The keys to getting the most out of the agricultural insurance

Although these tools represent a good alternative to mitigate the damage of a climatic eventuality like a frost or drought, they have a series of conditions that regulate their use. Know them below.


The last frosts that affected the central part of the country left a series of teachings in the sector. One of them is, without a doubt, the importance of farmers having agricultural insurance.

Farmers ' insurance and the best ways to get your performance

"They are a measure of great help to farmers because, taking into account the climatic irregularity in which we live, drastically reduce the most relevant risks that can affect a crop," says Manuel José Vial, lawyer of Araya & Cía. and expert In Insurance law.

"People must know that there are insurances and that they have to be exploited, because they allow to transfer the risks. So the call is for farmers to make sure, "complements Ricardo Prado, executive director of the Agricultural Insurance Committee (COMSA).

And it seems that Chilean producers are becoming aware of this or, in the case of the smallest, they are being pushed to do so to be able to access the benefits of INDAP. The concrete is that subscriptions are expected to exceed 21000 policies in the different insurances that exist in the country — almost 75% of them with Indap — covering about one hundred thousand hectares of annual crops (cereals, legumes and vegetables) and fruit trees (Grapes, apple, olives, blueberries and raspberries).

The best councils for agricultural insurance

The problem is that in the country the agricultural insurance has been implemented slowly, so that not all types of products can access them. On the other hand, independent of the product you want to ensure, it is important to be clear what things in that crop will be effectively protected and which are not, or what to pay special attention to.

So the experts insist that it is essential that before hiring a policy, the producer knows in depth the benefits, but also the clauses that have these tools.

Six keys to hiring insurance

Six keys to hiring insurance

1) Crops and insurable areas

The idea of agricultural insurance is to mitigate the damage caused by unexpected agroclimatic events such as droughts (in rainfed areas), excessive rains or extemporaneous, winds, hails, snow and frosts. The conditions of the policy to which the producer may opt will depend on the crop and the geographical area in which it is located.

Annual crop insurance, for example, includes products such as cereals; Vegetables Legumes Industrial crops, forage; Greenhouse vegetables; and cereal and potato seeders. The lands must, meanwhile, be located in certain areas of the region of Arica and Parinacota (Valles de Azapa, Lluta and Chaca); Of the region of Tarapacá (Camiña, Huara, Colchane, Pica and Pozo Almonte); and the Atacama region (valleys of Vallenar and Copiapó). These are added to all the agricultural communities located between the regions of Coquimbo and Los Lagos.

In the case of fruit trees, insurances include species such as Table grapes (III to VI region), UVA Vinifera (iv to VII region), Pisquera Grape (III and IV region), apple trees (V to IX region), olive trees (III to VII region), blueberries (iv to X region) and raspberries (iv to X region).

Manuel José Vial explains that the ideal candidate to take insurance, in the case of fruit trees, is the producer of grapes, apples, blueberries, olives or raspberries that has its property in an area of high climatic risk. "However, it should be kept in mind that the value of the premium will depend on the geographical risk zone where the site is located, so that a producer of a complex area from the climatic point of view will have to pay a higher premium," he adds.

2) How to determine the amount to be secured

The amount to be insured, i.e. the maximum value that the insurance company is obliged to indemnify, will depend on the type of crop (annual or fruit).

To determine this, in the case of annual crops, the first step will be to establish three key aspects: The expected yield, the coverage and the price of the product.

The expected yield corresponds to what the farmer believes he will get in the harvest, and is determined from historical data, seed quality, soil conditions and crop management. Delivering data as tight to reality is vital, because if the producer delivers false information about the yields, the risk is that, in the event of a claim, the indemnity will not be paid by the insurer.

The coverage, meanwhile, represents the part of the expected production covered by the insurance (insured performance). Although the general coverage is 2/3, in the case of some crops such as cereals and industrial crops it can reach 70% or 75%.

The price of the product, which is expressed in UF, corresponds to the value that is estimated to have the product at the time of harvest. This price is fixed on the basis of historical prices of the last seasons or based on estimates — discounting the costs of harvest and transport — carried out by the main players of the sector, at the beginning of each season.

Once these aspects are determined, the next step will be to multiply the surface assured by the expected performance by the coverage and the price. The result will correspond to the amount insured.

In the case of fruit trees the matter is more complex, since the amount insured will be determined from the sum of the insured productions of each variety and caliber, as agreed. This, in turn, will multiply by the prices of each variety and calibers, as appropriate.

In vines and apple trees, for example, the expected yield will correspond to the harvest estimates made by the producer based on the particular conditions of his property. The amount that the insurance will cover shall be calculated taking into account the production insured by caliber and the price of each caliber.

Amount Insured =? (Sum of the production insured by caliber x the price of each caliber).

In olives, blueberries and raspberries, an amount insured per hectare shall be established by virtue of variety and yield. The formula for calculating it is as follows:

Insured amount = Amount insured per hectare X secured surface.

