Managing Healthcare Finances and Improving Your Fiscal Health

Healthcare in the United States is a bit of a mixed bag. We have great advancements, but access to care is exceptionally expensive. This limits who can get treatment in unfair ways, especially for lower-income Americans.

Unfortunately, health insurance doesn’t always help the way it should either. Although the Affordable Care Act (ACA) requires coverage for preexisting conditions and doesn’t allow higher prices for those who are ill, insurance companies have responded with expensive plans, less coverage, and higher deductibles.

To manage healthcare finances, you have to make wise decisions about what health coverage you choose and how you save for your health needs. Here are some tips to start with right away.

Find Community Healthcare Options

Community healthcare can help you in significant ways, whether you have health insurance or not. You can use the government’s “Find a Health Center” tool or contact your local Department of Health and Human Services.

Community health services often provide medical care, behavioral healthcare (including mental health and substance abuse disorders), and even dental care. The cost is based on a sliding scale, which helps make it affordable for everyone.

Apply for Medicare, Medicaid, or Health Insurance Assistance

You may be able to access affordable health insurance even if you are lower income. Applying for Medicare, Medicaid, or using Healthcare.gov to get assistance paying for health insurance are all options.

If you’re 65 or over or have a disability, consider Medicare. There are many parts to Medicare and you have a lot of options, so make sure you understand the details.

Medicaid allows you to get low-cost or no-cost care for a variety of needs. The program was expanded in many states, so even if you haven’t qualified in the past you may now. It certainly doesn’t hurt to try it! You can also see if you qualify for traditional health insurance with payment assistance through the ACA.

Focus on choosing a plan that works for you. If you need care regularly, it may be worthwhile to choose a higher monthly premium and lower deductibles and copayments. You’ll save overall. However, if you’re relatively healthy, you might want a lower-premium plan where you can save up for the deductible and out-of-pocket costs.

Reduce Financial Stress to Improve Your Health

Financial struggle has a significant impact on people’s health. There are links between financial concerns and depression, anxiety, and even substance abuse disorders. These problems then make it even harder to manage your money well, creating a downward spiral.

The best thing you can do for your health — and your access to healthcare — is get your financial health in order. Like most things, this is easier said than done. However, these ideas might help.

Plan for Necessary Expenses

Everyone knows that getting rid of expensive luxuries is part of budgeting, but what if you don’t have any expensive luxuries? That advice can ring hollow. Instead, list your necessities and when they’re due. Then, list your income.

Look at ways you can save up for expenses, especially if they’re occasional. Do you need to go to the dentist once a year? You can save up a little bit each month and then have the money available.

Earn Additional Income

Earning more money is not as hard as it used to be. Many positions allow you to work from home, either full-time or part-time. We learned a lot from our experience with COVID-19, and one of the biggest lessons was flexibility.

You can work virtually as a telephone representative or write blog posts for cash. If you work as a freelancer, you can choose your workload and hours. Consider looking for opportunities on sites like ProBlogger or Flexjobs.

Plan Meals at Home

When you’re working hard and stressed out, a sandwich for dinner from a nearby shop sounds like the perfect solution. Unfortunately, it’s a lot more expensive than making a similar sandwich at home.

Consider planning meals in advance and cooking at home. You’ll find it’s much less expensive to buy the ingredients for your favorite meals than to get them as takeout. If you plan your menu around inexpensive foods like rice, beans, and meats that are on sale, you can save even more.

Evaluate How You Think About Money

Your mental and emotional attitudes about money have big impacts on how you feel during tough times. If you’re working on improving your financial wellness during a difficult time, it might be helpful to uncover money beliefs and unconscious attitudes that affect your finances.

Sometimes a quiz is all it takes to discover some surprising roadblocks that exist in your own mind. Not allowing your emotions to take control of your decisions is another important skill to develop. 

The good news is that this internal work is entirely within your control. There’s no reason you can’t start today.

You Can Manage Healthcare and Finances

Keeping your finances healthy is a significant challenge. Fortunately, there are a lot of strategies you can use to access affordable healthcare and save up for important expenses.

As your financial health improves, it’s likely you’ll have fewer symptoms of depression, anxiety, and other health issues. This can make it easier to make good decisions, which then improves your health further.

If you’re ready to improve your health and finances, take action today!

Source: bestinterest.blog

How I learned to stop worrying and love DIY

“Oh good,” Kim said when I rolled out of bed yesterday morning. “I’m glad you’re up.” She gets up at 5:30 for work most days, but I tend to sleep in. Especially during allergy season.

“Huh?” I grunted. It was 6:10 and I was very groggy. My evening allergy meds kick my butt. Plus, I hadn’t had my coffee yet.

“Something’s wrong with the bathroom sink,” she said. “Look. It’s leaking. The floor is soaked.” She wasn’t kidding. The bathmat was drenched. When I looked under the vanity, I was greeted by a small lake.

“Ugh,” I grunted. This wasn’t how I wanted to start my day.

Kim kissed me goodbye and hurried off to work. I pulled on a pair of pants, poured some coffee, pulled out the vanity drawers, and got to work.

I was worried that I might have caused the leak when I replaced the sink’s pop-up assembly last month, but no. The problem was obvious: The hot water line to the bidet (which I installed in October) had worked itself loose. (By the way, I love my bidet. Too much information, perhaps, but it’s some of the best sixty bucks I’ve ever spent.)

The water line to the bidet

Fortunately, the fix was simple. I reattached everything, then added a light layer of tape to prevent similar problems in the future.

Note: As a safety measure — to make sure I wasn’t missing anything — I took photos of the issue and made a trip to the hardware store to ask their advice. They told me everything should be fine.

This might seem like a small thing to some folks but it’s a big deal in my world. You see, I’ve never really been a DIY type of guy. I used to get overwhelmed by home improvement. I felt unprepared, incompetent.

More and more, though, I’m learning that I can do it myself. It just takes patience and perseverance. And the more projects I complete, the more confidence I gain.

Learning to Love DIY

When I was younger, I avoided do-it-yourself projects whenever possible. As a boy, I never learned how to be handy around the house. I could program (or build) a computer. I could write. I could do accounting or analyze literature. But I couldn’t replace a broken window or repair a leak.

My ex-wife and I bought our first house in 1993. Fortunately, it was in great shape. During our ten years in the place, there weren’t a lot of things that needed to be repaired.

And when things did need work, they were obviously beyond our abilities. The water heater exploded on Christmas morning. The electric wall heater caught fire. We discovered an infestation of carpenter ants. These were problems I was never going to fix myself. We hired experts to solve them for us.

In 2004, we moved to a hundred-year-old farmhouse. The previous owner had lived there for fifty years and had done a lot of lazy repairs himself.

Because buying the place tapped nearly all of our financial resources, we were forced to handle some of the repairs and remodeling ourselves. We hired somebody to hang drywall for us, but we tore down the old walls ourselves. To fix the faulty wiring, we asked an electrician friend to help us find problems and make repairs. And so on.

Still, I didn’t feel completely comfortable with DIY projects around the house. I did them when I had to, but mostly I tried to put them off — or to pay somebody else to solve the problem.

After our divorce, I deliberately sought a place where I did not have to deal with home improvement. I bought a condo. All exterior work was handled by somebody else. Sure, I was on the hook for problems inside my unit, but those were easy to foist on contractors. For five years, I completely avoided home repairs and home improvement.

When Kim and I bought our current country cottage, we had a chat. “You know you’re going to have to do lots of DIY projects,” she said. “There’s a ton wrong with the house — and that’s just the stuff we know about.”

“I know,” I said. “But I’m older now, and I’m actually looking forward to developing my DIY skills. I have a better attitude. I think I’ll be fine.”

You know what? I have been fine. After paying a small fortune to get the major things handled — roof, siding, floors — we’ve deliberately been taking on the day-to-day stuff ourselves. It’s much slower this way, but it’s also cheaper. Plus, it’s more satisfying.

In the past eighteen months, we’ve:

  • Painted several rooms in the house, and have plans to paint the others.
  • Installed new molding and trim in several rooms.
  • Painted the kitchen cabinets and installed new hardware.
  • Replaced the kitchen faucet (on Super Bowl Sunday).
  • Repaired the bathroom sink pop-up assembly.
  • Replaced our only toilet.
  • Installed a bidet attachment on the toilet.
  • Built out the inside of a Tuff Shed to make it my writing studio.
  • Built a porch for the writing studio.
  • Stained our new back deck (which we did not build ourselves).
  • Begun work on a fire pit for summer gatherings.
  • Installed raised beds for vegetable gardening.
  • Removed a cedar tree and planted a small orchard.
  • Hung lighting in the laundry room.
  • Installed a car stereo.

Some of these projects (the writing studio, for instance) were major. Some (like the laundry-room lighting) were minor. All of them have helped me gain confidence that yes, I can do things myself.

It’s still no fun when I wake up to find that a leak has flooded the bathroom. But at least now I don’t feel overwhelmed. I’m able to pause, think about what needs done, and then tackle the job. It’s a totally different feeling than I had even three years ago. Three years ago, stuff like this would overwhelm me. Now, I almost love these DIY projects. (For real!) Maybe it’s because I’m old.

Nine Steps to DIY Success

Yesterday as I was crawling under the bathroom sink, I thought about how I’ve learned to love DIY, how I’ve shifted from viewing these tasks as chores to viewing them as opportunities to learn.

As I fixed the leak, I made a mental list of the things I’ve learned over the past couple of years, the guidelines I follow to make sure my home-improvement projects are productive and fun instead of something I dread.

