Homeowners Insurance - How Much Is Enough?

Homeowners Insurance - How Much Is Enough?
The total amount of insurance coverage you may need to
purchase to protect your home is based on the replacement
costs of the home. If your home is destroyed in a fire or
by some natural disaster such as a wind storm of some type
the replacement value may not be enough to rebuild it
again. In today's market the property values are more and
the construction materials will cost more than they did
previously. You may want to consider purchasing more
homeowner's insurance coverage than just what the
replacement value is today.

Your homeowner's insurance policy can be protection for
your home if it is damaged in almost any way. It can be a
lifesaver in the event of theft, fire, vandalism, an
explosion, or wind damage. If your home is inhabitable for
any reason that is covered by your policy, you can use the
funds to live elsewhere while your home is being rebuilt or
repaired.

There may be some losses which are not covered by your
homeowner's insurance and your insurance agent will inform
you about these uncovered losses. If you live in a state
that is considered a high risk state for damages caused by
tropical storms, hurricanes, or wind and hail your
homeowner's policy may refer you to the state for
protection from these types of damages. There are state
sponsored catastrophe funds such as the Wind Pool program
which may be available in your state. If you plan to move
to or if you already live in a high risk state like
Alabama, Texas, Florida, Mississippi, or North and South
Carolina you may want to consider buying wind storm
insurance.

Flood insurance is not included in most homeowner's
policies. The Federal Emergency Management Agency offers
flood insurance through the National Flood Insurance
Program. Destruction caused by high waters or a flash
flood, which means if water penetrates your home the flood
insurance will cover the damages instead of homeowner's
insurance. Ask if your home is in a high risk area and
adjust your coverage to cover the possible flood damages.

The main idea behind homeowner's insurance is to protect
the owner against loss of property for almost any reason.
It is of utmost importance to review your policy on a
regular basis. It is up to the homeowner to keep adequate
coverage by adding coverage for improvements or remodeling
or the purchase of new furnishings. Inflation and rises in
property values need to be considered too. A home
purchased in 1980 may be worth 3 or 4 times the original
purchase price in 2008. A home built in the 70's or 80's
might have different building codes in the 21st century.
There certainly has been an increase in the cost of
building materials since that time. Protecting your
family's home is one of the most important things you can
do for them. Homeowner's insurance is the best way to
assure them and yourself that there will always be shelter
for them to be comfortable in.

----------------------------------------------------
Gary Milton writes for the insurance search and information
site, http://www.ridoe.net , who can offer homeowners,
auto, life and health insurance quotes from multiple
brokers.

Cancellation or Non-renewal: It Pays to Know the Difference for Affordable Car Insurance

Cancellation or Non-renewal: It Pays to Know the Difference for Affordable Car Insurance
So you use your tax refund as a down payment on a new car,
or at least one new to you. You get the new car; you get
your new, affordable car insurance policy in writing;
you're good to go. Unfortunately, at some point down the
road you may receive a notice that your policy will become
ineffective in X number of days (it varies from state to
state). It's important to understand exactly why the policy
is expiring because it means the difference between a mere
inconvenience and payback for an event you can't seem to
live down.

Let's start with the best-case scenario. If you're lucky,
the going rate for the coverage you have is still good, and
your insurance company will offer a renewal at the same
rate. On the other hand, the insurance company may change
its mind. Sometimes an insurer will agree to renew your
policy, but on different terms. In such cases, the carrier
is required to mail you notification of the change in
terms, usually received 60 or 90 days before your policy
expires. Usually, if the rate is below 25 or 30 percent,
state law does not require this type of notification.

On the other hand, the insurance company may choose to
simply drop you from its client list. Don't take it
personally—sometimes non-renewals are the result of
an insurance company withdrawing its business from a whole
state or area of insurance. Other reasons include lapses in
payment or an increase in your license points or reported
claims. The company must justify dropping you, as well as
give you ample notice before the policy expires and repay
you for services or coverage not rendered. Note that for
some companies, merely calling to inquire about company
policy counts as a claim, so for heaven's sake, don't give
your name when making this type of call. Keep in mind that
only some companies allow for a grace period between policy
periods if you don't pay by the expected deadline, so pay
on time or risk being "dropped."

