Retirement Planning and Estate planning with Insurance

Retirement Planning and Estate planning with Insurance:
Insurance coverage for Retirees and Seniors

Retirement sounds exciting and liberating but be sure to plan accordingly to limit your headaches. Retirement planning is a big deal and without help it can make your retirement a bad experience. Plan your insurance needs before you retire! There are certain insurance policies you need to maintain and certain policies you could consider changing once you retire.

Life Insurance
Your life insurance needs may change once you retire. You've worked most of your life to accumulate enough money to last the rest of your life. When accumulating or planning your retirement did you assume costs associated with taxes on your estate or costs associated with your funeral would easily be covered with your retirement savings? What about other expenses you may have? If you've assumed these expenses within your retirement savings then you may not necessarily need a life insurance policy. If you have accumulated enough retirement savings to pay for all your final expenses plus whatever else you wish to do with it then chances are you are covered. It's a good idea to consult with your retirement specialist to ensure your covered and depending on your assets and liabilities perhaps a short term life policy will cover you. Most of the time retirees have paid off their homes. If this isn't the case and there are only a few years on the mortgage you may want to consider a 5 or 10 year term life policy to cover any expenses the asset may not. Life insurance for retirees is case-by-case and truly depends on the size of your assets.

Homeowners Insurance
As I mentioned above there are often instances where retirees have paid for their homes and no longer pay a mortgage. You still need to cover your home in case of a loss. Likely your retirement savings aren't enough to pay for your retirement and completely replace your home so it's imperative you maintain your home insurance policy once your retired.

Auto Insurance
Like your homeowners insurance you should continue to insure your automobile. The last thing you should consider is paying for a new car or liability claims due to a car wreck. If your driving significantly less because your retired and no longer drive to work then you should talk to your Insurance company about discounts available to those that drive less than a certain amount of miles per year.

Health Insurance
You need to apply for health insurance as soon as possible. The longer you wait the older you get and the harder and more expensive health insurance costs. If you're retiring before 65 you will definitely need coverage. Once you reach age 65 you will be eligible for Medicare. So if you retire early at age 50 assume you will need enough retirement savings to cover at least 15 years of health insurance premiums. There are ways to adjust your premiums but that would entail higher deductibles or finding a group to join. Individual health insurance policies are expensive and especially for those over age 50 so do your diligence and start receiving quotes now.

Long Term Care Insurance
You like many others may consider purchasing Long Term Car Insurance when you retire. Long Term Car Insurance is an insurance policy that covers things generally not covered by health insurance or Medicare. Long Term Care covers things such as a live-in Nurse who would be hired to help do regular daily activities such as bathing, dressing and eating. Long Term Care does not cover health issues directly such as a heart problem or doctors visits. It is a great opportunity to purchase a policy that will allow you the liberties of staying and living at home and knowing you won't burden your loved ones with your daily activities. So Long Term Care Insurance is a policy that one should consider when planning retirement.

Organize your Insurance Policies

Keep your Insurance Policies organized in case of an emergency

Be sure to organize your insurance information yearly. Organizing it yearly will keep you fresh on coverages and most important it reminds you what you have and where you have it. The last thing you want to do after a car accident, a health issue or a death in the family is to search for any information regarding insurance coverage.

Ideas for keeping Insurance information organized.

Write down or type out the contact information for each type of insurance you own. So for your Auto Insurance write down the contact person's name and phone number. Do the same for your Health Insurance, Life Insurance and any other Insurance policies you own. Give a copy of the contact information to several friends or family members in case of an emergency. Build a folder for each type of Insurance you own and save policy information in the folder. Consider keeping the folders in a fireproof safe or in a safe deposit box at your local bank.

Consider consolidating all your insurance needs with one insurance company. One point of contact can make getting the information you need significantly less stressful. In addition to having one point of contact most Insurance companies provide rate discounts for those that carry multiple lines of insurance with the company.

