6 Things That Spike Your Auto Insurance

You may already know the importance of shopping around to score the best rate on your auto insurance premiums, but did you know that certain factors (or the absence of them) could cause your insurance premiums to rise?

To understand what makes your insurance premiums spike, it helps to understand the basic nature of auto insurance: Insurers make money when they insure drivers who don't have accidents, and don't make claims. They lose money when the opposite happens. As such, it is in the insurer's best interest to predict driver risk factors as accurately as possible. When any of the following factors are present in your life, they indicate an increased likelihood that you, as a potential auto insurance policyholder, may have an insurance claim that will cost the insurer money. To compensate for the increased likelihood of a payout, insurers charge you more money in the form of a raised premium. Here are six things that spike your auto insurance.

Buying a New CarBecause a new car as an asset is worth more money than an older model, it will cost more to replace. Additionally, if you finance or lease your new car purchase, most lenders require you to carry full coverage at a stated level, which makes it impossible to skimp or strategize only on the coverage you need. You can be wise about how your new ride will impact insurance premiums before you buy. According to a recent study by Insure.com, the cheapest new cars to insure tend to be larger, sturdy models such as minivans, SUVs and trucks. Don't assume that premium boosts come only with a flashy sports car or other high-priced model. The study indicated that the Honda Civic, for example, commands higher insurance rates simply because it tends to be driven by younger, childless owners who are inherently deemed riskier than parents. Further, it's one of the most stolen vehicle models in the United States.

Increasing Your CommuteLong commutes to work don't just cost you in time and fuel; they'll also boost your auto insurance premiums. Again, the risk is much greater that you'll get into an accident when you're driving during rush hour. Further, if you are in a profession that involves frequent driving, like a pizza delivery person or salesperson, you'll pay for the increased time that you spend in the car because more time spent driving increases the risk of an accident.

MovingThough actual risk is determined by the zip code you live in, city residents statistically have more accidents, which drives their premiums higher than those who live in rural areas. Additionally, more people living in an area means more claims, which is reflected in the higher premium prices in such places. If you've recently taken up residence in New Mexico, Alabama, Oklahoma or Florida, expect to pay higher premiums. According to the Insurance Research Council, these states have the greatest concentrations of uninsured motorists, which ultimately seeps into insured drivers' premiums.

Marital Status and AgeIf you're unmarried and without children, you're considered part of a higher-risk category than married couples with kids. If you're 26 or younger, and male, you'll pay even more.

Dumping Your Auto InsuranceIf you ditched your auto insurance in an effort to save some money, you've committed a classic case of being "penny smart and pound-foolish." Not having any auto insurance, even for just over 30 days, will cause your premiums to jump.

Having a Brush with the LawHaving no accidents or tickets will lower your auto insurance premiums and, as you might imagine, having either or both could raise them. When and if you'll see the spike is largely determined by your locale and your insurance provider. Insurance companies use a "merit plan" system. Most insurance companies periodically scan for recent traffic violations, whether you are a new or existing customer. After you commit a traffic violation and your insurer learns of it, your auto insurance rates could be higher for the next few years.

The Bottom LineAuto insurance rates are often based on factors out of your immediate control, including age, occupation and accidents. Understanding what factors cause your auto insurance rates to spike can help you to shop around for a more competitive provider before you receive a surprise rate increase. It may also cause you to rethink some of your current driving habits.

5 Most Expensive Cities In The U.S. For Car Insurance

Maintaining a car can be a very expensive venture if you are not careful. From annual inspection and periodic upkeep to keeping the car fueled and insured, owning a car can easily deplete your bank account and leave you strapped for cash. One major cost associated with owning a car is paying for car insurance. Depending on where you live in the United States, car insurance could either be a small expense or take a dramatic toll on your budget. Here is a look at five of the most expensive cities in America for car insurance.

DetroitAccording to an article released by Yahoo! in January 2012, Detroit, Mich. has the highest car insurance premiums on average in the U.S. The Motor City's insurance rates are most unfriendly to cash-strapped car owners. According to Runzheimer International, the average car insurance premium in Detroit was $5,941 in 2011. That's nearly $2,000 more than the runner-up. The Motor City is filled to the brim with automobiles, and as a result of the high population of citizens and cars, along with a no-fault insurance system, its insurance premiums have stayed among the highest in the country.

