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.

How to Become a Claims Adjuster

If you’re a recent high school graduate just starting out or even a seasoned professional embarking on a career change, consider whether you want to become a claims adjuster for an insurance company. Claims adjusters (also known as “loss adjusters”) review claims for property damage or bodily injury made by an insurance company’s policy holders. As a claims adjuster, you'll likely have a fairly interesting job, but you have to get your education first.  

Part 1: Working on Your Education

1. Decide if claims adjuster is a good fit for you. Most claims adjusters live active lives, as they spend their time out in the field investigating claims. The job can be high stress, but you won't be stuck behind a desk all the time.

• Also, know that in many parts of this field, you'll be dealing with emergencies and catastrophes. That means that at some point you will be dealing with people who are facing the death of a loved one or coworker, and you'll likely be witness to some of the aftermath.

2^. Get a high school diploma. A high school diploma or its equivalent is absolutely necessary to work in the insurance field as a claims adjuster. In fact, you can enter some insurance agency at the entry level with just this level of education. Nonetheless, moving on for more education will be helpful.

3^. Work on a bachelor's degree. A bachelor's degree or even an associate's degree can be helpful to you if you want to become a claims adjuster. The problem is, it's helpful to decide what part of the field you want to work in before deciding on a degree. The best option is to follow what you love. For instance, if you enjoy numbers and details, perhaps pursue a degree in accounting so you can work in the financial claims adjusting, a field where you assess losses due to problems in the company such as equipment loss or employees striking.

• Another option is getting an engineering degree, which can be helpful in assessing damage in the industrial fields.
• If the idea of extra school isn't your thing, consider getting a trade school degree in auto repair, as being able to assess the cost of a repair is something you could use in the claims adjuster insurance business.

4^. Decide what major course you want to take. Mainly, claims adjusters are divided into two types, catastrophe and everyday claims. If you work as a catastrophe claim adjuster, you'll be the person on the ground after major weather events and emergencies, such as big tornadoes in Oklahoma or a hurricane hitting the coast. Because of the nature of these events, you may need to move around. Everyday claims adjusters focus on smaller events, such as car crashes, problems with homes, or claims made by companies.

5^. Get the experience you need. If you can, try to get an internship while you are still in school. You can often find internships through your school or by looking at some of the major insurance companies in your area. Often, you can take just a summer internship or one where you work a few hours a week. One of the best things about internships is you'll get on-the-job training for the career you want^.

• Ask your school if you can earn credit for your internship.

How to Sell Insurance

Selling insurance has grown into a multi-billion dollar industry, and knowing how to sell insurance can be a lucrative career. You just have to have the right marketing strategies down to grow your business and become an effective sales person.

1. Make sure that you have the appropriate licenses in order to be able to sell life and health and/or property and casualty insurance. You can obtain your state licensing through numerous testing companies and centers. Most require 40 hours of study before you can sit and take the test. There are also timing restrictions between opportunities to take the exam if you do not pass it on the first try. 

2. Collaborate with a larger company. Become an agent of a well-known insurance company, and you can grow your business in part through familiarity of that company's name. 

3. Don't rule out cold calling, but invest in leads before you start trying out this cheap, sometimes effective sales method.

4. Create a website. If you are already a part of a larger company, they can usually help issue a page on their site. But if you are an independent agent, you have the liberty to create and design your website to your creative specifications as long as it falls under your state's guidelines. If in doubt, contact your state's Department of Insurance.

5. Join an online social network such as Facebook or LinkedIn for free advertising that can reach your closest family and friends as well as potential clients.

• Be active in posting, and share relevant information with your readers.
• Keep your hours of operation current, as well as your contact and address information.

6. Sign up with a local networking group such as Kiwanis, Chamber of Commerce or Business Networking International. Growing through lead referral is the cheapest and most cost-effective way to grow your business.

How to Become a Life Insurance Agent

Though challenging, a career selling life insurance offers you the chance to earn top dollars in a recession-proof industry. Some insurance providers report that the annual income of agents not even considered the company’s top earners is between $350,000 and $600,000. In addition, there are other benefits to consider if you want to become a life insurance agent, such as the personal satisfaction you’ll feel when delivering a check to a family who’s just lost their major household provider. Most agents say these benefits outweigh disadvantages, such as the years it takes to build up a loyal clientele. If you’re up to the challenge, follow these steps so you can become a life insurance agent.

1. Find out what insurance agents do.

• Contact the National Association of Insurance Companies. They can provide you with background material identifying an insurance agent’s job duties.
• Call insurance companies in the state where you’re planing to do business. Many offer job shadow opportunities for those interested in becoming agents.
• Take a job as an assistant to a life insurance agent. Know the clerical end of the business since you’ll probably have to perform much of those administrative duties when you start out or when your support staff are not available.
• Call the Chamber of Commerce in your state. Ask for information on the life insurance business in certain areas, such as the number of agents there and the activity level of their business.

2. Decide whether you have the temperament and financial means to become a life insurance agent. Do you have the people skills to build relationships and communicate effectively so you can persuade skeptical people they should purchase insurance they need but don’t want? Are you personally inclined to