Understanding the Different Types of Auto Insurance Coverages

When purchasing an auto insurance policy, it's tempting to simply ask for "full coverage" and let the agent put your policy together. Doing this can leave you vulnerable, however, and it may also lead to higher insurance premiums. By understanding what each coverage does and why you need it, you can put together a policy that will fit your needs without emptying your wallet. 

Here are the most common types of insurance coverage: 

1.) Liability: Every state requires all drivers to have liability insurance. There are two types of liability coverage: bodily injury and property damage. They each have separate limits and cover different things. Bodily injury liability pays for any injuries you may cause in an accident, and property damage liability pays for the damages that occur as a result of an accident you cause. In any case, liability insurance only pays for another person's injury or damages; it will never cover your own injuries or damage. Your liability limits determine how much your policy will pay toward an accident. High limits will cost more on your policy, but low limits make you vulnerable to lawsuits if damages or injuries exceed your policy's scope. 

2.) Collision: Whenever your vehicle is damaged as a result of an accident, your collision coverage pays for its repair. You pay a predetermined deductible amount, often $500 or $250, and the insurance company pays for the rest. Higher deductibles result in lower premiums but require you to pay more out of pocket for your damages. 

3.) Comprehensive: Coupled with collision and liability, comprehensive rounds out a standard full coverage insurance policy. Comprehensive coverage pays for damages that occur to your vehicle outside of an accident. For example, theft and vandalism are covered by comprehensive coverage. This coverage tends to be cheaper than collision, and its price will depend on the deductible you choose. 

4.) Uninsured Motorist: This coverage is not available in every state, but it is a requirement in some areas. Uninsured motorist coverage replaces the missing liability insurance of another party when a person without insurance causes an accident. 

5.) Additional coverages: The coverages above are standard in most auto insurance policies. You can also choose to purchase medical payments coverage to pay for your own medical expenses. Rental reimbursement coverage will cover the cost of a rental car while your vehicle is in the shop, and towing or roadside assistance can help reimburse these expenses. Be sure to check with your insurance agent or compare rates on sites such as autoinsurancequotes.com to see what additional coverages are offered and whether you might need them. 

Not every vehicle will require every available coverage. For example, an older-model used vehicle may not require collision coverage as repairing it would not be financially sensible. By understanding what each coverage does, you can make an informed decision about your auto insurance.

Discover It for Students Credit Card Review: $20 Bonus Cash Back

The folks over at Discover it® for Students is offering a $20 Cash Back Bonus after your first credit card purchase. This card is really popular with students because it lets you earn 5% cash rebates on rotating categories of purchases, and up to 20% cash back on purchases in Discover’s online mall. If you are in college, this is a great card to build credit, earn cash back, and pay no annual fee.

RULES FOR THE CASHBACK BONUS OFFER: Get a $20 Cashback Bonus® after you make your first purchase within 3 months of being approved. Promotional award will be applied within 8 weeks. The promotional award is in addition to the Cashback Bonus earned on all purchases.

Here is the link to get you the signup promotion

With 5% cash back in revolving categories throughout the year, you’ll be earning cash back on up to $1,500 on purchases such as restaurants, gas stations, movies, etc. For all other purchases, you’ll earn 1% Cashback with no maximum.

Discover Cashback Quarterly Categories 2013:

• January-March 2013: Sign up to get 5% Cashback Bonus on up to $1,500 in purchases at restaurants and for movies.
• April-June 2013: Sign up right now to get 5% Cashback Bonus* on up to $1,500 in purchases at Home Improvement Stores.
• July-September 2013: Sign up begins on June 1st to get 5% Cashback Bonus on up to $1,500 in purchases at Gas Stations.
• October-December 2013: Holiday Shopping – It’s a 5% Cashback Bonus wonderland. More info coming August 1st, 2013.

ShopDiscover: Up to 20% Cash Back

Just like all Discover cards, you can shop online through ShopDiscover to get up to 20% cash back! Get 5-20% Cashback whenever shopping through ShopDiscover from major online retailers such as Macy’s, Dell, Groupon, Jcpenny, Kmart, and many more partners.

