Tag Archives: insurance

Oct 25 2025

WHAT TO KNOW ABOUT DEDUCTIBLES  

Here are some things to know about deductibles when deciding what policy to buy.

  1. Know the math

A deductible may be a specific dollar amount or a percentage. If a policy has a deductible that’s a percentage, make sure you know how that translates to a dollar amount. Here are two examples for homes insured for $150,000:

  • Policy A has a $500 deductible. A hail storm destroys the home’s roof, and the cost for repairs is $6,500. Policy A will pay $6,000 of the cost to repair the roof.
  • Policy B has a 5 percent deductible – or $7,500. If the home needed $6,500 in roof repairs, Policy B would not pay anything because the amount of repairs is less than the deductible.

2. Know when it applies

Deductibles for home and auto policies work differently than deductibles for health policies.

For health policies, the deductible usually covers a year.

For home and auto policies, the deductible will be applied to each claim. If you have a wreck in February and your car gets broken into in June, your insurance company will subtract the same deductible amount from the damages of each claim before paying.

3. Know what works for you

In general, the higher the deductible, the lower the cost for the policy. When deciding what deductible is right for you, think about how much you can afford to pay if your property is damaged. Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.

For more information, go to: What to know about deductibles

Teaching Suggestions:

  • Ask students what deductibles they have on their automobile and home insurance.  What factors did they consider to determine their deductibles?
  • Have students talk to friends and relatives to determine methods of reducing home and auto insurance premiums.

 Discussion Questions:

  1. What are some arguments in favor of and against higher deductibles?
  2. What should be the main factors used to determine methods of reducing the cost of home and auto insurance?
Oct 11 2025

How are your auto and homeowners insurance costs calculated?

Insurance companies set prices to match the cost of future claims. To do this, insurance companies look at your personal risk factors (the type of car you drive or where you live). But they also look at how much they spend on all claims.

Insurance companies determine premiums and rates by looking at you

Insurance companies use many factors to calculate what they charge a customer. Each company’s premium formula is different.

For home insurance, common factors include:

  • Your home’s age.
  • Your home’s roof age and material.
  • Where you live.
  • The cost to replace your house.
  • Your claim history.
  • Your credit score.

For auto insurance, common factors include:

  • Your driving record and claims history.
  • Where you live and how much you drive.
  • Your age, gender, and marital status.
  • Your occupation.
  • The cost to replace the car you drive.
  • Your credit score.

If some of these factors changed since your last renewal, it could raise or lower your premium. This includes characteristics that change over time, such as how much your home or auto is worth. You may see such changes in a policy’s premium from one renewal to the next.

Most State laws require that insurance rates:

  • Be adequate.
  • Not be excessive.
  • Be based on sound actuarial principles.
  • Be reasonably related to all costs.
  • Not be based on the insured’s race, creed, color, ethnicity, or national origin.

Ask about discounts and shop around

If your auto or home insurance bill is rising, ask your company to explain the increase and ask if you’re getting all available discounts.

For more information, go to:

How are your auto and homeowners insurance costs calculated?

Teaching Suggestions:

  • Have students ask their insurance company if they are getting all available discounts.
  • Ask students to consider calling an independent insurance agent for insurance cost comparisons.

Discussion Questions:

  1. What factors do insurance companies use to calculate your auto and home insurance premiums?
  2. Why do insurance companies use your credit scores to determine your premium for your home and auto insurance?
  3. What is reinsurance and why do insurance companies buy reinsurance?
Aug 30 2025

Will my insurance premiums go up if I file a claim?

It depends on the type of claim and how many you file. But, yes, your home and auto premiums can go up if you file claims. You could also lose any discounts you’re getting for being claim free.

  1. What counts as a claim?

Home and auto insurance companies can raise your premium for filing most types of claims. Auto companies can raise your premium if you’ve had accidents or gotten traffic tickets.

Home and auto companies can’t charge you more for:

  • Claims you file that the company didn’t pay. This includes claims the insurance company denied because your policy doesn’t cover the damage.
  • Calling your company or agent to ask questions about your policy or the claims filing process.

Home companies can’t charge you more for:

  • Claims for damage from natural causes, including weather.
  • Appliance-related water damage claims, if the repairs have been inspected and certified, unless you have three or more claims in three years.

    2. Consider your deductible
  • Before you file a claim, find out how much your deductible is. The insurance company will subtract the amount of your deductible from your claim payment. Also get repair estimates. If the cost of repairs is about the same or less than your deductible, you may decide it’s not worth filing a claim. Learn more about deductibles.

    3. Know your claims history

Insurance companies use your claims history to decide if they want to sell you a policy and how much to charge you. Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. Because most companies use CLUE, they can learn about home or auto claims you’ve filed, even if the claim was with another insurance company.

For more information, click here.   

Teaching Suggestions:

  • Ask students if they or their family members filed any home or auto claims with rheir insurance company.  If so, what was their experience?
  • Ask students if the insurance company raised their premiums or cancelled their insurance coverage.

Discussion Questions:

  1. Why is it important to consider your deductibles before filing a home or auto insurance claim?
  2. Why do insurance companies use your claims history to decide if they want to sell you a policy or much to charge you?
Jan 6 2024

Artificial Intelligence in Forecasting Severe Storms, Hurricanes, Floods, and Wildfires

Government Accounting Office (GAO) found that machine learning, a type of artificial intelligence (AI) that uses algorithms to identify patterns in information, is being applied to forecasting models for natural hazards—such as severe storms, hurricanes, floods, and wildfires—that can lead to natural disasters. A goal is to improve the warning time for severe storms.

 GAO identified potential benefits of applying machine learning to weather forecasting, including:

  • Reducing the time required to make forecasts.
  • Increasing model accuracy.
  • Reducing the uncertainty of model output.

Forecasting natural disasters using machine learning GAO also identified challenges to the use of machine learning. For example:

  1. Data limitations hamper the training of machine learning models and can reduce accuracy
  2. A lack of trust and understanding of the algorithms as well as concerns about bias
  3. Limited coordination and collaboration create challenges for fully developing some machine learning models.
  4. Workforce and resource gaps also create challenges.

For More Information, click here.

Teaching Suggestions:

  • Make a list of potential benefits of machine learning to weather forecasting in relation to insurance costs.
  • Make a list of potential dangers using machine learning in forecasting natural disasters in relation to insurance costs.

Discussion Questions:

  1. Do you believe that insurance premiums should be calculated based upon forecasting models for natural hazards. such as severe storms, hurricanes, floods, and wild fires? 
  2. What are some challenges to the use of machine learning in forecasting natural disasters?
May 22 2021

High Medical Costs: How to save money on the doctor

Asking a few questions about your health insurance and knowing your options can protect your wallet after a doctor’s visit.

1.    Know your options

How much you’ll spend at the doctor depends on what type of doctor you visit. Most plans will cover a phone call with a nurse, an online doctor visit, or visits to a doctor’s office, an urgent care clinic, or a hospital emergency room. Nurse lines and online visits are usually cheapest (and often free). Emergency rooms are the most expensive.

2.    Ask if the doctor is in your plan’s network

Most health plans have a network of doctors, specialists, and other providers. You’ll pay more if you get care outside the network. Ask your health plan if the doctor, facility, or hospital you want to visit is in your network. If you go to a doctor outside your network, ask the doctor about the cost. Some might be willing to negotiate lower prices with you.

3.    Ask how to save money on prescriptions

Most plans have a list of drugs that they will pay for. The list also shows how much you’ll have to pay. If the drug is too expensive, ask your doctor if there’s a generic version. If you choose the brand-name drug, there may be coupons or discounts that can save you money. Ask your pharmacist where you can find coupons.

4.    Ask questions if you get a bill

If the visit was covered by insurance, don’t pay more than the explanation of benefits from your health plan states you may owe. If the bill was for more than you were expecting, ask the doctor or facility for an itemized bill. Look for errors or duplicate charges. Call your health plan if you have questions. You can also ask the doctor for a discount or an interest-free payment plan.

Resources

For more information, click here.

Teaching Suggestions

  • Ask students whether they or their family members have requested from their physician and pharmacist if a less expensive drug is available?
  • Are you aware that many states offer state pharmacy assistance programs that help pay prescription drugs based on financial need, age, or medical condition?

Discussion Questions

  1. Have you considered using a mail-order or legitimate online pharmacy for your prescriptions, especially if you will take a drug for a long time?
  2. What are your options to get the medical care you need and avoid a big bill?
May 8 2021

Insurance tips following storms

If your home was damaged by the severe weather, contact your insurance company or agent to file a claim as soon as possible. These tips will help you make the process go smoother:

  1. Keep a list of everyone you talk to at your insurance company.
    Be ready to answer questions about the damage.
  2. Make a list of damaged property.
    Take pictures or videos. Don’t throw anything away until your insurance company tells you to do so.
  3. Take steps to protect your home from further damage.
    Cover broken windows and holes to keep rain out and prevent vandalism or theft.
  4. Try to be there when the insurance company comes to inspect the damage.
    If you can’t stay in your home, leave a note with information on where you can be reached.
  5. Ask your agent about additional living expenses.
    If you’re forced out of your home to make repairs, your insurance policy may pay for some of those expenses.
  6. Avoid fraud (with the following recommendations):
    • Get written estimates.
    • Get more than one bid
    • Beware of contractors who solicit door to door.
    • Check references and phone numbers.
    • Don’t pay up front.
    • Avoid contractors who offer to waive your deductible or promise a rebate for it.
    • Never sign a contract with blank spaces.

For More Information, click here.

Teaching Suggestions

  • What actions should you take to protect your property before a severe storm and floods?
  • Make a checklist of actions that you should take after the storm?  Share the list with other students.

Discussion Questions

  1. Under what circumstances is it better not to file a claim?
  2. If you file a claim and your insurer rejects it, what are your options?  Who should you turn to for assistance?
Apr 18 2020

SPREAD THE WORD, NOT THE VIRUS

The infectious disease experts are urging all Americans to do their part to slow the spread of the Coronavirus.  Even if you are young, or otherwise healthy, you are at risk and your activities can increase the risk for others.  It is critical that you do your part to slow the spread of the Coronavirus.

Work or engage in schooling from home whenever possible.  Avoid social gatherings in groups of more than 10 people.  Avoid eating or drinking at bars, restaurants, and food courts—use drive-through, pick-up, or delivery options.  Avoid discretionary travel, shopping trips, and social visits.  Do not visit nursing homes or retirement or long-term care facilities unless to provide critical assistance.  Practice good hygiene.  Wash your hands, especially after touching any frequently used item or surface.  Avoid touching your face.  Sneeze or cough into a tissue, or the inside of your elbow.  Finally, disinfect frequently used items and surfaces as much as possible.  Furthermore:

  1. Listen to and follow the directions of your federal, state and local authorities.
  2. If you feel sick, stay home. Do not go to work. Contact your medical provider.
  3. If your children are sick, keep them at home. Contact your medical provider.
  4. If someone in your household has tested positive for the Coronavirus, keep the entire household at home.
  5. If you are an older American, stay home and away from other people.
  6. If you are a person with a serious underlying health condition—such as a significant heart or lung problem—stay home and away from other people.

For more information, click here.

Teaching Suggestions

  • Ask students if they are practicing social distancing. If not, what are the reasons?
  • Ask students how difficult has it been since the world has almost come to a standstill. What has changed in their life?

Discussion Questions

  1. Are the President’s Coronavirus Guidelines for America fair to the citizens? Explain why or why not?
  2. Since older people are particularly at risk from the Coronavirus, why are younger people being quarantined?
Aug 17 2019

Do You Need Rental Insurance?

Your landlord’s insurance will cover damage to a building or home you rent, but it will not cover your personal items, and yet only 40 percent of renters purchase renters insurance.  But renters insurance is usually affordable.  For people who rent, renters insurance typically includes three types of coverage—personal property coverage, loss of use, and personal liability.  Keep in mind that flood damage is not covered with renters insurance.  Also remember, if you are a dependent, your parents’ home-owners policy may cover your belongings even if you are not living at home.

For more information, click here.

Teaching Suggestions

  • Ask students if they are living on their own and renting an apartment. If so, do they have renters insurance?
  • Ask students to call local insurance agents to get quotes for renters insurance. Do you have to pay extra for expensive items you own?

Discussion Questions

  1. What can you do to cover losses to your personal property due to floods or other acts of God?
  2. What actions can you take to reduce the cost of renters insurance? Should every renter purchase renters insurance?  Why or why not?
Oct 22 2016

The 1-Page Financial Plan: 10 Tips for getting what you want from Life

Carl Richards, author of The One Page Financial Plan, knows the financial mistakes–including the ones he has made–that people make.  Based on his experience as a financial planner, he provides 10 tips to help people get what they want from life.  Note:  An explanation and examples to illustrate each tip are provided in this article.  His tips are:

  1. Ask why money is important to you.
  2. Guess where you want to go.
  3. Know your starting point.
  4. Think of budgeting as a tool for awareness.
  5. Save as much as you reasonably can.
  6. Buy just enough insurance today.
  7. Remember that paying off debt can be a great investment.
  8. Invest like a scientist.
  9. Hire a real financial advisor.
  10. Behave for a really long time.

For more information, click here. 

Teaching Suggestions

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

  • Illustrate how each tip provided in this article could affect an individual’s financial plan.
  • Encourage students to read the entire article to help determine what’s really important in their life.

Discussion Questions

  1. It’s often hard (or maybe close to impossible) to determine what you value and where you want to go in the next 20 to 30 years with perfect accuracy. Still, experts recommend that you establish a long-term financial plan.  What steps can you take to make sure your plan will meet your future needs?
  2. Why is it important to evaluate your plan on a regular basis and make changes if necessary?
May 28 2014

Zacks #1 Ranked Healthcare Mutual Funds

When markets are passing though choppy waters, investors often rely on the healthcare sector to safeguard their investments.

Healthcare funds are often considered a safe investment because the demand for healthcare services does not vary with market conditions or upturns or downturns in the economy.  Many of the companies in the healthcare industry, often found in healthcare funds, also pay regular dividends which can help offset a decline in a fund’s share price or increase total return for this type of fund investment.

In this article, Zacks Investment Research, provides a brief description of the five top rated funds listed below

  • Fidelity Select Biotechnology (Symbol FBIOX)
  • Prudential Jennision Health Sciences A (Symbol PHLAX)
  • T.Rowe Price Health Sciences (Symbol PRHSX)
  • Fidelity Select Pharmaceuticals (Symbol FPHAX)
  • ProFunds Biotechnology UltraSector (Symbol BIPSX)

For more information go to

http://finance.yahoo.com/news/zacks-1-ranked-healthcare-mutual-221117226.html

Teaching Suggestions

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

  • Discuss the types of research provided by professional advisory services for fund investors.
  • Help students understand why the healthcare industry may be a safe haven in troubled economic times.
  • Assign one or more of the funds described in this article for more in-depth student research.

Discussion Questions

  1. Why would the healthcare industry be considered a safe haven in troubled economic times?
  2. Do you think this type of fund could help you obtain your personal investment goals?
  3. How would you research one of the specific healthcare funds described in this article?