Average Insurance Costs - average cost of auto, home, health & life insurance

As we all know, costs of insurance premiums differ depending on dozens of different factors. I will remind you that this is not concrete data, the figures below are what estimate to be average costs of auto, health, life and homeowners insurance premiums. How do we get our estimates? We take average cars, average home costs, average family size and ages to determine what we feel are sound averages.

So insurance costs differ and some of the reasons insurance premiums differ are related to ones location, ones age and even the frequency of payment can fluctuate an insurance premium. Yes, in some instances if you agree to pay for the whole year in advance you can get a discount on your insurance premium. Those that pay monthly will likely miss out on the discounts provided by paying less frequently. Location seems to play a big role in how actuaries and underwriters determine insurance premiums. This makes sense in certain instances such as a home insured in a coastal state where damage from catastrophes such as hurricanes and earthquakes are more common than inland states. In fact there are many reasons why ones homeowners insurance premium may differ. Health and Life insurance premiums differ depending mostly on one's age and current health state while auto insurance rates are determined mostly on vehicle type, drivers age and driving history.

So now we have the basic reasons why insurance costs differ lets look at some averages.

Average cost of Homeowners Insurance - $1000 per year
Average cost of Auto Insurance - $800 per year
Average cost of Health Insurance - $1800 per year for adult individually and $4800 per year for a family.
Average cost of Life Insurance - $500 per year

One thing we didn't mention above was the different types of insurance products one can purchase that effect an insurance premium. For example, Term Life Insurance is less expensive than Whole Life Insurance policies. An HMO or PPO is less expensive than an Indemnity Health Insurance policy.

Of course, your cost for insurance policies will not be the exact averages we've listed above so be sure to receive your own free insurance quotes.

Finding the Best Auto Insurance Policy

Since having auto insurance isn’t optional if you drive a vehicle, you might as well put some time and effort into finding the best policy with the most coverage. Some mistakenly think that all insurance companies are equal, but they couldn’t be more wrong. Complete research on the different types of policies that each company has to offer you, and include the price of each coverage option and how reliable the company is.

Note that not all big name insurance companies operate in all areas of the country. Your mom may be happy with her insurance in Florida, and you may even be able to find the same company with a branch in your area, but you probably won’t get the same great rates she is getting. Policies and prices change by area and company. Make sure you start with a company that is licensed to operate in your area.

You may not think it is worth the time to do your research but finding discounts that you are eligible for can really add up month after month, year after year, saving you literally thousands of dollars. Keep in mind that the auto insurance industry is highly competitive which makes it possible for you to find a company that if offering you a great amount of coverage for a low price.

Going with the cheapest auto insurance company can be a huge mistake as well. You need to go with an insurance company that is reputable and reliable, so when you do need to file a claim they are there to help you in a timely manner. Why would you waste your money on a low price insurance company that takes forever to respond to claim, if they even do! Be careful because as with any industry there are agents and companies that aren’t out to help you, but simply there to make money and keep it in any means possible.

When you are purchasing auto insurance you are purchasing much more than coverage and protection. You are purchasing peace of mind that is only found when you know you have done your research thoroughly. If for any reason you don’t feel comfortable or satisfied with your company or their agents then don’t be afraid to take your business elsewhere. Most agents are willing to bend over backwards to make you happy with their services, and keep you as a life long customer.

The easiest way to get several quotes from different companies in a short amount of time is to jump on the internet. Auto insurance companies have made it simple to log onto their website and get a free quote in as little as five to ten minutes, depending on how quick you can put in the information. You can easily get five to ten quotes and compare the coverage and rates. If you are confused or have questions regarding a policy then don’t be scared to call up the company and ask. It is their job, and the want to please you.

Auto Insurance FAQ

Am I required to have auto insurance?
In the United States and Canada you are required to have car insurance if you operate a motor vehicle.

