Online Investment Accounts – Different Types Of Amazing Online Investment Accounts!

Investments has always been one of the top methods for people to make their money work for them. Whether they’re starting with a little or a lot, investments are always one of the major ways that people earn money.

While investing can be risky, some investments are much riskier than others, and some offer much better profit potential than others, here are just a few types of investments to think about when looking to invest and of course, earn money doing so!

Forex

One of the ways to invest that is growing in popularity is Forex. Forex trading or currency trading has become particularly popular online where people can open accounts for as little $1 in some cases. While it can be risky, Forex has proven a very popular way to invest.

The thing a about Forex is that, while it can be very profitable, it can also be very risky. The truth is that it takes a lot of experience and training to do amazing in Forex or it takes a great trading system to help trade your Forex account if you truly want to succeed.

Also, when trading Forex it’s important to have a decent amount of money to start out with. The reasoning is because with Forex trading, trades can be volatile, and while if you really know what you’re doing or have a great trading system you can really earn a lot of money and have many winning trades, some trades will likely be losing trades and it’s very important to maximize your potential for profit with a larger investment when it comes to trading Forex.

Stocks

Stocks of course one of the top ways to invest, and stock investors can really a lot of money investing in various companies. While there is risk involved, with research and a good broker, people can really earn a nice consistent income investing their money in the stock market.

Peer To Peer Lenders

One of the quickly growing ways to invest is through peer to peer lending networks. Peer to peer lending networks let people invest in others who are looking for loans. Even if just starting out with a little, people can really earn a lot of money by investing in people through a peer to peer lending network. Many peer to peer lending networks can offer high rates of return on investment, even when you’re only starting out with a little and many peer to peer lending networks will offer an even higher rate of return when your’e starting out with a lot! These networks give investors many options for investment in various different types of loans as well as loan amounts!

Is Your Property Investment Showing More Growth Than Unit Trust Investments in South Africa?

This article is intended to focus your attention on how important growth is in your personal savings environment, to make sure the investments in your portfolio are working for you and not against you.

Property investment versus Unit Trust investments can be very interesting and statistics are needed to help us understand… which is the best?

According to statistics from House Prize South Africa, Nominal Property Growth from 1981 to current has been 10.6%, but when you take inflation into account your Real Property Growth was only 1.2% to date.

In short, your investment should be tested against the growth of inflation, and should perform better than inflation. Even if it is growing somewhat, if it is not performing better than inflation, it is essentially losing steam. The term Real Growth is used when you minus your investment percentage with the inflation percentage.

Unit trusts a Great Alternative.

Registered Unit Trust investments are a safe alternative. Companies cannot run away with your money; you can only lose money if the fund performs poorly.

If we look at some top performing SA Unit Trust Companies Funds, we see that some of them had an average 10-year Nominal growth performance of about 17.8%. Over the past year, growth was at 12.2%; and since the Inception of 1999, the average Nominal growth has been 19.9%, while the average inflation for this period was 5.9%.

This means that the Real Growth was a very good 14%

According to published figures Unit Trusts investments has out-performed Property as an investment vehicle.

Safety and access to your money also plays a big role! How safe is your property investment? How much are you paying in property taxes per year? You can sell your property if you urgently need money. However, if this time period is not going to be favourable, then how quickly can you re-finance property to get money? If you can’t afford your Bond re-payment then you will have to sell your property in-time and perhaps at a loss.

In other words, if you have invested in property how quickly are you able to make this investment liquid?

Double Your Money

The golden rule with Unit Trust investments is to double your money every 5 years. Should you invest a lump-sum amount of 100 000 your investment will be 200 000 in 5 years. With this type of investment there is also no term restricting you when you can withdraw your money.

With a good Unit Trust investment, your capital should grow more than the average property investment, and your money will be more easily accessible should you need it urgently.

Just remember: do your homework on these investments. Most importantly the company needs to be a Registered Unit Trust Company and the Companies offering needs to have a long; respected and above average Performance Record.

