by onlinefinancialnewsletters | Apr 24, 2017 | Personal Protection
More drivers are taking their eyes off the road. They are being distracted by mobile devices and it is resulting in more accidents. Worse, it’s inflating your costs for coverage as well.
In fact, a state-by-state evaluation has uncovered that rates have been increasing for the last 5 years.
There are a few factors that influence rates going up…
- More people are driving.
- Cars are more expensive to repair.
- Texting while driving has become the largest cause of accidents…
(The National Highway Traffic Safety Administration determined distracted-driving deaths increased 9 percent in 2015 alone!)
Of course insurance companies have to bill more because of the increase in insurance claims… in some cases with rates increasing by hundreds over the span of a few years.
You can help reduce accidents by putting down your cell phone while in your car. But if you’re having a hard time separating yourself from your cell phone… you aren’t alone.
You see, it’s all about dopamine. Each time an Email or Text is responded to, it gives a feeling of satisfaction and creates a need to do more. The result? It’s difficult to stop checking cell phones for texts and Email.
And with their flashing and beeping and icons indicating there are unread messages, it all adds to the addictive effect. It’s a combination of classic conditioning and dopamine responses that make you feel like you’re addicted.
There is hope that technologies being introduced into vehicles will help to curb distracted driving. But for now, the best practice is simply to leave your device alone while driving… no matter how hard it might be.
by onlinefinancialnewsletters | Apr 4, 2017 | Personal Protection
Many kinds of credit lines and installment loans offer credit insurance. These products are designed to “protect” an individual’s credit score by covering installment payments in case of certain qualifying situations.
Sadly these tend to be overpriced according to recent research. A study covering 2004 through 2013 demonstrated that 44.4 cents in benefits were paid for each dollar spent on such insurance policies. (By comparison, typical health plans offer 84.1 cents in benefits for each dollar spent.
So if the goal is to protect yourself in case you get sick or injured, you might be better off finding other forms of personal protection. (Be sure to check with your financial advisor for options.)
Also bear in mind, having such credit insurance is not a requirement for receiving a loan. It is always an option.
So when you are getting a line of credit, a car loan, or a store credit card, remember than this “insurance” may have a low payment but can be an expensive option when it comes to potential payout.
Also it is important to understand that options are limited. There’s virtually zero competition. Under normal circumstances you’ll be offered insurance from one provider… that’s it. There’s zero choice.
So what are your alternatives to Credit Insurance?
Term life insurance is a great way to protect beneficiaries. In the case of your death, your beneficiaries can leverage the funds to pay off your debts. Of course a life insurance benefit can cover all financial needs whereas credit insurance is limited to only covering that specific loan.
And in case you are injured, disability insurance can be beneficial. As with term life insurance, disability insurance is far more flexible than standard credit insurance.
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