What exactly is auto insurance?
Auto insurance protects you against losses that are incurred because of traffic collision, fire, theft or other damage. It also protects you against damages to other people and their property if you are found at fault in an incident.

What happens if I don't have car insurance?
While it varies from state to state and province to province in Canada, you can expect a hefty fine, potentially the loss or suspension of your license and vehicle registration and even jail time.

How are my insurance rates decided?
In some areas, the insurance premiums are mandated by the government, however in most areas, the premium is decided on based on actuarial calculations, which takes statistics into account. As well, your age, the car you drive, the area you live in, how you use the vehicle and your driving history coupled with the insurance coverage that you select.

Is my insurance valid on other people's cars?
If you are driving someone else's car and you have insurance on your own vehicle, chances are you can use your insurance on the car you have borrowed. However, it is important to check with your insurance company before assuming this is true.

What if I'm driving someone's car and I get into a collision that is my fault, but then I find out my friend doesn't have insurance?
It's your responsibility to find out if the vehicle you are driving is properly registered and insured before you drive it. If you have your own vehicle insurance, you can have the vehicle you were using covered under your own insurance, but you should check with your insurance company. If you do not have insurance, you are likely still liable for the damages to the other people and their property and will face the same fines and penalties.

What is liability insurance?
Liability insurance provides coverage for you if you are found legally liable due to negligence or an accident. Liability is offered in combined single limit and split limit policies. Combined single limit covers injury claims and property claims under the same coverage and with one limit. Split limit splits the liability coverage between property damage and bodily injury coverage and can each have separate limits.

What is collision insurance?
Collision insurance covers your vehicle in the event of a motor vehicle collision or accident

What is comprehensive insurance?
Comprehensive insurance covers your vehicle for damage that isn't caused by a collision, such as fire, theft, vandalism, impacts with an animal or weather.

What is GAP insurance?
GAP insurance covers you for the price of your vehicle if you owe more than the vehicle is worth and it is involved in a collision where a total loss (totaled) has occurred.

How do I know what the best insurance rate available to me is?
The best thing to do is to get a variety of quotes from different insurance companies, based on the same vehicle and coverage. Your quotes for insurance can differ by hundreds of dollars from different insurance companies.

How much do insurance quotes cost?
Nothing. You should never pay for an insurance quote.

Auto Insurance - About Fault

The actual meaning of fault can be important in determining whether someone is entitled to damages, and if so, in what amount. The actual definition of fault will vary from state to state. There are a few different concept involved in determining fault.

The first is contributory negligence, where if the injured party was even partially at fault, he or she could receive nothing since the laws policy isn’t to reward people for their negligence.

The other is comparative negligence. The potential for injustice has been corrected in most states by changing the law from contributory negligence to a system of comparative negligence. The injured party is entitled to receive that percentage of damages that he or she didn’t cause, as determined by a jury. Say you were found 30% liable for $100,000 worth of damages and bills, you would receive $70,000.

There are many types of comparative negligence among the states that follow this law. Some states allow both sides to sue each other for the percentage they aren’t at fault. Other states require that a plaintiff be less that 50 percent at fault in order to receive any damages. The percentage that each party is at fault in an accident can be a big issue in settling an auto accident dispute.

Many often wonder if they need a lawyer after they’ve been involved in an accident. Lawyers are an integral part of the fault system in virtually every state in the United States.

Plaintiffs usually hire a lawyer on a contingency basis, meaning they pay the attorney a percentage of the amount of money the attorney collects on their behalf. This isn’t the only expense for a plaintiff. They also must pay such fees as the costs of a court reporter to record a deposition, and court filing fees. Costs can range from a few hundred dollars for smaller cases, all the way up to tens of thousands of dollars for larger cases. Clients are responsible for costs regardless of who wins the lawsuit.

