Green Panda Treehouse » Insurance

Electronic and Appliance Warranties – Insurance or Ripoff?

Green Panda — Wed, 13 Jul 2011 09:00:06 +0000

My husband and I are typically frugal people. We don’t make a ton of purchases and we try to shop around to get a good deal on an item. I will say, however, that when we do make a purchase together it’s usually a big one as both of us enjoy messing around with electronics like video games.

Within the past year we’ve also had to buy a new washer and dryer set as our old one was breaking down and didn’t clean our clothes properly. With these purchases, we’ve been offered extended warranties. You know how it goes- the salesperson usually gives you a list of what could possibly go wrong and what the warranty covers. They tell you how wonderful it is and how if your purchase breaks down, it will be repaired or replaced ASAP.

If you turn it down withe the sales person, many electronic stores offer a warranty as you go to the register to buy your appliance or television. They really push getting a warranty.

Can Warranties Provide You with TV Insurance?

My mom usually buys the extended warranty and we usually pass up on the offer. The big question for many is, are warranties worth the price or are they a needless drain on your wallet? Besides looking at the numbers, I would recommend examining other possibilities than warranties.

There is a way to increase your protection without spending an extra dime.

Did you know that your credit card can provide you with an extended warranty if you make a purchase with it? It’s true. Some credit card issuers will extend the warranty for a purchase for an additional year at no cost. You simply have to follow their procedure and file a claim. the best time to call is before you make the purchase to see what’s covered and if the claim process is doable for you.

Alternative to Electronic/Appliance Warranty

Have you ever considered self insuring your big purchases like electronics and appliances? It can give you more control over your money.

The big advantage of being self insured is having the freedom to use your money as you please. You may only need to use the warranty money for an item or two and still have money in the bank. Perhaps you make some great choices and don’t use the money for repairs and instead use it for your next purchase. Have the money saved transferred to a high interest savings account and see it grow.

Making Sure You Have the Right Amount Insurance For You

I’m hoping you can also share your own stories about warranties and whether they worked for you. Do you get extended warranties on your electronic and television purchases? How much did it cost you? How many times have you had to use it?

I’m happy to be wrapping up this insurance series. It’s been informative to me as my husband and I get our own finances squared away and refined, especially with a baby on the way. If you’re getting your insurance needs squared away, here are some posts on GPT to help you out:

Photo Credit: Alan_D

Get the Best Deal with Your Car Insurance

Green Panda — Wed, 06 Jul 2011 09:00:07 +0000

Owning car is more than just car payments, repairs, and gas. For many people having car insurance can be a financial burden if they have the wrong policy. It doesn’t have to be that way though. If you’re willing to hustle, you can save quite a bit of money with your car insurance. I’ll show you how.

Review Your Car Insurance Policy

First thing is first, before you consider getting a new insurance policy, you need to look at you old policy. Be familiar with the kind of coverage you have now and how much you’re paying for it.

The next step is seeing if you can get a better offer from your current company. Make your insurance agent work for you, talk to them about deals you can get. Ask about:

Student discounts: Some companies will cut the rate of you have a certain GPA.
Professional/Membership discount: Are you a member of AAA or Costco? You may qualify for lower premiums.
Employer discounts: Check with your Human Resources contact person to see if your job has a deal with a specific company to get you lower premiums.

By being familiar with your current coverage and costs, you can make an apples to apples comparison.

Be a Better Driver and Reap the Benefits

Don’t just rely on others to get you a better deal. Did you know one of the best way to cut down on your car insurance premiums is by becoming a model driver?

Keep your driving record clean. Keep your foot of the acceleration pedal and avoid blemishing your driving record with tickets.
Take notes during driving class. Defensive driving can decrease your chances of getting into an accident, which in turn means your car insurance company can save a bit themselves. Sign up for class and get another discount.
Drive less. If you can carpool or use public transportation even a little bit more, you can save some cash. When my commute changed and decreased, my insurance company lowered the premiums by a bit.
Safe cars can save you big time. What kind of car you drive does matter to your car insurance company. Check with your agent and make sure that they know all the safety features it has. You can shave off some of your costs.

