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How To Choose Car Insurance Properly?

How to choose car insurance properly? - Almost every family in the US have a car. According to USA Today, users licensed cars driving has reached 210 million in 2010, consisting of 105.7 million are female drivers and 104.3 million are the male driver, and that was seven years ago.

The high number of vehicles on the road turned out to cause problems and its own risks, such as traffic accidents, many of which lead to loss of material and non-material including injuries, disabilities up to cause death.

In addition, with the increase in vehicle users, also caused an increasing risk of criminal offenses, which also caused material losses with relatively high value.

Many people who lose their vehicle, it is proved by the increasing cases of car theft. One way to anticipate potential losses and risks that arise is to move the existing risks to third parties.

To overcome all these problems, then the next thing you need to have after having a car is insurance.

Why car insurance? Because with this insurance, you can make sure the car stays safe during an accident, loss or damage.

For now, itself is already a lot of insurance companies in the United States that provide insurance for a vehicle with a range of attractive offers.

Therefore, you as a prospective client, need to be keen in choosing the car insurance.

Tips On Choosing A Car Insurance

Here are some tips on choosing a car insurance for you, if you want to buy insurance that fit and suit the needs of your vehicle.

1. Check the condition of your car

The first thing you should do is to check at and to know clearly about the condition of your car, it usually includes the condition of the engine, body, age and various other things that are necessary to be considered.

By knowing the condition of the vehicle, then you can easily choose the most appropriate type of insurance for your car.

There are two types of insurance that you can select and consider, namely:

All Risk Insurance or Comprehensive

This insurance will guarantee almost all the risks that might occur in your vehicles, such as major accidents and minor accidents.

But even so, there will always be exceptions to the insurance policy that you should look at and know from the beginning, so that these things will not cause a loss for you in the future.
Insurance Total Loss Only (TLO)
This insurance will only guarantee the vehicle damage that occurs above 75% only, meaning accidents or minor damage will not be covered by it.

2. Knowing the Advantages of Products In Detail

Each type of car insurance would provide benefits and advantages which vary, depending on the type and also features the services you need.

Be sure to find out the various benefits and also a form of protection to be provided by the vehicle insurance you want to buy so you will not experience losses in the future.

3. Perform Comparison

Just knowing one product alone would not be effective for you to be able to find the best insurance services.

Try to do a comparison against the same products that come from different insurance companies, so you clearly know about insurance services from companies which are the most appropriate. Then, the best insurance company will be used as a choice.

This comparison can be done by visiting the insurance company or by visiting their official website through the internet network.

4. Give Enough Time To Consider

Do not be too quick in taking decisions, because it is important for you to find the best products and most appropriate insurance for your vehicle. Some insurers might look the same, but after searching for information in detail, then you can make a choice and find the most appropriate products.

5. Adjust To Your Capabilities

Premium rate will certainly affect the benefits and protections, it's about what will you get later. Of course, you want to use the best insurance service, with the best premium and also the best protection anyway.

But beyond all these desires, it is very important for you to take into consideration the financial capability owned.

Do not force yourself to take a fairly large amount of the premium, but are out of reach of your financial situation.

If you do this, things like this will only make your financial distracted and cause a number of problems in your finances.

6. Consider Recommendations From Dealer

If you are going to buy an insurance product, while currently propose car ownership, there is no harm to consider the recommendations given by the dealer.

Usually, the dealer will give recommendation according to which the insurance company is quite good and can be trusted.

However, the recommendations of the dealer are not the final price that you must follow, You still can seek to find an insurance company that you think is best as well the most appropriate.

7. Use Best Service Insurance Companies

Find and use the services of an insurance company best. The companies like Auto-Owner Insurance, Liberty Mutual Insurance, Progressive, and State Farm, is considered as best car insurance companies in 2017.

Today there are many insurance companies that provide auto insurance services, it means you have a point of comparison that can be used as a consideration in determining the choice.

Do not rush into making a choice, consider a few things below in choosing an insurance company best:

Company credibility

Make sure you use the services of insurance companies that have good credibility and trustworthy. Consider their reputation in the middle of the general public, where you can see the level of public trust in insurance company would you choose later.

The ratio of Customer Complaints

Check carefully about their customer complaint ratio, find this information online by looking at their official website and also researching various online forums about insurance that can be trusted.

Notice how big the settlement of customer complaints that they do, the higher the level of completion it will be better for you to choose them.
Workshop Partner From Insurance Companies

Workshop partners from the insurance company also deserve to be taken into consideration, do select insurance companies that have a lot of workshop partners are trustworthy and will allow you to make improvements to your car at any time if damage or accident.

