How to Understand Your Homeowners and Auto Insurance Coverage

Learn the two basic elements of almost all insurance policies: liability coverage and property coverage. After that, understanding your financial situation is your best tool when determining coverage amounts for home and auto insurance. Finally, be willing to accept that adequate coverage far outweighs the cost of inadequate coverage.

1^. Know your coverages: Insurance coverages are typically broken down into two categories whether you are talking about home, auto or commercial policies: those are liability coverage and property coverage. Liability protects your assets (all that you own) in the event that you are responsible for damage to a person or that person's assets and you are sued. Property coverage protects the items that you own (home, auto, etc) in the event that they are damaged by what is called a "Covered Peril". Peril is an insurance word for "something that could cause damage" such as fire, wind, etc.

How to Calculate an Auto Insurance Settlement

After all repairs are made and medical treatment is finished, you must negotiate with an insurance adjuster before you can put an auto accident completely behind you. The adjuster has two jobs: to assess the damage from an accident and to negotiate as small a settlement to you as possible. Although most adjusters will assess an auto insurance settlement fairly and in good faith, understanding how those settlements are calculated can help you get the best payment possible. After the typical hassle and pain involved with an accident, you deserve a fair settlement.

Method 1: Calculating Monetary Damages

1. Understand the basic factors involved. Due to wide variations in policy and coverage details, it is difficult to determine ahead of time exactly how an insurance company will calculate your settlement. The circumstances of each car accident differ greatly, so there are not precise mathematical formula involved. However, there are factors that are generally used to calculate a settlement for most accidents. These include:

• The type and nature of property damage
• Whether or not a party is injured
• The policy limits of the involved insurance policies

2. Assess vehicular property damage. Most car accidents involve property damage to one or both cars involved. The insurance company will likely offer to cover the cost of repairs to your vehicle.

• For example, if the back bumper of your car is dented in the accident, the company will likely pay for the cost of repair to the bumper, including labor costs. The company may wish for you to use one of their “approved” mechanics, and they may remit payment directly to the mechanic. Alternately, they may remit the payment directly to you and allow you to choose your own mechanic and pay him yourself.

3. Be aware that your car might be “totaled.” If repairing the damage to your vehicle would cost more than paying you for the value of your vehicle, the insurance company may consider the accident a “total loss” and pay you for the value of your car.

• The value of your car is the depreciated value, which includes age and mileage of the vehicle. The depreciated value is unlikely to be close to the price of a brand new car, and it is possible that it could be less than you owe on the vehicle if you have a car loan.

4. Understand personal injury negotiations. First, be aware that personal injury compensation is usually calculated separately from the settlement for damage to your car. The insurance company will consider:

• Medical reports
• Documented loss of wages due to injury
• The nature and extent of your injuries
  

5^. Be sure to request compensation for pain and suffering if applicable. The best course of action is to consult a personal injury attorney who can ensure that you are claiming all applicable medical expenses. It can be particularly difficult to quantify pain and suffering, which is a request for compensation for past and future discomfort that the individual has suffered and will continue to suffer as a result of the car accident.

How to Sue an Insurance Company After an Auto Accident

If you were in a car accident and the insurance company denied your claim, then you may be able to sue the insurance company for a “bad faith denial” of your claim. However, before trying to win in court, you should try to settle the matter with the insurance company out of court. A successful suit against your insurance company will require that you show the insurance company did not satisfy its duty of good faith and fair dealing.

Part 1: Understanding When to Sue an Insurance Company

1. Understand automobile insurance. An insurance policy is a contract between the insured and the insurance company. The insured pays premiums and the insurance company, in exchange, agrees to cover the cost of certain claims. Typically, an insurance policy will cover two types of claims: first-party claims and third-party claims.

• A “first-party claim” is paid directly to the insured. For example, some insurance policies will cover damage to the insured’s car or even an injury suffered by an insured. If you damage your car, you can make a claim for the insurance company to pay to fix it. Your insurer may also cover personal injuries you have suffered. Many driver’s make sure to get coverage for “first-party” claims because they fear that other drivers will not have insurance. In fact, in a “no fault” state, you will have no choice but to bring a claim against your insurer after an accident.
• A “third-party claim” involves injury or harm to a third party. For example, if you get in a car accident and a jury finds that you were at fault, then your insurance company should pay some or all of the damages you owe to the other driver, up to your coverage limit.

 

2. Participate in a personal injury lawsuit. When drivers get into an accident, they often sue each other. They do not sue each other’s insurance companies. Instead, the insurance company will “indemnify” its insured, i.e., it will pay some or all of the damages owed, provided that the claim falls within the insurance policy agreement. If the insurance company refuses to pay a valid claim, then its insured may sue it for bad faith.