An added benefit to being a conscious and better driver is saving money at the gas pump.That’ll help keep money in your wallet so you can reach other financial goals.

Making Sure You Have the Right Insurance

Getting the right insurance may be a bit time consuming upfront (especially when you to compare auto insurance rates!), but it’s well worth the effort down the road. If you’re getting your insurance needs squared away, here are some posts on GPT to help you out:

Photo Credit: UggBoy♥UggGirl

How to Negotiate Your Home Insurance Like a Pro

Green Panda — Wed, 29 Jun 2011 09:00:36 +0000

Owning a home is a dream of many young ones, with many saving diligently for their down payment. While preparing ahead of time to buying a house is essential, the realities of what could go wrong are also important to think about. Should something happen to your home, you’d want the peace of mind that your home owner’s insurance will kick in and take care of the replacement and repairs.

With so many options, how do you know if you’re getting the best deal? I’ll show you some tips on how to negotiate like a pro with home owner’s insurance.

Home Insurance Reviews – Get the Scoop

It’s one thing to save some money on insurance, but if it doesn’t come through when you need, it’s pointless. Save yourself money AND stress by hunting carefully for the right insurance company for your house.

The internet can be a huge help with this step. Check online to see how current and past customers feel about their policies. I would also talk to friends and neighbors that you know personally so you can also check their opinions on whether they’re happy with the service they’re getting.

Compare Insurance Policies for Your House

Now that you have a list of companies you want to investigate, it’s time to make sure you’re looking at the numbers.

There are a couple of ways you can go about this:

Try contacting multiple companies yourself.
Calling a local agent who sells insurance for multiple companies.
Get online to get insurance quotes.

My personal method of choice is using the web to fill out the general information once and have multiple agents contact me at home to pitch us their offers. I keep records of what they offer in costs and what coverage I’d get. For me, it’s the simplest method that gets solid results.

Possible Discounts to Check Out

Once they give you an initial quote, ask them for any discounts that they offer on policies. Some agents may already do this, bit others may not. You don’t want to spend more than you have to with insurance premiums.

Bundle your policies. Purchasing multiple policies from the same insurer can help you save a significant amount of money. Nearly every insurance company offers multi-policy discounts.
Take advantage of membership deals. There are a lot of different groups and associations that offer special insurance plans or discounts on various types of insurance. You may already be a member of one of these organizations.
Make your home safer. If you have deadbolts, smoke detectors, fire hydrants nearby, and a manned fire station within 5 miles, mention these to the insurance agent. These safety features can lower your insurance premiums even more.

If the insurance agent doesn’t offer discounts, move on to another agent. You can be surprised at the difference between premiums even if it is the same company. Make the agent work for your business.

Making Sure You Have the Right Insurance

Getting the right insurance may be annoying now, but it’ll help you avoid a huge headache later if you happen to need it down the road. If you’re getting your insurance needs squared away, here are some posts on GPT to help you out:

Photo Credit: Tony the Misfit

Travel Insurance: Do You Need It on Your Next Trip?

Green Panda — Wed, 22 Jun 2011 09:00:38 +0000

My husband and I enjoy road trips and traveling in general. Having a change of scenery is recharging for us and whenever we get the opportunity, we like to take it. We’ve had some great memories hoping in a rental car and just driving.

For longer trips, like visiting the West Coast, we’ll book some plane tickets. It’s less stressful and gives us more time at our destination. One option I’ve seen with flights when I book my trips is that offer of travel insurance for a ‘small fee’. So far we’ve declined, but perhaps there’s some merit into investigating further.

What is travel insurance? Is it necessary or is it something you could do without? What if you’re working overseas for a bit, should you get it? I decided to look into it and see what the big deal is with travel insurance.

