Factors That Affect Your Car Insurance Rates - For Probability

If you have ever compared insurance rates with a family member or friend, you may find that you are paying very different amounts for similar coverage. There are many factors that affect car insurance rates that can cause one person to pay two to three times more than another for the same plan. These factors range from personal characteristics to financial habits to vehicle features, but they all have one thing in common: they are considered to be indicators of risk. Insurance companies believe that these factors are indicators for the probability that you will have an accident - and the costliness of the claim when you file.

Major Factors

• Age: Drivers under 25 have the greatest chance of being involved in an accident, while more experienced drivers between the ages of 50 and 65 have the lowest risk.
• Gender: Statistically, women have fewer accidents than men. However, the difference between the sexes is not as great as it once was.
• Vehicle specifics: Make, model, year, and engine size all affect your rates. Newer cars and faster, more powerful cars are considered a greater insurance risk. If you purchase an SUV, you can expect to pay more in insurance for a V8 engine than for a V6.
• Marital status: A married individual will pay less for car insurance than someone who is single.
• Traffic violations: The more traffic tickets you have on your driving record, the higher your rates will be.
• Accident claims: While one minor accident may not affect your insurance much, having a history of accidents, even if they are just fender benders, can increase your premiums.
• Geography: A person living in the city is at a higher risk of having an accident or having his or her car broken into than someone living in a rural, less densely populated area.
• Credit rating: This may seem irrelevant to calculating car insurance, but insurers claim that there is a statistical relationship between having a good driving record and having a good credit rating. Drivers with poor credit have a higher probability of making claims, and more costly claims, than those with good credit.

What You Can Do to Lower Your Rates

If you are struggling to afford your car insurance or just want to knock off a percentage of your cost, there are steps that you can take to reduce your rates. Consider the following money saving tips:

• Drive a less powerful, safer vehicle. Paying for insurance on a small 4-cylinder vehicle instead of a large SUV or sports car can save you a significant sum.
• Take steps to improve your credit. Getting your spending under control and paying bills on time could improve your credit rating and lower your insurance premiums simultaneously.
• Ask about the good student discount. Statistically, students with better grades also have better driving records. If you or someone covered under your insurance is a student, keeping those grades up can knock digits off your coverage costs.
• Drive safely. Taking fewer risks on the road reduces your chances of getting a traffic ticket and also lowers your risk of an accident. Maintaining a good driving record could result in lower rates.

Another great way to find affordable insurance is to shop around with different companies. You are not obligated to stay with one provider for car insurance. Today there are businesses that will assist you with the comparison process and will help you find affordable coverage that meets your needs.

Principles of Insurance Probability

Insurance is a cover used for protecting a person from the financial losses. Financial losses can take many forms. There are risks to our investments, liabilities for our actions, and risks to our ability to earn income.

The insurer and the insured are the main two parties involved in insurance. The insurer is the insurance company which will provide the cover to the insured against any financial losses. The insured may be an individual person or a group of people like an employer, members of a society, etc.

Basic categorization of Insurance

There are mainly two broad categories of insurance

    * Life insurance
    * Non-life insurance

Life insurance products include Life term policies, which give clean risk coverage of only the death benefit, whereas endowment or money back policies have a risk as well as savings component i.e. death as well as maturity benefit. The life insurance also includes Unit - Linked Policies in which there is a risk component and a savings component, which is invested in equity, debt or gilt funds, depending on the insurance company.

Non Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. This insurance category deals with all the non-life aspects of an insured like their house, health, land, office, etc which might bring financial loss.

There are few principles of insurance, such as:

    * Definite Loss - Insurance - The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy.
    * Unintentional or Accidental Loss - Insurance - The event that comprises the trigger of a claim should be accidental, or at least outside the control of the beneficiary of the insurance The loss should be 'pure,' in the sense that it results from an event for which there is only the opportunity for cost.
    * Huge Loss - Insurance - The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to rationally assure that the insurer will be able to pay claims.
    * Affordable Premium - Insurance - If the probability of an insured event is so high, or the cost of the event is so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer.
    * A large number of identical coverage units - Insurance - The vast majority of insurance policies are provided for individual members of very large classes. The existence of a large number of identical coverage units allows insurers to benefit from the so-called "law of large numbers," which in effect states that as the number of coverage units increases, the actual results are increasingly likely to become close to expected results.
    * Measurable Loss - Insurance - There are two elements that must be at least estimatable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
    * Limited risk of terribly large losses - Insurance - If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed.

Is the Payout For Term Life Insurance the Same As For Permanent Life Insurance For Probability?

People often purchase a term life insurance policy because the premiums are considerably lower than those that they would have to pay for a permanent life insurance policy.

"Term insurance" is actually the most affordable way to purchase substantial death benefits, but some people wonder if the insurance companies use a different method to calculate the cost of insurance for term instead of permanent assurance? In other words, do they use different mortality tables for calculating the costs?

Do the Insurance Companies Use Different Mortality Tables for Term Insurance?

Insurers actually use exactly the same mortality tables to calculate the cost of insurance as well as the death benefits. As long as the premiums for either type of policy are current and the policy is in force when the policy holder passes away, all the death benefits are income tax free.

Why Term Life Insurance Policies Cost So Much Less than Whole Life Policies

A term life insurance policy provides coverage for a limited period of time. Often the term of coverage is for 10, 15, 20, or 30 years. The premiums paid for any of these terms will remain the same for the duration of the coverage.

The actual cost is based on the total cost of every year's annual renewable term rates with an adjustment made for the time value of money. Therefore, the longer the term of the policy, the higher the premium is because as people get older it is more expensive to insure them. All of this is averaged into the cost of the premium.

However, a term insurance program could very well expire without the insurance company having to pay out any claims. That's primarily why they are so much lower in cost.

Studies done by the insurance industry show that this is a very attractive program for them to offer because there is a very low probability that death benefit claims are made for term insurance policies. One study showed that the probability of an insurance company paying a benefit is as low as one percent.

However, because permanent life insurance programs last for "a lifetime", at some point in time the insurance company will absolutely have to pay out death benefits.

One of the features of a permanent life insurance policy is that it has a built in cash accumulation vehicle. In essence, cash accumulation forces the insured to self-insure. This feature itself makes this type of insurance program substantially more expensive than any term life insurance program that offers the equivalent coverage at the same point in time in the insured's life.

Reducing Your Insurance Premium - Understanding How Insurance Companies Operate To Probablity

A lot of people are simply confused by seeming inconsistencies in the insurance industry. This article will make one of such issues clear. Once you understand it you'll be in a better position to realize more savings without compromising yourself.

First and foremost, you must understand that insurance companies are there to make profit too. If you miss this point most of what I'll say here won't mean much. Now, this does not mean they are not also there to render value-added service. It only means that they'll only do it with the hope of making some profit.

With the foregoing in mind, you'll appreciate that insurance companies actually play a kind of probability game. Let me make it clear with this...

If a given profile makes one $20,000 claim out of every 200 insured yearly, it means that if an insurance company charges a yearly premium of $200 per insured, they'll still be profitable. 200 x $200 = $40,000. If, however, another profile makes 10 $20,000 claims out of every 200 insured yearly, they'll not turn a profit even if they charged a premium of $1000 per insured.

What does this tell you? The less likely the odds that you'll make a claim, the lower the premium you'll be charged.

And this is just the beginning. Different companies have different margins that they consider profitable. They also have different weightings for factors used in deciding the probability that a person will make a claim.

With these in mind, you'll do well to do two things...

1) Take actions that will reduce the probability that you'll need to make a claim.

2) Visit insurance quotes and comparison sites. They'll help you locate insurance companies that offer you the best price/value. The difference between two insurance companies for a comparable policy could sometimes be as high as $2000.

Affordable Florida Car Insurance - Teen Drivers, Pay Less

Affordable Florida car insurance for teens isn't something folks expect to see all the time. However, there are proven steps that will guarantee a teen enjoy lower auto insurance rates. Here they are...

1. Lower Mileage...

Use the public transport system anytime possible. Your mileage is a strong point in working out your risk to an insurer. The more your mileage, the more the probability that you'll make a claim in a short while. The lower your risk to your insurer the more affordable Florida car insurance rates you'll get.

2. Good Grades...

Students who make excellent grades get reduced auto insurance rates. .

3. Safety Features...

Ensure you get a car that is equipped safety devices. Let your insurer be told if you have such in your car. Since they will keep you and your vehicle safer they are thus seen as better risks by insurance companies. Those cars will make you get affordable Florida car insurance rates.

5. Smaller Cheaper Cars...

Buy a smaller car. Leave sports cars and other cars that are generally costly to insure. You can buy a similar vehicle that costs a lot less to insure. But as a rule of thumb: Big cars, costly cars, classic cars, vehicles with a high incidence of theft will cost you more to insure.