Plaintiffs are also are sometimes held responsible for any medical treatment or doctor’s testimony that are necessary. More often than not, a client doesn’t have the money to pay for these doctors. The doctors generally will respond by taking a lien on the case, meaning the doctor gets paid out of the proceeds before a client receives a penny.

There is only one side to being sued, the defendant lawyers’ fees and court costs are usually paid for by their insurance company. Defense lawyers generally charge the insurance company at an hourly rate, usually at a great rate because of the high number of cases the firm will handle.

If you find yourself in court over an auto accident, you can expect to go through several steps before settling the dispute. After the initial accident there is an investigation that occurs, usually done by the local police department. If there are any injuries, medical treatment is given.

After there is a clear picture of what happened, an insurance adjuster will attempt to resolve the case. If the matter cannot be resolved at an adjuster stage, a lawsuit is then filed. As both lawyers learn the details of the case they will form conclusions as to who will win, and any possible settlements.

They then hold a settlement conference. If a settlement doesn’t occur, they hold a trial where a jury, judge, or arbitrator will determine who wins. If the loser is unhappy he can try to overturn the judgment with an appeal.

Is my US car insurance valid in Canada?

Auto insurance that you hold in the US is often valid in Canada, our friendly neighbor to the north. Whether you drive over the border into Canada or rent a vehicle while you are in Canada, chances are that your insurance policy is valid. Your US driver's license is valid in Canada as long as you are only visiting there and are a resident of the United States.

It's important though to check with your insurance company to ensure that your policy will cover your vehicle in Canada, and if it will cover a rental car in Canada.

When you cross the border into Canada, you will be asked to show your auto insurance proof, which you should be keeping in your vehicle at all times anyway. It's important to note that Canada's driving laws are quite strict, for example, if you are caught driving under the influence of drugs or alcohol, you face exclusion from the country.

Another thing to consider about traveling to Canada and driving is that the road conditions may not be something that you are used to. During the winter seasons, Canada experiences harsh winters and the road conditions can be treacherous, even for the most seasoned of drivers. There is also a lot of wild life that roams freely throughout many of the rural areas in Canada. While elk, moose and deer may be a pretty picture for you to take on the side of the road as part of your vacation album, these animals can cause severe and even fatal collisions on the road.

When you are in Canada, if you are a member of the American Automobile Association (AAA) and you experience some trouble on the road, you can contact the Canadian Automobile Association (CAA) for help. The CAA covers AAA members when they are traveling in Canada. It's a good idea to have their contact information with you on your trip, which you can find by visiting their Web site.

Canada's driving regulations are a little different from those in the United States. If you want to know more about their driving regulations or about auto insurance requirements in Canada, you can contact the Department of Transport, Motor Vehicle Division in any of the Canadian provinces that you will be visiting or you can contact the nearest Canadian consulate, which are located in many large cities in the United States.

Likewise for those Canadians out there, your Canadian auto insurance is valid in the United States and on rental cars, but you should check with your insurance company to ensure that you have appropriate coverage.

It's important to remember that whether you are an American traveling to Canadian soil or a Canadian traveling to the United States, that the laws that govern vehicles and driving are quite different. Insurance requirements are different in each of the two countries, with some major similarities and differences. It's always best to check with your insurance company regarding your personal insurance policy to ensure that you will be covered in the event of a collision or claim that happens while you are on foreign soil.

What Is Auto Liability Insurance?

One of the types of insurance that is available for your vehicle is liability insurance. Liability insurance is commonly one of the required insurances for you to have on your vehicle throughout the United States and in Canada. Liability insurance minimums were instituted because they cover damage that you do to other people and their property.

Liability insurance coverage is a fixed amount of coverage for damages that you are found legally liable to pay due to an accident or negligence. Liability insurance is available in two different policies, either as a combined single limit policy or a split limit policy.

A combined single limit policy covers damage to property and bodily injury under one specific sum of money, such as $1,000,000. For example, if a driver is in an accident with another vehicle and damages the vehicle and causes bodily injury to the other driver, the combined single limit policy with $1 million coverage would pay for both the injury and damage.