I believe these nine “rules” have helped me embrace the do-it-yourself mindset:

  • Read the instructions. This point is obvious enough for some folks that it ought not even be listed. But for others, this is a vital first step. I know too many people who rush into DIY projects without bothering to read the directions that come with the parts, tools, or kits that they’re using. Instruction sheets and manuals are tedious, yes, and they don’t always make sense when you read them without context, but they also provide a vital framework for the project you’re about to undertake. Don’t skip this step!
  • Tap your social network. While you may have never tackled a particular project, you probably have family or friends who’ve done something similar in the past. Draw on their experience and expertise. Ask questions. Seek advice. While replacing our kitchen faucet, I texted Mr. Money Mustache for help. When installing my car stereo, I asked my brother lots of questions. (He’s an audio nerd.) When Kim and I work in the yard, I often ask my ex-wife for advice. And, of course, I’m not shy about posting to Facebook to draw on the power of the hivemind.
  • Practice patience. DIY projects can be long and tedious. They can be frustrating. When I replaced our kitchen faucet, I was stymied from the start. The space was small. Tools didn’t work or didn’t fit. We had plans with the neighbors that put a time limit on the project. The old me would have been angry and irritable. The new me stayed calm. I forced myself to practice patience, to pause and think about the situation from a variety of angles. I had to make three trips to the hardware store. Ultimately, my patience paid off. I replaced the faucet and made it next door in time to watch the big game.
  • Be methodical. Another reason DIY projects used to frustrate me stemmed from my lack of organization. As I disassembled things, I put them in a common pile. When it came time to put things back together, I was lost. Nowadays, I’m smarter. I put small parts in ziploc bags and label the bags so I know what they are and where they go. If it’s not obvious what large parts are for, I label them too. At each stage of the project, I take photos with my phone so that I have a reference when I put things back together. I take notes in the manual to provide clarity in the future. Then I store the manuals in a drawer. Being methodical makes the process so much easier.

Replacing the toilet

  • Think outside the box. Sometimes you’ll encounter situations where the instructions don’t apply. Normal solutions don’t work. When this happens, you’ll have to be creative. You’ll need to think outside the box. Using the kitchen faucet as an example again, none of the recommended methods would work to remove the old faucet. It was stuck, and there was no space to work with typical tools. In the end, I had to purchase a Dremel and cut into the collar, then hammer at it for five minutes before it came loose. It took a long time (and was frustrating), but it worked.
  • Decide on rules for buying tools. The unfortunate reality of DIY projects is that they often require specialized tools. When I replaced the kitchen faucet, I needed a basin wrench. Then I needed a Dremel. When Kim and I re-seeded our lawn, we needed an aerator. Sometimes it makes sense to simply buy the tool(s) you need. (I know I’ll use the Dremel again in the future.) Other times, it makes much more sense to borrow or rent. (I’m never going to need a $1500 aerator again, so I rented.)
  • Do things right. It’s tempting to cut corners when you do projects yourself. It’s tempting to skip steps, to not work to code, to do the minimum required to get things working right now. Please, do your future self a favor: Do things right the first time. Yes, it takes longer and costs more, but it also means you shouldn’t have to repeat the project. Plus, it’s nicer for whoever inherits your work. The folks who owned our house before us seemed to live by the motto, “Why do something right when you can do it half-ass?” Kim and I inherited a stack of shitty fixes that have made life miserable for the past two years.
  • When you’re stuck, take a break. One reason I’ve avoided DIY projects in the past is that I inevitably get stuck. I reach a tricky and/or confusing step and become frustrated. This used to be a disheartening deal-breaker. Now, though, I accept this as part of the process. When I do get stuck, I take it as a sign to slow down — or stop. I go do something else for a while. I do more research on the interwebs. I re-read the instructions. I contact somebody I know who has done a similar project. I give time for the frustration to fade, then return to the project with fresh eyes.
  • Have fun. Most importantly, enjoy the process. Accept it for what it is. Yes, you’ll have moments of frustration. Yes, it sucks to make repeated trips to the hardware store. Yes, most jobs take two or three times longer than anticipated. Once you agree that this is part of what DIY is all about, you’ll have a better attitude and be better able to enjoy the work instead of resent it. Plus, remind yourself that each time you tackle a task yourself, you’re building a library of knowledge that can be applied to future jobs.

Here’s another guideline: Keep the end in mind.

Home repair and home improvement can be annoying because there are other things you’d rather be doing. You could be hanging out with friends. You could be reading a book. You could be playing a game. The last thing you want to do is replace a broken window.

I’ve learned to consider the reason I’m doing the work. I know that when I replace the kitchen faucet, we’ll no longer have to worry about leaks. Plus, we’ll have a better, more attractive fixture. After we’ve spent six hours staining the deck, we’ll get years of enjoyment from the space. Once I build out the writing studio, I’ll have an ideal space to work in.

Don’t focus on the drudgery of the moment. Remind yourself of the ultimate payoff.

Text conversation about sink repair

Choosing DIY Just for Fun

Last weekend, I tackled a DIY project for fun (gasp). I installed a car stereo.

Three months ago, I bought a 1993 Toyota pickup for projects around our little acre. Fittingly for the era, the truck came with a tape deck. Unfortunately, I don’t own any tapes. I purged the last of them over a decade ago.

Still, I couldn’t resist an indulgence. “I wonder if you can get Taylor Swift on cassette,” I thought to myself. I checked Amazon. Sure enough, if you’re dumb and determined like I am, you can order Reputation on cassette for 30 bucks. So I did.

When the tape came, I was disappointed to discover that while the radio worked fine, the tape player was busted. What to do? What to do? Should I write off the T Swift tape as a $30 loss? Or should I go all in, take the risk of buying a new tape deck?

I think you all know the (irrational) course of action I chose.

I found a $70 tape deck on Amazon and ordered it. Last weekend, as a birthday present to myself, I spent an entire day installing the thing — despite having no clue what I was doing.

The project was fun! (Frustrating but fun.)

I got to take apart the truck’s front console, puzzle out the messed up wiring (a previous owner had spliced new speakers incorrectly), connect the new tape deck, then put everything back together. On my drive to work at the box factory Monday morning, I cranked up the Taylor Swift. The dog was unimpressed but I had fun.

The old tape deck in my Toyota truck

Source: getrichslowly.org

What Causes of Death are not Covered by Life Insurance?

The death of a loved one is hard to take and while a life insurance payout can ease the burden and allow you to continue leaving comfortably, it won’t take the grief or the heartbreak away. What’s more, if that life insurance policy refuses to payout, it can make the situation even worse, adding more stress, anxiety, anger, and frustration to an already emotional period.

But why would a life insurance claim be refused; what are the causes of death that may cause your life insurance coverage to become null and void? If you or a loved one has a life policy, this article could provide some essential information as we look at the reasons a death claim may be refused.

What Causes of Death are Not Covered?

The extent of your life insurance coverage will depend on your specific policy and this is something you should check when filing your life insurance application. Speak with your insurance agent, ask questions, and always do your due diligence so that you know what you’re buying into and what sort of deaths it will provide cover for.

Life insurance policies have something known as a contestability period, which typically lasts for 1 to 2 years and begins as soon as the policy starts. If the policyholder dies during this time, they will investigate and contest the death. 

This is generally true whether her you die of a heart attack, cancer or suicide. However, if this period has passed, they may only contest the death if it results from one of the following.

Suicide

Suicide is a contentious issue where life insurance is concerned. On the one hand, it’s a very serious issue and one that’s often the result of mental health problems, so there are those who believe it is deserving of the same respect as any other illness. 

On the other hand, the life insurance companies are concerned that allowing such coverage will encourage desperate people to kill themselves so their loved ones will be financially secure.

It’s a touchy subject, and that’s why many companies refuse to go anywhere near it. Some will outright refuse to pay out for suicide, but the majority have a suicide clause, whereby they only payout if the death occurs after a specific period of time.

If it occurs before this time, they may return the premiums or pay nothing at all. And if they have reason to believe that the policyholder took their own life just for financial gain, they will almost certainly investigate and may refuse to pay.

Dangerous Hobbies and Driving

If you die in a car accident and it is deemed that you were driving drunk, your policy may not payout. Car accident deaths are common, and this is a cause of death that policies do generally cover, but only when you weren’t doing something illegal or driving recklessly.

Deaths from extreme activities like bungee jumping or skydiving may be questioned, especially if these hobbies were not reported during the application. 

Illegal Acts

Your claim can be denied if you are committing an illegal act at the time of your death. This can include everything from being chased by the police to trespassing. A benefit may also be refused if you die for an intentional drug overdose using non-prescription drugs. 

Smoking or Pre-existing Health Issue

Honesty is key, and if you lie during the application or “forget” to tell them about your smoking status or pre-existing medical conditions, they may refuse to payout. It doesn’t matter if they performed a medical exam or not; the onus is not on them to spot your lie, it’s on you not to tell it in the first place.

This is one of the most common reasons for an insurance contract to be declared void, as applicants go in search of the cheapest premiums they can get and do everything they can to bring those costs down. They may also believe they will get away with their lies, either because they will give up smoking in a few months or years or because they will die from something other than their preexisting condition.

But lying in this manner is risky. You have to ask yourself whether it’s worth paying $100 a month for a valid policy that will payout without issue or $50 for a policy that will likely be refused and will cause endless stress for your beneficiaries.

War

Life insurance benefits generally don’t extend to the battlefield. If you’re a solider on the front line, your risk of death increases significantly, and many insurance policies won’t cover you for this. This is true even if you’re not in active duty at the time you take out the policy. More importantly, it also applies to correspondents and journalists.

You don’t invalidate your policy by going to a war-torn country and reporting, but if you die resulting from that trip, your policy will not payout.

Dismemberment

Your life insurance policy likely won’t pay for dismemberment or critical illness, but there are additional policies and add-ons that will provide cover. You can get these alongside permanent life insurance and term life insurance to provide you with more cover and peace of mind. 

They will come at a significant extra cost, but unlike traditional life insurance, they will payout when you are still alive and may make life easier after experiencing a tragic accident or serious illness.

We recommend focusing on getting life insurance first, securing the amount of coverage you need from a permanent or term life policy, and only then seeing if there is room in your budget for these additional options.

How Often Do Life Insurance Policies Payout?

We have recommended life insurance many times at PocketYourDollars and will continue to do so. We often state that it is essential if you have dependents and want to ensure they’re cared for when you die. But as much as we recommend it and as simple as the process of applying often is, there is one simple fact that we often overlook:

Life insurance companies rarely payout.

It’s a stat you may have seen elsewhere and it’s 100% true. However, contrary to what you might have heard or assumed; this is not the result of a refusal to pay the death benefit when the policyholder passes away. Sure, this accounts for some of those non-payments, but for the most part, it’s down to one of the following:

The Policyholder Survives the Term

The majority of life insurance policies are set to fixed terms, such as 10, 20 or 30 years. If anything happens during this period of time, your loved ones collect your death benefit, but if you survive, the policy ends, no money is paid out, and if you want another policy you will need to pay a larger sum.