3) The time indicated

There are certain periods, which depend on the crop, to contract the insurance. In the case of the annuals, for example, the policies must be contracted before sowing or transplantation in order to protect the crop during all its development.

For fruit trees, instead, it is advisable to contract the policies before the beginning of the period of risk, which is determined by the species. In vines, for example, the period of risk extends from sprouting to harvest; In apple trees from flowering to harvest; In Olivos from the first of March until the end of May or mid-June; In blueberries from the sprouting of the floral buds to the harvest; and raspberries from sprouting to harvest.

In both cases, the insurance should govern until the end of the harvest (date stipulated in the policy). If for any circumstance this is delayed, an extension of the insurance company must be applied for.

4) How to calculate the premium and the subsidy

The net premium corresponds to the cost of the insurance for the producer. To know its value you must follow the following formula:

NET Premium = Insured amount x The risk rate + 0.6 UF.

The risk rate will depend on the crop and its geographical location. Thus, a farmer who wants to ensure a highly frost-sensitive fruit in a high-exposure place will have to pay a premium greater than one in a lower-risk area.

It is important to note that the state, in all cases, delivers a subsidy corresponding to 50% of the net premium, plus 1.5 UF per policy. In this way, the farmer should only pay the equivalent of the net premium minus the subsidy.

"There is a ceiling of 80 UF per year for Ruth. That is to say, $1.8 million in the case of a farmer who proves his condition. What subsidizes the state is 50% of the Premium Plus 1.5 UF per policy. When the premium is low, as is the case for policies contracted by small farmers, the subsidy can finance over 90% of the insurance cost, "Prado explains.

In the case of INDAP users, the institution additionally bonuses up to 95% of the remaining non-subsidized by COMSA. In other words, the farmer will only pay approximately 2.5% of the premium (+ VAT).

To be more clear on this subject, producers can access the simulators that COMSA owns on its website:

Http://www.seguroagricola.com/index.php?option=com_content&view=article&id=9&Itemid=9

5) The keys to the settlement

The settlement takes place once the climate event that covers the policy occurs (check the box: Step-by-step settlement).

In the case of annual crops, depending on the occurrence of the claim and its magnitude, the losses caused by the climatic event can be classified in early total losses, late total losses and partial losses. In the latter case, production should continue until harvesting. The compensation will be when the production obtained — the result of the climatic event — is less than the insured production. In this case the value of the same will be the difference between the insured and the obtained production, valued at the price established in the policy.

Damages to compensation correspond to the direct costs of production until the date of the accident, with a limit on the amount insured indicated in the policy.

"This insurance is for direct costs such as seed and not for freight or taxes, which are indirect. It does not cover utility or profit. If a frost falls and everything freezes, the damage should be seen. The liquidator must make the report, notify the farmer and the insurance company to make the payment. In these last frosts we have made sure that the insurance companies pay in three weeks, which is especially good for some producers of annual crops that were able to re-sow, ' explains Prado.

In vines and apple trees there are three settlement alternatives:

-in significant losses prior to the curd, the compensation is calculated based on the operational costs proportional to the damaged surface incurred at the date of the accident, with a limit of 60% of the insured amount.

-In total losses after the set-up, the indemnity is calculated from the insured amount of the damaged liquidation unit.

-in the case of partial losses, compensation is calculated from the difference between the insured amount of the liquidation unit established in the policy and the production obtained from the harvest of that same unit, distributed and valued by caliber, with the Same criteria as indicated in the policy.

In olives, blueberries and raspberries the liquidation is carried out according to the percentage of damage caused by the covered risk, in one or more events. This percentage of damage, minus a 10% or 20% deductible, is applied to the insured amount indicated in the policy. This determines the compensation when applicable.

6) How to hire To hire these insurances is not required to apply. In fact, the process can be carried out directly in various financial institutions, INDAP and companies enabled. "Insurance is usually linked to debts. For this reason the insurance is taken in the bank, the policy is signed and this one is associated with the insurer, since it is endorsed. When there is a claim, the beneficiary ceases to be the farmer and he becomes the creditor, "Prado says. Now, if it is a small producer who decides to use Indap's help, and requests credits for amounts equal to or greater than UF, that credit will be associated with the hiring of insurance, provided there is coverage in the area for cultivation. "Farmers who do not apply for credit may voluntarily opt out of the agricultural insurance subscription. They must authorize INDAP to include in the credit, the unsubsidized amount of the net premium of the insurance, plus the VAT corresponding to the total of the premium. In addition, the technical background or parameters necessary to prepare the proposals must be given. The notices associated with the policy must also be made through the established channels and have an identity card, request for financing, proposal, mandate and policy ", indicate from Indap.

Securing the home is protecting your heritage

The external repairs of the home are one of the constant worries in which their users think, also occasionally make some adjustments inside, and it is that to fix the house is fundamental, but also not to neglect the complete protection of She With this we mean that taking care of our heritage is valuing the efforts of years, is to realize that what we have inside the home (furniture, room supplies, clothing, musical instruments and professional use, sporting goods and Kitchen, glassware, ornaments and more), must be protected either from eventualities such as natural disasters or thefts, and that security can only be achieved by acquiring home insurance.