Split limit policies provide coverage divided into two categories: bodily injury and property damage. The policy holder can choose different limits for these two coverage aspects. In the example above in combined single limit, the insurance would pay for the injuries to the driver out of the bodily injury portion of liability insurance and the vehicle damage would be paid out under the property damage portion of the insurance.

Bodily injury coverage is often split again into a maximum payment per person and a maximum payment per accident.

Liability insurance is required throughout the United States and each state has their own mandated minimums. It's important to note though that the minimum required by the state for liability insurance often isn't enough to cover damages in a medium level collision, let alone a serious collision. It's a good idea to get as much liability insurance as you can afford with the lowest deductible you can afford. Even good drivers cause accidents and could be held liable for tens of thousands of dollars worth of damage to property and tens of thousands of dollars in bodily injury lawsuits and financial losses.

While that may seem extreme, it is the case in a major collision, especially if someone is seriously injured or killed in the collision. Paying a little extra each month for higher auto liability insurance is much easier to swallow that having to come up with the funds for a huge settlement ruled in the other party's favor.

Talk to your insurance agent about liability insurance and find out what the minimum is for your state and ask your agent how much that would cover in the event you did have an accident for which you were found at fault. Chances are, that coverage doesn't 'cover' much of anything at all. You can then speak with your insurance agent about appropriate levels of auto liability insurance for the way that you use your vehicle, where you drive it and the risk you have of being involved in a collision.

Lower Auto Insurance Premiums

Auto insurance can be expensive, especially if you have teenage drivers or have a bad driving record. Considering auto insurance is a must if you have a car, the price is becoming more of an issue for people all over the United States. Out of this need for cheap insurance grew the highly competitive industry of auto insurance.

We must accept that all auto insurance companies are different and some will be more reliable than others, or more expensive than others. You don’t want to go with the dirt cheap unknown insurance company because if you have an incident it will likely turn into a nightmare. Stick with a reliable company that has been in the industry for a considerable amount of time.

It is wise to get several different quotes from many companies and compare the rates and coverage. Don’t go with the cheapest auto insurance policy as soon as you get the quote, find out more about the company and the policy that you are begin offered. Make sure you fully understand everything and have done a thorough comparison before signing or agreeing to anything. Quotes are simply that, quotes. You are not obligated to purchase anything simply because you received a quote or asked a few questions regarding the policy.

There are a few tips that you should keep in mind when selecting a policy and comparing quotes such as the deductible amount, which is the amount that you will be required to pay prior to the insurance company paying out on a claim. The amount of your deductible has a huge impact on the amount you will pay each month for your premium.

It is common for people to totally forget about changing their deductible when they have had their insurance for a long time. However if you have a great driving record and feel comfortable increasing your deductible then you can save quite a bit of money. If you are financially strapped as it is, or have had prior accidents then this may not be a great idea.

We all know that the type of car we drive plays a major factor in the price we pay for auto insurance. There are certain types of cars such as sports cars and specific makes and models that are commonly stolen usually have higher insurance costs. Use common sense when purchasing your vehicle and keep in mind the high costs of insuring such vehicles. You are much more likely to speed and cause a wreck in a sports car than in a station wagon.

To lower costs of auto insurance you can install safety and anti theft devices. Making your vehicle safer and have a decreased risk of theft will lower your insurance costs. If you already have certain safety devices on your vehicle right now make sure your insurance company is aware of them.

When it is time for the renewal of your auto insurance policy take a look at the details. You may be able to drop some things or change amounts to lower your costs.

How Can I Lower My Auto Insurance Payment?

When people look at their auto insurance payments, one question they commonly have for their agents and brokers is how they can lower the amount that they pay each month in insurance premiums for their car.

There are a few ways to decrease your auto insurance premiums, and you can make use of them all to ensure you are getting the best insurance rate possible for your vehicle.

