Let go of smaller claims

You are entitled to a no-claim bonus (NCB) for every claim-free year. If you don’t make any claim for a few years, the NCB can reduce your premium cost by as much as 50%. So, don’t rush to make a claim for fixing every small dent on your car. Sometimes, what you spend on repairs could be less than the amount you stand to lose as no-claim bonus. Weigh whether the damage is worth filing a claim for or is it smarter to wait for another claim-free year.

Opt for a higher deductible

You can also opt for a higher deductible amount in the policy. This means that you will pay the initial Rs 5,000-10,000 of the repair bill and the insurance company will pay the balance. The higher the deductible, the lower is the premium. However, don’t opt for too high a deductible just to bring down the cost of insurance. You might end up paying more than the amount you stand to save.

Share more information

Many insurers offer better rates these days to customers who are willing to share personal information, such as age, gender, marital status, occupation, claim history and driving track record. For instance, Berkshire Insurance, which distributes Bajaj Allianz’s motor insurance policies, offers a discount of 5% to those who provide details about themselves by answering the questions in the forms. “The premium for a young male who smokes will be higher than that for the same amount of cover for a young, non-smoking female,” says Arun Balakrishnan, CEO, Berkshireinsurance.com. “The details help in the correct calculation of premiums and also in getting discounts of 10-25%,” adds Niraj Jain, CEO, Insurancemall.in.

Inspection and Appraisal Fees
Before you purchase a home, you need to pay for a home inspection, an appraisal and perhaps additional inspections for pests or radon. The costs of these inspections are borne by buyers and are a necessary protection to avoid buying a flawed property or paying too much.

Closing Costs
Some buyers are able to negotiate with the seller for a contribution for these costs, but buyers need to be prepared with the cash for anywhere from 2% to 4% of the mortgage balance depending on your area.

Taxes
As a homeowner, you’ll need to pay property taxes, which are generally part of the escrow you pay into each month. Remember, even if you have a fixed-rate home loan, your property taxes could go up and increase your monthly housing costs.

Insurance
Your lender will require home insurance, which could be costly depending on a variety of factors including the construction materials of your home and the location. Even if you have renter’s insurance, you’ll find that home insurance costs more because you are paying for the ability to rebuild your home in addition to replacing your personal possessions. Insurance costs can also rise over time, and you may need supplemental insurance if you live in a flood or earthquake zone.

HOA and Condo Fees
If you buy a home within a homeowners’ association or a condominium association, you’ll be required to pay a monthly or quarterly fee. These fees can rise, or your association may need to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Moving Costs
Not only will you need to pay a moving company or rent a truck to move your belongings, but you may need to make deposits to start your utilities.

Utility Bills
Depending on where you live now, your costs for electricity, gas and water could be higher when you move into your own home. You may also need to pay for garbage collection along with your Internet, cable and phone bill.

Furniture and Decorative Items
While this is essentially a discretionary expense, most people who move from a small apartment to a larger home need to buy at least some new furniture. You can keep your expenses in this category in check by waiting for a year or two to buy extra things and carefully comparing prices before any big purchases.

Lawn Care
Whether you handle your yard work yourself or hire a professional, you will have to pay something to keep your landscaping in check. Lawn equipment can be costly and, if you have a lot of land, you may need items such as a snow blower or a leaf blower, too.

Maintenance
Interior home maintenance costs both time and money. While you may be able to change your furnace filters, clean your gutters and keep your appliances running smoothly yourself, you may also need to hire a contractor to clean and inspect your chimney and to keep your heating and air conditioning system in top shape.

Repairs
While maintenance tasks can be predictable, the most costly part of homeownership typically comes with unexpected repairs such as replacing or repairing the roof, fixing loose tiles in the shower, removing an overgrown or dead tree, or paying for mold mitigation in a damp basement. The list of possibilities is endless, so the best thing homeowners can do is to set aside savings for an emergency. Some financial experts suggest budgeting for 1% or 2% of your mortgage balance as a yearly maintenance and repair fund, but the amount you save depends on the age, condition and size of your home.

The Bottom Line
While buying a home may cost a little more than you think, the investment in property can still be worthwhile as long as you buy what you can afford, budget for expected and unexpected expenses and hold onto your home for at least seven to 10 years.

While you’re forced to pay homeowners insurance, you don’t have to pay top dollar.  Watch the short video below for tips from Money Talks News founder Stacy Johnson, then read on for more.

Raising your deductible is one surefire way to lower your monthly homeowners insurance premium. As Stacy put it:

“The more loss you’ll pay, the less your insurance will cost. Raising your deductible from $250 to a thousand dollars could slash your premium by 10 to 30 percent. A lot of savings, not a lot of extra risk.”

If you have an emergency fund, you can use some of that money to pay your deductible should you ever have to file an insurance claim. (A flood, house fire or robbery qualifies as an emergency to me.)

If you don’t have an emergency fund, check out 4 Steps to Saving More to learn how to build one. Then call your insurance provider and raise that deductible.

If you upgrade your home, you might save on homeowners insurance. For example, your provider may give you a discount for having weather-resistant features: My company offers a discount for storm shutters and stronger roofs since I’m in an area prone to high winds and flooding.

Call your insurance provider before spending any money, and ask what improvements will result in a lower premium.

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI. And as Stacy reported, smoking causes 23,000 fires every year.

Your insurance provider may offer discounts if you install safety features. For example, the Insurance Information Institute reports that you can save at least 5% by adding a security alarm, a deadbolt lock or a fire extinguisher. Upgrade to a more advanced security feature – like a security alarm that automatically dials the police – and you could save up to 20%.

Periodically review any insurance policy riders – basically, extra coverages at added cost – and make sure you still need them. I once carried extra insurance on my jewelry, to the tune of $96 a year. I later sold the jewelry but forgot about the rider for another year, thus wasting $96.

As Stacy mentioned in the video, many discounts are available beyond installing safety features and disaster-proofing. For example:

• Multi-policy discounts
• Senior citizen discounts
• Nonsmoker discounts
• Claim-free discounts
• Marital status discounts

The discounts offered vary by provider. Call your company and ask for the full list.

I’m the proud parent of a 50-pound, full-blooded pit bull. People love to tell me I’ll never be able to find homeowners insurance with an “aggressive breed.” They’re wrong.

If you own a large dog – or a breed labeled as aggressive – you might have a harder time finding homeowners insurance, but you don’t have to pay an outrageous premium. A few providers will approve you at a decent rate after a home check, or if you can provide a vet reference. In my case, an agent visited my home and checked out my dog before quoting a premium.

The charity group Pit Bull Rescue Central has a list of “all breed-friendly” insurance providers. The American Kennel Club also has some helpful links on its Homeowners Insurance Resource Center page.

Just because you got a great deal on homeowners insurance years ago doesn’t mean you’re getting a great deal today. Rates can change, and so do situations. Once a year, shop around. You can do that right on the Money Talks News Insurance page — it  takes only a few minutes. And if you do decide to replace your existing policy, make sure the new policy is in place before you drop the old.

This may sound obvious, but if you paid $200,000 for your house, you don’t need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on. It’s not going to burn down or get stolen.

9. Inventory your possessions

One of the silliest things people do is pay a lot of money to insure their stuff, then fail to have an inventory when they lose it all. No matter how nice your insurance company is, it’s not going to pay to replace things you can’t remember or prove you had.  And nobody can remember every single item in the house, from dishes to socks.

If you don’t follow any other advice in this article, at least do this: Take your cellphone or other camera and walk around your house making a video of everything you have. Open drawers and closets – get it all. Then send that video to a faraway friend. If disaster strikes, that will be the smartest hour you ever spent.

While the goal in reviewing insurance is to save a buck or two, don’t lose sight of the ultimate goal: protecting your property. Make sure you maintain adequate liability and other coverages at all times. Double-check to see that your policy provides for replacement coverage, not coverage that will reimburse only depreciated values.

If you’re running a business from your home, be aware that without notification (and perhaps a rider at extra expense) the insurance company may refuse business-related claims. For example, if the UPS driver trips on your front porch while delivering a business-related package and sues, the expense may not be covered by your homeowners policy. When in doubt, ask.

Drivers may see their rates go up or down depending on their insurance company and their driving record — but the overall decline, based on requests from 17 different companies, is a step in the right direction, industry experts say.

“What is significant is that rates are not going up,” said Anne Marie Thomas, manager at InsuranceHotline.com

For 2010, the average increase was 12.3 per cent. During the second quarter of 2011, rate increases by individual insurers reached as high as 13 per cent.

“It appears that rate stabilization is starting to occur. That’s my hope,” Thomas said.

Last quarter’s rate changes ranged from an increase of 5.39 per cent by Certas Home and Auto Insurance company to a decrease of 4.46 per cent by Co-operators General Insurance Company.

There were more requests for decreases than increases, the regulator said.

A committee on auto insurance voted Tuesday to tell the 2013 General Assembly to deal with it.

The Issue:  The state Insurance Commissioner approves auto insurance rates  that are recommended by the Rate Bureau. The state has a large residual market that includes “clean risk” drivers, which means they’re in the high risk pool for reasons other than a bad driving record.

By law, “clean risk” drivers cannot be charged higher insurance rates, so a surcharge is added to the bills of other car insurance customers. Some insurance companies argue for changes, but there’s no single industry opinion on what should be done, if anything.

State Insurance Commissioner Wayne Goodwin wanted none of the suggested changes. Car insurance rates are among the lowest in the nation and lots of companies are willing to issue polices to North Carolina drivers.

What to do? Nothing for now. Legislative leaders want a short “short session” and changes to insurance laws will cause a lot of time-consuming tooth grinding.

“I really do think this is something the General Assembly needs to address,” said Sen. Tom Apodaca, a Henderson County Republican. “Not necessarily this one. This is something we will tackle come January or February.”

The companies announced the partnership Tuesday to mark the official launch of Clear Health Alliance, a subsidiary of Simply that is a Medicaid plan for those with HIV and AIDS. The alliance will start in Miami-Dade and expand throughout Florida.

“This is two minority powerhouses coming together — an African-American and an Hispanic,” said Miguel “Mike” Fernandez, chairman of Simply.

Earvin “Magic” Johnson, a former basketball star who is HIV-positive, has long been active in promoting care for HIV-AIDs patients. In a prepared statement, Johnson said he was looking forward to working with Simply to develop “healthcare programs focused on the needs of individuals in underserved communities.”

Fernandez praised Johnson as “incredible businessman” for his astute investments, including Starbucks. Last month, Johnson led a group that bought the Los Angeles Dodgers for $2 billion.

The “facilitator” for their alliance was a mutual friend, Miami Heat President Pat Riley, Fernandez said. Riley and Fernandez are neighbors in Gables Estates. Riley coached Johnson at the Los Angeles Lakers in the 1980s.

Fernandez, best known for selling CarePlus to Humana for $450 million in 2004, said he and Johnson envisioned “a high-touch, high-care program” that would include transportation services and nutrition advice to provide “a more holistic approach than we have ever done.”

They plan to extend the concept nationwide, partly through clinics, a form of healthcare delivery that has prospered in Miami-Dade in companies led by Fernandez and Leon Medical Centers.

“Leon is the best medical care operation there is in a community of Cuban-Americans,” Fernandez said, “but that model has yet to be proven outside of Miami-Dade County. We intend to take this concept into the national scene, to include medical centers to treat HIV patients, targeting the inner city of low-income Hispanics and African-Americans.”

HIV-AIDS patients often need extensive — and expensive — medical treatment, but they have historically “not participated in managed care,” Fernandez said.

For several years, the Republican-led Legislature has advocated putting patients into managed care programs on the theory that private companies can control healthcare costs better than government agencies can. Scott is also a strong supporter of the concept.

Last year, Fernandez said, the Legislature passed a law allowing the creation of special Medicaid plans for HIV patients in South Florida. This year, as part of a bill to control Medicaid costs, HIV Medicaid patients statewide will be required to join special health maintenance organizations. Medicaid is a form of state-federal health insurance for the poor.

That paved the way for the Johnson-Fernandez partnership. “This could not have been done without the governor’s office and the Agency for Health Care Administration,” Fernandez said. “They saw the value and supported our ideas.”

Fernandez has been a strong supporter of Scott and Florida Republicans. In the fall of 2010, Fernandez and six companies controlled by him donated a total of $700,000 to Scott’s political action committee, Let’s Get to Work. Fernandez also personally contributed $510,000 to the Republican Party of Florida in the past two years, as well as $25,000 to the Florida Democratic Party.

“At American General, we’re committed to helping our valued distribution partners provide the best solutions to meet their clients’ needs,” said John Deremo, executive vice president and chief distribution officer, American General. “AG Secure Survivor GUL is an innovative product that is designed to meet consumers’ financial planning needs while providing flexibility during uncertain economic times.”

