Shopping for Car Insurance Online Has Never Been Easier

insurance (Photo credit: Alan Cleaver)

A survey by the American Automobile Association (AAA) has found that, 62 percent of people looking for car insurance, begin their research on the Internet. Also most car insurance shoppers go to at least two online insurers websites prior to arriving at a decision.

Today we are using the Internet more and more to research most large purchases. With so many car insurance companies competing for our insurance dollars, competition has driven down the costs and it is of great benefit for consumers. The Internet has made it easy to find discount insurance quotes online.

Before doing some online shopping take time to prepare.

1. Get all your important documents together. Your going to need your drivers license. If you had any accidents, have that information ready. Also have your address and social security number ready. You will need the year, make, model, license plate, mileage, and VIN (vehicle identification number) from your car.

2. Use your computer to search for "discount insurance quotes." When you see your search results first check out aany companies you are already familiar with. Also find insurers that will show quotes from many car insurance companies. Some companies represent a lot of different insurance companies. They can compare reates for you and deliver the cheapsest one to you.

3. Choose the kind of coverage you need. It depends on the state you reside in what our options are for what required insurance you need to have. The website will know and walk you through the specifics of your states car insurance requirements.

4. Input all necesary information and get your free quote. There are too many insurance companies that offer free quotes, stay away from websites that require a deposit, credit card number, or any kind of fee.

5. Compare the rates and coverage along with the costs. When you feel comfortable about your selection you can pay with a credit card. You will be able to print out a temporary insurance I.D. car and later a formal one will be mailed to you.

Buying insurance online has been streamlined and simplified for the consumers convenience. Remember if you need to talk to a person or if you have any questions an 800 number is always provided.

Investing in Rental Property Can Be a Profitable Business If Done Right

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Investing in rental property seems easy. Buy a rental house, find some tenants, and let the money roll in. It's not as easy as it looks. Before jumping into this glamorous business be sure to investigate and get some buy to let mortgage advise . 

The Upside to Being a Landlord.

For some people, investing in anything but land is dumb. Owning a mutual fund or stock is like owning air, it's intangible you can't hold it or see it. Then we have the land owners who think that a piece of land is a real asset. It's solid, you can walk on it, if it is a house you can paint it or just look at it. It's real. For many, they would have it no other way.

1. Cash Flow.

As a landlord, if you have done it right you have a positive cash flow that puts money in your pocket every month. Your rental income, minus your mortgage and expenses is your profit. Your property is producing something for you.

2. Appreciation.

Your property is increasing in value every year if you purchased it right. Appreciation, though a small amount, over the years it can turn into a substantial amount. Even if there is not appreciation you still are going to experience an increase in the house value because of inflation.

3. Leverage.

Unlike buying a mutual fund or stock, with a rental home you only have to invest a percentage of the homes value. You control the entire investment, but only pay a small fraction of it's cost. The property is the security for the debt and not your personal property. Only the purchased property is at risk.

4. Tax Advantages.

Even if you do not receive a positive cash flow you still are deducting expenses. You are paying down your mortgage and are not paying taxes on this money. There are many types of deductions that can be beneficial in reducing your tax liability overall.

There are some good financial reasons to own rental property. Especially the tax advantages. But there are also quite a few downsides to owning a rental house. 

1. Bad Tenants.

Getting the tenants from hell is a distinct posibilty in the rental business. Many people do not respect other peoples property and treat your lovely rental like it's a dumpster. The nightmare scenarios are infinite.

2. Liability.

If someone gets hurt on your property you are responsible and could be in line for a lawsuit. Having adequate liability insurance is an absolute must or someday your tenants will be owning your nice rental home.

3. Vacancy.

There is the distinct possibility you may not be able to rent the home. Are you able to cover the mortgage and expenses for an extended period of time. It's important to have enough cash in reserve for this occurrence.

Investing in rental property can be a very profitable business but can also be a nightmare if done improperly. Make sure to check out your tenants with a background check. Get all your deposits upfront and have good lease that protects you in all contigencies. 

529 College Savings Plan - 3 Factors to Check Before Picking a Plan

If you are thinking about opening a 529 College Savings plan for your child you may be confused by the shear number of choices you have to pick from. You do not have to pick the 529 plan from your resident state. You are able to choose from any states 529 plan but be sure to check if your home state offers special tax incentives.

529 plans in themselves are not confusing but picking one that suits your needs and your pocket book may take a little extra time.

According to WhatIsA529Plan.com, there are 3 factors to look at to make sure you pick the right plan that does what you want it to, for the least expense.

1. Investment Options. There are as many types of plans as there are ways to invest in them. The plan you may chose has a wide selection of investments from conservative to speculative. Picking the right one for your goals and age of the child is imperative. You can even pick the types of investments whether they be within the U.S. or globally. Picking the right ones means the difference between good growth and poor growth. It would be smart to get some good advice and recommendations from knowledgeable professionals before investing.

2. Costs. Costs subtract from your bottom line. A percentage or 2 can really add up over the life of a 529 Plan. Don't let that 1% slip away into someone elses pocket, it belongs in yours, so shop around to get the smallest expense costs.

3. Tax Benefits. Before selecting a 529 Plan out of state be sure to check your in state plan. If it has tax benefits on your state tax return it pays to invest within state even if you prefer an out of state plan. Check with your states tax rules to see if you can still invest out of state and claim the tax deduction.

There are currently 21 states where residents can choose any 529 plan without considering the impact of a state tax deduction: 

No state income tax -- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming

No deduction for any 529 plan contributions -- California, Delaware, Hawaii, Kentucky, Massachusetts, Minnesota and New Jersey

Deduction available for contributions to any 529 plan -- Arizona, Kansas, Maine, Missouri and Pennsylvania

All other states give a state tax benefit for saving to the "home state" 529 plan.

529 plans are a great tool for funding college expenses, and selecting the right plan can be complicated. A good starting point is your home-state plan if you get a state tax benefit. If you live in one of the 21 states listed above, I recommend using the Nevada, New York, Utah or West Virginia plans, as those states offer passive investment options at a low cost.

What are the Different Kinds of Business Insurance

Insurance

Running a business normally requires making a capital investment. Business insurance protects that investment against financial risks when unexpected events occur. 

Many governments tell businesses which insurances they must have to operate legally. Depending on what kind of business you have, determines what insurance you need to carry. There are many types of business insurance. Which will apply to your business.

There are several kinds of business insurance:

General Liability Insurance.

This type of insurance covers the business owner from accidents, injuries, and claims of negligence. This kind of coverage protects against payments when the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments that are required during a legal procedure.

Product Liability Insurance.

If your company manufactures a product that is not safe then this insurance protects your company. Because of a defect know or unknown that occurs and produces bodily harm this insurance will protect you from financial loss. The amount of coverage depends on the type of product and the size of the business.

Professional Liability Insurance.

This is like product liability insurance but this type of liability covers services. This type of insurance also is known as malpractice insurance. It's coverage is also known as errors and omissions insurance. This kind of insurance protects your business against malpractice, errors, and negligence in provision of services to your customers.

Commercial Property Insurance.

This kind of insurance covers everything related to damage caused to your business. Property insurance covers damage to property from  fire, smoke, wind and hail storms, civil disobedience and vandalism. This insurance covers the need of rebuilding after some unforeseen event destroys your business completely or partially.

Property insurance policies come in two basic forms: (1) all-risk policies covering a wide-range of incidents and perils except those noted in the policy; (2) peril-specific policies that cover losses from only those perils listed in the policy. 

Home-Based Business Insurance.

If you have a home based business your normal "Homeowners Insurance" will not cover any business related liability or damage. You have to obtain specific business insurance or have a rider on your homeowners insurance to cover business specific liability.

It takes a business insurance specialist to to set up the proper insurance coverage to stay in compliance with governmental regulation and to have proper coverage for your specific business type.

The Viagra College Fund - Social Security Secret

 (Photo credit: Wikipedia)

I recently came across a little know Social Security secret. This loophole in the Social Security rules and regulations is going to make a lot of retired fathers very happy. According to InvestmentNews.com, a parent who is receiving retirement benefits, can also receive benefits for their under 18 year old children. 

InvestmentNews' contributing editor Mary Beth Franklin had received a call from a client who told her that he was 68 years old and was collecting his Social Security retirement check. He went on to say he had a 5 year old child through remarriage.