6. A Course In Defensive Driving...

Take courses in defensive driving. Defensive driving courses that are recognized by your insurer will help you get affordable Florida car insurance.

7. Raising Your Deductibles...

Choose higher deductibles. The higher your deductible the less your vehicle insurance rate. Only take care not to choose deductibles that are higher than you can pay easily. .

8. Getting Many Quotes...

You will definitely get an affordable Florida car insurance rate if you obtain and compare quotes from quotes sites. Visiting a minimum of three quotes sites raise the chances that you'd make bigger savings. This provides you a broader basis for doing better comparisons thus increasing your chances of realizing more savings.

Single Premium Immediate Annuities - Do They Make Sense In Your Retirement Plan?

Retirement planning is largely about managing unknowns, and one of the biggest unknowns that a planner must contend with is life expectancy. If a retirement plan assumes too low of a life expectancy, it can easily fail as retirees outlive their assets. Still, overly cautious assumptions about life expectancy can short-change retirees and result in a retirement withdrawal rate that's much lower than it could be. That translates into a lower standard of living for the retirees and perhaps a bigger inheritance for their heirs. While giving more money away when you die might seem like an ok idea, most would agree that it shouldn't come at the expense of a comfortable retirement.

This is where single premium immediate or deferred annuities could help. In exchange for a lump sum payment, an immediate or deferred annuity provides a guaranteed stream of payments that continue until the annuitant dies. With an immediate annuity (SPIA), the stream of guaranteed payments begins immediately. In the case of a deferred annuity (SPDA), the payments begin at some pre-specified later date.

With these instruments, the annuitant can transfer the risk of "living too long" to an insurance company. If the annuitant dies early, the insurance company makes out, but if the annuitant lives an unusually long life, the annuitant makes out. Regardless of how things actually go, these contracts can be a good deal for retirees because they allow them to transfer some of the risk of a big unknown to a third party, the insurance company.

While immediate annuities can make sense in theory, the trick is in figuring out if a particular immediate annuity is a good idea in a particular retirement plan. There are so many factors to consider that the analysis can quickly become very complicated. The best way to analyze this type of problem is with a technique called Monte Carlo Simulation. Monte Carlo Simulation uses probability theory coupled with thousands of trial "runs" through a retirement sequence to explore the range of likely outcomes. This approach is widely used by financial planners in retirement planning.

Sounds pretty complicated, right? Well, it doesn't have to be. You can run the numbers yourself using an online Monte Carlo retirement calculator. These sophisticated planning tools are great for exploring complicated scenarios and boiling the results down into an easy to understand "probability of success." There's an online Monte Carlo retirement calculator at

Why Do We Gamble?

Let's start with a definition. What is gambling? Gambling is betting on something that may or may not happen in the future. When we gamble, we take a risk, choose an uncertain outcome, and bet on it. Gamblers bet on casino games, horse racing, and sports where the result can't be predicted with certainty. Some people will bet on anything. Remember the Seinfeld episode where Kramer bet on the arrival and departure times of airplanes at a New York City airport? 

How is gambling different from buying stocks and bonds? Stocks and bonds are considered investments and not gambles because we can reasonably expect to come out ahead in the long run. They may be risky but not in the same sense as gambling.

How is gambling different from buying insurance? When we buy insurance, we are betting on something that may or may not happen in the future. We don't want to take the risk that it will happen, so we pay someone else (the insurance company) to take the risk for us. When we buy homeowner's insurance, for example, we are betting our house will burn down and the insurance company is betting it won't. (Of course we hope we won't win this bet.) This isn't gambling because the risk can be calculated. The insurance company uses all kinds of statistics to analyze the probability of our house burning down and fixes the premium we will pay accordingly.

People have gambled since ancient times. However, society never approved of it because it was labeled an attempt to get money without working for it. Society believed that hard work should pave the way to financial success. It wasn't until the late 1960s that states (except for Nevada which had legalized all forms of gambling earlier) started to run lotteries to raise money for worthwhile causes. 

So why do we gamble even though we are unlikely to win in the long run? We gamble for the excitement of the uncertain outcome. Some gamble to try to make their financial dreams come true. Some people gamble for entertainment or enjoyment, such as a night out with friends at the casino or a bingo game for a charitable organization or a lottery ticket. Some think they can beat the odds and make a living out of gambling. There are people who gamble because they simply love the challenge. They look at gambling as a game of skill or problem solving and they are sure they can win. Some like the environment or the thrill of a possible big win, or the adrenaline rush of taking a chance. Casinos allow us to socialize and pass some time. There are no clocks in a casino; we lose track of time; we forget all our troubles. It's like a therapy session! If we are timid, we can go to a casino and boldly take chances.