But, just suppose, you fudged a little bit when you were
filling out your policy application, and you knew it when
you were doing it. There's a difference between getting it
wrong, and tweaking your application to your advantage. The
latter can result in policy cancellation, which is when a
carrier simply terminates your policy, even if it's before
your renewal date or the policy's expiration. The good news
is that the company still must repay you for the remainder
of the policy you paid for; the bad news is that you might
have a bit of a time finding another company to cover you.
Here again, the company must give you notice, so that you
can start working on finding new coverage before the policy
actually expires. Unfortunately, the notice period is not
usually as generous as that for non-renewal. Other reasons
for cancellation include nonpayment, as well as undeclared
crimes or egregious at-fault events (accidents), even in a
no fault auto insurance state.

Remember, most state laws require insurance companies to
provide policies to all drivers, even if it's at the high
price of high-risk auto insurance. So, chin up—it's
not as bad as it could be.

----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.

Credit Report affected by un-paid utility bills.

Credit Report affected by un-paid utility bills.
Your credit score report can be affect by more than your
available credit history. We talk about how credit cards,
mortgages, car loans, and any type of loan that reports to
all 3 credit bureaus will affect your credit score. We
don't always talk about utility companies and how they can
have a negative impact on your credit report. Here are
utility companies I like to consider non-creditors. In
other words these companies don't give you a line credit,
they just provide a service.

Utility companies
- Phone companies
- Electric companies
- Security companies
- Cell phone companies
- Water companies
- Gas companies
- Cable companies
- Internet Companies

Let's assume you are having a tough time currently, and you
stop paying your cable bill. The cable company will give
you a little time to pay off the debt for service rendered,
but will eventually turn that debt over to a collection
company. The collection company in return will report that
obligation to the 3 credit bureaus wanting their money.
This is how it works with any of the companies mention.
Once this collection reports to the credit bureaus your
credit rating just dropped about 100 points. Utility
companies on the other hand don't help your credit when you
are in good standing, but will also hurt your credit score
if you don't pay. Once the collection hits your credit
report, and you finally decide to pay off the collection,
the collection will be on your credit report for 7 years. 7
years of negative information will be on your credit
report. If you don't pay the collection, the collection
company can sell the collection repeatedly to different
collection companies which will ultimately drive down your
credit score even more.

Pay your bills on-time
If you get behind, call your creditors immediately and work
out a payment arrangement with them. They will typically
work with you, especially during tough economic times. A
creditor or utility company would rather get some form of
payment versus nothing. If you don't pay your bills
including utility bills it will affect your credit score
report. With lending getting extremely tough currently,
your credit scores are more important than ever. If you
have credit issues, the banks may look at your credit
history as too big of a risk for there portfolio.

Don't assume if you don't pay utility it will not affect
your credit. Because it will affect your credit, and will
not go away until you pay it off. If you are unsure what is
on your credit report, get a copy of your free credit score
report today.

----------------------------------------------------
About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.

Learn About Mortgage Fees

Learn About Mortgage Fees
Mortgage fees and terms can be confusing and frustrating.
Mortgage and financing terms are like another language.
Yet, if you have a firm grasp of at least some essential
terms, the more you can potentially save yourself in
headaches and money. You should start by looking at the
mortgage fees or costs; what fees are legitimate, and what
fees you should be wary of, with a few lessons of wise
financing along the way.

The mortgage origination fee - This fee is basically what
the broker charges for doing the loan. A fair and normal
fee is usually in the neighborhood of 2% or less. Unless
your loan is very complicated, the 2% fee is high and you
should look elsewhere. With the market the way it is
today, brokers need and want your business, and you can
afford to be picky in choosing whom you finance with.
Lesson number one: this is a significant debt you are
undertaking, ask questions and don't let yourself be
intimidated into paying more than you should!

The mortgage appraisal fee - This is a fee that is
unavoidable for the purchase or refinance of any home. An
appraisal must be done by a licensed appraiser. You are
paying for it so be sure to obtain a copy of the appraisal
for your own records. The cost for the appraisal can be in
a range from $300 to $500, depending on the state and the
appraiser.

The mortgage processing fee - A hired loan processor or an
outside source may be used by a broker to process your
loan. This fee is not a junk fee because the processors
handle all the detail tasks for the loan. They work hard
at ordering the title, the insurance, the appraisal and
putting together all the documents for the lender. The fee
should not be more than $400.

The credit report - Every home loan requires that a credit
report be done on the potential borrower. You must take
care in choosing a broker because most of them will pull a
credit report as soon as your social security number is
presented and a large number of inquires on your credit can
hurt your credit score. A lender may pay for a credit
report for their broker, so be sure to get a copy of your
credit report and make sure it is something the broker
actually paid for to charge you for. The brokers cannot
charge a credit report fee unless they are actually being
charged a fee by the credit agency. The fees normally
range from $12 to $20 per borrower.

The mortgage underwriting fee - This fee is charged by the
lender for underwriting, closing and funding your loan.
Sometimes referred to as the Administration Fee, this is
how the lender makes its up-front profit on your loan and
it usually can't be avoided. If the broker is charging the
underwriting fee you should not agree to pay it without a
reasonable explanation of its validity because brokers do
not underwrite your file. Don't be confused into paying
any fees that don't seem to be honest charges. Ask tons of
questions to secure the best deal on your home loan. Most
brokers are scrupulous enough to offer you the best deal
and the market is not in such frenzy as the last two years
and significant deals are out there.

----------------------------------------------------
Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.thriftyscot.co.uk/Loans/ and
http://www.thriftyscot.co.uk/mortgage/

Housing Figures Show Consumer Confidence Knocked

Housing Figures Show Consumer Confidence Knocked
New figures from the National Association of Estate Agents
(NAEA) have shown that although the housing market in the
UK is still performing well, buyers are adopting a more
cautious approach to property investment.

The group reports that during the course of April, there
was a stable performance in terms of the number of sales,
viewings and average sales prices. According to the NAEA,
the average number of viewings before a house was purchased
was said to stand at 14. It asserts that while this is
indicative of consumers being cautious about which property
they invest in, the figure stands just two viewings higher
than results from 2007.

For those who have found a desired property and are looking
to find backing for a down-payment taking out a personal
loan might be of use in providing the funding necessary to
make an offer. However, statistics from the group suggest
that there is a slight dip in the number of people who are
looking to buy a house. Looking at the average number of
buyers on its members' books, the NAEA notes that while in
March there were 249, in April that figure dropped to 237.
It attributes this fall in part to constrained market
conditions arising from the credit crunch and a reduction
in mortgage approvals.

The NAEA asserts that while this has likely knocked
consumer confidence, there are signs that market conditions
will improve in the coming months. Although some analysts
have predicted a sharp decline in house prices, the
association insists that such a drop is unlikely because
other strengthening factors such as low unemployment, high
interest rates and sustained spending are still prevalent,
which the group suggests will buoy the property market.

Chris Brown, president of the NAEA, commented: "Many,
especially first-time buyers, will be feeling the results
of the credit crunch and tighter lending, leading to them
being unable to move onto the ladder or up the chain. Some
agents are also finding it difficult to stop sales falling
through as people get 'cold feet' or fail to secure
mortgages but we must remember that this happens in the
best of markets. However, what people need to remember is
that the market is stable and we are not seeing massive
price drops. There are still strong economic factors at
play, such as high employment and low interest rates and
sales are still taking place."

The statistics also showed that sales in the market remain
stable despite tightened conditions, with each NAEA member
selling an average of seven homes during the course of
April. Such a figure has remained relatively unchanged
since January of this year, the association asserts.

For those who are keen to enter the property market but
have experienced difficulty raising the cash to put an
initial payment down, taking out a secured loan may prove
an effective course of action. A cheap secured loan may
also be of use to those people who were recently revealed
to be struggling to meet mortgage payments. The Royal
Institution of Chartered Surveyors has suggested that a
growing number of people will be at risk of repossessions
in the coming months.

