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Lately, when we turn on the news, we hear about a troubled economy
and an unstable job market. The constant barrage of bad news has
encouraged most of us to cut spending wherever possible. Perhaps a
household will cancel cable TV for a year, limit their cell phone
plans, reduce the number of times they eat out as a family, or tackle
another cost reducing option. As many different "belt-tightening"
measures are taken, everyone should be careful they don't cut the
essential items. One annoying essential is the cost we pay for
insurance - there is no guarantee we will need it in the near future (in
fact, we hope to need it as little as possible), however, if an accident
does happen and we don't have coverage, the costs could send us into
bankruptcy. Understandably, if a bread-winner of the household
loses their job, it is tempting to cut costs where we cannot see the
immediate need. This said, it is far better to reduce coverage
than to go with no coverage at all.
Before we discuss insurance any further, let us get this down now -
it is not worth the risk to eliminate insurance coverage completely.
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For homeowners insurance, your mortgage lender will require that
your home is at least minimally insured. However, it is
possible to let your insurance coverage lapse if you don't pay your
bills or mortgage. A few months lapse does not mean you lose
your insurance right away. However, letting it go longer than
a couple of months will leave your home uninsured. When you
then try to reenroll your coverage, the insurance company may
charge you as much as 2 or 3 times more depending on how long you
went uninsured - you have become a higher risk client. If you
do not reenroll and let your insurance continue to lapse, your
lender can take action to protect their investment. A lender
may enroll the house in an insurance policy which they then add to
your loan payment. However, they will be the party to receive
funds if the home is damaged (i.e. fire). Essentially, you
will be forced to pay for an insurance of their choosing (maybe at a
higher rate) but you will not receive the benefits of the original
coverage under your name.
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Basic automotive insurance is required by law in most states.
If you are driving uninsured, you could be faced with a lot of
out-of-pocket expenses as well as legal fines if you are ever in an accident.
Again, if you drop insurance coverage and reenroll later, the
insurance company may charge you as much as 2 or 3 times more
depending on how long you went uninsured as you are a higher risk
client. For a chart
detailing the amount of coverage required in your state,
click here to visit Insure.com. Before you cut your auto
insurance to the bare minimum listed, consider some of our insurance
shopping tips listed below that may help you lower your costs.
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Finally, what about health insurance? It is estimated that
this year the number of Americans without health insurance is as
high as
52 million. Most Americans rely on their employers to help
cover some of their health insurance cost. However, as
premiums rise for companies, they are forced to increase the
contributions of their employees. So in today's economy, both
those with jobs and those who have lost their jobs are struggling to
keep affordable health insurance. Everyone should have health
insurance to offset the astronomical cost of emergency health care.
Those without insurance may find that the
ambulance ride alone may break the bank and leave them with more
debt than they can possibly afford to repay. Below we have
provided some strategies for obtaining cheaper health insurance.
The
above said, let us see how you can cut some of your insurance rates!
Cutting your insurance costs does not mean you should go without
coverage. Instead, be a savvy consumer and do your research
and shop around. Recently an insurance company ran an ad where
they asked consumers how long they shopped for their car and
received answers from a week to even a couple of months. When
they then asked how long they shopped for insurance, there was a
pause and the usual answer of, "Er, uh, less than an hour."
This commercial proved a good point about how many people approach
shopping for insurance with less care than the big ticket items to
be covered. Here are some shopping tips to help you find the
best price and coverage.
Strategies for obtaining discounts on home, automotive, and health
insurance:
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 SHOP
before you DROP your money! As the commercial we
used as an example above, and as we keep mentioning over and over,
nothing can beat comparison shopping. Use the web to your
advantage as there are so many quote and comparison sites available.
If you aren't comfortable with the web, do some calling around
to your local agents. It is worth your time and money!
For a quick list of online comparison
sites, CLICK HERE.
Considering the online
insurance option? You may give up on some individualized care,
but the cost savings may be worth it. Consider these PROS and
CONS
before you buy online insurance coverage:
For more information about
purchasing insurance online, read our article
'Online Insurance: Is Online Insurance Right for You?'
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Look for and Ask about Discounts: All insurance companies
offer discounts, however, not all of them will offer
a discount if you don't ask. Since not all insurance companies
are upfront with all the discounts they offer, it is best to shop
with this at the top of your list of items to ask about.
Discounts are available for all types of coverage and include everything
from being a long-time client to paying your policy in full (rather
than monthly). Homeowners can get discounts by making
certain upgrades to their home that make the home more secure and/or
energy efficient. Automotive insurance often has the most selection
of discounts ranging from a good driving record, a short daily
commute, or even a high grade point average (for those student
drivers in the house). Health insurers will give discounts for
clients in good health - if you lead a healthy lifestyle with
regular exercise, no smoking or drinking, you may find completing a
health survey will save you money on your premium.
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Raise your Deductibles: By raising the amount you pay out-of-pocket in the case of an emergency, you can lower your rates
substantially. Higher deductibles will mean that you may have
to pay as much as $1000 or more out-of-pocket per event.