What is Travel Insurance? Comparing Policies and Prices

As with most insurance policies, it really does pay to shop around for the best deal. Prices and coverage can vary based on the company. Find the best one that works for you and your situation. Typically with travel insurance, your policy will cover some expenses:

Trip Cancellations
Medical Expenses
Rental Property Damage
Theft
Legal Expenses

I was surprised at how much travel insurance can protect. I think most people get travel insurance to cover them if they have to cancel a trip due to health concern or an emergency. Is it worth it for you? You have to decide because every situation is different. If you have young children or you have a health concern, having travel insurance may be the way to go. If you’re the only one traveling and you’re in fairly good health, you may want to rely on your personal savings. However if you’re going overseas, you may have trouble accessing your money when needed, so come prepared.

Long Term Travel Insurance – How Does That Work?

For some recent college graduates, employment options may include working overseas for a bit. As the name suggests, long term travel insurance is designed to cover those who will be out of country for a certain period of time. It’s mainly bought to help out with medical expenses if you need it while out of country as some health insurance policies don’t offer proper coverage.

Do you need long term travel insurance? I would check with your employer to see what they offer for health insurance and call the insurance company yourself to verify coverage.

Thoughts on Travel Insurance

I haven’t purchased any travel insurance for our trips, but with a baby coming up, we may have to revisit that policy. How many of you have purchased travel insurance? Do you think it’s a waste of money or has it helped you out?If you’re getting your insurance squared away, here are some posts on GPT to help you out:

Photo Credit: nattu

Disability Insurance: Is It a Waste of Money for Young People?

Green Panda — Wed, 15 Jun 2011 09:00:09 +0000

You’re in top form at home and at work. Your boss loves you, you’re on your way up the career ladder, and you’re in the best shape of your life. What could possibly go wrong? Unfortunately, things do go wrong and some seemingly healthy workers become temporarily or permanently disabled.

Many young workers and entrepreneurs see disability as a ripoff if they’re in good health, but is that the case? Can disability insurance fill a gap in your coverage or is it a scam? I decided to look into it a bit further.

What Exactly is Disability Insurance?

The goal of disability insurance is to provide a percentage of your income for your family while you’re disabled.

Short Term: While policies vary, it’s generally for 6 months of coverage. Payments generally start after you’ve used up your sick days and paid time off.
Long Term: This policy coverages more extensive injuries and can last for years.

Some employers offer limited short term disability to its employees. To see if your company does, please contact your Human Resources Department. It great to know what you’re already covered for so you don’t duplicate if you decide to get a policy. If you live in California, Hawaii, New Jersey, New York, or Rhode Island you may be entitled to these benefits by state law.

Disability Insurance Cost and Coverage

While premiums vary company to company based in part on the individual, the general rule of thumb is that higher premiums are associated with more benefits. Shopping around is the best piece of advice on finding the best value.

If you’re self-employed this can be a lifeline until you get back on your feet. As mentioned before, if your employer offers this as a benefit you have to decide if additional coverage is needed. I would talk it over with your spouse at the very least to make sure you’re covering your bases.

It pays to look over your policy carefully, some insurance companies offer some wonderful benefits while others are basically a rip off with all their terms and conditions. If you decide on getting some disability insurance make sure you check the following:

Benefit amount – Are you getting a percentage of your regular income or a fixed amount?
Benefit period - If you sign up for long term disability, please make sure you have coverage that serves your needs. Some offer for a few years, but there are policies that are much longer.
Definition of disability -How does this policy define disability? Is it limited to being disabled in terms of your job or is it for any related job?
Extent of disability – Do you have to be completely disabled or does the policy allows some coverage if you’re partially disabled?

the last thing you want to deal with on top of a disability is the paperwork and hassle from a bad insurance company. Go ahead now and do the footwork to save yourself time, money, and stress.

Thoughts on Disability Insurance

How many of you have disability insurance? Who did you get it through? If not, why? Do you think it’s a waste of money? What’s the worst policy you’ve seen? What’s the best?

If you’re getting your insurance squared away, here are some posts on GPT to help you out: