The first to die clause enables us to both be covered for $250K but the payment occurs only once. Therefore, the first one to pass away will trigger the $250K payment from the life insurance company. The second to pass away won’t trigger anything more.
Our goal was to take an insurance policy that would enable us to buy our partner shares upon death and generate some liquidity to hire someone to cope for the loss of the partner in the daily activities. This is why the amount of $250,000 is much bigger than the actual value of the company. After paying the shares, we need a few thousand to operate the company.
Since this insurance need will exist until we sell the company, we couldn’t go for a term life insurance of 20 or 30 years. In 30 years, we will still need that cash to buy our partner shares. This is why the whole life insurance was the best bet for us. It guarantees us to be able to operate our company and it guarantees also that our wives receive something coming from the company.
It is very possible that we will have to increase the amount of coverage later on. When we started, the company wasn’t worth that much and the amount of $250k covers a company value of $500K. We are already halfway in this valuation after three years. I guess that we will hit the $500K value in a few years. At that time, we will probably take the option to invest in the cash surrender value. By increasing the payment of our premium, we will be able to not only invest in a tax-sheltered investments, but this will also grow the amount of our whole life insurance policy.
For example, if we pay $100/month for our $250K coverage, we could decide to invest $100 more and increase our payment to $200/month. At that time, we would be investing and additional $1,200 in the policy. Therefore, at the end of the year, we would be having coverage of $251,200 instead of the previous $250,000. The other option would be to write another whole life insurance contract for an additional amount. Depending on the cost of the insurance, the cash surrender value investment could become more interesting.
In the end, the most important thing is to make sure that we have enough coverage to keep the company rolling and to make sure that our wives get the part they deserve in this story. I’ve seen families being torn apart after the death of a rich individual, I won’t let this happen. All I need is a whole life insurance and this problem will never happen!
This post about insurance is linked to the Insurance Movement initiated by Jeff @ Good Financial Cents. Check out his site, he is offering cash rewards!!! Insurance is so important, but most people are not properly insured. This is why Jeff decided to raise this movement. You can read other articles about Life insurance here:Comments: 14 Read More
When it comes to the time of the year that we have to buy auto insurance (for some of us that’s every month) our wallets certainly feel the strain. Auto insurance can be very expensive and if you don’t check what options are available to you, then it’s even more so. You can get cheaper auto insurance if you follow some simple steps, here they are:
Identify the type of coverage you require
This is just something that you should think about, if you have a vehicle that’s worth not a lot of money, should you purchase full insurance cover? For example, a friend of mine recently purchased his insurance for a vehicle worth $800 and his insurance cost more than the vehicle. If you are faced with this scenario you should look to see if you think the policy is worth it, if not then get a cheaper policy.
Always look for discounts!
There are always tons of discounts when it comes to auto insurance, so make sure you check what options are available to you. If you have more than one vehicle, many insurance providers now offer brilliant ‘multi-car’ discounts, so if this applies to you check out your options. Also, have you considered getting your home and auto insurance from the same provider? You can make big savings by combing your insurance policies.
If you are a young driver or you are just learning to drive, you could consider choosing a policy that offers a good grades discount. If you are doing well in school, then you will get a discount on your insurance policy, it’s that simple.
Ask for higher deductibles
Asking for higher deductibles is very popular as it can decrease your insurance cost by up to 10%. The higher the level of deductible that you choose the more the percentage you save will be. However, you should make sure that the amount you choose is realistic should you actually wish to make a claim. If you have an accident you will have to pay the deductible amount before your policy will come into play.
Comparing as many insurance policies as possible is the best way to save on auto insurance. Use a price comparison site and compare as many policies as you can, all you have to do is enter you details as if you are filling in car insurance quotes. You should then be presented with a list of insurance options available to you. You can then identify what each policy is offering and you can choose the cheapest option that offers the best value for you.
Check the extras on your policy
When you receive an auto insurance policy, there are often extras that get included such as health and legal cover. If you don’t need or want these extras, ask for the insurance provider to remove them, it can result in a big drop in the cost of your insurance policy.
Monitor your credit record
Insurance providers often look at your credit record when you apply for a quote from them, so maintaining your credit record to the best of your ability is a good way to save some money. Maintain a good credit record by paying your bills on time and try not to get yourself in too much debt, it makes you look like a reliable purchaser and the insurer will therefore offer you a bigger discount.
This article was written by Andreas Nicolaides, a finance and money saving author for Money Supermarket.Comments: 2 Read More
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