----------------------------------------------------
Abbi Rouse writes for AllAboutLoans.co.uk, a loans
comparison site, visit us today for information on all loan
topics including tenant loans applications and self
employed loans sourcing from all leading UK providers.
Visit today http://www.allaboutloans.co.uk

What Can You Do To Avoid Debt

What Can You Do To Avoid Debt
Often the best method to deal with debt is to avoid it
entirely. Of course, prevention is not a very widely used
approach as the sheer numbers of Americans in debt clearly
testifies. This does not mean that there aren't many
trying to claw their way out of the hole they dug for
themselves; there are thousands doing that every day. But,
what can you do to avoid debt in the first place?

The answer to this question is so important for many people
in this country, that in response, the numbers of so-called
debt management experts offering solid strategies to help
consumers avoid debt is proliferating rapidly, especially
with the accessibility of the internet. Yet, the results
of these solutions are any but satisfactory most of the
time. Are they all just selling worthless information?
That would be too easy an answer and not at all accurate.
The advice and tips are generally sound. What is the
problem then?

Most debt management experts and consultants are not out to
defraud their clients by offering bogus information and
solutions. The real issue is whether the clients really
understand what they must do to keep themselves out of
debt. For example, the experts say that you should "live
within your means." It makes sense in a way. You should
not live beyond your means by using credit cards
excessively and multiplying debt after debt through
outrageous spending. If you live within your means, you
simply spend what money you bring in each paycheck.

Of course, if you live within your means you will not have
any room for unexpected expenditures and may end up living
paycheck to paycheck anyway. There is no financial growth.
The chances of going into debt are still quite high when
you have no extra cash flow or savings to deal with
problems should they arise. Is there a better solution
that will help you avoid debt and also provide the extras
that will help you in the future?

Here is a question for you: Have you ever thought about
living below your means? This is not a new idea; it is no
innovative approach. At one time, this financial
philosophy was considered a virtue. Have you ever heard of
the word frugality? The modern equivalent is unfortunately
viewed as a derogatory term in our consumer driven culture.
Have you heard of any body being called a cheapskate?

It is unfortunate that many look down upon those who live a
frugal lifestyle. They fail to understand this is the only
genuine approach to staying out of debt since the
likelihood of becoming independently wealthy is a slim
hope. In fact, frugality can actually be a pathway to
riches. Some of the world's wealthy people made their
money by living cheap and simplistic lives, while saving
and investing their money.

If you want to live below your means, you must spend less,
create a budget to manage your expenditures, and look for
ways to bring in additional income each month so that you
have a surplus at the end. This surplus will be your
protection against debt because it can be used to build
savings. If you still don't understand what living below
your means requires, you should look at it this way: You
may have the money to spend on whatever you want but should
you? What happens if this attitude characterizes your
regular spending habits? Here is where the problem begins.
If you spend all of the extra money you have, it is more
likely that you will turn to extra sources like credit
cards and loans to get more cash to facilitate your
developing lifestyle of living beyond your means.

Learn to live with less and pay attention to where your
money goes. If you keep it simple now and live frugally,
you will avoid debt and maybe enter retirement earlier than
the people around you who are struggling under enormous
debt.

----------------------------------------------------
Gary Milton has written on the subject of debt for many
years, you can find more od his articles a the debt help
and relief site, http://www.tfgi.com

DIY Accounting Cabsmart Taxi Driver Accounts Software Questions And Answers

DIY Accounting Cabsmart Taxi Driver Accounts Software Questions And Answers
Do I have to enter mileage and vehicle running expenses in
my taxi accounts.

Entering the mileage covered by the taxi is optional as the
cabsmart package automatically chooses the most expensive
cost which produces the lowest tax liability for cab and
taxi drivers. The cabsmart taxi driver accounts package can
be used by either entering your vehicle running costs or
the vehicle business mileage.

Alternatively the cab driver can enter both taxi running
costs and the taxi mileage in which case the cab smart
formulae within the taxi accounts package automatically
selects the highest cost to produce the lowest tax bill.
Would the cabsmart taxi driver accounts or the self
employed accounts package be most suitable for a driving
instructor.

Either accounts package would suffice but on balance the
self employed accounting solution would be better as it has
greater sales analysis of income not required for cab and
taxi drivers. The purchase expense spreadsheet of cabsmart
is specific to taxi driver expenses while the self employed
package has increased analysis not required by taxi drivers
whose variety of expenses tends to be more limited to
vehicle running costs.