PhiladelphiaPhiladelphia, Pa. is another city that is hit hard by high car insurance costs. Coming in just behind Detroit, the City of Brotherly Love is not feeling the love in regards to its high premium costs. In 2011, the average car insurance policy cost drivers $4,076, according to Runzheimer International. The cost is not nearly as high as Detroit's astronomical average premium of $5,941, but is considerably higher than the approximate $1,199 national average that HomeInsurance.com reported for December 2011. Due to Philadelphia's overcrowded streets and high population of vehicles, insurance rates have continued to climb.

New OrleansAnother American city that definitely gets the short end of the stick when it comes to saving on auto insurance is New Orleans, La. The Big Easy has one of the most expensive car insurance premiums in the U.S. According to a Runzheimer International study performed in 2011, New Orleans had an average car insurance premium rate of $3,599 in 2011. New Orleans' high premiums are not due to overcrowding but because of judicial ruling. In Louisiana, only claims totaling over $50,000 actually make it to a jury case. Claims less than that benchmark are settled out of court.
MiamiMiami, Fla. is another U.S. city that was unable to escape high auto insurance premium rates. The Runzheimer International study performed in 2011 marked the average car insurance premium in Miami at a hefty $3,388. Due to the city's no-fault auto insurance rule and an influx of fraudulent claims, Miami has experienced a significant premium hike in recent years.

Newark, N.J.Last but certainly not least, Newark, N.J. has one of the highest car insurance premium averages in the U.S. The city features an average auto insurance premium of $2,867. Newark's residents certainly have quite a hefty expense in order to keep their vehicles insured. Similar to Miami and Detroit, New Jersey has a no-fault insurance rule, and costs have risen as a result.

The Bottom LineCar insurance premiums vary substantially depending upon where you live. States with no-fault laws and higher populations are prone to have higher average auto insurance premiums due to the higher amount of accidents and collisions that occur. The numbers presented are based off studies, and it is possible to find less expensive auto insurance. Many factors apply when determining what your auto insurance rate is, including driver safety, your zip code and your age. Shop carefully when buying car insurance, and make sure you are getting the best rate possible.

8 Qualities That Make A Good Insurance Agent

If you have ever contemplated becoming an insurance agent or wondered whether this career path could be right for you, then there are several qualities that you will need to possess, at least to some degree. All good insurance agents share some of the following core qualities in one way or another.

People Skills
1. Puts the needs of the client first - An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job. Those who are willing to put their clients into a product that pays a lower commission because it better fits their needs are much more likely to be successful.

2. Good customer service - Customers who are able to get a hold of their agents when they need them are much more likely to stay happy and reassured. A timely response to inquiries and phone calls is a must, and you must be able to do what you say you will do, when you say you will do it - or at least have a good reason as to why you can't. One of the major complaints of those who buy life insurance policies is that there is no one around to answer their questions after they have purchased the policy.

3. Emotional intelligence - This includes the ability to listen and empathize with clients on a deeper level in order to discern what they really want and need. A good agent is tactful and knows how to help a client see financial reality clearly, even when the client is dead set against it.

Strong Personality
1. High energy level - One of the most important traits of a good insurance agent is that they appear to be excited and eager at all times. A worn-down or dreary disposition will immediately rub off on clients and discourage them from buying anything.

2. Persistence - This is perhaps the most vital quality of any good insurance agent. Those who work in this field absolutely must be able to handle rejection on a daily basis over the course of their careers, and do it with a smile. Good insurance agents understand that each "no" only brings them closer to someone who will say "yes."

3. Honesty - Insurance agents who use deception to close business seldom stay with the same company for very long - and can end up behind bars in some cases. A good agent knows that telling the truth up front will win them clients' respect and trust and is likely to lead to repeat business over time.

General Knowledge
1. Wide array of products - As the old saying goes, if all you have to work with is a hammer, then everything in the world looks like a nail. A good insurance agent will be able to offer a comprehensive selection of products and services that can meet any reasonable need a client might have.

2. Technical knowledge - A good insurance agent knows much more than how to sell a policy. The agent must understand the tax and legal aspects of the products he or she sells and how they are designed to fit into a client's overall financial situation. Many agents earn financial planning designations such as the Certified Financial Planner®, Chartered Financial Counselor or other credential. Some agents practice financial planning, income tax preparation or some other avenue of financial service as their primary profession and then write insurance business when it becomes necessary.

The Bottom Line
These are just some of the qualities that life insurance agents must possess in order to be successful. The life insurance business can be very challenging and immensely rewarding for those who are willing to learn the necessary skills to build their business. For more information on how to become a successful insurance agent, contact the recruiting offices of a few different agencies or a headhunter who works with insurance agents.