The Policyholder Accepts the Cash Value

Whole life insurance policies are like investments crossed with life insurance. Your loved ones get a death benefit if you die, but it also accrues interest and can be cashed out. When this happens, the insurer collects, you get a sum of money, and it feels like a win-win, but in reality, the insurer has just dodged a bullet.

The Policyholder Stops Making Payments

As soon as you stop making your premium payments, you lose cover and you run the risk of your policy being canceled. This is true for pretty much any type of policy and it happens regardless of the policy term. 

Unlike a credit card company, which may chase you for payments, a life insurance company will place the burden of responsibility on you. After all, a creditor loses money when you don’t pay, whereas a life insurance company comes out on top.

This often happens when individuals take out substantial life insurance policies at a young age, only to suffer drastically changing circumstances. Imagine, for instance, that you’re 20-years-old and you buy a house with your spouse-to-be, with a view to settling down and starting a family. You assume that you’ll need it for a long time, so you take out a 30-year-term.

But 10 years down the line, your spouse leaves you, the family you wanted didn’t happen, and you’re all alone with no dependents, and with growing debts, bills, and obligations. At that point, life insurance becomes a burden, so you may stop making payments, thus allowing the insurance company to profit from 10 years of insurance premiums.

Summary: It’s Not That Cut-Throat

You don’t have to look far to find consumers who feel they have been wronged by life insurance companies, consumers who will expend a great deal of time and effort into calling out these companies for their perceived wrongdoings. But they often exaggerate the situation due to their extreme anger and this creates unrealistic anxieties and expectations.

The truth is, while there are people who have been genuinely wronged, they are in the extreme minority. The vast majority of family members who were refused a death benefit were let down by the policyholder and by the lies they told on their policy.

Policyholders lie about their weight, smoking status, and medical conditions, and when caught up in this lie, they often claim they made an honest mistake. But the truth is, most life insurance companies will overlook simple mistakes and only really care when it’s obvious that the policyholder lied. 

And let’s be honest, it doesn’t matter how forgetful you are, you’re not going to forget that you’re a chain smoker, alcoholic, drug user, extreme sports fan or that you recently had a medical crisis!

If the policy was filed honestly, you shouldn’t have an issue when you collect, even if it’s still in the contestability period. As discussed above, life insurance companies stack the dice in their favor. They use statistics and probability to carefully set the premiums and benefits, and they rely on policyholders forgetting to pay and outliving the term. They don’t need to “rob” you in order to make a profit. So, be honest when applying and you won’t have anything to fear.

What Causes of Death are not Covered by Life Insurance? is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

State Farm Auto Insurance Review

Key takeaways:

  • State Farm is the number one auto insurer in America
  • State Farm offers rideshare insurance, which can be added to a personal auto insurance policy, keeping their customers safe during work and pleasure.
  • State Farm offers programs like the Steer Clear driving course for drivers under the age of 25 as well as Drive Safe and Save, which is a device that awards you for good driving.
  • The company provides a long list of discounts to help get the lowest rates for policies, as well as a mobile app that allows you to shop for insurance, pay bills, and file claims right on their mobile app.

We all know about Jake from State Farm, wearing khakis at three in the morning, and the famous motto, “like a good neighbor, State Farm is there”. Those famous commercials have built a strong following for State Farm, but commercials aren’t the only reason State Farm is the number one company for auto insurance. State Farm offers a large selection of products and services, all sold by the company itself, as well as a wide range of discounts to help you get the best rate.

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About the Company

State Farm is the largest auto insurance provider, based on direct premiums written, with 16.2% of all auto insurance in force in the U.S. The company has more than 83 million accounts, with over $40 billion in direct premiums written.

Although the company offers a large variety of other services, their main product is car insurance. In this review, we’re going to focus on State Farm car insurance, and also spend some time on their home insurance offerings.

State Farm Car Insurance

Basic features of State Farm car insurance are as follows:

  • Availability: All 50 states, plus the District of Columbia
  • Covered vehicles: Autos, classic cars, snowmobiles, motorcycles, RVs, recreational vehicles, ATVs/UTVs, campers, dune buggies, golf carts, trailers, mobile homes, and boats
  • Customer support: 24/7, 365 days a year by phone
  • Claims satisfaction: According to the JD Power 2020 US Auto Claims Satisfaction Study (released in October, 2020), State Farm ranks #6 out of 24 companies providing car insurance nationwide. They score 881 out of a potential 1,000 points, which is above the industry average of 872.
  • Financial strength rating: A++ (Superior)
  • Better Business Bureau ranking: Not Rated

How to Sign Up with State Farm Car Insurance

Signing up for State Farm can be done online or by phone, as well as finding your local State Farm office and getting a quote in person.

Much like other insurance quotes, State Farm’s application requires basic information as well as your driver’s license number or social security number to get a quote. The application will also require either an email address or phone number from the applicant.

If you prefer live contact, State Farm has a network of offices and agents across the country to walk you through the application process.

Unique Features

State Farm is number one for a reason, and although they don’t always have the lowest rates, they do offer a long list of discounts as well as great customer service. Here’s what makes State Farm so great:

  • Large number of discounts: State Farm offers many discounts for any policy.
  • Accident-Free Discount: Discounts can be applied to your policy if you go three or more years without any accidents or claims.
  • Accident forgiveness: Offered to customers who’ve been with the company for 9 years and have no accidents.
  • Drive Safe and Save: A device in your car that allows you to keep track of your driving through the State Farm app, savings vary based on how well you score.

State Farm Auto Insurance Coverage Options

State Farm offers standard auto insurance coverage provisions.

  • Bodily injury and property liability coverage.
  • Collision and comprehensive coverage.
  • Uninsured and underinsured liability coverage.
  • Medical payment and personal injury protection coverage.

Optional coverage provisions include the following:

  • Rental car reimbursement and travel expenses: Your car must be undriveable in order to qualify, and you’ll receive reimbursement for a rental car while your vehicle is in the shop being repaired as well as up to $500 in travel expenses.
  • Rideshare coverage: Extends from your regular auto insurance policy and provides coverage when you’re logged into your ridesharing app and waiting for a trip request or if you’re a driver waiting for a customer.
  • Roadside assistance: Includes towing, lockout service, delivery of gas, oil, battery, or a flat tire change, and up to one hour of mechanical labor at the breakdown site.
  • Drive Safe and Save: Provides a score of how well you drive and discounts your premium based on your score.

NOTE: State Farm does not offer GAP insurance however, they do offer a Payoff Protector. If you have an auto loan through State Farm, the benefit covers the outstanding principal balance if your car is totaled or stolen. Otherwise you will need to obtain gap coverage from the dealer or lender on your vehicle.

State Farm Discounts

State Farm offers one of the most extensive lists of discounts in the auto insurance industry.

Below is a list of the discounts they offer, and the average premium savings you can expect:

  • Passive Restraint: varies (airbags, seatbelts, etc.)
  • Anti-Theft System: varies
  • Drive Safe and Save: up to 30%
  • Drivers Training: varies (under age 21)
  • Good Driver: varies (three or more years accident- and claim-free)
  • Defensive Driving: 10-15%
  • Good Student: 25%
  • Multi-Vehicle: 20%
  • Multi-Policy: 17%
  • Student Away at School: varies (under age 21)
  • Steer Clear: 15% (under age 25)

Sample Premiums

To provide reasonable estimates of State Farm car insurance premiums, the table below presents semi-annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the State Farm website.

Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

The limits we’ve used in our table are as follows:

1. 30/60/25 (the minimum coverage allowed in Texas)

2. 50/100/50

3. 100/300/100

In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.

We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77009), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.

For simplicity’s sake, each driver is single, rents their home and has a college degree.

Here are the results:

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
Rate for State Minimum –30/60/25 – Liability Only $434 $360 $273 $274
With Un/Under-insured Motorist and Collision & Comprehensive  $1,083  $922  $685  $685
50/100/50 – Liability Only  $472  $391  $297  $297
With Un/Under-insured Motorist and Collision & Comprehensive  $1,189  $967  $724  $724
100/300/100 – Liability Only  $512  $423  $322  $322
With Un/Under-insured Motorist and Collision & Comprehensive  $1,199  $1,024  $772  $772

NOTES: These are simplified quotes. For example, each driver’s credit history is not considered. Neither are certain optional coverages, like car replacement rental, roadside assistance, or GAP coverage for the payoff of a loan or lease.

Who State Farm Is Best For

Driver profiles and situations will vary, but State Farm may be the right choice for you if any of the following apply:

  • State Farm is the lowest-cost provider in your state for your driver profile.
  • You participate in ridesharing activities.
  • You have multiple drivers and vehicles that will qualify for several volume discounts.
  • You prefer dealing with a live agent, rather than an all-online experience.
  • You need multiple insurance policy types that you want to keep with one company.

State Farm vs. Other Car Insurance Companies

The table below compares State Farm with three of the most popular auto insurance providers in the country: Progressive, Geico, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.

Category / Company State Farm Progressive Geico Allstate
Average Annual Premium: State Minimum $500 $516 $464 $756
Average Annual Premium: 50/100/50 with Collision & Comprehensive $1,190 $1,106 $1,006 $1,754
Average Annual Premium: 100/300/100 with Collision & Comprehensive $1,380 $1,346 $1,222 $2,140
J.D. Power Claims Satisfaction Rating 881/1,000 856/1,000 871/1,000 876/1,000
A.M. Best Financial Strength Rating A++ (Superior) A+ (Superior) A++ (Superior) A+ (Superior)

The company that you feel will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.

SOURCE: Average Cost of Car Insurance in 2021 from The Zebra

What To Know About Auto Insurance

You’ll want to make sure that the coverage you carry matches your net worth. Cutting corners on price and coverage can leave you in financial ruin. If you find yourself in an accident, a lower premium may not provide you with enough coverage. Below are some things to look for when shopping around for a premium.