Tips for Investment Services and Financial Services

Before you make a decision to engage in investment services and financial services, you need sound advice to ensure that you reap from your efforts. You could be planning to invest in bonds, stocks or mutual funds. You may also be thinking of partaking in the many financial services that are available such as opening an IRA or buying an annuity. As well, you may be weighing the option of obtaining credit from your bank and repaying it using monthly instalments from your salary. The list of options is endless, but in all these investment options, there is some form of risk involved. Before you settle on any of the different forms of investment services that are available, there are a number of tips that you need to follow:

    • Defining your goals: You should ask yourself why you want to invest your money. The point could be that you want to save money to buy a house or to secure your retirement. As well, you could be aiming to save for your child’s education, or just to protect yourself in case the unexpected happens – such as losing your job.
    • Evaluate how quickly you can recoup your investment: Investment services such as bonds, stocks and shares can be sold any time. However, there is no guarantee that you will get back all the resources you invested in them. On the other hand, investments such as limited partnerships in most cases limit your ability to benefit from your holding. Therefore, you should contact your financial services advice provider for the best investment you can make.
    • Calculate what you expect to earn from your investment: Investments such as bonds are generally guarantee a fixed return, but earnings on many other securities fluctuate with market changes. Along the same line, it is important to make a critical assessment because one good performance of an investment does not guarantee that the same investment will perform well in future.
    • Determine the type of earnings to expect: Income from investments in financial services can be in the form of interest, rent or dividends. Various types of investments such as real estate and stocks have the potential for earnings and increment in value.
    • Evaluate the risk involved: As mentioned earlier, nearly all investment services are associated with risk. There even can be a risk that you won’t get back the money you invested or receive any of the promised earnings.
  • Diversify your investments: Because some investments perform better than others at different times, it is worthwhile to invest in different areas so that you are not severely affected by a poor performance in one area. For instance, instead of putting all resources in real estate, you could invest in shares, bonds and so forth to diversify incomes and security.

In conclusion, it is important to consider the tips that have been discussed in order to make wise undertakings in investment services and financial services. Unwise decisions could lead to adverse consequences such as losing your hard-earned fortune through loss-making investments.

8 Top Tips When Buying an Investment Property

In most countries, purchasing an investment property continues to be one of the most popular ways to invest. The goal of this investment should be to provide you financial freedom and enhance wealth. The problem is many believe that once they get into the venture, it will be a guaranteed, easy success.

It is vital you learn how to effectively manage your investment as this will determine whether or not the investment can help you achieve your financial goals. Below are a few tips when buying an investment property:

1. Choosing the ideal property at the right price

Purchasing an investment property at the right price is highly critical. It is all about the capital growth when it comes to investing in a property so make sure to choose a property that has a high potential of increasing in value.

Always do research. Find out as much as you can about what is selling in a certain area. The more you learn, the more you become skilled in determining the property that is worth investing on. In other words, you will know a bargain when you see it.

If you want to acquire valuable data on various locations and properties, get information from lenders and insurers as they have data that can help you avoid selecting the wrong investment property.

2. Do Your Computations

You should consider property investment as a means of long term type of investment. As this is the case, you need to ensure that you have the budget to maintain your mortgage repayments over the long-term. It is not right to sell your investment property when you are not good and ready since if you are to encounter any financial problems then you might be forced to dispose of the property at the wrong time.

It is less expensive to keep an investment property and service the loan once you already own the property. This is because you can get rental payments as well as tax deductions on several of the expenses connected with property ownership. Things will become easier along the way especially that as rent tend to increase over time so will your income.

Learn the taxes involved in property investment and include this in your budget. Seek advice from your accountant and learn about stamp duty, capital gains tax and land tax. While interest rates can change over time, as the owner, you can always increase the rental fee to cope with the expenses.

3. Get a Reliable Property Manager

Usually, a property manager is a licensed real estate agent whose job is to make sure that things are in order for you and your renter. Your agent can provide you advice, assist you in managing your tenants and help you get the best value for your property.

Your agent should be able to teach you about property law as well as the rights and responsibilities of both you and your tenants. The agent can also handle maintenance problems. Except for other emergency repairs, the maintenance costs should get your approval first in advance. Your agent can also assist in finding the right tenants, do background checks as well as make sure tenants pay rent on time.

4. Understand the market and the dynamics where you are buying.

Search for other properties available in your current area and talk with as many real estate agents and locals as you can. Only get advice from professionals you can trust and make sure to do the leg work. You can use the information in this site to view demographics, average rents, property values, and suburb reports.

It will be to your advantage to know about the changes that are planned or are happening in your suburb. For example, knowing about the planned by-pass may quickly enhance the value of your property as this means traffic in the area may reduce.

5. Pick the right type of mortgage to suit you.

There are a lot of financing options for an investment property. Seek advice in this area to find the option that will be in favour to your financial status.