Choose an insurance company that has a trustworthy partner workshops and the short distance from the home or office so you will not need a long time to achieve it.

See then consider the trace of recording workshop partners from the insurance company and make sure they have good ability in repairing any damage that occurs in the car of their clients.

Features Of Service Company

Consider choosing an insurance company that has a variety of features with full support, this will make you feel more comfortable and calm at the time of the accident.

Choose an insurance company that has a 24-hour call center service and fast in responding to reports of his client, has facilities such as ambulances and tow trucks at any time if required, has facilities such as a replacement car while your car is in the shop for service.

All of these features will make you more comfortable and also not experience difficulties in submitting repairs after an accident in your car.

Claims procedure

The good insurance company would deal with claims of its customers immediately and as soon as they can do.

Do not select an insurance company that is slow and does not respond to the claims filed, companies like this will only make you lose and experiencing a number of problems after an accident and the damage to your car.

Find out and see how many claims are received by the insurance company through internet services on their official forums or websites, it can be used as consideration in choosing a right insurance company.

Do not choose an insurance company just because it has a great name, while the performance and service of the customer so bad and slow.

I hope you can get car insurance that suits your choice and desire, and most importantly, always be careful when driving.

Read:
10 Tips for Choosing Good Health Insurance

What Is Life Insurance And How Does It Work?

Whole life insurance

This time we will specifically discuss what is life insurance and how does it work. As the owner of the insurance, you need to understand what insurance you have, instead of just buying because it follows the trend, as this is the wrong reasons.

Do you already know what it is life insurance?

Life insurance is a contract between you as the policyholder or insured by the insurance company as an insurer in which the insurance company will pay a nominal amount of money if there is the risk of death to the insurance policy holders.

Do you need life insurance?

As an insured you must pay a premium that will be helpful to provide a replacement for the risk of your death. In other words, life insurance is a type of insurance that aims to cover people against unexpected financial losses, caused by the insured dies.

Life insurance can be purchased for its own sake and on behalf of the insured alone or purchased for the benefit of a third person.

For example, a husband may buy life insurance for his wife as the insured, or parent can also buy life insurance for his son as the insured.

Why Life Insurance Is So Important?

There are several types of life insurance, but before discussing the types of life insurance, you should know in advance some of the reasons why life insurance is so important to you.

1. As Protection Against Loss of Earnings for Family

Nobody knows what will happen tomorrow, including you.

Suppose you as a breadwinner for your family, to anticipate things that are uncertain, such as the risk of an accident, the possibility of leaving the family that still require the cost of living, you need to buy a life insurance policy so that your family can get insurance money to live after you no have an income.

2. As Protection Against Risk Due Diseases Leading Cause of Death

Based on a Medical News Today in 2015, the leading causes of death in the USA is coronary heart disease, Cancer (malignant neoplasms), Chronic lower respiratory disease, Accidents (unintentional injuries), Stroke (cerebrovascular diseases), Alzheimer's disease, Diabetes (diabetes mellitus), Influenza and pneumonia, Kidney disease (nephritis, nephrotic syndrome, and nephrosis).

These diseases are quite common, so it is important for you to have protection against the risk of contracting these diseases and the risk of death.

3. Life Insurance Is a Way To Savings And As Preparation For Retirement

Savings in life insurance is the best alternative choice for your long-term needs because of the nature of premium payments on a regular, mandatory, and not easily retrieved at any time.

Types of Life Insurance

There are several types of life insurance products that would each have different benefits. The types of life insurance are intended to serve various needs, abilities, and the purchasing power of a diverse society. Please observe any of the following types of life insurance:

1. Term Life Insurance (Term Life Insurance)

Term life insurance function is to provide protection to the insured within a limited period only. Life insurance is usually offered a contract for 5, 10, or 20 years, with a fixed premium, and also relatively inexpensive.

It is recommended selecting this type of life insurance if you put your family's future, especially the education of children. This insurance is suitable for those who have a need for large insurance costs but have limited financial capabilities.

If you choose this life insurance, some benefits are:

You as the policyholder get freedom in determining the amount of the premium according to your ability.
Insurance money that you can get as a policyholder can achieve a high score. That is if the insured died during the contract period is still active, then the family of the insured will receive insurance money accordingly.

While the shortage of this type of life insurance is:

Insured could lose the premiums that have been paid or forfeited premium once the contract is complete if it does not suffer from health problems or death up to the completion of contract period.

2. Whole Life Insurance

Whole life insurance provides lifetime protection, although typically, insurance companies limit the protective benefits until just 100 years.

Life insurance is recommended for those who do not have dependents and want the benefits are more than just death compensation, or you are interested in the idea of long-term savings.

So, if you want the protection of life at time savings for emergency needs such as paying hospital bills, you can consider buying a life insurance policy of this type.

The advantage of this type of life insurance is:

Policyholders possible to obtain the present value of premiums already paid.
If you as the insured is unable to pay the premium installments regularly, you can use the cash value of the premiums already paid to pay further premiums.
Insurance premium that was paid will be forfeited if there is no claim.
When the contract expires, insurance money will be given in full.

Meanwhile, the shortcomings are:

The premiums are larger than term life insurance premiums and could be more than doubled.

The reason for this is the high premium because the life expectancy of Americans is only 76 years for men and 81 years for women, according to sources from the USA LifeExpetancy, so the possibility of an insurance claim before the period of protection ended higher.

Life expectancy male and female USA 2016, Source LifeExpetancy
The cash value of the total premiums already paid will not be too large as the interest for this insurance is usually only amounted to 4% per year, and this figure before tax.

3. Endowment Insurance

This type of insurance accordance with the name is the insurance which has two benefits, ie term life insurance as well as savings.

This means that you as a policyholder can obtain cash value of the insurance premium that was paid.

The cash value is sum insured if the insured dies within a specified period, in accordance with the policy of the insurance policy in question and also the insured can withdraw insurance policy within a certain time before the contract expires.

This type of life insurance is recommended for those who prefer to ensure the availability of funds for children's education, want to have the funds for unforeseen needs in the future, and would like to have larger pension funds.

The advantage of this type of life insurance is:

As explained above, you can claim a life insurance policy before the contract expires, for example, to fund your child's education.

However, withdrawals can only be done once in a period of several years in accordance with the agreements that have been made.

If for example, you as the insured is still alive when the time period is over, you will get the whole sum insured.

Meanwhile, shortcomings are:

Because this type of life insurance has two advantages like combines the benefits of a term life insurance with life insurance, so premiums will be relatively high.

4. Unit Link Insurance

A unit link insurance combines the benefits of the investment, and most often offered by an insurance agent. If you are interested in investing but do not know about investing and want to continue to ensure the life you still have the benefit of protection from death, you can choose the type of this life insurance.

The advantage of this life insurance are:

You as the policyholder not only get a guarantee of protection but also the investment returns with relatively high interest annually.

While the disadvantages are:

Returns on investment are less significant when compared to pure investments such as stocks, money market, or mutual funds.

If you are looking for a large profit from the investment, you should not rely on unit link life insurance. Insurance money that would be obtained relatively low, especially if investments fail or only produce a small profit.

Investigate Before Buying Insurance

You need to remember that before you buy a life insurance policy, you are advised to seek as much information and comparing quotes from several insurance companies, for example with regard to the protection offered and the amount of premium that you pay for, and adjust to your ability.

Consider also the number of your dependents and any funding needs that will arise in the future in choosing this type of life insurance.

The bottom line is you need to do careful planning in accordance with the needs before selecting a life insurance product you want to buy so that the benefits of protection you get from the insurance product is optimal.

Remember, be careful before buying and also apply for a life insurance product that you do not feel disadvantaged.

What Is Risk Management And Insurance? Find The Answer Here

Tips and Information

What is risk management and insurance? Where is the main difference?

Insurance is one of the techniques in risk management. The insurers are the company that received the transfer of risk from the insured.

So that the daily activities of the company are to manage the risk of the other party.

Risk management is a process for the risk that includes identification, evaluation and control of risks related to security activities, whose purpose is to maintain the property and personnel of the company against losses due to crime, and all the social disruption and disorder of nature, which may endanger the life and development of the company.

Risks in insurance are the uncertainty of the occurrence of an event that could cause economic losses.

Examples of various risks, such as the risk of fire, hit by another vehicle, the risk of flooding in the rainy season, the risk of earthquakes and so on, can cause us to bear losses if the risks are not we anticipated from the beginning.

The purpose of risk management practices in the insurance industry is basically no different from other industries. The goal is to minimize and manage the risks which impact negatively on the purpose, vision, and mission.

In the basic theory of risk management, its phases are to determine the context (scope and objectives), risk identification, risk analysis, and control risk.

Life is full of risks

It is a fact that can not be avoided by every human life. With knowing this fact does not mean we will

live in worry and fear in through the day.

God has created man as creatures of the highest rank among other living beings because human have feelings and reason for distinguishing between what is good and not good, right and wrong.

Risks in life as described above can not be avoided and eliminated. Neither can we run/hide from such risk, but there is could we do to deal with these risks, namely minimize risk or transfer risk when we realize that we have a limited ability.