The primary step to getting the lowest insurance rates for your vehicle is to get a variety of quotes from different insurance companies. The information you give to each of the insurance companies should be the same so you can get an accurate comparison. Also, you should ask for the same levels of insurance from each of the companies, including deductibles and limits. A slight change in a deductible can affect how much your insurance cost.

That leads us to another way to lower your insurance rates—request higher deductibles on your collision and comprehensive coverage. The increased deductibles will automatically lower your payment. However, it should be noted that if you do have to file a claim on your insurance on your collision or comprehensive policy, that you will have to pay the deductible before the claim is processed. If you can afford the deductible in the event you need to make a claim, then this is an easy task. However, if you can not afford a $1,000 outlay expense then raising your deductible limit may not be worth it.

When you are requesting quotes, or dealing with your insurance agent to lower your premiums, ask about discounts. There may be some discounts that you can qualify for that you didn't previously know about or perhaps the insurance company has a new discount offer that is available.

The best way to get and keep a low insurance rate is to maintain a good driving history and credit history. By not having speeding tickets, moving violations and collisions cluttering your driving record, you will get a much better rate, because you are seen as less of a risk than drivers who do have these factors.

Some insurance companies take your credit history into account when you apply for insurance for your vehicle, however not all of them do. If you have a less-than-perfect credit rating, seek out an insurance company that doesn't take credit history into effect. It is statistically more probable that people with a good credit rating have fewer claims on their insurance.

If you have a teenager on your insurance policy, find out how you can lower the premium by talking to your agent about good student discounts and discounts for driver's education courses. The cost of a driver's education course could save you more money in one year of premium payments than the cost of the course. It is definitely worth looking into.

Try a few or all of these suggestions to lower your vehicle insurance rate. Your insurance agent will be able to help you find the lowest rate for your auto insurance.

Comparing the Different Types of Auto Insurance

The auto insurance industry is highly competitive and involves endless amounts of different policies from different companies. It may be hard to know which company and policy is right for you without over paying or being under insured. We all know how expensive auto insurance is but compare that to the high costs of car repair and medical bills and auto insurance costs are considered minimal. Not only is auto insurance the law but it will save you financially if you are involved in a vehicle related incident whether you are at fault or not.

Liability insurance is one of the most important and expensive coverage included in your auto insurance policy. Liability is also referred to as property damage insurance and is designed to protect you from paying out of pocket for damage you cause to someone else’s vehicle. Every state required you to have a minimum amount of this type of coverage, and it is generally very low. You should purchase as much liability as you can afford.

Personal injury insurance is also generally required by law, with a minimum amount for each state. Personal injury insurance is designed to cover your medical bills, around eighty percent, and a portion of the lost wages you suffered, around sixty percent, if you are injured in a car related accident. This type of protection will cover your family members or anyone who was in your vehicle, depending on your policy and insurance company.

The bodily injury insurance that you can include in your auto insurance policy is usually not required by the law but is very helpful in the event of an accident that you are held liable for. If you are found liable for an accident that results in injury exceeding the limits of their own personal injury coverage, then you bodily injury insurance will pay the difference rather that you being sued for medical expenses.

It is generally inexpensive to add on uninsured motorist protection but it is defiantly worth it. If you were to be injured and the costs exceed the limit of your personal injury protection, and the accident was caused by someone without insurance then you would be left paying the difference in the medical bills, or chasing the other driver around with a lawsuit which is also going to cost you out of pocket.

To save the added hassle in an already stressful time you can invest in uninsured or underinsured motorist protection and this will cover the additional costs. Always purchase this policy if you have the extra cash, if you ever need it you will be so glad that you did.

Collision insurance reimburses you for damages that are caused to your vehicle if you are at fault and will pay the actual cash value of the vehicle, minus the deductible. If you have a vehicle that you are still paying off this is usually required by your financial provider. Comprehensive insurance will cover the damage or loss of your vehicle due to theft and acts of god.

