1. Don't base your decision on price alone. Base your decision on value - what you get for what you pay. Consider the quality of the company's claims service and consumer education.
2. Purchase the amount of liability coverage which makes sense for you and your assets.
3. You should decide which optional coverages you want. For example, do you want optional physical damage coverages or is the market value of your car too low to warrant purchasing them.

Many people with older cars decide not to purchase any of the physical damage coverages. It is often the case that the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car's market value less the deductible.

Comprehensive provides coverage for most other direct physical damage losses you could incur. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage. Glass coverage is also under comprehensive.

It is important to know the differences between the collision and comprehensive coverages for a couple of reasons.

1. In order to make an informed purchasing decision about these optional coverages, you need to know the difference between them.
2. The deductibles under the collision and comprehensive coverages can be different in amount.

The type of car you drive, the purpose the car serves, your driving record, how long you've been licensed, and where you live can all affect how much your automobile insurance will cost you.

Here is a checklist of things you should consider when you purchase homeowners insurance.

1. First and foremost, purchase the amount and type of insurance that you need. Remember that if your policy limit is less than 80% of the replacement cost of your home, any loss payment from your insurance company will be subject to a coinsurance penalty. Also, determine the amount of personal property insurance and personal liability coverage that you need.
2. Second, determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement?
3. Finally, once you have decided on the coverage you want in your homeowners insurance policy, you can now decide which insurer you would like to purchase the insurance from.

It is not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage. Many insurers use the ISO policy forms, but this is not always the case.

Another way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your automobile and homeowners insurance with the them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask your agent or company about discounts any that you may qualify for.

Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent. However, be careful to make sure that you have the financial resources necessary to handle the larger deductible.

The First Named Insured is the first "named insured" listed on the policy declarations (front page of the policy). This insured acts as the legal agent for all named insureds in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured may also be responsible for payment of the premiums.

An additional insured is an entity to which a policy's coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and named insured. Being an additional insured on another's policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.

Workers' compensation insurance will provide medical expense and disability income for injured employees as required by the laws of each state. In addition, the insurer will defend any claim proceeding or suit against the insured for benefits payable under the policy.

Premium shall be computed on the basis of the total remuneration (payroll) paid or payable by the insured for services covered by the policy.

• Bonuses
• Extra pay for overtime work except as provided in Rule V-E
• Pay for holidays, vacations or periods of sickness
• Payment by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans
• Payment to employees on any basis other than time worked, such as piece work, profit sharing or incentive plans
• Payment or allowance for hand tools or power tools used by hand and provided by employees and used in their work operations for the insured
• The rental value of an apartment or house provided for an employee based on comparable accommodations
• The value of lodging received by employees as part of their pay
• The value of meals received by employees as part of their pay to the extent shown in the insured's records
• The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay

• Tips and other gratuities received by employees
• Payments by an employer to group insurance or group pension plans for employees other than payment covered by Rule V-B.2e
• The value of special rewards for individual invention or discovery
• Dismissal or severance payments except for the time worked or accrued vacations

Important factors include:

1. Income sources (and amounts) other than salary/earnings
2. Whether or not the individual is married and, if so, what is the spouse's earning capacity
3. The number of individuals who are financially dependent on the insured
4. The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan
5. Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need), etc.

It is recommended that a person's insurance advisor be contacted for a precise calculation of how much life insurance is needed.

It must first be recognized that in any life insurance purchasing decision, there are at least two basic questions that must be answered:

1. "How much life insurance should I buy?" and
2. "What type of life insurance policy should I buy?"

The question contained in (1) involves an "insurance" decision and the question contained in (2) requires a "financial" decision.

The "insurance" question should always be resolved first. For example, the amount of life insurance that you need may be so large that the only way in which this needed amount of insurance can be afforded is through the purchase of term insurance with its lower premium.

If your ability (and willingness) to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, it is then appropriate to consider the "financial" decision--which type of policy to buy. Important factors affecting the "financial" decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.

Credit life insurance is frequently recommended in conjunction with the taking out of an installment loan when purchasing expensive appliances or a new car, or for debt consolidation. Is credit life insurance a good buy?

Credit life insurance is frequently more expensive than traditional term life insurance. Further, if you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, the purchase of credit life insurance is normally not advisable due to its relatively high cost.

• Fire or lightning
• Windstorm or hail
• Explosions
• Riots
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge or overflow of water or steam
• Sudden and accidental tearing apart, cracking, burning, or bulging
• Freezing
• Sudden and accidental damage from artificially generated electrical current
• Volcanic eruptions (but this doesn't include earthquake or tremors)

Renters coverage applies to your personal property no matter where you are in the world. This means you're covered when you are on vacation as well as at home.

1. First, it increases the liability protection beyond what the policy owner already has in his or her homeowners and automobile insurance policies.
2. Second, the personal umbrella policy is designed to fill in the gaps in a policy owner's liability coverage since several types of liability exposures exist that are not covered by automobile and homeowners policies.

Together with homeowners and automobile insurance policies, broad personal liability protection is attained through the purchase of a personal umbrella policy.

However, in our very litigious society, many people are realizing that they have a need for more liability insurance than what is provided under their homeowners and automobile insurance policies. The personal umbrella policy is ideally suited to provide this protection.