While the interest on an investment property loan is usually deductible, some borrowing costs are not easily deductible. Appropriately structuring your loan is vital and it is best that you seek help from a trustworthy financial advisor about this.

When choosing between a fixed rate loan and a variable rate loan, go with the loan that is in favour with your circumstance. Carefully consider both options before you decide. For example, as a variable rate loan can become cheaper overtime, choosing a fixed rate loan at the appropriate time can really be beneficial.

Rather than principal and interest, a majority of the investment loans should be created as ‘interest only’ as it can enhance the effectiveness of the tax of your investment especially for a home loan. An ‘interest only’ loan is better compared to principal and interest loan when it comes to investment property since it causes your negative gearing benefit to decrease as you pay down your loan.

6. Examine the age and condition of the property and facilities.

The condition of your property and facilities can highly affect the profit of your investment. It is vital, that before making a purchase, you hire a professional property inspector to perform comprehensive inspection of the property in order to detect potential issues earlier.

7. Make the property attractive to tenants

Choose neutral tones and make sure that your property’s kitchen and bathroom is in good condition. An attractive property can attract better quality tenants. When it comes to purchasing a property, do not only consider what you think is attractive to you. What is attractive to you may not be attractive to some. Remember, that the investment property will be the home of your tenant and not your own.

8. Take a long-term view and manage your risks

Think of property investment as a long term investment and understand that property prices do not rise right away. The longer you can commit to a property, the better. When you build up equity then you can decide to purchase your second investment property. Avoid being greedy and balance your goal of financial stability and in enjoying your current life.

Is the Stock Market Good for Retirement Investing?

Nowadays, a lot of people are looking for ways to save for retirement. Considering the current high cost of living and rapidly changing economic times, it is important for investors to begin looking at ways of securing their finances at old age. Nowadays, there are several ways to save for the future. However, investing in stocks is one of the most common options that several people opt for. Thanks to stock investments, a lot of individuals have been able to expand their financial investment portfolios and in turn, lived a financially independent life.

People invest in stocks for different reasons. If you decide to purchase stocks for retirement purposes, it is always better to do it when you’re still young. The stock market is highly volatile and early investment gives you plenty of time to expand your investment portfolio. When choosing stocks for retirement purposes, it is essential to carefully research and get all your facts before making any decisions. Investing in stocks for retirement means it’s a long-term investment and therefore, you must choose to invest in firms which are stable in terms of financial performance.

When planning to invest in stocks for retirement, you need to understand the level of risk involved. Since you’re investing for long periods of time, chances are high your stocks will be faced with ups and downs. Understanding the level of risk involved is important because this way, you can be able to decide early enough if you are really prepared to face the challenges that come with long- term stock investing.

In order to realize maximum benefits when investing in stocks, it is important to diversify your investment portfolio. Unlike individuals who are interested in short-term gains, your strategy should be to carefully examine the market and come up with a list of top performing companies which have managed to successfully keep their stocks on the profitable side. For long-term investors, it is wise to spread your investment across several companies. By doing this, you are assured that in case stocks of one company don’t perform well, you still stand a good chance of recouping your investment and earning good profits.

Retirement investment has to be approached with caution especially when dealing with stock investments. Before putting your money into any company, it is important to have extensive consultations with retirement financial experts on which approach to use for investing in stocks. Remember that the strategies used for long-term and short-term investing are not the same. The good news is that there are plenty of retirement planning experts with knowledge of how to invest in the stock market and reap good benefits. Getting the right set of advice from qualified experts is the best way to know how to approach retirement planning.

Retirement investing is a wise thing to do especially if you want to live a fruitful life of financial abundance. However, before putting your money into stock, have your goals clearly defined and speak to an expert.

Ronald Hudkins has written articles, regulations, supplements, eBooks, Paperback and Ereader books in both fiction and nonfiction publications across multiple genres. He has audio format books, provides various training courses and book reading lists in marketing, investments and health.

Building Insurance Coverage

We can say that most people take out an insurance to insure their building in Cyprus, which usually covers various events, mainly fire, earthquake, burst pipes, flooding, acts of God etc. One cannot be too sure where the cause of damage will come from, so, it is our opinion that a building should be covered for all eventualities, even if this has a slightly higher insurance cost. Special care is needed however when signing the insurance policy for the so called “exclusion clauses”.