No Annual Fee

No annual fee for you or for any additional cardholders. There is also no overlimit fee, no foreign transaction fee, no pay-by-phone fee, no late fee on your 1st late payment, and no interest rate increases for paying late! This sounds pretty darn good especially for a Student card!

Great Benefits

• Purchase Protection: Your purchases made with your Discover card are protected for the first 90 days against theft or accidental damage. Up to $500 in coverage per purchase.
• Extended Product Warranty: Get an additional year of coverage on your existing warranty of 36 months or less for no additional cost.
• Return Protection: Return any qualifying purchase to Discover within 90 days for up to a $500 refund, even if the store won’t take it back.
• $0 Fraud Liability Guarantee: If your card or account number is ever used fraudulently, you won’t be responsible for those charges.

Unlike a debit card, the Discover it® for Students will help you build a credit history while you are in college. Build your credit score over time with every purchase when you pay your bills on time, which is essential when you apply for loans or get a job in the future. It’s an excellent choice to take advantage of the $20 bonus cashback promotion along with their amazing rewards program. I definitely recommend the Discover it for Students with major advantages such as $0 liability for unauthorized transactions, online account management, and discounts on products and services at participating retailers. 

Its Never to Late to Start a Home Business

Apple muffin (Photo credit: Wikipedia)

It’s great to have hobbies as they clear your mind, keep your fingers nimble and your brain active, but have you noticed how expensive many hobbies have become? The time has come to find hobbies which don’t break the bank or, preferably, ones that actually increase your bank balance. Make a list of things you enjoy to do – things you’re good at and things you’d be interested in pursuing. Let’s look at a few clever ideas. 

Start a Baking Business

If you’re lucky enough to be a great baker, this may be something worth investigating. Not only is baking a real talent but it’s also rather scientific. (If you've ever mis-measured the ingredients in a cake recipe you’ll know exactly what I’m referring to.) The average person would much rather buy a cake than bake one, so you already have that on your side. Start by selling your baked goods at small fairs and markets; set up a Facebook page with photos of your wares; hand out business cards to friends and family and also don’t be shy to approach companies about baking for them on a weekly or monthly basis. Sending over samples may be a clever way to tip them in your favour. 

Offer Home Organization Services

As you grow older you realise that there are many people out there who have spent their lives ‘trying to get organised’ with little or no success. If you’ve always had a flair for organisation and your cupboards are almost always neatly packed and stacked, there may be an untapped opportunity waiting to be uncovered. Offer your services to friends and ask them to pass on your business cards to their friends and colleagues  Place an advert in your local newspaper and on any community notice boards in and around your area. Speak to real estate agents, people who have recently moved into new homes and also to small companies who often don’t have the resources to employ an admin person full time. 

Turn a Hobby into a Business

Arts and crafts can be a costly pastime, but when you’re looking at it as being a potential income earning activity, the playing field changes. People are always looking for original, thoughtful gift ideas and if you can come up with something that goes just that little bit further or is great value for money, you’re heading in the right direction. If you’re really good at a certain hobby you could even consider offering classes. Many people find themselves glued to their computers on social media sites and playing games such as Intertops blackjack out of sheer boredom, but given the opportunity to attend a course in an informal setting and learn a new skill that they will be able to save them money in future, they are bound to consider it – especially if targeted and marketed correctly. 

Teach your Skill

Gardener Gardening (Photo credit: Wikipedia)

It’s clear to see that the world is ‘going green’ and that its citizens have begun to take a pro-active approach to preserving the earth and its contents for future generations to come. In a time where there is much talk about genetically modified foods being unhealthy and organic produce being the best option, it may be time for you to start your own vegetable and herb garden. Not only will you save on having to go out and buy certain vegetables, but the convenience of having them on hand is priceless. If you have green fingers you may even consider teaching a beginners gardening class from your own home. While gardening may sound simple and straightforward to you, for many, both young and old it’s a daunting task, but given the right guidance, many successful gardeners may emerge.
There are hundreds of hobbies one could consider pursuing, but remember, unless you enjoy it and are relatively good at it, you may want to look further down on the list. Don’t feel hedged in – you may decide to make beaded jewellery this month and candles the next – as long as you have a diverse client base, the world is your oyster, but be warned: if you land up with a closet full of goods that haven’t sold, you may need to reconsider your hobby of choice and spend some time investigating what the market is actually interested in buying.