Avoid The Obamacare No-Insurance Penalty By Feb 15

ATTENTION! If you’re one of the 7.3 million Americans who have insurance through the Affordable Care Act – or one of the 13.4 % who do not but probably should – there’s a deadline looming that you cannot miss. If you miss it, you’re likely to have some stiff penalties when you file your taxes this year and next.
Here’s how it works. Under the Affordable Care Act, popularly known as Obamacare, most people are required to have healthcare insurance. As long as you have insurance through your employer, insurance you purchased on your own, Medicare, Medicaid, a Veterans plan or some other qualifying coverage, you have nothing to worry about. You can check to see if your plan qualifies by clicking here.
If you don’t have qualifying coverage, don’t panic: You aren’t going to jail, but you will pay a penalty when you file your income taxes and that penalty can be large. If you didn’t have coverage in 2014, you will pay 1% of your household income or $95 per person ($47.50 per child under 18) – whichever is higher. In 2014, the median household income was reported at $53.891. An uninsured couple filing jointly as married with one child would pay around $336 when they complete their 2014 taxes.
In 2015, the penalty is much higher. Plan to pay 2% of your yearly household income or $325 per person ($162.50 per child under 18) – whichever is higher. That same family of three might pay around $812 when they complete their 2015 taxes next year, assuming they didn’t get coverage at any time during 2015. You can read more about the penalties here.
Of course there are a plethora of tax situations that can affect these amounts. You and your tax preparer will figure it out together. Others might be exempt from the penalty fees. See if you’re exempt here.
Open Enrollment is NOW
If you received coverage through an employer in the past, you know that there are certain periods when you can change your current policy or enroll for new coverage. You can’t do it whenever you would like unless certain life events happen. If you miss the open enrollment window, you’re out of luck until the next period comes or a qualifying event happens.

Obamacare is the same way. Open enrollment to buy insurance through the Health Insurance Marketplace/Exchange runs from November 15, 2014 to February 15, 2015. If you don’t have coverage by February 15, you won’t be able to get coverage through the Health Insurance Marketplace until the next open enrollment period. Translation: Miss the February 15th deadline and you could be nailed on next year's taxes even before this year's tax deadline has passed. (See Open Enrollment For Health Insurance Marketplace.)
There are a few ways to obtain coverage after the deadline passes. If you get married, add a child to your family, start a new job, or lose your current coverage for a qualifying reason you can sign up for Affordable Care Act coverage outside of the enrollment period. If you qualify for Medicaid, you can enroll at any time. Another way to avoid the penalty: Purchase coverage on your own through a private insurer – you won't be eligible for subsidies you might have qualified for through the Health Insurance Exchange/Marketplace, but you will be covered. You can learn more about these options by clicking here.
If you qualify for an hardship exemption, you may not owe a penalty for 2014. Find out if you qualify by clicking here.
Saved By Auto-Renew?
If you were already enrolled in a plan through the marketplace in 2014, there’s a good chance that it was automatically renewed on January 1. You probably received a letter telling you how to renew your coverage. Even if you didn’t do anything, your plan was probably renewed with all of the same terms, but don’t assume anything. Many state healthcare exchanges don’t have an auto-renew feature.
If you live in a state that doesn’t use the federal exchange (healthcare.gov), verify your coverage. And if you do, verify it anyway. Non federal-exchange states include California, Connecticut, Hawaii, Idaho, Kentucky, New York and Nevada. Click here, then scroll down for a map with the full list of states. If you want more information about auto-renew, click here.
Auto-renew assumes that all of the information you provided during your original enrollment is still true. You could face a penalty if anything changed and you didn’t report it.
The Bottom Line
Some 90% of people who apply for coverage through healthcare.gov receive some sort of financial assistance. With odds like that, there’s a really good chance that you won’t pay full price.
There are plenty of resources to help you get coverage at the lowest cost. Visit healthcare.gov and read about how to obtain coverage. Or click here to find somebody near you that can help. For more on the Affordable Care Act, see Tips On The Health Insurance Marketplace/Exchange.

What Age For Medicare Eligibility?