With regard to this issue, it must be recognized that Nicaragua is a country where we often experience climatic changes and the high propensity to quakes, earthquakes, floods, volcanic eruptions and other natural disasters, make our homes vulnerable To suffer the consequences of the force of nature, so to prevent is better than to regret and once again we tell you that to be covered by these great risks, are the insurance.

According to Elaine Miranda, personal finance blogger, "insurance that protects your home and your possessions is always going to be an excellent investment and we would be surprised to know that the price is nothing, compared to the benefits and the amount we would have to Disburse if anything ever happened. It is important, moreover, that not only protejás the house itself, but also everything you have inside, "determines the expert.

Taking accounts
"The price of the policy will depend on the value of your home and the belongings you have. From that amount, the insurance company will charge you a percentage, which varies according to the company. In Nicaragua, the market is between 3‰ and 4‰ more or less, "remarks Elaine. And a lot of eye, because the expert clarifies that it is not 4% (per cent) if not, 4‰ (per thousand). The difference is that the "percent" refers to a somewhat for every 100 and a thousand to one per thousand. Thus, 4% means, for example, US $4.00 of each US $100.00 and the 4‰ means US $4.00 of each US $1, 000.00.

The expert shows us the example of a house valued in US$50, 000.00, securing their belongings for a value equivalent to 25% of the property, would be paid US $250.00 annual or only US $20.83 per month. Now, if the house is worth around the US$80, 000.00, this amount would be US $33.33 monthly. And here the question that makes us Miranda is: "What else are you spending those US $25.00 or US $40.00 a month, having your home and belongings without protection?".

To consider
When hiring your home insurance, an appraisal will be made to know the value of the house and the possessions. In fact, if you have bills that show the price you paid for some of your things, it will be excellent. If anything should happen (an earthquake, fire, cyclone, explosion, eruption, flood, etc.) and your house is affected, the insurance company will send someone to inspect and evaluate the damage.

The expert recommends that if you make any improvements to your home or that if you bought something new, notifiqués it to your insurer, so that they are aware that the value changed. It is also important that you do a list of the things you have insured, putting the name of the item, the price, the time of use and the status of the product. Eye: You will not be reimbursed the original price, but what your article is worth in that state, in the market.

The World of Sports Insurance

Athletes are usually people who enjoy excellent health but the truth is that the injuries are almost always aguardándoles around the corner so many have a good life or health insurance that covers their backs. If you also practice sports, you should seriously consider hiring one of these insurances. Now we explain why.

What are athletes insurances?

What are the most common injuries?
The injuries depend a lot on the type of sport that is practiced but in general sense, the most usual are the lateral epicondylitis, known as tennis elbow and the Epicondylitis media, which is also called Golfer's elbow. Other common problems are: knee and rotator cuff injuries, sciatica, concussion, and, of course, bone fractures.

Elite athletes insurance is much more specific

On the other hand, sports that represent a higher risk are rugby and lacrosse. In fact, it is estimated that approximately every 33 hours there is some player who is injured. Basketball players also do not escape this reality as it is estimated that in this sport occurs an injury every 71 hours. There are other sports, like boxing, that are even more dangerous as they greatly increase the odds of the athlete suffering permanent brain damage.

What are athletes insurances?
Currently insurance companies offer different policies for athletes. Basic Insurance offers a comprehensive medical coverage that includes from hospitalization costs to medication costs and the rehabilitation process. They also usually include compensation in the event of an injury or ailment. Some policies also have professionals who are trained to provide nutritional advice and even prepare an individualized training plan.

However, in the general sense, the most common insurances are those that cover the disability. The amount to be covered will depend to a large extent on each person but the essential objective of these policies is to guarantee the athlete a certain amount of money in case of a permanent or temporary disability that prevents him from doing his job.


Obviously, in elite athletes insurance is much more specific. For example, in the case of footballers, their clubs tend to hire millionaire policies to secure their legs as these are considered their main tools for work. On the other hand, tennis players tend to cover their arms while porters and car pilots are more concerned about their hands.

What about risky sports?
People who practice risky sports, such as paragliding, scuba diving, motorcycling, sailing, skiing or mountain biking, even if they do not do so professionally, should also have insurance. These policies cover accidents anywhere in the world and even include coverage that provides for the repatriation or transfer and accommodation of a relative to the site where the accident occurred. They also cover the costs of a possible bailout and the costs of an early return.

20 tips on safe handling for the elderly

As we get older, our driving skills can change. Here are some ways to help keep you or a safer loved one on the road:



Avoid driving at night if you have problems with your vision and do not ahúmes your glasses.

Do not drive if you feel tired, dizzy or stressed

Avoid driving in periods where there is a lot of traffic, usually in the hours of entry and exit to work in the morning, lunch and afternoon.

Keep the windshield, the headlights and the mirror clean to improve visibility.