One such exclusion clause is that if a building is damaged as a result of a bush fire, there is no cover (unless you so stipulate). Other clauses which are of a special interest for buildings, is that if a building is not occupied for a period of 30 days continuously, then again you will find that you are not covered (practically all holiday homes). So and we know how difficult and incomprehensible is an insurance policy to understand, pay special attention to the exclusion clauses and insists on an all risks and eventualities policy.

Some insurance companies stipulate that they cover the replacement cost of the building or they cover the value of the building. The difference is that if for example you have a building, which has no value as such, e.g. because it is very old and/or because the land value is so high that the buildings have no added value as such, you will find that the insurance co will not pay. If for example you own an old house on a Makarios Avenue plot with €2.0 mil. development value and your building is damaged, then the insurance company can claim that since the value of the property is found in the land, there is no damage payable, despite the fact that the insurance company was happy for you to insure the building at the value which you stipulate. However, even in this example with the €2.0 mil. plot, if the only thing you want is to have the money to rebuild it, you will be uninsured. So in this case you should take out an insurance based on the replacement cost. The insurance company will pay only if and when you actually undertake to rebuild the house. So do not expect that you can keep your €2.0 mil. plot and get the replacement cost of your house without rebuild it. If however you do not insure the value of this house, but you insure its replacement cost, then the insurance company is liable to cover you for the rebuild.

Also you will find on many occasions, that the replacement cost is higher than the market value of the building. If we are to take an aged apartment of a low quality and limited demand, having a market/sales value of (say 100 sq.mts.) of €90.000, the replacement cost might be more than €105.000. So be very careful and we suggest you insure your building on a replacement cost basis, i.e. the cost of demolition, clearance, new design and permit costs, construction building costs, V.A.T. etc. As an indication of the cost nowadays for an ordinary apartment, the replacement cost is approximately €1100/sq.m. Replacement cost means rebuilding the property as new, but with the use of the materials/quality that the building has. So you cannot claim the sum to replace your building with granite floors, since what you have in your house are mosaic tiles, outdated kitchen and wooden windows etc. The insurance company must cover the cost of rebuilding based on the same, or as near the same materials/quality. Care is needed however since if in your effort to reduce the insurance bill, you estimate a replacement cost lower than the actual, then the insurance company will pay the analogous reduced amount. (If your house has a replacement cost of €100.000 and your insurance is for €70.000, the insurance company will pay only 70% of the replacement cost – If you over estimate your property, the insurance company will only pay the actual amount as a maximum).

Another problem that you must consider is that over and above the replacement cost of your building, you must take into account also the common areas, such as basements, parking, swimming pool, cost of clearance etc. For this reason it is recommended that in the case of a building/project which comprises numerous units, a comprehensive assessment is made at regular intervals (say every 2-3 years), which will cover the units themselves and the common areas as well. Bearing in mind that building costs increase by around 7%-10% p.a., this is highly recommended.

Another problem, which is quite difficult to solve, is what happens if in a comprehensive project e.g. a block of flats of 10 apartments, 8 units are fully covered, whereas the other two are either under insured or have no insurance at all! In such event the project cannot be rebuilt (since the replacement cost is paid when you actually replace the property, what is the legal situation in this case?). For this reason for such projects, which comprise more than one holding, a comprehensive insurance should be undertaken and paid as part of the common expenses, so as to reduce the risk described above.

Of course insurance claims do not happen often and for this reason not many people have an adequate insurance cover or the above details are not given proper attention as a priority. It is strange, since, we are all happy to pay €300.000 to buy an apartment, but we become quite difficult when paying an amount of money to protect this investment.

What is even more irritating, is that, should you obtain a loan from a bank and the bank itself insures the building and suddenly the bank/insurance has to pay up the insurance amount, if you are under insured, then you must pay the insurance/bank the difference!! So it is a crazy situation for all concerned since banks by using their own insurance company, bear no responsibility.

As far as the individual buildings are concerned, it is the responsibility of each owner to cover his property adequately and to seek explanations from the insurance company and seek some form of a “fully comprehensive insurance – all risks”. For these reasons, but more importantly in case of joint ownership you must insist on a comprehensive insurance for the whole project, including roads etc, which should be updated every 2-3 years getting a new valuation by a qualified surveyor and do not base your estimate on the historic cost of the initial purchase. – For those people who think that they will take an additional insurance, they will not get a “double” payment, since an insurance payment is paid only once, up to the total “proper” amount.

Insurance Search Engine Marketing For Insurance Agent Leads

For many insurance companies and insurance agencies, insurance search engine marketing is a brave new world, filled with a litany of confusing terms and acronyms. Like any emerging field, what might seem confusing at first, is readily understandable after a quick review of jargon and basics. Let’s take a look at insurance search engine marketing and define terms and acronyms along the way.

For the time being, let’s think of insurance search engine marketing (insurance SEM) as it relates to the insurance business, as if we were talking about the printed Yellow Pages phone book of the not distant past. Fifteen years ago, if someone was looking for a business, product or service, they could take a Yellow Pages off the shelf and open the phone book to search for the given product, service or company, flipping pages until they arrived at the relevant phone book pages. For the purposes of this example, let’s say that someone wanted property and casualty insurance, and were looking for insurance agents that they could contact. The person who was searching for the insurance, upon finding the two yellow pages which listed insurance agencies, might scan the insurance agency names beginning with the letter “A”. This is roughly analogous to a Search Engine Results Page (SERP) from Google, Bing or Yahoo. A key difference here is that these search engines display their results by relevancy as opposed to alphabetically. The placement of the names on the SERP relates to organic SEO, or in this case, insurance search engine optimization.

Of course there would also be many advertisements interspersed within the two phone book pages of agencies, both small and large. These ads are roughly analogous to PPC ads (Pay Per Click ads) found today on the search results pages. One notable difference is that in the case of the old Yellow Pages phone book, your insurance agency would pay a flat fee for the ad, whereas with a PPC, your agency only pays when a user clicks on your advertisement. Just for purposes of clarity, there is also something called PPI (Pay Per Impression), where your business would pay for impressions, though for our insurance agency web website optimization discussion, we’re going to stick with our PPC ad analogy. The difference between organic insurance search engine marketing and insurance PPC ads is as simple as having your agency name listed in the Yellow Pages at no charge, versus a display ad in the Yellow Pages at a cost of perhaps $1,000 per month. Thus the appeal of organic web marketing, if your insurance agency can rise to the top of the organic SERP, you are very likely to direct web surfers (read that as insurance agency leads) to your website and reap the benefits without any PPC costs. Think of this in the same way as the old phone book listings with company’s starting their name with “AAAA Auto Parts” or “AAAAA Insurance Agency” to ensure their names would appear first. A SERP offers a better alternative than the printed Yellow Pages name game, in that the agency name is secondary to other, more relevant criteria. This criterion is determined by search engine algorithms which can have over 100 attributes they use to determine relevancy, and subsequently determine if your insurance agency website should be on page one or page ten (SERP Ranking).

A simple explanation of some key terms often associated with insurance search engine marketing (insurance SEM) include:

  • Back links – Links to your agency site from other internet sites and directories.
  • HTML – Code used to create many websites.
  • Keyword Density – The number of times, in terms of percent, that a keyword phrase is used on any given page of an insurance agency website. Divide the number of uses of that keyword, by the total number of words on the page. Experts disagree on the ideal percentage for optimization with all engines, but targeting a number around 5% as of this writing should be effective. An important note, some article directories only allow keyword density of up to 4%.
  • Keywords – Words typed into a search engine to return a list (SERP) of relevant sites and documents.
  • Long-tail Keywords – Longer keyword phrases, which yield more specific search results germane to your insurance agency. These long-tail phrases are three or more words bundled together. For example, “insurance agency marketing” is a long-tail keyword where as “insurance” is not.
  • Off Page Optimization – Content creation, directory submission and back link building used to improve search engine rankings (SERP placement).
  • On Page Optimization – Modifications made to insurance agency website content and HTML code to improve search engine rankings (SERP placement).
  • Organic SEO – Page ranking results returned by a search engine based purely on relevancy as opposed to a paid ad placement.
  • Page Rank – A gauge of the popularity of your site, typically determined by the volume of visitors and links to your site. This was once a preeminent performance measure, but for niche industries like insurance agencies and agents, other criteria is now more important than page rank and back links.
  • PPC – Pay Per Click where your business posts an ad on a search engine and pays each time a web surfer clicks on your advertisement. These ads are displayed above and on the side of many search terms. Another variation on this is PPI, which is Pay Per Impression, where you would pay a bulk rate for every thousand times your ad is displayed, regardless of the number of times your ad was clicked.
  • PPI – Pay Per Impression where your agency pays a flat fee per thousand of times your ad is displayed on the Google, Bing or Yahoo results pages.
  • Search Engine Marketing – The process which is used for insurance companies and insurance agencies to rise to the top of the organic SERP listings, or to place ads that will be posted on page results for selected long-tail keywords.
  • SEM – Acronym for insurance search engine marketing
  • SEM – Search Engine Marketing.
  • SEO – Search Engine Optimization
  • SER – Sometimes you may see the acronym SER used, which can refer to Search Engine Results, Rankings or even Relevancy.
  • SERP – Search Engine Results Page
  • Web Marketing – Insurance agency search engine marketing is a subset of an overall insurance agency web marketing plan.