  • Keep sufficient coverage: State minimum may not be enough coverage, especially if you’re a higher risk driver or you drive a newer, more expensive car.
  • Clean credit: Insurers will look to your credit score when it comes to your premium. If you have a higher score, it’s more likely you’ll get a lower rate.
  • Add important coverage options: Although most states require insurance, some people still drive without it, or an insufficient amount of it. Optional provisions like uninsured/underinsured motorists can protect you if you’re in a situation with either type of driver.
  • Deductible: Larger deductibles will lower your rate, but don’t choose a deductible unless you’re sure you can pay it upfront for a claim.
  • Discounts: Most insurers offer discounts, find out from each company about any and all that apply to you.
  • Shop around: Get quotes from several companies to compare coverage and premium.

State Farm Home Insurance

State Farm ranks Number 1 in homeowner’s insurance. Although the company has fewer discounts than other home insurers, they still offer the same types of coverages.

  • Availability: all 50 states

Basic Home Insurance Coverage

State Farm home insurance policies provide the following basic homeowner coverage types:

  • Dwelling: Covers damage to your home as well as loss of your home in the event of an incident.
  • Personal possessions: Protects against damage, theft, and destruction of your personal items.
  • Loss of use: Provides coverage for living expenses, like lodging, if you’re unable to stay in your home.
  • Medical Payments: Covers medical bills for someone injured on your property.
  • Liability: Much like auto insurance, this provision offers protection for bodily injury and property damage against someone that you’re at-fault for.

Home Insurance Discounts

State Farm’s home insurance discounts are similar to those available for car insurance, and include:

  • Bundle home and auto
  • Sprinkler system discount
  • Security device discount
  • Damage resistant roofing material discount

State Farm Home Insurance Ratings & Average Premium

  • Claims satisfaction: Scored 880 out of 1,000 points 2021 US Property Claims Satisfaction Study, ranking #13 among18 companies nationwide.
  • Financial strength rating: A++ (Superior) by A.M. Best.
  • Average homeowner’s insurance premium: $1,296 (SOURCE: The Zebra)

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Make sure that both investments are protected at all times while you save money. Click below to get a free quote.

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How to Sign Up with State Farm Home Insurance

Much like a State Farm car insurance quote, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number or go to a local office.

Other Services Offered by State Farm

Listed below are the other products and services that State Farm provides.

  • Pet insurance (through Trupanion)
  • Disability (long and short term)
  • Life insurance (term, whole, universal, change policy and beneficiary)
  • Small business insurance (owner, commercial, contractors, workers comp., liability umbrella, bonds)
  • Liability (business, professional, personal)
  • Health insurance (individual, supplemental, Medicare)

If any of the above situations apply to you, you may want to discuss it with a State Farm representative when adding it to your auto insurance policy, or if you already have a policy with them.

The Bottom Line

State Farm covers more than 16% of all drivers in the country, as well as being number one in life insurance and homeowner’s insurance. With such high ratings in customer satisfaction and customer service, it’s hard not to give them a chance. When searching for any kind of insurance, State Farm should be among the companies you look to for a quote.

State Farm FAQs

Is State Farm good car insurance?

State Farm is the biggest auto insurer in the country. Customers are typically drawn to a company by a combination of quality and affordability, so this speaks volumes about State Farm. They offer a wide range of insurance policies, including life, health and business insurance, which makes it easier for consumers to keep all their insurance coverage with the same company.

Is State Farm the cheapest insurance?

State Farm is not always the cheapest, though they are the lowest in some states. But car insurance should never be purchased based on premium alone. You need to evaluate the cost of a policy against the quality of coverage being provided. State Farm comes up strong in those comparisons.

Is State Farm good at paying claims?

State Farm ranks sixth in the nation on customer claims satisfaction, according to the J.D. Power 2020 US Auto Claims Satisfaction Study cited earlier. That’s no small advantage, given the large number of auto insurance companies in the country. You can generally expect a good claims experience with State Farm.

The post State Farm Auto Insurance Review appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Do I Need Long-Term Care Insurance?

Inscription: long-term care insurance

A 65-year-old person today has nearly a 70% chance of requiring long-term care services at some point, according to the Administration for Community Living (ACL) and the Administration on Aging (AOA). Of that group, 20% will need it for over five years. So, chances are, you may also need this type of service down the line. But how will you pay for it? A long-term care insurance policy is one method to help lessen the bite of care costs. Here’s how.

Consider working with a financial advisor as you prepare for the possibility that you will need to be able to pay for long-term care.

What Is Long-Term Care Insurance?

To put it briefly, long-term care insurance helps cover the costs of long-term care services, such as in an assisted living facility. Other places where a long-term care policy will reimburse you include an adult day care center, a nursing home and your own home.

Generally, eligibility starts when you can no longer perform, independently, two of the six activities of daily living (ADL): mobility, which may include being able to transfer between a wheelchair and bed; bathing or showering; using the lavatory; maintain bladder and bowel control; dressing; and eating. Then you can take advantage of a wide range of aid.

Typical health insurance doesn’t cover these types of costs. And both Medicare and Medicaid have limitations, making them unreliable for the average person’s long-term care.

Even long-term care insurance policies require you to pay for services out of pocket up to a certain amount of time. Afterward, the insurer begins to reimburse you. Policies may pay up to a daily limit, with a maximum lifetime limit as the cap. However, couples may get around that by using a shared care option. With this, you can pool benefits.

The rate you pay for the policy will depend on multiple factors, including your age, marital status, gender, health, coverage level and insurer.

What Does Long-Term Care Insurance Cover?

What type of long-term care long-term insurance covers depends on the policy you buy.

However, these policies are comprehensive and will cover the expenses that Medicare doesn’t. Costs that it pays for include:

  • In-home care
  • Care coordination
  • Assisted living facilities
  • Nursing home care
  • Adult day care services
  • Home modification

They may also include paying for assistance with ADLs, like bathing.

Additionally, it may cover stays in hospice care or respite care. Hospice care is generally short-term and provides emotional and physical support for the terminally ill and their families. In contrast, respite care or temporary care, gives primary caregivers a break by offering care through other facilities or professionals. While these two services address two different needs, policyholders can receive help paying for either.

Keep in mind, though, long-term care coverage doesn’t pay for everything. It’s designed for custodial care, not medical care costs. Certain factors may also affect your eligibility, such as a pre-existing medical condition, such as dementia or Parkinson’s disease.

It’s up to you to decide how much coverage you need and how much you can afford. It’s crucial that you purchase within your budget. But you still want a sufficient amount of benefits to support you while you age.

Reasons to Get Long-Term Care Coverage

Consider the variety of insurance policies you already own. From homeowners to auto to life, you probably have multiple reasons why you purchased them. Likewise, there are several reasons that people see the value in long-term care coverage. Here are some ways it might impact your life for the better.

Preserves your assets

While you can get an estimate, it’s hard to pinpoint the exact price you’ll pay for long-term care. While you can find estimates, such as through the Genworth Cost of Care Survey tool, the guesswork makes it difficult to save enough.

In addition, relying on Medicare or Medicaid could leave you at a financial loss. Medicare won’t help with the costs of permanent and ongoing care. Likewise, Medicaid has its limitations, namely its income guidelines and the level of care needed to qualify.

An insurance policy ensures you don’t have to drain all your savings to be eligible for financial help. And, it takes the financial burden off of your family by safeguarding some of those remaining retirement assets.

Creates care options

Handicapped woman in a wheelchair outside

We all have an ideal future as we age. Purchasing a long-term care insurance policy ensures you have a safety net installed into your financial plan. It can be incredibly costly to pay for long-term care out of pocket. And while Medicaid can help pay for specific costs, such as nursing home care, when you’re out of savings, it won’t pay for everything. For example, it doesn’t always cover assisted living options or home-based care.

Long-term care insurance ensures you can pay for the type of care you want and need when the time comes. You can use it to supplement the savings you already have.

Protects your family

Naturally, most of us would like to stay in our own homes throughout our senior years. But with the likelihood of needing long-term care, that can put a strain on our loved ones. As a result, family members, partners and friends often take on the caregiver role, which can be difficult. According to the American Association of Retired Persons’ (AARP) data, one in three caregivers provides care completely alone. Many of which go unpaid despite caring for recipients with complex support and medical needs.

If you’re considering long-term care insurance, think about the future you see for yourself and your potential caregiver. What does the impact look like on their life? There will be financial and emotional burdens in addition to the work.

By purchasing a policy, you ensure there are some finances to pay for outside help. That takes a weight off of your shoulders and and those of your loved ones as well.

How to Buy Long-Term Care Coverage

The options available to you may vary. Some employers offer their employees the opportunity to buy a long-term care policy through their workplace. Occasionally, this comes at a discounted group rate from their broker. While you may have to answer a few questions about your health to qualify, it may be easier or less expensive than purchasing a policy on your own.

Otherwise, you can buy coverage directly through an agent or insurance company.

If you’re shopping for a policy, remember to get several quotes from varying companies. That way, you can compare your pricing options. Comparison shopping is important, regardless of whether you purchase independently or through work. The discount that may come with an employer’s plan may be nice, but it’s still possible to find competitive rates.

It’s also advisable to work with an independent long-term care insurance agent who can sell products from various carriers. From there, it’s a matter of finding a policy to fit your needs.

Do I Need Long-Term Care Coverage?

Every person’s situation is different. If you have very little funds during your senior years, you may qualify for Medicaid. This option may offer fewer choices, but it does provide funding for low-income individuals. On the other hand, if you have more than enough savings, it might be better to pay out of pocket instead.

However, if you fall between the two ends of the financial spectrum, then long-term care insurance may be worth consideration. It protects your retirement savings from pricey and unexpected medical costs, ensures choice in care and offers you and your family peace of mind.

Additionally, think about the lifestyle you live. For example, if you have no one you can rely on as a caregiver then you likely need the option of a facility. Or, if you’re a woman, you’ll likely live longer and need longer care as a result. On average, women need 3.7 years of care, whereas men only need 2.2, according to the ACL.

The Bottom Line

Happy senior coupleLong-term care is incredibly expensive. Genworth estimates that the median costs for in-home care, assisted living facilities and nursing home facilities all exceed $50,000 per year. As a result, it’s wise to evaluate how you would pay for your potential long-term care needs. A long-term care insurance policy is just one method. While it offers financial and emotional protection, it may still be an additional cost you’re not prepared to pay.

Long-Term Care Planning Tips

  • Long-term care comes with millions of questions. You can address them with an experienced financial advisor. SmartAsset’s free matching tool makes it easy to find a qualified, local professional, too. Simply answer a few questions and in no time you have up to three advisors who can guide you through your process. If you’re ready to tackle financial planning, get started now.
  • Planning for long-term care is crucial to any financial plan. A high percentage of Americans will likely need this vital service at some point. So, review SmartAsset’s guide to creating a financial plan to make sure yours includes that possibility.

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The post Do I Need Long-Term Care Insurance? appeared first on SmartAsset Blog.

Source: smartasset.com

What is Accidental Death Insurance, and do you Need it?

Accidental death insurance, also known as accidental death and dismemberment insurance, is a type of limited life insurance often acquired for a nominal fee or added to an existing policy. As the name suggests, it releases a benefit if the policyholder dies from an accident or suffers a dismemberment.

Accidents kill an estimated 160,000 Americans a year and are far more common amongst men aged between 18 and 44. Many of these deaths occur as a result of falls and motor traffic accidents, both of which are covered by most accidental death insurance policies.

When You Don’t Need Accidental Death Insurance

If you already have life insurance, you can probably overlook accidental death insurance. In such cases, it will simply increase the value of the payout when you die, known as “double indemnity” coverage.

Unlike whole-life insurance policies, it does not provide policyholders with a separate investment vehicle that they can cash out at a later date. Generally, accidental death insurance doesn’t offer anything that a traditional life insurance policy can’t provide, and it may therefore be deemed an unnecessary expense.

However, there are exceptions.

When You Need Accidental Death Insurance

An accidental death benefit can’t provide you with anything that you won’t get from a traditional life insurance policy. However, it’s a different story with dismemberment insurance. This will cover you in the event that you lose a finger, toe or arm, which means you’ll have the money you need for medical costs and may be compensated for lost work.

Accidental death insurance can also help to cover any additional medical fees that result from necessary treatment taken after an accident and before death. Your family may be forced to cover these bills, and an additional death benefit can help them with that. 

Accidental death and dismemberment insurance is not something we would recommend in lieu of traditional life insurance, but if you have the option to add it to an existing policy for a few bucks a month, it’s well worth considering.

How Much Does Accidental Death Insurance Cost?

The price of your accidental death insurance premiums will depend on your payout as well as your risk factor. The average person can expect a charge of roughly $5 per month for every $50,000 of coverage, which means a benefit of $100,000 could cost as little as $10 a month.

But, as we have discussed many times before, underwriters focus on probabilities.The more likely you are to die from an accident, the higher those premiums will cost. For instance, if you’re an 18-year-old who has just started driving and enjoys a few high-risk hobbies, you may see those premiums climb.

How Long Does Accidental Death Insurance Last?

Accidental death insurance policies typically run for up to 40 years. You choose the desired term at the start and this is used to calculate your premiums, with longer terms leading to higher prices on account of the increased risk.

What is Not Covered by Accidental Death Insurance?

Accidental death insurance generally doesn’t cover all accidents and all dismemberments. The exact coverage will depend on the policy, and it’s possible to tailor your policy to include some of the things not traditionally included, but this may increase the premiums.

Suicide

Suicide is a tricky one. Many life insurance policies will payout if the policyholder commits suicide, but only if it occurs after the first two years and it is proved that they committed suicide so their loved ones would benefit (although this is not easy to prove).

However, accidental death insurance policies tend to rule suicide out altogether. Many deaths caused by misadventure may be queried as suicide, such as falls and drownings, but unless there is actual proof that they intended to take their life, the death will often be ruled as misadventure, in which case an accidental death insurance policy may payout.

War Injuries

Accidental death insurance rarely pays out for deaths resulting from war injuries. This is true whether the policyholder is shot or dies from an explosion or fall. That death was certainly not intentional, so you could argue that the policy should pay, but most insurers will refuse.

Illness and Disease

An accidental death insurance policy is not designed to payout in the event that you die from an illness or disease. Your beneficiaries may also face some resistance if you had a serious illness or disease at the time of your death but an accident was ultimately the thing that killed you.

For instance, if you have a serious mobility problem and this causes you to fall, hit your head, and die, then technically an accident killed you, but that accident wouldn’t have happened if not for the illness, creating some technicalities that will no doubt lead to problems when filing a claim.

Drugs or Alcohol

An accidental overdose is rarely covered by accidental death insurance. There will be no benefit for your loved ones if it leads to your demise, and no benefit for you if it leads to long-term health complications.

This is not true for all policies, however, and there may be exceptions for drugs that were prescribed.

How Can the Cause of Death be Proved?

As alluded to already, the cause of death isn’t straightforward. With a traditional life insurance policy, if the policyholder dies outside of the contestability period, the insurers will rarely get involved. That changes if they have suspicions about the death and believe that a crime was committed (fraud, murder) but it’s rare.

With accidental death insurance, however, there are many more nuances. As a result, an official investigation may be ordered, and this can include an autopsy.

How Does the Dismemberment Payout Work?

If the policyholder losses an appendage as a result of an accident, they may receive a partial benefit paid direct to them. The policy will dictate how much is paid and why, but generally the payout will be made following a non-excluded accident that results in the loss of:

  • An arm
  • A leg
  • A finger
  • A toe
  • Sight

Higher payouts may also be provided if the policyholder suffers complete paralysis.

What is Accidental Death Insurance, and do you Need it? is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

Esurance Car Insurance Review

Key takeaways:

  • Esurance was purchased by rival insurance company Allstate in 2011, yet these two companies still operate independently of one another.
  • While it has been reported that Allstate was planning to drop Esurance in 2019 and then again in 2020, this hasn’t happened yet.
  • Esurance was originally envisioned as a low-cost insurance provider that may be able to compete with GEICO and Progressive.
  • The company makes it easy to get an online quote for car insurance, and multiple discounts can help you save big on premiums.

Esurance was originally envisioned as an online auto insurance provider who could provide cheaper premiums than other big players in the industry. While originally founded in 1999, the company was purchased by Allstate in 2011. To this day, Esurance is still part of the Allstate family, which brings more than 90 years of experience in the insurance industry along with it.

Unfortunately, Esurance was not rated in the most recent auto insurance study from J.D. Power, so it’s somewhat difficult to gauge customer service satisfaction ratings among customers with this company. With that being said, Esurance does boast an average star rating of 3.9 out of 5 stars across more than 1,300 reviews on Consumer Affairs.

If you’re in the market for a new auto insurance policy, you may be wondering if Esurance is worth considering. Read on to learn how this company’s car insurance policies are structured and whether you should consider it.

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About the Company

  • Esurance was founded in 1999 before being purchased by Allstate Insurance in 2011. 
  • A.M. Best, an independent insurance rating organization, awarded Esurance an A+ rating for its financial strength. 
  • Currently, Esurance is licensed to offer auto insurance in 43 states. 
  • Esurance claims to offer auto quotes online in as little as six minutes, and that customers who switch save an average of $462 on their policies. 

In addition to auto insurance, Esurance also offers homeowners insurance, renter’s insurance, motorcycle insurance and more.

Esurance Car Insurance Sample Rates

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
30/60/25– Liability Only $186.43 per month $171.10 per month $145.78 per month $142.78 per month
With Un/Under-insured Motorist and Collision & Comprehensive $485.31 per month $418 per month $290.05 per month $283.98 per month
100/300/100 – Liability Only $260.40  per month $245.74 per month $180.26 per month $174.93 per month
With Un/Under-insured Motorist and Collision & Comprehensive $464.97 per month $417.17 per month $324.54  per month $315.54 per month

To come up with the sample auto insurance premiums for the chart above, we sought quotes for Houston, Texas drivers ages 23 and 53. Each quote is for a single insured driver who owns a 2018 Toyota Camry and drives approximately 12,000 miles per year. Quotes in the chart are for fully-employed male and female drivers with a clean driving record.

Note: Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

Unique Features

Esurance does offer some unique features that help them stand out, including the following:

  • Rideshare Coverage: Esurance offers specialized ShareSmart® coverage for customers who drive for Uber or Lyft. 
  • Esurance Mobile App: You can use the Esurance mobile app to check the details of your policy, update your coverage, pay your car insurance bill, file a claim and more.
  • DriveSense Savings Program: This program lets you download an app and save on car insurance premiums based on how you drive. 
  • Flexible Coverage Options: You can tailor your auto insurance coverage options and limits to your needs and your budget.
  • Photo Claims: The Esurance mobile app lets you file claims using your mobile device, often by taking a photo of the damage with your phone.

Esurance Car Insurance Discounts

Like other major car insurance providers, Esurance offers a range of discounts that can help you pay less for your premiums overall. Also be aware that Esurance makes it possible to “stack” multiple discounts for even more savings. For example, you can save money with one of the discounts below while also using their DriveSense savings app and program.

If you’re planning to get a quote for auto insurance from Esurance, make sure to see if you’re eligible for the following discounts:

  • Full Payment Discount: Pay less for your policy when you pay for six months of premiums upfront instead of on a monthly basis.
  • Good Student Discount: Score lower premiums if you’re a student with good grades or an excellent GPA.
  • Multiple Policy Discount: You can save on auto insurance with Esurance if you also use this company for your homeowners insurance or renter’s insurance coverage.
  • New Customer Discount: Esurance says new customers qualify for special savings that work out to an average of $462 when they switch insurance providers.
  • Safety Features: Pay less for your auto insurance coverage if you have safety features like anti-lock brakes and airbags.
  • Low Mileage Discounts: Customers often pay less for auto insurance when they work at home or drive their cars infrequently.
  • Multiple Vehicle Discounts: Insure more than one car within your Esurance policy and you can get a discount on your overall premiums.
  • Safe Driving Discounts: You’ll pay less for premiums if you have a safe driving record without any tickets or accidents.
  • PayPal Discount: Some customers are eligible for a discount if they have a PayPal account and have made an eligible transaction in the last 12 months.
  • Online Shopper Discount: Get a discount just for shopping for car insurance with Esurance online.

Who Esurance is Best For

If your goal is getting a good deal on car insurance, you should shop around and compare premiums with at least three or four different insurance companies. With that being said, you should make sure you’re comparing premiums for the same level of coverage and the same policy limits.

While Esurance auto insurance may or may not offer better premiums than other providers when you enter your information, we still believe this company is better for certain types of consumers than others.

For example, Esurance may be ideal for:

  • Rideshare drivers who want additional protection when they drive for Uber or Lyft
  • Anyone who plans to bundle their car insurance with renter’s insurance or another policy in order to save money
  • Consumers who want to manage their car insurance and make claims using a mobile app
  • People who can qualify for multiple Esurance discounts to save big on premiums
  • Anyone who wants to try the Esurance DriveSense program for even more savings
  • People who want insurance “extras” added to their policy, such as roadside assistance, loan/lease gap coverage and rental car coverage

To find out if Esurance is right for your insurance needs, you’ll want to start the process by getting a free quote. From there, you can play around with coverage options and policy limits to see how much you would need to pay for the amount of coverage you need to sleep well at night.

Esurance vs. Other Insurance Companies

As we mentioned already, we also suggest comparing auto insurance premiums among at least three or four different providers. This exercise will help you determine which company offers the best coverage for a price you can afford.

To help in your search, we picked a few top providers that offer similar coverage options to Esurance. The following chart highlights the basic details of three other auto insurance companies — GEICO, Liberty Mutual and Allstate.

GEICO Liberty Mutual Allstate
Discounts offered Vehicle equipment discountsDiscounts for driving history and habitsGood Driver discountGood student discountFederal employee and military discountsMultiple policies Vehicle equipment discountsDiscounts for driving history and habitsHomeowner discountMilitary discountMultiple policy discountGood student discountEarly shopper discount New car discountMulti-policy discountGood student discountEquipment discountsPayment discountsSafe driving discounts
Ratings for customer service in J.D. Power’s 2021 U.S. Auto Insurance Study Scored above average in 3 out of 11 regions nationwide Scored above average in 2 out of 9 regions where offered nationwide Scored above average in 1 out of 11 regions nationwide
Customer star rating (Consumer Affairs) 3.7 out of 5 stars 4 out of 5 stars 3.8 out of 5 stars
Financial strength rating (A.M. Best) A++ A A+

What To Know About Esurance Car Insurance

Esurance offers robust auto insurance coverage with plenty of ways to customize your policy. With that being said, they note that their insurance coverage is mostly aimed at protecting you in the following three areas:

  • Coverages that protect your car 
  • Coverages that protect you and your passengers (medical)
  • Coverages that protect your wallet (liability)

Within these three categories, the main types of auto insurance coverage you can purchase through Esurance include the following:

  • Collision coverage that helps repair or replace your car in the event of an accident
  • Comprehensive coverage that protects your car from damage not caused by an accident
  • Emergency roadside assistance that can be there for you if you run out of gas, your car breaks down or you need other types of help
  • Rental car coverage that reimburses you if your car is being fixed and you need a rental car
  • Loan or lease gap coverage that kicks in to pay the difference when your car is totaled and you owe more than it’s worth
  • Medical payments coverage for you and the passengers in your car
  • Personal injury protection (PIP) that covers your medical expenses regardless of who was at fault in an accident
  • Bodily injury liability coverage that protects the driver against financial losses when another person is injured in an accident
  • Property damage liability coverage that protects the driver when another person’s property is damaged in an accident
  • Uninsured/underinsured motorist coverage that kicks in to pay for bodily injury and property damage claims when the other party in an accident is uninsured or underinsured

Note that these are the types of coverage you can buy through Esurance, but that you can tailor your policy so you’re only paying for the types of insurance you want or need. You can also play around with policy limits, deductibles and other coverage options to get your monthly premiums where they need to be.

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The Bottom Line

Esurance is a highly-rated auto insurance provider that offers coverage in 43 different states. You may be able to save money on premiums with the many auto insurance discounts they offer, and you can find out in six minutes or less by getting a free quote from Esurance online.

With that being said, it never hurts to compare coverage options from other auto insurance providers, including ones that may have more reviews as well as ratings from third parties like J.D. Power.

Esurance Auto Insurance Frequently Asked Questions (FAQ)

Are Esurance and Allstate the same?

Allstate purchased Esurance in 2011, and rumors have swirled the last few years that the insurance giant plans to drop the brand. However, Allstate still owns Esurance as of August 2021. While one company owns the other, the two insurance companies operate independently.

How do I pay Esurance?

You can pay Esurance premiums over the phone, on the company website or using the Esurance mobile app.

How do I contact Esurance?

You can call Esurance 24 hours a day at 1-800-378-7262. You can also contact the company through their online email form, reach out to Esurance on Facebook or tweet the company at @Esurance.

What kinds of insurance can I get through Esurance?

Esurance offers auto insurance, homeowners insurance, renter’s insurance and motorcycle insurance.

The post Esurance Car Insurance Review appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Allstate Insurance Auto Review

Key takeaways:

  • Allstate ranked below average for customer service satisfaction in most regions nationwide, according to 2021 data. 
  • This provider offers a plethora of auto insurance discounts you can qualify for, as well as its own driving-based Allstate Drivewise program.
  • Allstate features an easy online claims process, as well as an online portal where you can track your policy information and payments.

Allstate is one of the most popular auto insurers nationwide, and this is partly due to the company’s marketing efforts. After all, the company slogan — “You’re in good hands” — gives potential customers a warm and fuzzy feeling about the coverage they’re buying, and their low introductory rates for new customers can easily lure people in.

Unfortunately, not all Allstate customers are happy with their experience when it comes time to file a claim. This is evidenced by J.D. Power’s 2021 U.S. Auto Insurance Study, which ranked Allstate below average for customer service satisfaction in 10 out of 11 regions nationwide. Some Allstate car insurance customers have also complained about premiums that inch up over time, as well as problems getting claims covered or reimbursed.

If you’re shopping for car insurance, however, you’ll quickly find that all insurers have their downsides. Keep reading to learn how Allstate Auto Insurance stacks up to the competition, when you should consider it and how to qualify for the best car insurance rates.

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About the Company

  • Allstate Insurance was originally founded in 1931, and they have since grown to become a top provider of auto insurance, homeowners insurance, umbrella insurance and more.
  • As of July 2021, Allstate Insurance Group boasts an A+ (Superior) rating for their financial strength from A.M. Best.
  • This company offers a rewards program for customers who use their Drivewise program, which lets you earn points you can redeem for merchandise, sweepstakes entries and more.
  • Customer reviews for Allstate are mixed. Currently, Allstate has an average rating of 3.9 out of 5 stars among customer reviews on Consumer Affairs. 
  • Allstate offers auto insurance in all 50 states with an array of discounts available.
  • Allstate also offers a robust roadside assistance program that can provide coverage for less than $7 per month during your first year.
Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
50/100/50 – Liability Only $77 per month $77 per month $64 per month $62 per month
With Un/Under-insured Motorist and Collision & Comprehensive $272 per month $200 per month $155 per month $143 per month
100/300/100 – Liability Only $82 per month $82 per month $84 per month $82 per month
With Un/Under-insured Motorist and Collision & Comprehensive $298 per month $205 per month $172 per month $150 per month

The sample auto insurance premiums shared in the chart above are based on Houston, Texas drivers ages 23 and 53. Each quote is for a single insured driver who owns a 2018 Toyota Camry and drives approximately 12,000 miles per year. Quotes in the chart are for male and female drivers with no accident history who are employed full-time.

Note: Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

Unique Features

Allstate does have some unique features that help them stand out as an auto insurance provider. Some of these features provide additional coverage that can help protect against financial losses, while others help customers secure lower auto insurance premiums overall.

  • Rideshare coverage: Allstate offers rideshare coverage in nearly every state, which makes it easy for Uber or Lyft drivers to add this coverage to their personal auto insurance policy. 
  • Drivewise Program: The Allstate Drivewise program lets you save on auto insurance premiums when you agree to install a monitoring device in your car. This device can help you secure discounts when you drive within speed limits, avoid braking incidents and avoid accidents.
  • Allstate Rewards: Allstate Rewards lets customers earn points toward merchandise and sweepstakes entries when they use the Drivewise program and achieve certain driving milsteones.
  • Deductible Rewards: Allstate customers can get $100 off their deductible for signing up and another $100 off their deductible for each year they remain accident-free. The total deductible discount you can gain through this program is capped at $500.
  • Accident Forgiveness: This program allows you to maintain current rates when you’re at fault in an accident. In other words, your auto insurance rates won’t surge when you need to file a claim.
  • Safe Driving Bonus: Add this program to your policy and you can get a bonus when you are accident-free. Allstate auto insurance customers are eligible for a bonus every six months.
  • New Car Replacement: If your car is totaled, having this feature on your policy means you’ll get a new car replacement instead of a check for the depreciated value of your vehicle.
  • Allstate Mobile app: The Allstate mobile app makes it easy to file a claim, monitor your policy and pay your auto insurance premiums from your favorite mobile device.

Roadside Assistance: You can purchase premium roadside assistance coverage with your policy. This protection provides 24/7 assistance when you have a flat tire, you run out of gas or you encounter a problem when driving your vehicle.

Allstate Car Insurance Discounts

One of the major benefits of using Allstate auto insurance is the fact you may be eligible for so many discounts. Also note that the Allstate insurance company lets you combine or “stack” discounts to achieve the lowest rates you possibly can, which is something you’ll quickly notice when you take the time to get an Allstate insurance quote.

Which car insurance discounts from Allstate are most popular? The following discounts could apply to your policy:

  • New car discount: You can save big on your auto insurance premiums if you insure a brand new car with Allstate.
  • Multi-policy discount: Save money with Allstate when you insure more than one vehicle, or when you bundle your Allstate car insurance with homeowners insurance, renter’s insurance or another type of coverage.
  • Smart student discount: You may be eligible for additional discounts if you meet Allstate’s “smart student” requirements by maintaining a GPA of 2.7 or above, attending a teenSMART driver education program or attending school at least 100 miles from where your car is garaged.
  • Equipment discounts: Save on Allstate car insurance premiums when you have anti-lock brakes or an anti-theft device installed on your car.
  • Payment discounts: Pay less for car insurance if you pay for six months of premiums in full, you set up automatic withdrawals for your premiums each month or you enroll in paperless billing.
  • Safe driving discounts: You’ll also pay lower premiums when you remain accident-free and claims-free each year.