The Details of Auto Insurance

Many Americans spend a lot of money on their cars these days. For some of these people it takes years of hard work in order to save up enough money to use for a large down payment or even to buy a car outright. When you spend your hard earned money you want to protect it with an adequate auto insurance policy.

If you have gotten a vehicle through a car loan with a bank then they will more than likely require you to obtain full coverage insurance policies. This is not only to protect you in regards to your investment but also the bank’s investment.

Auto insurance is an agreement between the company and the vehicle owner. The policy owner is required to pay a monthly premium which is vital to keeping your vehicle and personal assets covered. The insurance company is taking your monthly payments and in return they agree to pay for any damage or loss of the vehicle.

The type of car you own, as well as the price and repair costs are all determining factors for the premium you will have to pay. If you buy a sporty convertible you will likely pay much more for insurance that if you went with a family station wagon. Not only are you less likely to speed in a station wagon with your kids, but the costs of repair are probably far less than a sports car.

If you already have decided what kind of car you are going to get then the next thing you need to worry about of liability insurance you are required to have in your area. You can get all this information at your local Department of Motor Vehicles (DMV).

Insurance policies are available with many different types of coverage you can purchase. It can range from the state minimum of liability to full coverage including reimbursement of the vehicles value. You can purchase comprehensive coverage which will cover all claims involving accidents and theft of your vehicle. The more responsibility the insurance company is taking the higher the cost of the policy is going to be.

The easiest way to find the cheapest insurance with the most amount of coverage is online. Many auto insurance companies offer a free instant quote though their website as usually takes about five to ten minutes to complete. Make sure you have the information on your vehicle such as the vehicle identification number (VIN) and your personal information such as social security card and state driver license.

Other than the type of car you are going to insure there are a few other important factors that go into determining your car insurance premium. Things such as your age, driving history, and the amount of distance you will likely drive each year.

The car insurance industry is ever growing making it easier for you to find a company that is offering great low rates with reliable service. You may find a company that is asking for a significant amount less, make sure you double check the coverage and make sure there aren’t any raised deductibles or anything else that isn’t supposed to be there.

Do I Have To Use a Specific Repair Shop for an Auto Insurance Claim?

One of the questions on the minds of people who are looking for insurance are about repair shops. There is a huge misconception and rumor that if you need your vehicle repaired through an insurance claim that you must use their specified repair shops to have your vehicle fixed. Is this the case? Do you have to use a specific repair shop for an insurance claim?

The answer is no, you do not. Most of the states have an anti-steering law that prevents insurers from dictating to you about the repair shop you use. You can also request that manufacturer's original parts are used to fix your car instead of another, cheaper brand.

However, if you choose a body shop that is not approved by your insurance company or one that they have recommended to you, you may have to pay some out-of-pocket expenses on the body work.

When you need to file a claim on your vehicle, there are a few things to keep in mind. First of all, you will need to pay the deductible amount on the insurance—a payment of between $250 and $1,000 usually against the price to repair your vehicle. If the damages to your vehicle are less than you deductible, or not much more than your deductible, then you might want to consider fixing the vehicle yourself instead of filing a claim on your insurance, which, if you were at fault in the collision, could raise your premiums.

Secondly, the insurance company will allow you to choose your own repair shop. However, they usually request that you have one or two estimates done for the price of repairing the damage to your vehicle. Here, you can choose a couple of repair shops that you want to use and submit the estimates to your insurance company.

If you need body work done on your vehicle, you will need to ask your insurance company which body shops they deal with and recommend. There are a few good reasons for this—the insurance company’s only deal with reputable body shops that do the job right for a fair price, as well, many of the body shops offer discounts to insurance company clients, or waiver of deductible in some cases.