The goal of insurance search engine marketing is driving qualified insurance agent leads to your agency website. Once these web prospects have arrived at your insurance agency website, you need an effective call to action, which in itself, is the topic for another insurance agency marketing article. Obviously, more qualified agency leads, combined with a compelling insurance agency website and call to action, should yield increased premiums and help grow your agency’s book of business.

Types of Insurance Coverage That Protect Small Businesses

Running a small business is all about risks and optimism. Small businesses generally lack smooth credit flow, constant innovation, smart business management, which are important to ensure their survival. Adding to that, increased competition from large corporations in today’s globalized world is making it difficult for them to survive and sustain. Today, more than ever, they are prone to risks and closures.

A comprehensive package of insurance essential for all businesses as it ensures protection and security. It can be a powerful tool in financial security for a small business. The main purpose of insurance is to cover a risk that a small business cannot afford (at the cost of small premiums, which they can afford easily). They can save hundreds, sometimes even thousands of dollars if their owners spend some time to look at some small auxiliary things like insurance policies.

Types of insurance coverage:
Although, insurance needs vary widely from one business to another, here are some important policies that a business owner would want to consider in order to protect his/her business.

Business property insurance
Business property insurance is a broad form of coverage that protects a small business from a wide variety of losses including damage to building that houses business, tables, desks, chairs, equipment etc. due to natural disasters such as earthquakes or floods. A well-structured all risk policy can cover all the equipment (both software and hardware), valuable records and even loss of income.

There can be many things that a small business can lose and that too in seconds. None of the small business owners running a restaurant, lodging, retail outlet, etc. will ever forget the destruction caused by 2009 Great Britain and Ireland floods. Many small business owners learnt that in a blink of an eye, everything of their business can get destroyed.

Liability insurance
Liability insurance is an important form of coverage in today’s litigation-looped world. Typically, there are four types of liability insurance, which include:

General liability insurance: It is the most common form of liability insurance. This type of insurance covers damage to property or injuries suffered by third party (customers, vendors or visitors) as a result of negligence of the employees.

Somebody, be it a customer or a vendor could trip and fall due to torn or folded carpet and suffer a serious injury. The person may need a surgery which might cost the business owners some hundreds or thousands of dollars. It may not be a major issue for a large business, but for a small business, arranging huge amounts on the spot may risk the normal functioning of the business.

Errors and omissions insurance: Also called as professional liability insurance, errors and omissions insurance is essential for service based businesses. It protects professionals from personal claims against them for causing harm while performing their duties. Professionals, who require high degree of standards or care such as doctors, financial advisors, attorneys, accountants, engineering consultants, realtors, dentists and others, require this type of insurance.

Product liability insurance: This type of insurance is very important for small businesses involved in manufacturing. It protects the business if an item manufactured is responsible for harming (accident, injury, or death) the user.

Employment practices liability insurance: Sometimes dissatisfied employees bring inappropriate claims asserting discrimination (age, sex, race, disability, etc.), sexual harassment, wrongful termination and other employment-related issues. Employment practices liability insurance provides protection to a small business against these claims made by employees, former employees and even potential employees.

Excess liability
Excess liability insurance, also known as Umbrella liability insurance, provides additional coverage beyond that of an underlying policy. It provides coverage for medical costs or other claim payments that can exceed the amount of liability insurance.

Workers compensation
Generally, employer is responsible for the injuries that occur to employees at work, so he/she should take care of the employees. Even a small business employing just one person should have a workers compensation insurance coverage. It provides coverage for medical expenses and reimburses the lost wages when employees get injured at work.

Business income insurance
Business income insurance is disability coverage for small businesses. Business interruption ensures that all the employees get paid when the business cannot operate temporarily as a result of a covered loss. It also covers business operation expenses and profits that would have been earned until the business get back to its pre-loss state.