How to Become an Auto Insurance Agent

Auto insurance agents either work independently or for insurance companies. Their main job is to sell insurance policies to car owners. If you are competitive and enjoy working with others, this may be a good career choice for you. The hours can be erratic and salary varies. On average, auto insurance agents make around $48,000 a year. The best paid agents make around $117, 800 while the lowest paid agents make less than $26,000. However, if you're self-motivated becoming an auto insurance agent could be a great career path for you.

Part 1: Getting Educated

1. Learn about the career path. Before you begin your journey towards becoming an auto insurance agent, spend some time familiarizing yourself with the career. You want to make sure the work is right for you before settling on it.

• Auto insurance agents either work independently or for an insurance company. They sell insurance policies to car owners, usually working on commission. The majority of insurance agents are employed through an auto insurance agency, such as AllState, while roughly 20% of agents work independently.
• Much of your job as an auto insurance agent revolves around seeking out sales. Your work will be a combination of phone work and working with people face-to-face. If you work independently, your schedule may be somewhat unpredictable.
• There may be quotas for commission if you're working through an agency. There is a somewhat high level of turn around for new agents due to this issue. However, having a background in sales heading into the field may give you a better chance of success.
  

2. Start off in high school. In many cases, a high school diploma and license is all that's required to become an auto insurance agent. If you don't plan on pursuing education beyond high school, stock up on the right classes while you're still in school.

How to Get Title Insurance

Whenever you purchase or refinance your home you pay thousands to a title insurance company somebody else probably chose for you. The fact is, you have a Federal Right to choose your own title company, and doing so may save you hundreds or more.

1. Find out if the title insurance premiums in your state are determined by the government. All states in the U.S. are different, but most regulate title insurance premiums to the penny. This means no title insurance company can offer you lower premiums than another company. So, the first thing to find out is whether the state where the property is located is like this. If it is...

2. Find out if the "search fees" are regulated as well. Before a title company issues an insurance policy it prepares a title report. At the closing, the title company then charges you for that report. In some states, the fees charged are determined by the state government, much like the insurance premiums. However, in other states, the search fees vary from company to company. If the search fees are not regulated...

How to Insure Your Engagement Ring

Buying an engagement ring is one of the first investments many couples make. Because it can be a big purchase, it's important to have the appropriate insurance on the ring in case it is lost, stolen, or damaged. If you have bought an engagement ring, you should get it insured so that your investment is protected well into the future. Remember that once a ring is lost, stolen, or damaged, it's too late!

Part 1: Evaluating and Documenting Your Ring

1. Find a local jeweler to do an appraisal. Nearly all independent jewelers will offer appraisal services. Ask friends and family for recommendations, search for listings of accredited and certified jewelry appraisers in your area, or simply look for online reviews to find a jeweler that is well respected and professional.

• Nearly any appraisal services will be done for a small fee. Usually, the fee will be under $50, but it can vary depending on the ring and the area where you live.
• You will be giving your ring to the appraiser for inspection, so make sure that this person has professional credentials and that he or she has been educated in appraising jewelry.
• Usually, you cannot insure an engagement ring without an appraisal because insurance companies do not want to rely on you to set the value of the item to be insured. Appraisers, on the other hand, have to stick to the Uniform Standards of Professional Appraisal Practice, which requires that professional appraisers give you a fair appraised value for your jewelry, so they are trusted by insurance companies.
  

2. Get an appraisal of your ring. The jeweler will appraise your ring by inspecting the stones, as well as the setting. A good appraisal will take a variety of factors into considerations, including carat weight, the color of the stones, the cut of the stones, the metal type, and any markings, in addition to other factors.

How to Become a Life Insurance Broker

Most people don't want to think about their own death, which is why life insurance can be a hard sell. In fact, life insurance has one of the top product commissions in the entire industry due to its level of difficulty. Becoming a life insurance broker only requires a license. However, being a successful life insurance broker requires hard work, motivation, good communication skills and much more.

1. Research requirements for becoming a life insurance broker, which vary by location. Some states require a certain number of training hours before you take a state licensing exam. Check your state's insurance department website for specifics.

2. Take business courses or training geared to life insurance brokers. A degree is not required. Even if your state doesn't require you to train or take classes before taking a licensing exam, it will benefit you in your new profession.

• You can find training courses through national, state or regional professional life insurance organizations, as well as through insurance agencies.

3. Take the state licensing exam, which covers life insurance basics and insurance laws in your state. To prepare, consider purchasing a state exam book that includes a practice exam or enroll in a prep course.