However, it does provide a safer gamble compared to no insurance at
all. For health care you may consider a high deductable plan
for "emergency" or "catastrophic" insurance. These plans will
only cover a major accident but, if you are in good health and
don't need a lot of medications, this plan can help offset high
rates. However, keep in mind that you will have to pay over
$1000 out-of-pocket and these plans will not cover routine doctor
visits. Instead, combine this insurance with a Health Savings
Account for the best rounded coverage.
MORE
Strategies for obtaining discounts on home and automotive insurance:
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 Bundle
to Save: Using one insurance provider to cover your home and
vehicle can help save you money as most insurance companies provide
a discount to get your business. This will save you money if
you check with your current provider, but don't be shy, take
advantage of online comparison sites or do some calling around.
You may be surprised at the differences!
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Review your Policy: Make certain you review your policy at
least once a year. There may be adjustments you can make in
coverage. For example, as your car gets older and subsequently
worth less than when you first bought it, you may find you need less
coverage. For your home, you may find you have sold high
insured items from your household or
take inventory and realize you don't need to cover that old computer
or entertainment center for as much as you did before.
Examining your Personal Property Value may lead to areas you can
logically cut coverage.
For more information about
homeowners' insurance, read our article
'Understanding Homeowners Insurance.'
Insurance Company Rankings
Online Insurance
Comparison Sites
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Aidmatrix Network - Iowa
www.aidmatrixnetwork.org/CashDonations/
Default2.aspx?ST=Iowa
The Safeguard Iowa Partnership and the Iowa Disaster Human Resource
Council have partnered to provide the Aidmatrix Network, an easy way
to make monetary and product donations to the nonprofit
organizations that are assisting in the response and recovery
efforts following recent disaster events in Iowa.
Cedar Rapids Czech & Slovak Museum
www.ncsml.org
The National Czech & Slovak Museum was dealt a devastating blow
on June 13, 2008 but we're recovering in phases. First, we extend
our deep gratitude to the long-time supporters and new friends who
have given so generously over the last year. In preparation for the
flood, you stacked sandbags, whisked precious artifacts to safety
and boxed up and carted away thousands of rare library books. Many
of you kept working with us until the water began to surround the
building and we were ordered to evacuate. Immediately after the
flood, many of you braved the muck and stench of the aftermath. With
gloves, boots and earnest smiles, you helped us move truck load
after truck load of untouched artifacts, painstakingly remove mud
from books, and retrieve soaked but salvageable items to a
reclamation facility. Financial contributions have been
overwhelming, demonstrating the truly national reach of our
organization -- we have received donations from over 44 states and
two countries. Read our most recent newsletter to learn more about
our progress. Your support has made a critical difference as we
continue basic operations, retain staff, operate an interim location
and plan for the future. We can’t possibly thank you enough, but we
still have a long way to go. Please consider helping in one or more
ways.
Cedar Rapids Public Library
http://www.crlibrary.org/
The Cedar River, located across the street from the Cedar Rapids
Public Library (CRPL), crested at 31.12 feet, more than 19 feet
above flood stage and 11 feet above the previous record. River water
containing raw sewage and other pollutants rose five to seven feet
on the first floor of the library destroying the entire adult and
young adult collections as well as reference materials,
state-of-the-art check out and security system, public access
computers and a computer laboratory. Only the Children’s Department,
located on the second floor, was spared. It’s believed to be the
largest public library disaster in U.S. history.
Cedar Rapids - Run the Flood
www.crruntheflood.com
Please help the city of Cedar Rapids Rebuild, Recover, and Remember
by participating in the first ever Cedar Rapids Run the Flood. The
route for the 7-mile run (or walk) is on the perimeter of the
flooded areas of downtown Cedar Rapids. The 2.5-mile walk (or run)
will be through the flooded areas of downtown Cedar Rapids. Both the
of the run routes are through flooded business and residential
areas.
All proceeds will be donated to the Greater Cedar Rapids Community
Foundation for Flood Recovery.
Corridor Recovery
www.corridorrecovery.org
Corridor Recovery is a not-for-profit partnership between
government, civic, business and faith-based organizations, created
to respond to the Flood of 2008. As the flood waters peaked,
Corridor Recovery quickly became the primary resource for materials
and information for Linn County and Cedar Rapids. We provide
resources for local governments and agencies to distribute
flood-recovery information to the public in a critical time of need,
and to coordinate volunteer efforts in the clean-up and recovery
process.
Greater Cedar Rapids Community
Foundation
www.gcrcf.org
The Greater Cedar Rapids Community Foundation opened the Flood
2008 Fund on June 12, 2008. The Flood 2008 Fund is for flood relief
and recovery donations. One-hundred percent of financial donations
to the fund will support response, recovery and rebuilding efforts
throughout the Cedar Rapids-metro and surrounding communities. The
first priority will be to work with local nonprofit organizations to
support individuals and families affected by the floods. The GCRCF
is committed to helping individuals, families and the nonprofit
community recover and rebuild from the catastrophic flood.
University of Iowa Foundation
www.uifoundation.org/GiveToIowa/WebObjects/
GiveToIowa.woa/wa/goTo?area=floodfund
For those wishing to support the University as it struggles to
recover from flood-related damage not covered by insurance or other
resources, we encourage contributions to the UI Flood Relief Fund.
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