Who Allstate Auto Insurance is Best For

As you begin your search for a new auto insurance policy, you’ll probably consider the premiums you’re asked to pay first and foremost. However, you should make sure you’re making a true “apples to apples” comparison if you’re mostly shopping around based on price. For example, make sure the coverage you’re comparing from Allstate and other providers features the same coverage limits and deductibles, as well as the same add-ons and extras.

With this being said, Allstate insurance can be far superior for certain types of consumers, including:

  • Rideshare drivers who want to bundle coverage for their side hustle into their personal auto insurance policy
  • People who can qualify for multiple insurance discounts that help them lower premiums
  • Anyone who plans to bundle their Allstate auto insurance with homeowners insurance, renter’s insurance coverage or another type of insurance
  • Excellent drivers who want to use the Drivewise program to save based on their everyday driving habits
  • Anyone with a good driving record who could qualify for lower premiums based on their age, gender, credit score and other factors

At the end of the day, the best way to know if Allstate is for you is to take the time to get an Allstate insurance quote. From there, you can compare coverage levels and premiums from Allstate with quotes from competing auto insurance providers.

Allstate vs. Other Insurance Companies

Speaking of comparing quotes, there are plenty of other top auto insurance companies you should check out. Many even feature better customer service ratings than Allstate, and you could have the potential to qualify for lower rates based on the information you provide in your application.

The following chart highlights the basic details of three other auto insurance companies — GEICO, State Farm and Liberty Mutual.

GEICO State Farm Liberty Mutual
Discounts offered Vehicle equipment discountsDiscounts for driving history and habitsGood Driver discountGood student discountFederal employee and military discountsMultiple policies Vehicle equipment discountsDiscounts for driving history and habitsAccident-free discountsMultiple auto policyMultiple line discountsGood student discount Vehicle equipment discountsDiscounts for driving history and habitsHomeowner discountMilitary discountMultiple policy discountGood student discountEarly shopper discount
Ratings for customer service in J.D. Power’s 2021 U.S. Auto Insurance Study Scored above average in 3 out of 11 regions nationwide Scored above average in 10 out of 11 regions nationwide Scored above average in 2 out of 9 regions where offered nationwide
Customer star rating (Consumer Affairs) 3.7 out of 5 stars 3.9 out of 5 stars 4 out of 5 stars
Financial strength rating (A.M. Best) A++ A++ A

What To Know About Car Insurance

Before you invest in a car insurance policy, you should know about the different types of coverage you can buy, what they provide protection for and how important they are. Generally speaking, auto insurance coverage is meant to provide property, liability and medical coverage.

According to the Insurance Information Institute (III),

  • Property coverage pays to repair damage to a car, or to replace a car in the event of a theft.
  • Liability coverage pays for bodily injury or property damage caused to others.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses when the insured is at fault or responsible.

Other major types of car insurance protection include:

  • Collision coverage, which pays for damage to the policyholder’s car when an accident takes place
  • Comprehensive coverage, which kicks in to pay for theft or damage to a car that is not caused by a collision with another car
  • Uninsured and underinsured motorist coverage, which pays for covered losses when a covered driver is hit by an uninsured or underinsured driver

In addition to understanding the types of protection your auto insurance company can include, you should also understand policy limits for different types of coverage, as well as state minimum coverage amounts that can vary based on where you live. While state minimum auto insurance coverage can help you meet the legal limits for being an insured driver, you should know this amount of coverage may not be enough if you’re in an accident where substantial losses occur.

The Insurance Information Institute (III) features a chart that shows the minimum amount of liability coverage you’re required to have based on the state you live in. Keep these minimum limits in mind, but also know that cheap car insurance may or may not provide enough coverage to protect you from substantial financial losses when you’re in an accident.

The Bottom Line

Allstate could provide the auto insurance coverage you need for a price you can afford, but you’ll never really know unless you check. As you shop around for quotes, make sure to see whether you’re eligible for Allstate auto insurance discounts, including “easy” discounts you can get by enrolling in paperless billing or paying for six months of premiums upfront. Also check how your rates might change if you go with higher or lower coverage limits, or if you agree to install a Drivewise device in your vehicle.

While you’re taking the time to get an Allstate insurance quote, however, you should make sure you’re comparing coverage limits and premiums across at least two or three other insurance providers. Auto insurance premiums can vary widely across different insurance companies, and shopping around is the best way to make sure you don’t overpay.

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Allstate Auto Insurance Frequently Asked Questions (FAQ)

Is Allstate a bad insurance company?

Allstate is not a “bad” insurance company at all, but they do have room for improvement. After all, the company scored below average for customer satisfaction in 10 out of 11 regions profiled in J.D. Power’s 2021 U.S. Auto Insurance Study. Then again, Allstate does have an A+ rating from A.M. Best for their financial strength.

Is Progressive cheaper than Allstate?

Your auto insurance rates will vary from company to company, so make sure to compare premiums for the same level of coverage with Progressive and Allstate.

How do I check my Allstate insurance policy?

You can read over your policy declarations and other details on Allstate.com when you create an account. You can also check your Allstate policy details on the company’s mobile app.

How do I contact Allstate Insurance?

You can contact Allstate Insurance at 1-800-ALLSTATE.

The post Allstate Insurance Auto Review appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Progressive Auto Insurance Review

Key takeaways:

  • Progressive is one of the lowest-cost car insurance providers in most states.
  • They offer rideshare coverage for gig workers.
  • Progressive features an easy, online, obligation-free quote system that’s not common among the major car insurance providers.
  • The company provides one of the most extensive lists of discounts, which may get you the lowest premium available.
  • The Name-Your-Price tool lets you build a policy around the premium you can afford to pay.

Thanks to its Progressive advertising campaign, Progressive is one of the best-known — and most popular — car insurance companies. But there are plenty of reasons to choose Progressive beyond slick commercials. They became one of the largest car insurance companies in America thanks to a combination of generous discounts, customer-friendly coverage options, and some of the lowest premiums in the industry.

After reading this review, you’ll see why Progressive needs to be on your short list of choices for your next car insurance policy.

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About the Company

Progressive is the third largest auto insurance provider, based on direct premiums written, with 13.3% of all auto insurance in force in the U.S., trailing only State Farm and Geico. The company has more than 18 million customers nationwide, with over $33 billion in direct premiums written.

It’s easy to see why. The company is one of the lowest-cost providers in most states, largely as a result of the many discounts they provide. They also offer important niche products, like rideshare coverage, which reflect the changing needs of their customer base.

Progressive’s primary product is auto insurance, though it does offer home insurance and various other insurance and non-insurance related services. In this review, we’re going to focus on Progressive car insurance, and also spend some time on their home insurance offerings.

Progressive Products & Services

Though Progressive is best known for car insurance — their main product — they also offer other services. The most prominent among these is home insurance, but they also have a wide range of other products and services.

Though this review will focus primarily on Progressive car insurance, we’ll also touch on home insurance below, since it’s relevant to the bundling discount the company offers.

We’ll only briefly mention other products and services offered.

Progressive Car Insurance

Progressive is one of the cheapest providers in most states, providing the lowest premiums in about 10 states.

Basic features of Progressive car insurance are as follows:

  • Availability: All 50 states, plus the District of Columbia
  • Covered vehicles: Autos, classic cars, motorcycles, Segways, snowmobiles, boats, recreational vehicles, ATVs/UTVs, and golf carts
  • Customer support: 24/7 by phone
  • Claims satisfaction: According to the JD Power 2020 US Auto Claims Satisfaction Study (released in October 2020), Progressive ranks #21 out of 24 companies providing car insurance nationwide. They score 856 out of a potential 1,000 points, which is below the industry average of 872.
  • Financial strength rating: A+ (Superior)
  • Better Business Bureau ranking: A+ (on a scale of A+ to F)

How to Sign Up with Progressive Car Insurance

The application process can be completed entirely online, although it can also be done by phone.

One of the features of the Progressive application process we really appreciated is the ability to get quotes online. By entering basic information, we were able to get quotes for various driver profiles without needing to enter sensitive information such as a Social Security number or phone number.

This is an important feature because some car insurance companies just ask for basic information, but then only provide quotes by contacting you, either by phone or by email. The Progressive experience enables you to shop for a policy without incurring sales pressure or repeated contact you may not want.

Unique Features

Though it’s common for consumers to shop for the car insurance provider with the lowest premium, there are several features that make Progressive stand out from the competition:

  • Large number of discounts. Progressive offers one of the widest ranges of discounts in the auto insurance industry and advertises an average savings of $700 per year.
  • Name Your Price Tool. You can build a policy based on the amount of premium you can afford to pay. That’s an excellent perk for anyone with a tight budget.
  • Large and Small Accident Forgiveness. Premiums won’t increase for claims under $500. Further, if you’ve been accident- and violation-free for at least three years and have been a Progressive customer for at least five years, your rate won’t increase after a large accident. This is one of the most flexible accident forgiveness programs in the industry.
  • Rideshare Coverage. This is an important add-on, with so many people now working in the gig economy. 

Progressive Auto Insurance Coverage Options

Progressive offers standard auto insurance coverage provisions, including liability, comprehensive and collision, uninsured/underinsured motorist, and medical payments.

Optional coverage provisions include the following:

  • Loan/lease payoff (GAP). To pay off the difference between the value of the vehicle and the amount owed, up to 25% of the actual cash value.
  • Rental car reimbursement. Receive reimbursement for a rental car while your vehicle is in the shop being repaired.
  • Custom parts and equipment value. Covers up to $5,000 in components added after the vehicle was manufactured.
  • Rideshare coverage. Provides coverage when you’re logged into your ridesharing app and waiting for a trip request or customer. Note that this option is not available in all states.
  • Roadside assistance. Includes towing services, lockout service, flat tire change, fuel/fluid delivery, and related issues.
  • Deductible Savings Bank. Subtracts $50 from your comprehensive and collision deductible for each policy period without an accident or a violation. A $500 deductible can be reduced to zero after five years (ten policy periods of six months each).

