• Automobile Insurance
• Homeowners Insurance

Shop, Shop, Shop
In most states there are literally hundreds of companies that offer insurance. So how do you decide which one is best for you? There are several things to consider, but like many important purchases, it is important to put the effort into shopping - and not necessarily just for the lowest cost policy.

How does the Insurance Company determine how much to charge me for my insurance?
There are as many answers to that question as there are companies competing to sell you a policy. The good news: they are all competing for your business and that's why it is important to shop. The insurance company will ask you many questions to accurately quote you an insurance premium. It is important to answer the questions truthfully and as completely as possible. That gives you a sound basis for making the shopping decision.

Here are a few basic elements that most companies generally use to determine the price of automobile insurance. It will give you a clue as to why they need the answer to some of the questions they ask.

• Your driving record, including both accidents and traffic convictions
• The number of miles you drive
• The location where your vehicle is primarily garaged (parked) and if it is kept in a garage
• The primary driver's age and the age of all other drivers
• The make and model of the car
• The amount of coverage you request
• Your credit history
• If you have made any previous insurance claims

Drive safely. Don't drink or take drugs and then drive. Avoid being distracted while driving, including by cell phones and by passengers. Be aware of your surroundings and weather conditions. All good advice, because having a good driving record is one of the most important factors in keeping your insurance costs down.

Consider increasing your deductible for collision or comprehensive coverage. Your insurance company will give you a lower insurance premium if you agree to pay more out of your pocket when you have a claim.

Before you buy your next car, consider the cost of auto insurance on that new vehicle. Compare the insurance costs of different makes and models. You may be surprised how much more insurance costs on that sporty or expensive model than it is on a four door sedan.

Maintain good credit. Many companies base your auto insurance rates partly on how well you manage your credit risk.

On older model year autos, consider dropping collision and/or comprehensive coverage. Keeping in mind your deductible and the portion of the insurance premium you pay for these two coverages, it may not make sense to pay a large amount for insurance to receive a relatively small payment on a lower value vehicle, if it became a total loss.

Shop for those insurance discounts. Here is a partial list of popular discounts most insurance companies offer. Discounts are an important way that insurance companies try to stand out from one another and try to get your business. So, after you run through the list, be sure to ask if there are any other discounts they may offer that you would qualify for.

• Multiple policy - Auto and Home policies with the same company
• Low mileage
• Multi-car - insuring more than one car on the same policy
• Group or member - an employee group, for example
• Mature driver
• Defensive driving course
• Anti-theft device
• Safety equipment - such as side air bags or anti-lock brakes
• Good student
• Loyalty - long-time customer

Here are a few basic elements that most companies generally use to determine the price of homeowners insurance. It will give you a clue as to why they need the answer to some of the questions they ask.

• Your home's age; older homes typically cost more to insure
• The type of construction, for example brick or frame
• Whether the home has a garage and whether it is attached
• The distance from a fire station and the quality of the fire service provided
• The weather conditions in your area and the likelihood of tornadoes, hurricanes or hail
• Whether you have protective devices such as fire extinguishers, alarms, dead bolt locks and smoke detectors
• If you are a smoker or non-smoker
• The amount of coverage you request
• Your credit history
• If you have made any previous insurance claims

Maintain your home and make it a point to practice safety. Remember that you are responsible for things that happen in your home and on your property. Invest in safety devices like smoke detectors and fire extinguishers. Protect your home and personal property by installing security devices such as dead bolt locks and an alarm system.

Consider increasing your deductible. Your insurance company will give you a lower insurance premium if you agree to pay more out of your pocket when you have a claim.

If you are purchasing a home, check out the construction type. For example, brick homes are usually less expensive to insure than frame construction. Also, check out the fire department's quality rating, distance and how close you are to a fire hydrant.

Maintain good credit. Many companies base your homeowners insurance rates partly on how well you manage your credit risk.

Shop for insurance discounts. Here is a partial list of popular discounts most insurance companies offer. Discounts are an important way that insurance companies try to stand out from one another and try to get your business. So, after you run through the list, be sure to ask if there are any other discounts they may offer that you would qualify for.

• Multiple policy - Auto and Home policies with the same company
• Non-smoker
• Dead-bolt locks and burglar alarms
• Group or member - an employee group, for example
• Smoke detectors, sprinkler system and fire extinguishers
• Loyalty - long-time customer