Financial Planner Mary Beth Franklin told him that his child was qualified to also receive a check from Social Security. Franklin went on to say that the client called a few months later saying his child was now receiving a check for almost half of what he was receiving.

I couldn't believe this was really in the Social Security rules. I went to the Social Security Website. Here: Benefits for children

It clearly states that benefits could go to your children if you were disabled or the parent died. This is understandable. But it also says, if you are just retired.

The rules also say that the child could continue to receive benefits until the 19th birthday if secondary school was not completed yet.

The whole thing is crazy.

InvestmentNews' contributing editor Mary Beth Franklin did finish the story with some advice for the retired father. She said to put the income into a 529 College Savings Plan thus the name "Viagra College Fund".

A Credit Card or a Debit Card for Fraud Protection, That is the Question

This article comes from Odysseas Papadimitriou, founder and CEO of Card Hub, a leading marketplace for comparing and learning about credit cards, prepaid debit cards, and gift cards.

Mirrors on ATMs are an ever-present reminder that there very well could be someone out there trying to steal your hard-earned money. Even though fraud only impacts about 0.5% of all purchases made with credit cards and debit cards, no one wants to be a victim, so fears pervade, fueled on by the sensationalistic horror stories commonly run on the local news. But instead of always looking over your shoulder, why not get a spending vehicle that will naturally shield you from fraud liability? Such is the type of rationale that leads to me hearing the same question from consumers time and again: Will a credit card or a debit card better protect me from fraud?

To run the risk of being anticlimactic, let’s clear things up right off the bat. As long as you report suspected fraud promptly, you won’t be held liable for any unauthorized charges made with either a credit card or a debit card (non-PIN transactions). Not only does federal law limit liability to $50, but most, if not all, card networks and issuers have themselves voluntarily adopted $0 liability guarantees. Fraud therefore isn’t that big of a concern and your money should be safe whether you’re using a credit card or debit card.

Still, fraud can be a major pain to deal with, so it’s fair to wonder whether a credit card or a debit card makes for a simpler remedy to any potential problems.

The answer to this question pertains to the fundamental difference between these two plastic spending vehicles. While funds are removed from your bank account pretty much immediately upon a debit card transaction being made, the issuing bank initially pays for your credit card purchases. That means you have much more time to notice and report credit card fraud before being out any cash than you would debit card fraud. You could therefore conceivably end up bouncing a few checks as a result of being unaware that fraud had led to an insufficient account balance – which can complicate things quickly. Plus, you’d have to endure the psychological trauma of seeing your bank account empty.

The best answer to the question of whether a credit card or a debit card serves as a better safeguard against the ill-effects of fraud therefore has to be the former.

Simply using one piece of plastic as opposed to another is not the only way to ward off financial thieves, however. There are a number of simple everyday measures you can take as well, each of which will drastically reduce the chances of your cash or sensitive financial information falling into the wrong hands.

It all starts with exercising your right to free copies of your major credit reports every 12 months. Credit report inaccuracies (e.g. the presence of accounts you did not open, being listed as delinquent when you have always paid on time) can be obvious indications of identity theft. If left uncorrected, they will not only bring creditors to your doorstep asking for “their money,” but also lead to significant credit score damage. Some other fraud prevention tactics include:

• Using passwords to your advantage: Setting passwords for your bank accounts and other important financial information should entail more than simply plugging in the name of your pet and saving it in your computer. Rather, you should use a combination of letters, numbers and cases that is both memorable and secure. You should also change your passwords on a semi-regular basis.
• Not talking to strangers: When it comes to your money, introversion can be a good thing. You shouldn't even open e-mails from people you don’t know, especially ones with attachments. You also shouldn't give any financial information to people who contact you – only give your info to reputable companies that you have contacted.
• Going back to the basics: While fraud has a decidedly technological bent to it in this day and age, it pays to remember the basics, such as shredding credit card statements and other financial documents before throwing them out and getting a lock for your mailbox.

Ultimately, you should not let fear of fraud control your life. As long as you take commonsense measures to safeguard your money and are vigilant in reporting suspected instances of impropriety, both you and your money will be just fine.