Automobiles insurance
Automobile insurance is compulsory for a small business if it uses automobiles such as cars or trucks. It provides coverage for damage or theft and also covers third party bodily injury or property damage claims.

Life insurance
Life insurance is important for small businesses which have two or more owners. In the event of the death of a business partner, the life insurance policy funds the buy-sell agreement.

Other insurances
There are some other types of insurance policies, which can assist small business owners such as health insurance for employees, certificate of insurance to the landlord (for rented or leased office spaces) to ensure that the business will not be closed overnight.

The list of insurance policies mentioned above may look hefty, but it is not necessary for a small business to have all of them. As a smart business owner, one has to approach one of the frontline insurance brokerage houses to evaluate the requirements and prepare a comprehensive insurance policy that best suits his/her business.

Car Insurance As Required By Law

Certainly, auto insurance is a proposition required by law to anyone who owns a car, in all parts of the world. However, this requirement may necessitate an expensive amount and can be considered as a liability by some people. In fact, car insurance is a smart investment, not an expense or some kind of a waste of money. Thus, insurance companies or providers offer various policies or plans that can meet each individual’s needs. Most of insurance companies, through their brokers and websites provide consumers with a variety of car insurance quotes based on a person’s age, residence or location, driving record, type of car, and mileage covered in a year.

Finding the Most Suitable Car Insurance

Shop Around

Ideally, insurance providers advertise and promote their great offers and best deals through the different mass media. In order to persuade consumers, they often promote big discounts and further offers. But relying on a singular insurance company is inadequate, particularly when you are interested in seeking out for the most affordable insurance rate possible. Considerably, it is always advised to consult numerous insurance providers so as to achieve your specific needs, in accordance to your personal preferences and finances. Aside from brokers, the internet is likewise a good source for a free car insurance quote.

Compare Quotes

Nowadays, insurance websites and web pages provide consumers with insurance quotes at no cost. You can take advantage of these online quote questionnaires since they are very easy to use. Most websites proffer application forms that are needed to be filled out, and you can do this from one company to another. After which, compare insurance quotes from the providers, and eventually evaluate which one will best suit your needs.

Other Considerations

Before purchasing a car insurance, check the company’s profile if they tender further discounts on specific organizations or groups. Other insurance companies provide further discounts to members of specific social or professional groups. Moreover, providers may also qualify credit card holders for group discounts, based on the credit card company’s policy or plan. You can also combine your home insurance to your car insurance for greater discounts. And as long as you are a safe driver, insurance companies will provide you with more benefits.

Having a health insurance plan like accident insurance can help trim down the medical coverage incorporated in your auto insurance policy.

4 Ways to Cut Your Costs

Evaluate Your Deductible

Increasing your deductible can help reduce your comprehensive and collision coverage costs. Insurance companies can offer up to forty percent of reduced comprehensive and collision coverage costs if you can raise your deductibles from $300 to $1,200 for instance. With this, you can incur higher costs but the savings on your premiums are certainly worth it in the end.

Combine Auto Insurance and Further Assets

You can opt to combine your car insurance and other properties like home or renters policy to a single insurance provider. By doing this multi-line policy, you can get up to fifteen percent savings on your car premium. Furthermore, you can also manage a fewer check to pay monthly. The free car insurance quotes online likewise provide such questionnaires, and send evaluations quickly. Some insurance companies also provide a customized car insurance quote for a more flexible policy.

Go for One Lump Sum

As long as you can afford, it is highly advised to pay your car insurance premium in a lump sum. Most insurance providers tend to charge additional fees in order to break up premiums into monthly payments. Additional charges may cost significantly, even if you are charged with a few bucks every month.

Maintain Your Credits

Having no or poor credit history can be considered as an indication of high risk since most insurance providers review their consumer’s credit backgrounds. Thus, having poor credits can lead to higher premiums while having better credits can lead to savings and/or discounts on your insurance premiums. Finally, consider your education and occupation as credits because insurers look at occupational and educational backgrounds of their applicants. For instance, a mail man can be considered a higher risk compared to banking personnel.

Always compare auto insurance quotes to know you’re getting the most reasonable insurance rate possible.

 

Should You Buy Insurance on Your Rental?

When you’re standing at the rental car counter, you will be faced with an important question-should you pay extra to purchase the rental company’s insurance and waivers or should you save your money?