Progressive Discounts

Progressive offers one of the most extensive lists of discounts in the auto insurance industry.

Below is a list of the discounts they offer, and the average premium savings you can expect:

  • Bundle with home insurance: 5%
  • Multi-policy: 5%
  • Multi-car: 4%
  • Continuous insurance (even when you first switch to Progressive): Varies
  • Snapshot (safe driver monitoring): $146 per year
  • Teen driver discount: Varies
  • Good student discount: 10%
  • Distant student discount: Varies
  • Homeowner discount: Nearly 10%
  • Online quote: 7%
  • Sign online: 9%
  • Paperless documents: Varies
  • Pay in full: Varies***
  • Automatic payment: Varies

With so many discounts, it’s easy to see why Progressive advertises average savings of $700 per year.

(***Based on our experience obtaining quotes for this review, the pay-in-full discount averages between 10% and 15% of the annual premium. We did not reflect this discount in the quotes we’ve presented.)

Sample Premiums

To provide reasonable estimates of Progressive car insurance premiums, the table below presents annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the Progressive website.

Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

The limits we’ve used in our table are as follows:

  1. 30/60/25 (the minimum coverage allowed in Texas)
  2. 50/100/50
  3. 100/300/100

In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.

We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77380), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.

For simplicity’s sake, each driver is single, rents their home and has a college degree.

Here are the results:

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
State Minimum – 30/60/25 – Liability Only $552 $522 $370 $364
With Un/Under-insured Motorist and Collision & Comprehensive $1,356 $1,226 $838 $838
50/100/50 – Liability Only $588 $556 $400 $390
With Un/Under-insured Motorist and Collision & Comprehensive $1,432 $1,314 $970 $892
100/300/100 – Liability Only $654 $616 $436 $422
With Un/Under-insured Motorist and Collision & Comprehensive $1,548 $1,444 $1,012 $912
These are simplified quotes. For example, each driver’s credit history is not considered. Neither are certain optional coverages, like car replacement rental, roadside assistance, or GAP coverage for the payoff of a loan or lease.

Who Progressive Is Best For

There is no single car insurance company that is best for all drivers. But Progressive may be the right choice for you if any of the following apply:

  • Progressive is the lowest-cost provider in your state for your driver profile.
  • You participate in ridesharing activities.
  • You have a family with multiple drivers and vehicles that will qualify for several volume discounts.
  • You’re the type of consumer who is not fond of company solicitation, and you like the idea of the all-online quote system and application process.
  • You are over 40, where Progressive offers some of the lowest premiums in the industry, likely due to family volume discounts.

Progressive vs. Other Car Insurance Companies

The table below compares Progressive with three of the most popular auto insurance providers in the country: Geico, State Farm, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.

This is a high-altitude comparison only. Which company will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.

Category / Company Progressive Geico State Farm Allstate
Average Annual Premium: State Minimum $516 $464 $500 $756
Average Annual Premium: 50/100/50 with Collision & Comprehensive $1,106 $1,006 $1,190 $1,754
Average Annual Premium: 100/300/100 with Collision & Comprehensive $1,346 $1,222 $1,380 $2,140
J.D. Power Claims Satisfaction Rating 856/1,000 871/1,000 881/1,000 876/1,000
A.M. Best Financial Strength Rating A+ (Superior) A++ (Superior) A++ (Superior) A+ (Superior)
(SOURCE ON PREMIUMS: Average Cost of Car Insurance in 2021 from The Zebra)

What To Know About Auto Insurance

When shopping for car insurance, it’s common to make the lowest premium the most important consideration. But there’s a lot more to car insurance than premium.

  1. Make sure you are adequately covered — the liability limits in your policy should roughly match your net worth. State minimum coverage will be inadequate if your net worth is several hundred thousand dollars.
  2. Car insurance companies consider your credit score — the higher it is, the lower your premium.
  3. Don’t skimp on coverage options — optional provisions like GAP or uninsured/underinsured motorists are inexpensive compared to the benefit they provide.
  4. A large deductible can lower your premium — but it can put you in a financial bind if you won’t have the cash available to cover it.
  5. Ask each company about all discounts they have — not all are published, and there may be more that will apply to you.
  6. Shop, shop, shop — get quotes from at least three or four companies to evaluate coverage and cost.

Progressive Home Insurance

This is Progressive’s most significant secondary product line, as combining it with an auto insurance policy triggers the bundling discount.

Progressive’s home insurance isn’t a single product line, but several. They provide coverage, not only for owners of detached homes, but also condominiums and mobile homes. In addition, Progressive also provides renters insurance. Any of these policies will qualify for the bundling discount with a car insurance policy.

Unlike car insurance, Progressive isn’t the issuer of home insurance policies. Instead, your policy will be issued by a home insurance company that partners with Progressive. The company currently uses ASI as this home insurance partner.

Even though home insurance will be provided by outside carriers, the home and auto bundle will still apply.

Availability: Progressive home insurance is available in all 50 states and the District of Columbia.

Basic Home Insurance Coverage

Progressive home insurance policies provide the following basic coverage types:

Dwelling. Pays to repair or rebuild your home, condo, or mobile home, and other structures damaged or destroyed by natural disasters. Most hazards will be covered, but specific exclusions include floods, earthquakes, landslides, mudslides, and sinkholes. You’ll need a dedicated policy for each of these.

Temporary living expenses. Provides coverage for temporary living expenses while your home, condo, mobile home, or apartment is being repaired. This is sometimes known as “loss of use” coverage.

Liability. Much like the liability portion of a car insurance policy, this provision covers you if someone is injured on your property, or if you’re considered to be responsible for damage to their property. Think of it as the slip and fall portion of your policy. It can also cover you against other potential liabilities, like libel and slander.

Personal property. This portion of a policy covers the contents of your home. That includes furniture, electronics, appliances, exercise equipment, tools, and personal effects, among other possessions. If they are damaged or destroyed, this provision will provide reimbursement to enable you to replace those items.

The above provisions are covered in a standard home insurance policy. Optional provisions include:

Medical payments. Will pay if someone is injured in your home or on your property.

Water backup. This provision pertains to backups involving sump pumps and sewer systems. It will cover damage caused to your home and possessions from the backup. This is different from flood insurance, which results in water damage from natural events.

Personal injury. This goes beyond the standard liability provision because it covers uncommon, but expensive, lawsuits and situations. Examples include slander or libel lawsuits, lawsuits against you for wrongful entry or malicious prosecution, wrongful eviction, and false arrest, detention, or imprisonment.

Home Insurance Discounts

Progressive’s home insurance discounts are similar to those available for car insurance, and include:

  • Bundle home and auto – 5% average savings.
  • Safety and alarm discounts – includes burglar and fire alarms, automatic sprinklers, cameras, and security systems.
  • Quote in advance – at least 10 days before your policy starts.
  • New purchase – this means either purchasing a new home or converting from a current renters policy; the home does not have to be newly built.
  • Received documents by email
  • New home construction – the newer the home, the bigger the discount.
  • Pay in full – paying a 12-month policy up front.

When you bundle home and auto policies, you can set up a single deductible between the two. That means a single deductible will apply each year, whether the claim is for your home or your car. The single deductible feature is only available with certain home insurance companies Progressive works with.

You can also save money by using a contractor with an established relationship with the home insurance carrier. This may result in a lower price than you would pay if you selected your own contractor.

Progressive Home Insurance Ratings & Average Premium

Progressive does not score well when it comes to home insurance ratings, though it is one of the lower-cost providers.

  • Claims satisfaction: According to the JD Power 2021 US Property Claims Satisfaction Study, Progressive/ASI ranks #14 out of 20 companies providing home insurance nationwide. They score 879 out of the potential 1,000 points, which is below the industry average of 883.
  • Financial strength rating: A+ (Superior).
  • Average homeowner’s insurance premium: $1,740 per year (SOURCE: The Zebra)

How to Sign Up with Progressive Home Insurance

Just as with Progressive car insurance, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number to get more specific information.

Other Services Offered by Progressive

Though car and home insurance are Progressive’s main product lines, they also offer the following:

  • Business insurance
  • Business owner’s policy
  • Commercial auto insurance
  • General liability
  • Professional liability
  • Worker’s compensation
  • Health, dental, and vision insurance
  • Electronic device coverage
  • Life insurance
  • Pet insurance
  • ID theft insurance
  • Travel insurance
  • Umbrella insurance
  • Wedding and event insurance

If any of the above situations apply to you, you may want to discuss it with a Progressive representative when purchasing your auto insurance policy, or if you already have a policy in place.

The Bottom Line

Progressive is one of the largest auto insurance companies in the country, covering more than 13% of all drivers. Despite the below average customer service ratings the company receives, it’s obvious millions of consumers are choosing Progressive because of its advantages. The low premium structure in many states, as well as the large number of discounts, are major reasons why.

When shopping for car insurance, be sure to get quotes from several providers. Everyone’s situation is different, and you may find the best combination of coverage and low premium with a company not necessarily known for cheap rates.

But when you’re shopping for those quotes, Progressive should be one of the choices. They have what may be the easiest, obligation-free quote systems in the industry, one that you should take advantage of when looking for a policy.

Progressive FAQs

Is Progressive good car insurance?

Progressive rates a little below average on claims satisfaction, but it has a strong financial strength rating, indicating a solid ability to pay claims. In most states, it’s one of the two or three lowest-cost car insurance providers. They accomplish this by offering one of the widest selections of discounts available in the industry. They also offer important niche options, like rideshare coverage.

Is Progressive the cheapest insurance?

In most states, Progressive is one of the two or three lowest-cost auto insurance companies. But that’s not true in all states.

Why is Progressive insurance so cheap?

Progressive tends to be the one of the cheapest car insurance companies because it offers so many discounts. Meanwhile, the Name-Your-Price Tool enables drivers to select a premium level, then have a policy built around that rate. This makes it easier to get a low premium from Progressive.

The company also operates entirely online, which means its operating costs are lower than insurance companies that have networks of branch offices and a large number of agents.

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Source: goodfinancialcents.com