When you think of Medicare, you probably assume that it’s for people of retirement age. That’s true, but the program covers more than just those who have worked all their life. You might be eligible right now and not know it.
In 2013 (the most recent numbers available) Medicare covered more than 52 million people in the United States. The bulk of beneficiaries, more than 42 million, were people aged 65 or older. The remaining nearly 10 million received services as a result of a disability.
Like Social Security, Medicare is a U.S. government program funded by tax withholding from most workers' paychecks. When they reach 65 or meet other eligibility requirements, they receive Medicare services. You will probably receive Medicare Part A coverage free of charge because of your payroll deductions, but Medicare has other requirements that will likely cost you. See Medicare 101: Do You Need All 4 Parts?
Who’s Eligible at 65?
Retirees and those still working. To receive full Medicare coverage at 65, you (or your spouse) have to have earned enough credits to be eligible for Social Security. In 2014, each $1,200 you earn equals one credit, but you can only earn a maximum of four each year. Starting in 2015, getting a point will require earning $1,220.
You will receive full benefits at retirement if you have earned 40 credits –10 years of work if you earned at least $4,800 in each of those years (at 2014 rates).
If you paid into a retirement system that didn’t withhold Social Security or Medicare premiums, you’re probably still eligible for Medicare – either through your retirement system or through your spouse.
If you continue to work beyond age 65, things get more complicated. You will have to file for Medicare, but you may be able to keep your company’s health insurance policy as your primary insurer. Or, your company-sponsored insurance plan might force you to make Medicare primary, or other conditions may apply to you (see The Employee's Guide To Medicare). There’s a lot to consider that makes it prudent to talk to a Medicare expert about your choices.
Spouses. Maybe you were a stay-at-home parent or spouse. You can still receive Medicare benefits at age 65 based on your spouse's work record. If your spouse has the required 40 credits and you’ve been married for at least one year, you qualify for benefits.
People in same-sex marriages may qualify for spousal benefits if they live in the state where they were married or in another state that recognizes same-sex marriages – or are civilian or military employees of the federal government. For same-sex couples outside of these categories, the guidelines are vague but couples should apply anyway.

If you’re divorced and don't qualify for Medicare under your own work record, you may qualify based on your ex-spouse's record as long as your marriage lasted at least 10 years and you're currently single.
Disability Benefits: You Can Be Younger
You may be eligible for full benefits before the age of 65 if you have a qualifying disability. There is no published list of qualified disabilities. Caseworkers evaluate each case individually.
How to Qualify. In order to receive Medicare disability benefits, you must first receive Social Security Disability Insurance (SSDI) benefits for 24 months. There is usually a five-month waiting period after a worker or widow is labeled as disabled before he or she can receive Social Security Disability benefits. During this waiting period, the person may be eligible for coverage under an employer’s health plan or COBRA if they’re no longer employed.
People who qualify as disabled fall under the same rules as a recipient who receives retiree benefits. There is no difference in coverage.
If a person has end stage renal disease (ESRD) or amyotropic lateral sclerosis (ALS, also known as Lou Gehrig’s disease) there is no 24-month waiting period for benefits. A person diagnosed with ESRD can generally begin receiving benefits three months after a course of regular dialysis or after a kidney transplant. As soon as a person diagnosed with ALS begins collecting Social Security Disability benefits, he or she is enrolled in Part A and Part B Medicare benefits.
What if you work? You can work and receive Medicare disability benefits for a transition period under Social Security's work incentives and Ticket to Work programs.
There are three time frames to understand. The first, the trial work period, is a nine-month period during which you can test your ability to work and still receive full benefits. The nine months don’t have to be consecutive. Any month in which you earn at least $770 (after expenses) or work more than 80 hours if you're self-employed counts as a month. The trial period continues until you have worked for nine months within a 60-month period.
Once those nine months are used up, you move into the next time frame – the extended period of eligibility. For the next 36 months, you can still receive benefits in any month you aren’t earning “substantial” benefits – generally considered anything over $1,070 per month or $1,800 if you are blind.
Finally, you can still receive free Medicare Part A benefits and pay the premium for Part B for at least 93 months after the nine-month trial period if you still qualify as disabled. If you want to continue receiving Part B benefits, you have to request it in writing.
If you’re disabled, you may incur extra expenses that those without disabilities do not. Expenses such as paid transportation to work, mental health counseling, prescription drugs and other qualified expenses might be deducted from your monthly income before the determination of benefits, which may allow you to earn more and still qualify for benefits.
The Bottom Line
To see if you qualify for benefits, go to Medicare.gov’s eligibility and premium calculator. Here, you can check your eligibility for benefits and get an estimate of your monthly premium.
Your individual situation may not be covered in the calculator. Contact Social Security to discuss your case and get the assistance you need. Experts there will help you understand your particular situation and guide you through the next steps.