The cabsmart package is most suitable for taxi, cab,
private hire drivers, van and lorry drivers to produce the
accounts and complete the tax return.. The taxi fuel
expenses and mileage do not appear in the profit and loss
work book. The taxi expenses were not transferred from the
purchase spreadsheet to the monthly profit & loss account
in the financial accounts workbook.

The profit and loss account in the taxi financial accounts
file is updated automatically and so if this is not
happening the links are not working or there is a data
entry error. A data entry error is caused if on the
purchase expense spreadsheet you may have entered the taxi
expense item such as fuel expenses but have not entered the
code letter to analyse that expenditure using the list of
letters in the user guide.

The P&L account would also not be updated if you have
changed a file name.

The third potential reason is that when the cabsmart
financial accounts file was downloaded you opened it first
before saving and that has caused the link structure to
corrupt. The simple solution is to download the taxi driver
accounts templates again and save before opening and the
link structure is preserved. Taxi was sold and the sale
value entered in the assets schedule but now the profit and
loss account is showing a REF error message everywhere.

The REF message is an indication that a data entry error
has been made. It is likely that you may not have entered
the date the taxi was sold or you have not entered the
written down value of the vehicle. Check those items and
enter them and the REF message on the fixed assets schedule
will disappear and when that goes then the REF message
throughout the profit and loss account in the taxi
financial accounts will also disappear. I bought the
cabsmart taxi driver accounts package several months ago
but have lost it as my computer crashed. Do I need to pay
again.

No problem and no need to buy again. Return to the
confirmation link that was sent to you after purchase and
download the taxi driver accounts package again. If you no
longer have that email forward a copy of your paypal
receipt and the link to the cab smart download page will be
resent immediately. What capital allowances can I claim
from using my private vehicle for my taxi business.

Enter the vehicle description and cost in the fixed assets
schedule in the category for vehicles less than 12,000
pounds and the capital allowance will be calculated
automatically. As this is a private vehicle which is not
wholly used as a cab the percentage of private vehicle use
can be entered in the box provided and the capital
allowance on the taxi will be adjusted accordingly. Cars
used as cabs or private hire vehicles are not subject to
the first year allowance or the annual investment allowance
which was introduced. Writing down capital allowances can
be claimed for vehicles used as a taxi and were 25 percent
of the written down value prior to 5 April 2008 and 20
percent after that date.

It is also worth pointing out that hackney cabs are in fact
classed as a commercial vehicle and the first year
allowance or the new annual investment allowance is
claimable on those taxi vehicles. Commercial vehicles such
as hackney cabs are treated for tax purposes in the same
way as plant and equipment. How do I enter a new taxi
purchase in the taxi driver accounts.

Enter the total purchase price of the taxi in the expenses
spreadsheet showing the date of purchase, description and
total purchase cost. Use code letter F to analyse the
expenditure to fixed asset. Then visit the fixed assets
sheet and enter the date and description of the taxi plus
the total cost. The formulae within the cabsmart taxi
driver accounts package automatically calculates the
capital allowances which it also places in the boxes on the
tax return.

----------------------------------------------------
Terry Cartwright is a qualified accountant designing
Accounting Software at http://www.diyaccounting.co.uk/
providing complete accounting solutions for small to medium
sized business in the UK with taxi driver accounts at
http://www.diyaccounting.co.uk/taxi.htm

A Love Letter To Timeshare Buyers From Someone Who Wants To Sell Timeshare

A Love Letter To Timeshare Buyers From Someone Who Wants To Sell Timeshare
Dear Timeshare Buyer,

If you want to purchase a vacation home, be prepared to
commit to finding a club or resort that you will want to
use, not just in the far-off future, but in your next
vacation. Before buying timeshares, find a location you'd
want to spend many holidays in. (There is another place for
those who want to sell timeshare.)

A timeshare basically refers to a property where many
people have the right to use it. The most typical of
timeshare properties is the condominium unit. There are
many classes of timeshares: timeshare with a deed or sale,
timeshare for right to use, fixed-week ownership, floating
ownership, and rotating ownership.

Timeshares have the same features as homeownership or
landownership. Still, there are different classes of
timeshare. There are those that allow you to buy a property
completely - a full blown purchase complete with a deed of
sale. Some forms involve a lease program or points system.
While the differences are obvious, the basic concept is
that timeshares are real estate units of a particular size
that you can buy, sell, or trade.

There are cases when you can only buy small timeshares.
Small timeshares are typical of these situations: (a) when
you want to own property for a limited amount of time only,
(b) when it is bought as a gift, (c) internal exchange of
timeshares at the same resort by a group of members, and
(d) timeshare exchanges between you and owners of other
timeshare locations.

There are some things to consider if you want to buy
timeshares:

- Buy only timeshare at locations that you're going to use
in the coming years. Keep in mind that a timeshare is not
something you buy to get financial gain (read: it's not an
investment vehicle). Instead, it's something that you
invest in for some intangible benefits, like an extended
vacation.

- Know yourself and your tastes before you even go through
some timeshares product literature. Do you like the beach?
Or do you prefer a villa on some mountain resort? What is
your ideal and moss treasured vacation spot? Always opt for
the choices that are not so far off from your tastes.

- If you're going on holiday, take the time to visit at
least one timeshare resort. A tour guide will definitely
help you get a better feel and appreciation of the site.
Talk to other timeshare owners and draw out from them their
own experiences. When you research, even for just a bit,
you will find timeshare vacation spots that give you access
to experience and information.

- When you have chosen a timeshare and you already have
documents before you, always make sure that you've read all
stipulations, and terms and conditions within the document.
Understand the timeshare that you've bought and picture out
what it means to you. Remember, there are fixed or floating
time timeshares, fee simple or right-to-use timeshare
plans, and vacation club memberships.

- Always perform an ocular inspection at a timeshare
resort. Is it properly managed and well maintained?
Remember, you are buying a timeshare for the vacation
experience, not for the investment opportunity.

----------------------------------------------------
Buy A Timeshare: Timeshare Adventures is the premiere
marketplace for selling, buying and renting timeshares.
Find your dream timeshare resort or find a ready buyer or
renter for your timeshare. Timeshare Adventures features a
resort directory, so you can better choose a resort. For
more information, click
http://www.timeshareadventures.com/buying-timeshares.php/

Affordable Auto Insurance: What's Everyone Else Paying?

Affordable Auto Insurance: What's Everyone Else Paying?
All drivers want affordable auto insurance, but the average
price drivers pay for insurance yearly varies greatly from
state to state because of factors such as the stability of
the economy and the state's population size. Check out the
following information to find out how much insured drivers
in your state are paying compared to other states.

According to Insurance Information Institute (www.iii.org),
the National Association of Insurance Commissioners (NAIC)
calculates average auto insurance expenditures per state by
assuming that all insured vehicles have liability
insurance, but not necessarily comprehensive or collision
coverage. The average auto insurance expenditure,
therefore, measures the price consumers actually pay for
insurance on each vehicle rather than equaling the sum of
liability, collision, and comprehensive coverage together.
This is because most policyholders do not usually carry all
three types of coverage. NAIC data also shows that 77
percent of insured drivers buy comprehensive coverage in
addition to liability insurance. And only 72 percent
purchase collision coverage.

In a September 2007 NAIC report, New Jersey held the record
for the highest average auto insurance expenditure per year
at $1,184. Following closely behind were the District of
Columbia at $1,182, New York at $1,122, Massachusetts at
$1,113 and Louisiana at $1,076. North Dakota is the least
expensive state for auto insurance at $554 per year, and
Iowa followed closely behind at only $555.

The price insured drivers pay is affected by the type of
coverage purchased, as well as other factors. People who
live in states where the economy is healthy are much more
likely to buy new cars than people who live in an unhealthy
economy. Since the coverage drivers select for new cars
differs and can be more costly than coverage for an older
car, these states often have relatively higher average auto
insurance expenditures per year. Urban population, traffic
density, and per capita income also significantly impact
the price of auto coverage. Highly urban states with high
traffic density and higher wages and prices will usually
possess the highest auto insurance expenditures per year.