Occasional gambling may be a relaxing form of entertainment but be careful not to get addicted. Addiction may lead to obsession. You may lose control and become so fanatical that you can ruin you life or suffer other catastrophic consequences. So if you gamble, be sure to set limits and keep to the limits you have set.

Vacant Property Insurance

It can be a difficult task to obtain the insurance coverage that you require for an vacant property that you currently have in your possession. This is due to the fact that insurance providers have the opinion that there is a greater risk to be taken when insuring an vacant property and that these properties have a greater need from insurers than the typical occupied property.

There is of course the increased risk of vandalism and the similar when dealing with vacant properties. These properties are subject the vandalism as there is no presence on the property to curb the vandals. They do not have the fear associated with getting caught and as such as not hindered in this action. There is also the problem of the throwing of bricks through windows as well as an increased likelihood of fires and general property destruction.

Squatters are another issue on these properties as they can be unoccupied for long periods and the owners can often neglect to keep proper tabs on the property as well. This leads to the squatters having free reign on the property and they may also cause untold damages as well. The damages that occur on unoccupied places are also not quickly detected and as such can lead to the development of the problem into one that is more serious.

Another issue of concern is whether the property is carded to be let in the future. Many insurance providers also run from this situation as it can result in the neglect of the property from the tenants as well. Not everyone is lucky enough to get good tenants that take care of their place as if it was their own.

There are several reasons that vacant property insurance may be required and these include incidents where there has been the death of the previous owner and where the property goes to estate and is on sale. There may also be periods where the property is in the process of a change of ownership, if you are completing repairs and if the property is unsuitable for occupation. You must ensure in these periods that the property is covered specifically by vacant property insurance.

Vacant property insurance providers have to make certain that there is a reduction in the probability of losses occurring on the property that they are thinking of covering. These procedures can include regular inspection of the property, sealing off windows and letterboxes and other types of risk management procedures. In some cases, the coverage provided can be restricted to only some areas. In instances such as this it is essential that the cover is sufficient and handles risks that may be incurred on the property in question otherwise the coverage will not make any sense.

In order to source the right coverage it is possible that you may look on the internet and compare between providers. This will ensure that you attain the best deal possible where you get the best coverage for the lowest premium.

Special Things to Consider When Searching for OAP Travel Insurance

If you are a senior citizen who has spent the majority of your life toiling to look after your family and responding to the immediate pressures of life, the chances are that you will want to enjoy your retirement to the full. For many people, this might involve going on a trip of a lifetime, or just endeavouring to see those places that you always dreamed about. This is all good, but it's also important to be aware of some special things that you might need to consider, for example, travel insurance.

Everybody who travels to a foreign country needs to consider travel insurance, but when you are a senior citizen you will most probably have to take out a policy that is specifically tailored to people of your age. This is because insurance providers consider you as of being higher risk, particularly in terms of health. They think that there is more probability that you might be susceptible to sudden illnesses, as well as the fact that you are more likely to have an existing health condition of some sort. Unfortunately this means that you are likely to have to pay more than somebody in their 30s for example.

It is important therefore that you get the right type of travel insurance so that you have the peace of mind that you will be covered no matter what. If this costs a bit more, then that is simply the reality. To research such cover, you may want to contact a local senior citizens advice group who can point you in the right direction. If you find that somewhat patronizing, make good use of the internet. Most travel insurance providers have copies of their policies online and will usually have specific OAP travel insurance.

When it comes to buying your policy, you will usually be asked about any existing medical requirements or conditions that you have. This can alter the price of the policy, depending on how risky you are perceived. It is important to be truthful here and absolutely clear as to what you will be covered for. Decent health care, even a simple ten minute consultancy, can be costly and you don't want to discover that you are not covered when it is too late.

As well as scrutinizing the health related particulars, research well the coverage for things such as lost luggage, delayed flights and the general inconvenience associated with them. Again, you may have to pay extra if you are carrying expensive equipment or items. Make sure that these are clearly stated on the policy if that is what the provider wants.

Overall, if you want to truly enjoy the pleasures of travelling to a foreign country when retired, it is imperative to have the right insurance cover, especially pertaining to health.