When you are having your vehicle mechanically repaired, you really hold the reins. Ensure that the parts they are using to replace damage parts in your vehicle are manufacturer parts, unless you aren't concerned about the use of other parts. In some cases with some insurance companies, if you do request manufacturer parts to be used, you could end up paying a portion of the difference in price.

Filing a claim on your insurance doesn't have to be a big deal—follow the lead your insurance company gives you and take their help and advice. Believe it or not, they have done all of this before and can probably offer some really good advise about where you should take your vehicle.

However, an insurance company can not insist that you use a specific repair shop, only a body shop can they allocate to you—unless you are willing to pay some of the expense yourself.

Auto Insurance: What If I Hit a...?

Auto insurance covers a variety of incidences that happen with your vehicle. Collisions happen every day and with a variety of objects, not just other vehicles. So what happens if you hit a vehicle? What happens if what you hit isn’t a vehicle? Read on to find out.

What if I hit a vehicle with my vehicle?
If you are involved in a vehicular collision that has been deemed your fault, your insurance will pay to fix the other persons vehicle with your liability insurance. Your liability insurance will also pay if there are any injuries in the collision to the other people and to you. If you have collision insurance on your vehicle, then your collision insurance will pay for your vehicle to be fixed, but you will be required to pay your deductible.

What if I hit a building with my vehicle?
If you hit a building, then your liability insurance will cover the damages to the building. Once again, your liability insurance will also pay if there are any injuries in the collision to the other people and to you. If you have collision insurance on your vehicle, then your collision insurance will pay for your vehicle to be fixed for the damages incurred when you hit the building, but you will be required to pay your deductible.

What if I hit an animal with my vehicle?
If you hit an animal with your vehicle, your comprehensive insurance will pay for the damages to your vehicle, and you will have to pay the deductible. If any property was damaged in the process other than your vehicle, such as a neighboring building, then your liability insurance would cover those damages. If you, or other people, are hurt in the collision with the animal, then your liability insurance would once again pay for the damages.

What if I hit a light pole with my vehicle?
The light pole would fall under the same category as a building; therefore your liability insurance would cover the damages to the building as well as any injuries as a result of the collision.

What if I hit a person with my vehicle?
If you hit a person with your vehicle, then your liability insurance would cover the damages and injuries to the person you hit with your vehicle. Your liability insurance would cover all the medical expenses and living expenses of the person while they recovered, or in the event of a fatality, would, in many cases, pay a death benefit to the family of the person who died as a result of the collision.

In essence, 90 per cent of the time that you hit something with your vehicle, your liability insurance pays for the damages and injuries caused to other people and their property. Your collision insurance only pays to fix or replace your vehicle in the event of a collision with another vehicle, building or person. If you hit an animal, then your vehicle is covered under your comprehensive insurance. It’s a good idea to have a fair amount of liability insurance in case of a major collision, to ensure that you are fully covered.

Top 10 Tips when buying insurance - health, life, auto and homeowners

1. Buy life insurance when your young and healthy.

2. Smoking will dramatically raise prices of your life and health insurance premiums.

3. Buy Return of Premium instead of regular term life insurance. (You get all your premium back once the term is done.)

4. Don't let your health insurance lapse. (You may not be eligible if your health is not the same as it was before)

5. Lock into a health insurance policy when your young. (Getting health insurance when your older is much more difficult)

6. Always go with a large known company. (This is true for all your Insurance needs)

7. Always negotiate your claims, especially with auto insurance. (Your auto insurance company will try to give you the least amount they can)

8. Research homeowners insurance prices in the area your considering before you purchase your home. (Some homeowners insurance can be extremely expensive depending on the location. Ocean front property in hurricane spots can run very high premiums).

9. Be sure your Doctor records events accurately. (A misdiagnoses can mean increased health insurance premiums or if your uninsured it can mean uninsurability.)

10. Security alarms, certain siding and roofing materials can dramatically lower homeowners insurance premiums. (Consider these factors when building your dream home.)