In an NAIC chart comparing average annual auto insurance
expenditures by state
(http://www.iii.org/media/facts/statsbyissue/auto), Texas
drivers in 2005 paid an average of $845. So, the average
cost of Texas auto insurance ranked at number 17. Arizona
auto insurance cost about $926 per year in 2005, down from
$931 in 2004, keeping Arizona ranked number 14 both years
among the rest of the states. In California, insured
drivers paid an average of $847 in 2004 and $845 in 2005.
This ranks California auto insurance as the 18th most
expensive coverage in the United States in 2005. In
Florida, ranked sixth in 2004 and 2005, insured drivers
paid an average of $1,062 in 2004 and $1,063 in 2005. North
Carolina is one of the least expensive states for auto
insurance coverage, ranking at number 47 in 2004, with an
average cost of $597. However, in 2005, the average auto
insurance cost increased to $602.

Finding affordable auto insurance is so important to most
drivers, but depending where you live, prices will vary.
How do auto insurance rates in your state compare with the
rest?

----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.

Closing the Gap: Auto Insurance Terms Defined for The Smart Shopper

Closing the Gap: Auto Insurance Terms Defined for The Smart Shopper
As anyone who has shopped for auto insurance - or filed an
auto insurance claim - knows, car insurance agents and
companies use terminology all their own. Below is a list
of definitions to give you the expertise to close the gap:
auto insurance comparisons and dealing with claims doesn't
have to feel like negotiating in a foreign language!

Actual cash value: The market value of your car as it
stands today.

Anti-theft device: A device that deters thieves or burglars
from stealing your car. Some insurance companies offer a
discount if you have one in your car.

Assigned risk insurance: In states requiring insurance
coverage for its drivers, it's a law that requires
insurance companies to accept a certain number of high-risk
drivers onto their policies. Such policies can be pricey,
but they do exist.

Auto replacement coverage: Supplement that allows for your
entire vehicle to be completely repaired or replaced,
regardless of cost to the insurance company.

Bodily injury liability coverage: Covers another party's
personal injuries if you caused a crash.

Binder: Temporary auto insurance that protects you until
your new policy comes into force.

Betterment: Parts damaged in an accident may be replaced
with parts in better condition than the car already had;
the driver may be asked to pay the difference in cost.

Collision coverage: Pays for damage to, or replacement of
your car in the event of an accident; sometimes required by
car lenders.

Comprehensive insurance: Covers events not covered by
collision insurance, for example, natural disasters, theft,
and vandalism.

Deductible: The amount you pay for an incident before your
insurance policy kicks in. The higher the deductible, the
lower the rate.

Gap car insurance: Covers the difference between what you
still owe on your car and its actual cash value as totaled
in a wreck.

Good driver plan: An incentive offered by some insurance
companies for maintaining a good driving record over a
designated time period.

Lien: A claim on property as security for an owed debt.

Liability insurance: Covers losses to people and property
damaged by your found negligence; is a required minimum in
many states.

Passive restraint system: A safety system, such as an
airbag or seatbelts, that works on its own to protect
drivers and passengers from bodily injury. Some insurance
companies give discounts for their presence in the car.

No-fault auto insurance: In some states, this type of
policy replaces liability insurance. It covers damages to
your own party or automobile, regardless of who was at
fault. It allows for more expedient accident-related health
care. In some states (i.e., where it's not the basic
requirement) it's referred to as Personal Injury
Protection. Sometimes no-fault insurance comes with a limit
to claims (as part of a limit on torts claims).

SR-22 auto insurance: Also known as a Certificate of
Financial Responsibility or CFR, it's that card you carry
in your car verifying that you are covered by the state's
minimal insurance requirement. Some states let you know
whether or not you have an acceptable amount of automotive
insurance.

Total loss: When the cost of repairing a damaged automobile
exceeds its actual cash value.

Uninsured motorist coverage: Covers you when the other
party in an accident doesn't have liability insurance
coverage to pay for damages to your car or body.

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US Insurance Online CEO Jim Waltrip is a self-taught
software developer and entrepreneur with a passion for
building things: teams of employees, software, and new
systems. Jim started US Insurance Online with business
partner Ryan Patterson in May 2005. Visit
http://www.USInsuranceOnline.com for insurance shopping
help and for free insurance quotes.