Category Chapter_10

Jun 11 2014

How Healthy is Your Insurance Company?

When buying home, health, auto or rental insurance, you should find out if your state insurance department offers any information about insurance companies and rates.  Check several sources for the best rate and get quotes online.  Consult an independent insurance agent who represents several insurers in your area to get a better deal.

 Before purchasing insurance, be sure the insurance company is licensed and covered by the state’s guaranty fund.  The fund pays claims if the company defaults.  Your state insurance department can provide this information.

Research the complaint record of the company.  Contact your state insurance department, or visit the website of the National Association of Insurance Commissioners (www.naic.org), which maintains a database of complaints filed with state regulators.  Finally check the financial stability of the insurance company.

For additional information and guidance visit the following websites:

http://www.ambest.com, http://www.standardandpoors.com, and http://www.moodys.com

Discussion Questions

  1. Why is it important to contact state insurance department before purchasing insurance?
  2. How can an independent insurance agent provide a better insurance rate?
  3. Why is an insurance company’s financial stability important?

Teaching Suggestions

You may want to use the information in this blog post and the websites to

*  Have students visit the various websites in this blog and then prepare a short summary of their findings.

*  explore a few advantages of purchasing insurance from an independent insurance agent?

Jun 7 2014

Reduce Auto Insurance Costs

Auto insurance requirements vary from state to state.  Check with your state insurance regulator to learn more about individual requirements as well as insurers you may be considering for the insurance policy.

To get the best coverage at the best price, get several quotes from insurance companies; it may save you hundreds of dollars every year.  What can you do to reduce your insurance premiums?

Raise your deductible on collision and comprehensive coverage.  If you own an older car, you might want to eliminate this coverage altogether.  Don’t forget to take advantage of discounts available to you.  For example, you may be eligible for a discount based on the number of miles you drive; your age; your good grades if you are a student; your driving record; or if you have taken a safe driving course.   You may also be able to get discounts if you insure more than one vehicle, insure your vehicle and home with the same company, have anti-theft devices, or have safety features as air bags or anti-lock brake system.

For more information on automobile insurance costs go to  www.naic.org; http://www.insure.com; and http://www.insweb.com

Discussion Questions

1.  What can you do to reduce your automobile insurance costs?

2.  Why better college grades result  in reducing your automobile insurance costs?

 

Teaching Suggestions

You may want to use the information in this blog post and the websites to

* Have students research various types of discounts available to them.

* Research the make and model of vehicles that are most frequently stolen, consequently resulting in higher insurance rates.