Elevate your seat enough to have a clear view of the road. If necessary, sit on a cushion.
Limits the noise that distracts inside the vehicle. This includes radio, conversations with other passengers and the use of cell phones.
If you have difficulty hearing, stay alert and pay attention to the flashing lights of emergency vehicles.

Keep a safe distance between your car and the car that goes ahead to have enough time to brake if necessary.
Leave a suitable distance between the two vehicles every time you stop.
Keep the wiper blades in good condition.
If possible, drive a car with automatic transmission.
Performs periodic vision and hearing tests. Get hearing aids and new lenses when needed.
Take a course in preventive management through the AARP or the American automobile Association. Some insurance policies may offer discounts on the price when individuals take these courses.
Read the medication labels carefully to see if they impair the driving capacities.
Do not drive if you feel tired, dizzy or stressed.

Avoid driving during inclement weather.
Use other transportation services like taxis and buses if you don't trust your ability to drive safely.
Drive on familiar streets and limit travel to places close to your home.
Always wear the seat belt.
Always keep the front lights on.
Check with your doctor if you have questions about continuing to drive.

How to choose the beneficiaries of your life insurance

When you hire life insurance, there is a very important decision you must make: choosing either the people – or institutions-that will be beneficiaries of your policy once you fallezcas. This choice should not be neglected: it is key and you must take it with as much information as possible. In this article we offer you information, tips and help so that you can choose rightly the recipients of the Beneficiopor cause of death of your life insurance.

Beneficiaries of life insurance: what are

All life insurances, whatever they are, have something in common: they are based on a policy that stipulates that, upon the death of the insured, someone will receive compensation, also called a death benefit. Those final perceptors are the beneficiaries.

It is necessary to designate clear and unequivocal beneficiaries, so that when the time has come to pay the benefit for the sake of death, the insurance company has no doubt who should collect the money. In addition, carefully choosing beneficiaries will help alleviate tensions between successors once you have left.

Tips for choosing your insurance beneficiaries

In fact, you will be in your right to appoint whomever you want as a beneficiary, but you better think about it and take into account all the advice and assumptions we collect in this article. Choosing them is not as easy as it sounds: there are legal conditions, vital changes and other situations that can turn a simple choice into a problem.

The first thing you should know is who you can name as beneficiary:

Spouses. It's one of the most common options. Naming the husband or wife ensures that, upon the death of the insured, the other half of the couple will have sufficient financial support to move forward. You have to keep in mind the age of the spouse, because if it is too old it might be interesting to share benefits with other people. Ex-spouses, especially ex-wives, should also be taken into account: it is relatively common for divorce agreements for the judge to order a husband to contract life insurance whose beneficiaries are the ex-wife and the children in common.

Children. Children tend to be regular beneficiaries. With the profit money because of death, you can guarantee, for example, that you will be able to finish college. In fact, it is one of the frequent reasons for hiring term life insurance. [More information on term life insurance]. In any case, and as we will see later, you have to be careful if the children are still younger, because they may have difficulty accessing the benefit.
Trust Fund. You can leave a trust fund as a beneficiary and appoint an administrator to manage it according to your instructions. It's a very appropriate way to get the money to serve exactly what you want.

Parents. Many insured appoint their parents as beneficiaries, especially if they are older and depend on their help in surviving. However, age can be a problem and you need to consider it if they are too old or to replace them with other beneficiaries if they die.

Bank. On many occasions, banks require customers to subscribe to life insurance policies as support for loans or mortgages. If the client dies, that insurance will serve to the bank to collect the outstanding debt.
Charity. Many people appoint charitable institutions (NGO's, associations, foundations...) as beneficiaries of their life insurance. It's a way of practicing solidarity and leaving a memorable legacy.
Companies. Companies tend to hire life insurance for some key people in the organization, such as homeowners. In that way, his death does not imply such a strong economic breakdown. Some insurers offer specific insurance modalities to cover these contingencies. In other cases, it is simply that the insured decide to appoint companies as beneficiaries.
Inheritance. There are people who, instead of naming specific beneficiaries, decide that their death benefit will become part of what they leave as an inheritance, thus giving themselves to potential heirs.

In any case, choose who you choose, remember that you can designate all the beneficiaries you want. That's right, you'll have to order them. That is, if you decide that there is more than one, you will have to decide how much money each receives. This division allows the recipients to be organized into three categories of beneficiaries:

Primary. Primary beneficiaries are the first line of people who receive the benefit by cause of death. That is to say, those who you name as first to collect when you die.
Side. The secondary beneficiaries are the ones who come to receive money if the primary ones have died. You must make it clear who those second-line beneficiaries are.
Tertiary. In extraordinary cases, a third line of beneficiaries can be reached. If there are no primary and secondary, the tertiary can be counted to receive compensation.
In addition to deciding who are first, second and third order beneficiaries, you can also decide how you want them to be relieved. That is to say, it is up to you, as insured, to plan how those beneficiaries are happening. There are two main forms: per capita and per stirpes.

Beneficiaries per capita. In this case, you decide which specific people occupy the primary, secondary and, if necessary, tertiary posts. There's no need to be any relationship between those people, you just choose the names.

Beneficiaries per Stirpe. With this modality, if a beneficiary – primary or secondary – dies, the right to compensation is passed on to his heirs. In other words, to their lineage or family. You do not choose who it is to continue the chain, but it passes as an inherited right to the successors of your primary beneficiary.

Tips for choosing your insurance beneficiaries

If you are already clear about what is a beneficiary of life insurance, now we are going to give you some guidelines to choose yours with caution and not make mistakes. He thinks that the death benefit can be a very high amount of money, something that can sometimes cause more disturbances than joys. Keep these tips in mind when deciding who you name as the beneficiary:

Study the circumstances of the beneficiary. Even if you think that leaving money to someone is always a joy, certain people can cause a displeasure. For example, if you name as a beneficiary a person who receives state aid or subsidies for a disability, you can cause him to lose that benefit because of the increase in income level that will be the compensation. Always keep in mind the circumstances of the people you want to leave as recipients of your benefit by cause of death.
Watch out for the juveniles. It is natural for a parent to want to appoint their children as beneficiaries, but it can be a problem. In general, minors (18 or 21 years of age depending on the state in which they live) are not directly charged with compensation, but the money will have to go to a trust fund. And if you haven't appointed a fund manager, a court will have to do so, which can be a significant delay in the delivery of the money. Make sure you have the options you have if you are going to appoint minors as beneficiaries.
Charitable institutions and organizations. You don't have to leave as beneficiaries to natural people. You can choose non-governmental organizations, charities or entities. It is a good idea when your family or loved ones no longer have economic problems and, after your death, you want to leave an enduring legacy.

Trust Fund. A very common option is to leave the money in charge of a trust fund run by a manager. This person will take care of your will with the money: give it to whom you determine and when you decide; Give it to charitable works, etc.
Incorporate it into your inheritance. If you prefer, you can decide that the compensation money will thicken your inheritance, so that it is divided between your heirs when the inheritance is accepted and distributed. As you will see later, it is an inadvisable idea, because it can produce delays in the collection and other drawbacks.
Choose beneficiaries. Don't forget to choose who your beneficiaries will be, but, above all, don't forget to choose the secondary beneficiaries and, if your policy allows, the tertiary ones. If you die and there is no one designated to collect, the money will end up in the insurance company.

Tips to save when hiring car insurance

Each company calculates the price of their insurance on the basis of their accident statistics, according to criteria such as the driver's age, profession and accident history or the model and mark of the vehicle to be secured. So finding a suitable car policy and saving at the same time is not easy.

Changing insurance is quite common among Spanish drivers, as 78% of respondents confirm having changed some insurance company over the course of their life at the wheel, of which 58.9% has done between two and five times. In this case, they are more ' infidels ' to their insurers, since 8 out of 10 acknowledges to have changed on more than one occasion of insurance company against 7 out of 10 in the case of them.

Save money in your car insurance plan

It is estimated that 6 out of 10 drivers are unhappy with their insurer, as collected from a survey conducted by Wazypark.

According to this study, 45% of drivers have changed their insurance in the last five years. Among these, 9 out of 10 were forced to change their insurance to ' all risks ' by one ' to third parties ' in order to reduce expenses because of the economic crisis. On the contrary, only 1 in 10 modified your policy to improve it and move from insurance ' to third parties ' by one ' at all risk '.

The value of your vehicle influences the price you will pay for the insurance

Carlos Rodríguez, CEO of Wazypark, says that "finding good guarantees, an affordable price and first-class services is a great headache for the majority of Spaniards." According to the manager, and Atenciendo to the results of the survey, made to more than 1,000 drivers who make use of Wazypark, 65% is considering changing insurance company this year and find one that is cheaper and offers better conditions than the current.

At the time of hiring the services of a new insurer, 52% of the drivers are fixed mainly in the price, while the 42% also analyzes the guarantees and services of the policy. Only 3% consider the company's reputation. In addition, the most-contracted insurance for cars over ten years is the insurance to extended third parties (54%). On the contrary, all-risk, franchised and all-risk contracts are more widespread among cars with less than 5 years (44% and 30% respectively), especially among drivers over 40 years.

By asking respondents about renewing their insurance policies, 73% of users recognize that they compare insured prices before to try to find a cheaper service, compared to 27% that conforms to the insurance contracted and renewed by Custom. In this case, women tend to be the most price-competitive, since 8 out of 10 is compared to 7 out of 10 men.

Recommendations
1. Compare offers: Using a comparison tool is a simple and quick way to save on car insurance, as in less than five minutes, and answering a few questions, you can know the characteristics and prices of the insurance of the main companies. Compare offers can save an average of 120 euros per year.

2. Analyze what protection your vehicle needs: Before choosing car insurance, think about your needs and what coverages you need. Avoid hiring that is not essential. For example, if your car has years and park in a garage, you can dispense with theft coverage and opt for a basic third party insurance.

3. Keep in mind your driving habits: do not neglect coverage and services that will be important in the future and, if not hire them, you may have to assume a higher cost. For example, if you are self-employed or commercial and use your vehicle for your professional activity, it will be imperative that the insurance includes a replacement vehicle in the event of a breakdown.

4. Assess the cost of extras: The value of your vehicle influences the price you will pay for the insurance. Therefore, if you decide to add extras to the car that are not standard, the cost of the insurance is likely to increase. So, before you incorporate a stereo or solar roof, you value what it will mean in the cost of your premium and if it's really worth it.


5. Reduce the risk to adjust the premium: If your car is parked in a safe place, the risk of theft will be lower and therefore it will be possible to reduce the cost of car insurance. The companies calculate the price of the car premium according to the accident risk that each driver is expected to have. Therefore, the Cleaner your accident history is the less the risk that the company assumes when you make sure and, therefore, the cheaper your car insurance will be. The same in the case of fines; If you have not been fined it is understood that you are a driver respectful of the rules of circulation and, therefore, more secure.

6. Eye on renewal: car insurance is an annual contract, so once you have the premium you will have one year of service from the company. When the expiration date approaches, compare offers with enough time to cancel the contract if you find a better insurance. To do so without problems, you must communicate the drop to your insurer at least two months before the expiration date.

7. Analyze if it is necessary to add an occasional driver: to avoid problems in case of loss, it is best to specify if the drivers will be more than one. Generally, adding an occasional driver to the policy does not vary the cost much, unless it is young or novel. This type of drivers has a higher risk profile and, therefore, your insurer will consider that its inclusion raises the probability of suffering a loss, with the consequent rise of the premium. Therefore, you value whether you need to include an occasional driver and the cost you can assume.

8. Consult the offers of the companies: if you want to hire a car insurance at the best price, attentive to the promotions of the companies. Offers such as 3x2 in insurance when hiring several products with the same insurer or discounts if a family member is already a client are some examples of the usual campaigns that usually launch. If you are already a client of the insurance company with whom you want to hire your policy in other classes — health or home insurance —, check if there are special offers: Many insurers try to make their clients loyal to the advantages of this type.


9. Beware of the power of the vehicle: if you have not already bought a car, be aware that the greater the power of the most expensive vehicle will be the insurance, as the companies associate it with a greater risk on the road. The convenient thing is that before deciding on your model you analyze what will be the cost of the premium. Remember that you must pay it every year and that a few euros more, in the long run, can add a lot of money.

10. Hire a franchise: If the car to be insured is new or few years old, it is advisable to opt for a risk insurance that will compensate you for its value in case of theft. But the cost of these insurance is usually high. A good way to save is to hire an all-risk insurance with franchise, whereby the insured agrees to pay part of the repair in case of loss. For example, if you hire an all-risk insurance with a franchise of 300 euros, in case of accident we will have to pay those first 300 euros and the company will take care of the rest. This formula allows to reduce the annual cost of the premium and, if we are good drivers, to save.

11. Beware of dividing the payment: In some companies fractioning the payment of the premium carries a cost, so before opting for this modality consult with your insurer the conditions.


12. Pay-per-use insurance: Drivers who use their car very little or meet a number of very specific requirements can find interesting offers among the pay-per-use insurances. These policies calculate the premium depending on the driving habits of the taker, such as the hours you make your travels, the type of road or the speed at which you circulate. If you take a little car you can find savings in these insurances, but if you exceed the stipulated km, you drive at night or by unsafe ways these products are not so attractive.

Auto Insurance Is Cheaper With Companies Without Credit Checks Companies

The insurance companies are betting on the ignorance of the covered members when it comes to what a credit score means to the cost of covering a vehicle. Most people look at it solely as a resource for getting more financing from other institutions in life, but not for things like car insurance. Believe it or not this holds a large impact for underwriters responsible for coming up with what to charge members.

A mortgage or new car financing is where the mind goes when connecting this important three digit number to finances. Insurance is typically not one of them, but surprisingly the same number used for credit cards and personal loans is also impacting how much it costs to insure a vehicle.

Renewal time is impacted as well

Lots of people discover when it comes time to sign up for an extension of current policies a change in this three digit number for the worst comes with a surprise. One of several things take place. No extension of coverage, cancellation and more difficulty finding another company to cover the same car.

A current insurer will not offer a renewal. Even for some people who have been with a company for several years there is no extension of the contract after the current dates. A negotiation for a higher rate is not even discussed.

Cancellation is a possibility after years with the same company simply because of a ding on this important document or an outrageous increase occurs. Countless people are unaware of how much a credit score affects something like personal auto insurance.

Finding a replacement with a another carrier is not an option. Contingent on where a person lives and what a person wishes to purchase are a factor. States shape the laws governing what policies are options. Though, it is a possibility a person living in a rural area has different choices versus someone in a more metropolitan place in the same state.

What it means for a covered customer

Lots of these types of businesses use these items as a main component in determining whether or not to cover an individual or even a family. Complicated formulas and underwriting use these as well to find out what to charge on a personal level. It varies from person to person or family to family.

Suppliers are in conflict with customers. Companies are in the business of making money. A higher risk is not a good investment. Nearly all clients are looking around for the best at the cheapest rates no matter what credit rating is owned. This is when a conflict comes into play.

Having a personal credit score not exactly where an individual would like it to be or owning one less than stellar doesn’t necessarily mean never finding a carrier. It fact, it simply equates to needing a little more research time to locate a provider without a credit check for auto insurance and ideally finding the cheapest rates as well.

Although states regulate what is purchased and sold within a state, there are exceptions. More than a few allow the company headquarters to reside in one state and covered members to live in another. Typically these types of policies generally have basic conditional services. In other words, there are no bells and whistles and only the bare minimums are offered.

Why this number is used to determine what a person pays

Many of these corporations review a potential member's credit score and use it to make a determination of how consistent a bill is paid. More importantly how trustworthy this person will be in the future. According to the businesses using this method it is a good indication of an individual's financial steadiness and reliability as a covered member.

It sounds like a great idea or way to view the relationship between customer and business going forward. Though, this is not necessarily true as countless people know. Payment is for some services is contingent on other factors which are not even under an individual's control.

This is not to say there are more than a few folks simply not financially responsible and the number reflects the truth. For the most part this is the exception and not the rule. The nation's economy has not been kind to countless people by no fault of their own. Meaning being responsible with money was a habit, but a direct or indirect impact of Americans banking community decisions went sideways and caused harm.

Why does every person searching for insurance coverage have to pay for the fiasco? How long does the average citizen pay for something they have no control over? Nearly every state requires carrying a minimum policy mandatory to following the law. Therefore, this is a serious discussion on more than one level.

How is it used

All insurance is based on risk management or underwriting. This is a complicated statistical method to set up the amount paid for coverage built by combining a number of various factors. Historically credit scores where not included in this calculation which allowed for more coverage at cheaper rates for countless folks. Times have changed and these numbers now play an enormous role in the data used for the process.

Based on the info used for this method of evaluation scores of insurance providers have formed an opinion which may not be true. They have basically determined the lower a driver’s or policy owner’s credit score is; the more likely this member will file a claim against a policy or cost them monies/profits in other ways.

Negative expectations from the start

Along with possibly filing bogus claims there is a feeling the same kind of a policy owner tends to exaggerate these same claims for more money than the actual worth. This is committing insurance fraud once again in a different direction. This is only the beginner of the bad behavior bubble.

The habit of making late payments is the kicker to all of the rest of the dirt these same "types" are suspected of doing simply because of the wrong set of numbers in the wrong place for a balance sheet. All of these ideas are formed from three little digits following an individual around for life.

Whether most people think it’s fair or not is not relevant. This is what these kinds of providers admit and why it is an important piece of data when obtaining auto insurance and the rates it costs for this particular privilege or in some states following a mandatory law.

Realistically a credit score will not tell if a person is or is not a criminal when it comes to insurance. Simply having poor credit doesn’t make automatically create a culprit for insurance fraud.The same is said of the person holding a good number. Their honesty is not measured by it.

Having personal integrity or honesty in question does group a person with certain individuals more likely paying higher rates to insure a car or truck. More than a few lose it because a score is not up to the standards for a good insurance risk. It is difficult to discover an individual is personally deemed untrustworthy or a possible criminal based on three little numbers.

Lucky enough to get it for an auto? There is even a chance of having one so terrible or falling so far it means no benefits to be found at all. Work in keeping it level and making it better in all cases.

What is a good score?

The business entities using these believe owning a score or credit rating above 700 as a good risk. This is the crowd offered the cheapest or lowest auto insurance rates for the best coverage. More than likely more than one business likes the risk and contacts these individuals for good coverage at a low cost

One the other end of the scale are those with not so great credit histories. The magic number is 700 or 600 depending on who wants what. Anything below 600 is a bad investment. Finding one this low definitely means higher auto insurance rates for less coverage, cancellations or other obstacle blocks.

This is detrimental for some in states where there is a mandatory minimum policy to carry. This means there is a likelihood more and more drivers skip even the basics and drive without it. This puts everyone out in the cold and in even in danger.

Are there other factors to consider?

There isn’t a lot of wiggle room with some of these entities between the good and the bad. However, remember there are other factors taken into account when accessing risks used in underwriting data for coverage.

This means if you experience a six month lay off from a job last year and personal credit numbers dipped, there are still other factors being used to rate you. These are elements which possibly raise or lower your risk factor. This is great for a short term bump in the road. A longer obstacle is not as easy to recover from.

Other factors include a personal driving record, age, sex, whether a covered member is married or not and even where a person lives makes a difference. A driving record means do you have any tickets or moving violations? Any car accidents in your past? Even those where you were not at fault are not good for the cause. Do you drive your car to work every day or take the bus?

All of these things are taken into one application and put in one end of a process. Out of the other end pops a number matched to an insurance rate for a car based on a particular driver. Not all insurers input the same data for underwriting customers. Although these are the most general, some have things like if details centering around personal habits like smoking cigarettes or not included as a factor too. The more bad habits the worse the number becomes

Specifics are discovered with the company. This is not an enormous hush hush secret or industry need to know. Countless share this information without issue.

Where to find companies who do not base rates on credit scores

There are more than a few working without counting it into evaluating personal risk factors for payment. For those concerned with personal or unique numbers which involve paying a higher car insurance premium there is a bright side.

Paying more than necessary or even dropped from renewal because of it need doesnt mean never finding one to get a quote for the same identical coverage at less expense. Surprisingly the difference is sometimes substantial. Shop around.

Several businesses using a mathematical formula to determine rates minus credit scores are Allstate, Progressive and 4AutoInsuranceQuote.org. Although these are some of the bigger boys, there are lots more out there in the marketplace today. Each state has identified which companies are qualified or licensed to sell policies to citizens and this varies depending on where a client lives.

To know which businesses fall in this category in the marketplace are practicing for an individual state, contact the state’s Insurance Commissioner Department. Another avenue is looking into each one individually. Look into these numerous companies giving online insurance quotes to determine what the likely price will be from one or another. Many of these are likely to offer free online quotes. This gets the best coverage for the least amount of money in nearly every case.

Is there a catch to using these companies?

More than likely, any mentioned who choose not to use credit scores generally have an overall higher risk pool. The risk pool is an underwriting term to identify the likelihood of a claim filed against the policy or dollars to filed claims. This means the majority of covered members fall into a less trustworthy category.

This higher risk is shared across the board to all insured’s in one form or another, generally in the form of money or coverage. Typically these stand out because of slightly higher rates for identical coverage with another company choosing to use the data. Another scenario is less insurance for the same price because this part of the process was skipped or eliminated.

What are some of the benefits?

It is not as bad as it seems from all angles. Generally identical coverage is received for two different prices.On one end of things there is the higher risks candidates and on the other is the less riskier customers.

In this example, a bump in the financial forum is costing an arm and leg. Another situation is finding less coverage for the same price by only a tiny fraction of a difference. This is why comparing and shopping around makes an enormous difference in what you eventually have for a policy and how much it costs.

Dollars are spent working to improve the credit score that hurt them. They make this number better much faster. This means getting the better coverage for the least amount of money.

Cherish a credit score

Investing in a good driving record is only one of the instruments used to determine what is paid for rates. This item on the check list is a part of a larger mix in the formula being used by companies in the marketplace.

These same digits are being accessed as criteria to find employment, housing and insurance it is certainly valuable in lots of areas of every day life. This means taking care of it. When you are blindsided with events that negatively influence it, do everything possible to get it back on track.

When the fault lies elsewhere for the numbers

There are times when things are simply out of a person's control yet there is an influence. For an example, during the holiday season for more than several years identities have been stolen. Purchases as large as cars and homes are being made. Imagine recovering from someone running a credit card up to the limit in a couple of hours.

Medical bills are sometimes real and other times imaginary. Medical identity theft is on the rise. Making certain the person getting the services actually matches the card is a good thing. A bill in error within this circumstance from an unknown doctor for several thousand dollars is eventual fixed. The aftermath is devastating. Some scars are left on records which are never totally erased through the action of thieves. Even careful people are known to fall victim.

Thieves in this category cost an individual dearly. All of these situations are breaches of security by a store or merchant and not the unsuspecting customer. Though they are paid by the very person violated by the act.

This identity theft has included fraudulent financial purchases and things such as overdrafts. The real account holders are responsible for these irresponsible acts. Credit card companies are not always honoring the policy of charges not made by the cardholder are not their responsibility or other loopholes leave others holding the bag.

When crippled by another person's actions where personal credit is concerned, there is no way to reflect this explanation on paper for the average person taking a quick review of it. While working to resolve this issue the incorrect material is on the report and still tied to an individual person.

Do everything to fix this as soon as possible and remove any erroneous material not honestly owed to creditors. Check this material often to make certain all is correct. There are procedures in place with each of the credit bureaus for inquiries. This is a change from how things were previously done over the years. New processes make an investigation faster and corrections mover much more quickly as well.

In conclusion

One thing countless people do not consider is a credit score inquiry from any entity negatively impacts or lowers this number. That's right. When anyone checks it they are costing a person valuable points. This is true whether you take the insurance coverage offered or not. This is simply another reason to consider alternatives to these types of business practices.

Shopping around to several companies for the best price is more costly than many realize. If you are unable to afford the hit, do not hesitate to avoid it by bypassing the process.

Good driving records are extremely important in calculating underwriting and risks. Lots of folks in a situation with a low score and searching for coverage attempt to offset this by keeping a wonderful driving record.

How many accidents and tickets always are included for investigation when companies research clients. This is an enormous factor and weighs heavily. Keep it looking shiny and new.