“When it comes to protection, clients want guarantees and we’re responding,” says Tim Heslin, vice president, life product manager, American General. “Our ongoing commitment to the universal life market has brought great innovation in 100% guaranteed UL, including AG Secure Lifetime GUL® and AG Choice Index GUL®, both of which we launched over the past year due to evolving market needs. Our newest innovation, AG Secure Survivor GUL, is an attractive option for risk-averse clients, who are likely to appreciate its unique protection features.”

This surge followed a previous drop in reported break-ins for three years in a row.

Further data from insurer Churchill reveals that jewellery, particularly gold, is a key target in burglaries and thefts, largely due to the massive increase in gold prices. According to the analysis, theft of gold and diamond jewellery now accounts for a third of the value of all burglary claims.

Householders are being urged to ensure they have adequate contents insurance and of course to make sure their home is as secure as possible.

Rural home insurance specialist NFU Mutual says it has seen the cost of jewellery claims rise by 50 per cent. Paul Richardson, from NFU Mutual, told the Telegraph, “If the contents of some jewellery boxes needed to be replaced, owners may be devastated to find their current insurance policy would only pay out a fraction of the cost of replacements. Sentimental items such as engagement rings and heirlooms are typically underinsured as many current owners have never had them valued.”

Adit A. Ginde, MD, MPH, from the Department of Emergency Medicine, University of Colorado School of Medicine in Aurora, and colleagues analyzed the responses of 159,934 adults to questions posed in the National Health Interview Survey (NHIS), an annual US household interview survey conducted by the National Center for Health Statistics.

The authors found that ED use rates were similar between insured and uninsured adults, with 20.7% of insured and 20.0% of uninsured adults reporting at least 1 ED visit during the previous year. However, disruptions in health insurance coverage (ie, gain or loss of insurance) led to more ED use, particularly if the new insurance coverage was Medicaid.

Almost 30% of newly insured adults compared with 20.2% of continuously insured adults visited the ED at least once during the previous year. The authors suggest that these individuals may have been deferring care until they had insurance, and might not have had timely access to an outpatient care center.

“Indeed, the overall shortage of primary care providers to care for the newly insured has further limited access to outpatient care, particularly adults with Medicaid coverage,” the researchers write.

Similarly, 25.7% of newly uninsured adults compared with 18.6% of continuously uninsured adults had at least 1 ED visit during the previous year, possibly because they experienced a sudden lack of access to primary care services.

Most NHIS respondents, 83.1% (95% confidence interval [CI], 82.8% – 83.4%), reported that they had insurance, and 16.9% reported they did not have insurance (95% CI, 16.6% – 17.2%). In terms of number of ED visits, 13.1% (95% CI, 12.9% – 13.3%) reported visiting the ED 1 time during the previous year, 5.4% (95% CI, 5.3% – 5.6%) visited 2 to 3 times, and 2.0% (95% CI, 1.9% – 2.1%) visited 4 or more times in the 12 months before the survey.

Of the patients without insurance, 23.3% were newly uninsured and were more likely to be younger, women, and of higher socioeconomic status. Of the insured adults, 4.7% were newly insured and were more likely to be younger, of minority groups, and have lower income, and were less likely to have chronic health conditions. Even after adjustment for these covariates as well as insurance type, newly insured individuals had a 31.7% higher ED use rate than continuously insured adults.

For newly insured individuals, those who received Medicaid had a higher rate of ED use compared with those who received private insurance (incidence rate ratio, 1.45 [95% CI, 1.27 - 1.64] vs 1.24 [95% CI, 1.11 - 1.38]; P < .001). Adjustments in this comparison were made for demographics, socioeconomic status, and health conditions.

Although common health problems were similar between insured and uninsured individuals, newly uninsured adults were more likely to have asthma.

“Our results also indicate that individuals newly enrolled in Medicaid had greater ED use than those newly enrolled in other forms of insurance,” the researchers write. Among the reasons for that is the challenge that newly enrolled Medicaid patients have connecting with primary care providers willing to accept Medicaid.

“Implementation of the 2010 Patient Protection and Affordable Care Act is expected to increase health insurance coverage up to 94% of the US population by 2019, primarily with Medicaid or Medicaid-like insurance, and will test the availability of primary care and the patient-centered medical home model,” the researchers write.

“[P]olicy makers and health care administrators should anticipate new surges in ED use,” they add. “Consistency in provision and health insurance type may improve access to primary care services and reduce patient reliance on ED services.”