Before you make the decision, you need to understand what coverage you may already have for rental cars. Your personal auto insurance coverage, limits and deductibles extend to some of the damages incurred in some of the vehicles you rent but it may not cover all the damages the rental company holds you liable for after an insurable incident. Fully or partially uncovered expenses include:

    • Loss of Use: While your rental car is off the road and in the shop, the rental company could be losing money. If they can prove a loss through a fleet utilization log indicating that no other cars were available to rent in place of that vehicle, your insurer may cover some of the related financial damage, but they may not cover the entire amount which will make you personally responsible for the remainder if you waive the rental company’s coverage.

    • Diminution of Value: An accident can reduce the value of a vehicle when it shows up on the vehicle’s Carfax history report. This lost value can be passed on to you and while your insurer may pay the portion of damages they find reasonable, it could leave you exposed to paying the remaining amount if you’ve refused the coverage offered by your rental company.

    • Administrative fees: Additional time and manpower goes into working with you and your insurance company on claims. This additional expense is passed on to you through administrative fees that are not generally paid by your insurance company. Normally, these fees are waived if you’ve purchased coverage through the rental car agency.

  • It’s also important to note that rentals for business purposes, long-term rentals and international rentals may be excluded from your personal coverage so be sure to call your agent to get the details of your policy before you assume it will cover you.

Another source of coverage you may have is through the credit card you use to pay for the rental. Generally, credit cards offer the repair or replacement of a rented vehicle that was damaged or stolen. They may not, however, cover the fees for loss of use, diminution of value or administrative fees and they may exclude certain vehicles and rental periods. For details, call the credit card company you plan to use to pay for the rental.

What Rental Insurance and Waivers Cover

The rental company will likely present you with several options for rental insurance to replace or supplement coverage in your personal policy. Examples of rental insurance options include:

    • Collision Damage Waiver – This is basically a hold harmless for damage you unintentionally cause to the rental car. It’s not really insurance but it does mean that the rental company won’t come after you for damages. If looking for a coverage equivalent in your personal property, look to your collision and comprehensive coverage limits and deductible.

    • Theft Liability Waiver – If the rental car is stolen on your watch, as long as you took reasonable measures to protect it, the theft liability waiver holds you harmless. In personal insurance, this would be covered within the comprehensive limits and deductible.

    • Personal Accident Insurance – Covers accidental death and medical expenses for the driver of the rental car (as long as he/she is the renter) and passengers. In your personal policy, these expenses may be covered in your personal accident or traditional health insurance, with the associated limits and deductibles.

    • Liability Insurance: Should you injure another during an insurable incident, your rental car’s liability coverage will pay damages. In your personal policy, this falls under bodily injury or personal property damage liability.

  • Personal Effects Coverage: Your home insurance policy may cover personal effects that were lost or damaged in a rental car. Or, you can purchase the rental company’s personal effects coverage.

Reimbursement and Getting Benefits

Filing an insurance claim with your car insurance company could be relatively easy. In a rental situation, you would file your claim the same way you would if you had the incident while driving your own car.

When you use a credit card’s car rental coverage, you may have a specific time limit during which you can submit the claim and you may also need to pay upfront and simply be reimbursed by your credit card company.

The Benefits of Avoiding Rental Insurance

Now that you understand what your options are, let’s take a look at some of the benefits of NOT taking out rental car insurance.

    • Save money on the rental: Some rental insurance programs can end up doubling the cost of the rental. When you’re renting a car in order to save money or have a limited vacation budget, it may not be feasible to effectively double your expenses.

  • Fewer feelings of waste: People love having paid for insurance coverage when they have a claim, but the majority of renters who buy rental car insurance won’t even use it, leaving them feeling as though they wasted money after the rental period is over. Of course, the protection offered by insurance is never a waste, but if you already have coverage and buy extra which goes unused, you still may feel that way.

The Benefits of Having Rental Insurance

Naturally, there are some good points to buying rental insurance, including:

    • No deductible: If you have a high deductible auto insurance policy, you may want to invest in car rental insurance so that you avoid paying that deductible on a vacation related accident. After all, your auto deductible is per-incident, not per year.

  • No increase in premiums: A history of claims can drive your insurance rates up as you present a higher risk to the insurance company. When you have rental car insurance you avoid putting any claims through your insurer.

If you are confused about whether rental car insurance is a good idea for you and how your personal auto policy fits into the picture, give us a call and we can meet with you to give you a better understanding of all the factors you should consider.