Safe Smart Phone Banking

Smart phones allow you access to your bank account at any time, which is very convenient for our modern busy lifestyles. It is, however, crucial to make sure that no one else can obtain your personal information. Account update options via text message are low risk because they contain limited information and no access to your account. 

Banks provide money management apps and some banks provide options to log into their internet banking site from a smart phone. Smart phone banking is relatively safe providing that security precautions are taken. Phones which provide simultaneous multi-app access such as the iPhone4 carry the greatest risk, because they provide more opportunity for malicious software to be running at the same time undetected.

Banks make their apps safer by using a secure data centre so that bank details are not stored on your phone. Anti-virus software is recommended if you use your smart phone for banking regularly. Barclays offer free Mobile Security Software with their banking app, which protects against virus or Trojan attack. Most UK banks refund losses to victims of mobile fraud as long as reasonable care has been taken.

Contact your network provider as soon as possible if your mobile phone is lost or stolen so that they can block it. Keeping your log in details secure will make it difficult for anyone to access your bank account.

Smart phone banking online will be more secure if apps are downloaded directly from your bank along with any security software the bank provides. Quality security software often includes a remote deletion option which deletes any data stored on the phone if the phone has been lost or stolen. Use a PIN or password to lock your phone when it’s not in use. Ensure that your phone’s browser doesn’t automatically input passwords and usernames. Switch off your mobile Bluetooth when it’s not in use. Avoid logging into your bank account from public networks. Don’t modify your iPhone to permit the installation of unofficial apps that haven’t been provider approved as this takes away some security features. Delete bank text messages when they are no longer required. Banks don’t ask for passwords or log in details via email. Be suspicious of any such email.

Keeping informed and following good advice will help us to be safe smart phone users.

Making a Budget… and Beating It!

A lot of people who do not earn great amounts of money know what it is like to calculate every buck they spend. Of course, the best way to make sure their finances are balanced at the end of every month is to make a budget. First, they have to plan for their common, fixed expenses such as their apartment rent or their car payment. In order just to do that, they must put the same amount of money aside month after month in order to meet these unavoidable expenses whose cost do not change over time. But then come what I call the variable or elastic expenses: it is in this column that people can contrive to yield some unspent money and invest it elsewhere.

Examples of elastic household expenses

Variable or elastic household expenses can represent a significant proportion of a given family’s budget. It is indeed not unimaginable that this kind of expenses can make up half, if not more of many households’ budget. If I had to explain in very simple terms what these variable expenses actually are, I would put it that way: variable or elastic household expenses are those expenses which do not cost the same amount of money month after month and for which cheaper or more expensive alternatives actually exist.

Food, for instance, is a variable expense. Although buying food is unavoidable, groceries actually do not cost you the exact same amount of money from one month to another. Buying different kinds of foods in order to squeeze some extra bucks is possible: you could indeed decide to buy the kind of meat that is on sale instead of going for another one that costs more. Making your own lunch instead of eating at a fast food restaurant is another choice you could make and that could save you money.

But food is not the only elastic household expense that exists. Gas, for instance, can also be considered a variable expense, especially if you live in an area where transportation means other than your own car are available. Of course, you can opt for a cheaper or for a more costly option at the pump when filling your gas tank. Yet, I consider gas to be an elastic expense because you could also opt for carpooling, for biking or for public transit when these cheaper options are realistic, adapted to your needs and available.

Entertainment, clothing, home energy, gifts, and the likes also are variable expenses. Since this kind of expenses is likely to be the only place where saving money is possible, this is where you ought to concentrate your efforts if you want to save money. I can already hear you say: “But I have planned some monthly savings in my budget and I have already allowed as little money as possible for food, clothing, entertainment, etc.” This is fine if you want to balance your budget exactly the way you planned it. But if your goal is to yield some extra savings – in order to invest that money elsewhere – you ought to consider the cheapest alternatives that are available when spending money for elastic expenses.

How can this be profitable?

By beating your budget and saving a little more money here and there, you can end up yielding even greater amounts of extra money in the long run. Indeed, if you already are investing in mutual funds, for instance, or in other financing strategies towards your retirement by budgeting a fixed amount of money every month, investing the extra money you save by squeezing your elastic expenses could be profitable in the long run if you invest it in your old days too.

Beating your planned elastic household expenses could also be profitable if you used that extra money in order to pay off your personal debt. Whether it is by redirecting that money towards your mortgage or towards your car loan, you could reduce your total interest costs significantly if you made periodic lump-sum payments, which most financial institutions allow. You could also think of using your budget surplus to pay off credit card debt – in you have any – since it is often considered the worst kind of debt to have due to the skyrocketing interest rates that credit cards carry.

And of course, you could even think of reinvesting your elastic expenses monthly savings in a personal project such as a trip, a new computer or any other thing that is important to you. After all, your efforts to beat a budget that is already tight should be rewarded. Now, it is for you to decide how you want to benefit from your efforts. It could be immediately, by purchasing a new espresso machine or it could be more long-term oriented, by saving for your retirement or by amortizing your mortgage on a shorter period. In both cases, however, the benefits of being thrifty when it comes to your elastic household expenses are quite blatant and inviting and yet, they will only come at the expense of sustained efforts to beat your budget.

About the author: Alexandre Duval is a blogger for Standard Life, a company that offers a wide range of financial products and services.

Summer Getaway? How to Protect Your Home Before You Leave

According to the Bureau of Justice Statistics, every 15 seconds a home in America is burglarized. The Bureau also tells us a burglar can break into a typical home in just 60 seconds. Information like this is disheartening. Especially for those who are looking to travel and leave their home this summer. So, how do you depart for your planned getaway with great peace of mind? These tips will help deter burglars and keep your home safe.

Replace Old Locks

Home locks don't always operate correctly or are poorly constructed. Professional burglars can drill or pick these old-fashion locks in just seconds. That’s why it makes sense to install a new high-security lock that will do the job. According to Consumer Reports, the Weslock 671 and Emteck Low Profile 8455 prove to be the best keyed locks on the market. They are both under $50.00. Medeco sells a high-security lock that is burglar proof and is around $175.00. It’s a great solution with very little investment of time or funds. Install locks on your own or hire a locksmith.

Your Neighbors are Your Allies

The National Sheriffs' Association has created a website that can help you develop a strong home watch plan with your neighbors. This can be your greatest asset. Create a plan and follow through with it.

Let neighbors know what to expect while you are away. Is your daughter dropping by? Will any vehicles visit the home? Give them your time frame and a phone number where you can be reached in case of a home emergency. Return the favor when they are away.

Invest in a Security System

The peace of mind that a home security system can provide clearly outweighs its cost, providing backup assistance for the times when you're unable to defend your property on your own. There are nearly 5,000 home security providers available, according to Securitycompanies.com. With features like video surveillance, remote usage and motion sensors, there's an option to suit the needs of every home owner. 

Bright is Better

Light up your home. Illuminate different areas while you are out of town. Key areas are doorways, windows and any spots that are hidden from public view. Purchase motion lights that alert neighbors to be on the watch if something suspicious is taking place.

Save money while protecting your home. Buy easy to install energy saving light bulbs. Light is a huge deterrent to a burglar and can easily help protect the place you love. The brighter the better.

Keep it Quiet

Use technology wisely. Social media makes communicating easier than any other time in history. But one downfall is simply that sometimes information can fall into the wrong ears. While it is normal to want to share your excitement and timeline for your upcoming travels, be careful with whom and how you share this important information.

Wait to share pictures of your exciting adventures on social media sites. Do this once you are home. Never give exact dates of your vacation to other people unless needed. Be sure to stop your mail and newspaper so people driving by aren’t alerted to your absence. Think through what you say and what you do so you know your home is safe and sound.