Major Risk And Form Of Risk

Two major risks that could be diverted to insurance companies are:

Risk to own self
No limited to loss of revenue, but including also a healthy condition or sick, died, unable to work (disable), old age, and others.
Risk on the asset or property.
Possible loss directly or indirect property owned due to fire, storm, natural disasters, theft, and other disasters

All the risks mentioned above is a pure risk, ie that can be protected.
Pure risk occurs suddenly (not intentional), are rare, and the costs of loss can be predicted or taken into account.

The forms of risk, namely:

a. Pure risk is the risk as a result which are caused by two evens: a loss or break even, for example, theft, accident or fire.
b. Speculative risk is the risk as a result which are caused three evens: income, profit, or break-even, for example, is a gamble.
c. A particular risk is a risk that comes from individual and local impacts, for example, is a plane crash or car crash.
d. The fundamental risk is the risk which is not come from the individual and the impact area, for examples are hurricanes, earthquakes, floods, and storms.

Insurable Risk

Six insurable risks as follow:

The risk can be measured by money.
Risk homogeneous (the same risks and pretty much covered by insurance).
Pure risk (the risk is not profitable).
Particular risk (risk of individual sources).
Risks that occur suddenly (accidental) not because planned, but purely due to eg an accident.
Insurable interest means that the insured has an interest in the insured object.

5 Characteristic Of Loss

Characteristics of loss are:

• should be from being accidentally

• should be determined (time and value)

• should be significant (large)

• should be taken into account

• not to burden the company insurance

From the above explanation, we expected more aware of what is actually done by Insurance company to us, they bear the risk upon ourselves or above ours that we insure.

After knowing this, further, we need to know what needs to be insured because not all require insurance.

A client in Financial Planning will be analyzed by a Financial Planner or Financial Advisor, visits from health conditions, family, and finances, for determine precisely what insurance is needed by the client and his family.

RISK MANAGEMENT

The Risk Management Stages

Three stages in risk management are:

Identify Risks
Analysis and Evaluation of risk in terms of severity (risk value) and frequency
Control of risk, where the risk control is divided into two:
a. Physical Control (Risk eliminated/minimized)
Eliminating risk means eliminating all possible losses. For example: When driving in the rainy season, limited to a maximum vehicle speed of 60 km / h. Minimizing risk is done with efforts to minimize losses.
b. Financial Control (Risk detained, the risk is transferred)
Restraining means to bear the risk of the whole or part of the risk, for example by forming reserves in the company to face the losses that would occur (retention). While diversion/transfer of risk can be done by moving the disadvantages/risks that may occur to the other party, for example, transfer risk to the insurance company

Main Function Of Risk Management

Risk management having some fundamental function as follow:

To Find Potential Losses
It means working to locate/identify all risks faced by the company.
To Evaluate Potential Losses
This means that the evaluation and assessment of all potential losses faced by the company.
To Choose Engineering / The right way or to specify a combination of appropriate techniques for coping with loss.

Due to the dynamic nature of the risk, then it should always do a review and monitoring. To implement required risk management guidelines, which could contain the risk management policies and procedures.

In addition, risk management should be executing, so it's necessary organizational structure and anyone else involved in their implementation.

For each type of company, they can have different shapes, either policies, procedures, organizational structure, and the people involved.

In terms of structure, for example, for a large company might require a special unit to deal with risk management.

7 Principles Of General Insurance That You Should Know

Uberrimae Fidei

Principles of general insurance - An agreement, where the insurance company associated with insured to receive the premium paid by the insured for reimbursement because of damage or loss of expected benefits that may be suffered as a result of uncertain events called insurance.

Another definition of insurance is risk transfer from the first party to the other party. The delegation is controlled by the rule of law and the enactment of universal principles adopted by the first party and the other party.

From an economic perspective, the insurance means a collection of funds that can be used to cover or provide compensation to those who suffered losses.

Insurance as an agreement is also equipped with some of the principles. This is aimed so the system of insurance agreements can be preserved and maintained, because the norm in the absence of the principle tends to have no binding force.

In the insurance agreement, there are some principles that must be understood and adhered by both sides so that the insurance agreement becomes valid.

Those principles include:

1. Insurable interest

What is mean of the insurable interest? And why it should be exist?

Insurable interest is a right held by individuals to ensure their life / property arising from the financial interests of the insured individual subject, and the interests that should be recognized by law.

Then who may have insurable interest?

Insurable interest can be seen from the general law, such as the owner of the goods has a financial interest of the safety of it's goods
Insurable interest can also arise from the marriage relationship, in this case the wife nor the husband has insurable interest of their partner
Insurable interest arising from the contract, such as the agreement with the bank which caused the bank has insurable interest for goods as collateral.

The insurance company is not required to provide compensation, if the insured have no insurable interest.

If concluded, the above provision requires the interest in the agreement between the insured to the insurer, because if the interest is not there, it can lead to cancellation of the agreement. In the absence of interest, the insurance company have no obligation to provide compensation.
Similarly, at the close of the insurance agreement, it should have an interest. Problems will arise if interest element can not be substantiated at the time of closing of the insurance agreement.

2. Indemnity

Indemnity means that compensation for loss of the insurer must be balanced with the actual loss suffered by the insured.

Interest compensation or indemnity principle is to restore the financial position of the insured to its original position prior to the loss. Insured is only entitled to receive compensation that actually happened, not for profit.

But keep in mind that the implementation of the principle of compensation is valid only in insurance, and insurance does not apply in the case for certain amount of money.

This is due to the certain amount of money insurance, compensation is not related to the actual loss suffered, but the insurance of money is predetermined at the time of closing of the insurance agreement.

Basically, because the insurance aimed for amount of money, then its interests can not be measured by money.

3. Uberrimae Fidei

Uberrimae fidei or utmost good faith means that insurance companies rely on the insured to disclose relevant information about themselves or on any insured.

In the insurance agreement, the element of mutual trust between the insurer and the insured is essential. Insured in good faith and honestly obliged to give any statement correctly about the object of insurance to be insured.

On the other insureds also believe that if an event occurred, the insurer will pay compensation. Mutual trust is essentially a good faith. The principle of good faith should be carried out in any agreement, including the insurance agreement.

Insurance will be canceled if the insured provides false information or untrue or did not provide information.

If you want to get health insurance, good faith means that you have to reveal the actual health conditions including pre-existing conditions.

4. Subrogation

Subrogation is the insurance company's right to take action against the parties that may have caused a claim against your insurance.

For example, if someone is involved in a car accident that was not caused by the person, the insurance company has the right to seek compensation from the person who caused the accident or his insurance company.

This allows the insurance company to pay damages resulting from claims that are not the responsibility of the insured.
If the occurrence of unexpected events mentioned in the insurance agreement, the insured can sue the insurer for compensation.

However, if the cause of the loss was caused by the parties, then it means that the insured may demand the indemnity from the two sources.

The first source of the insurer and the second source of a third party who has caused the loss. Indemnity from the two sources was clearly contrary to the principle of the insurance agreement itself, namely the principle of indemnity and legal principle of prohibition of enriching themselves unlawfully (without rights).

Conversely, if the third party is not responsible regarding loss to the insured, it is simply not fair.

For each insured losses caused by a third party, the insurance company can take the place of the insured to use its right against third parties.

So, subrogation based on this rule can only be applied when two factors exist, namely:

If the insured in addition have the right to the insurer, also has rights against third parties
The rights caused by the loss.
Insurance subrogation applies only in loss insurance only and does not apply to insurance for the certain amount of money, because the insurance of certain amount of money, the amount of compensation has been set beforehand, ie at the time of closing of the insurance agreement.

5. Principle of Cause and Effect (Principle of Proximate Cause)

Insurance company's obligation to indemnify the insured occur if the cause of the loss is guaranteed by the policy.

However, it is not easy to determine an incident which caused the loss, which is the compensation are guaranteed in the policy.

Especially when a lot of events, so it is difficult to specify which events are the cause of the loss.

In this case, there are three opinions to determine the reasons for the losses in the insurance agreement, namely:

The opinion of the court in the UK stating that the cause of the loss in chronological order are located closest to the loss. This is called Causa Proxima.
The second opinion contained in the law for insurance, in other words, each event is considered as sinequanon conditions and caused losses.
Causa Remota: a continuation to a doctrine called "adequate cause", which is gives the opinion that the cause of the loss is based on the most appropriate events, and based on experience.

6. Contribution

If a policy is signed by some insurer, then every insurer, according to a proportion of the amount that they signed in the policy, then will carry only the amount of actual loss suffered by the insured.

The principle of this contribution occurs when there are multiple of insurance (double insurance).

7. Own Risk

In insurance, there are losses which are known as own risk or a deductible, which is a the risks that must be faced by the insured in any event.

For some specific high risk, own risk already set and determined from the initial agreement. But not of all danger conditions are kind of own risk.

Thus the 7 principles of general insurance which is important for you to know. Hopefully after you read this article, you can gain a better understanding of the insurance world.