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Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived?

Many factors determine how much you will pay. Most of these are common sense and you probably already know but let s go over them just in case.

The very first thing that occurs is that the insurance company determines all its costs for the previous year. This includes all claims, the cost of operations, and what ever costs they incur. They then take those costs and divide them among all the drivers insured with them. This sets a base line for them but it doesn t mean that s what you will pay.

Your driving record plays a major role in how much your premiums will be and whether you earn a discount. The better your driving record the lower your total cost to insure your auto is going to be. Your driving record includes auto accidents and speeding tickets. If you haven t insured a vehicle for a few years they will also penalize you. Th (more...)

Insurance settlements are a means by which an insurance policy owner can sell his or her existing policy to a financial institution for an agreed amount for a lump sum of cash. The amount is arrived at by discounting the policy at a percentage of the policy s net death benefit that represents the current value of the policy. When considering this trade, one has to take into account the insured s estimated life expectancy and the associated cost of premiums to keep the policy active for that time.

A good way to arrive at a selling price is negotiation. The important fact is that the settlement amount has to be reasonable for both parties. It is a little like finding the middle ground for both the insured and policy buyer.

If you are getting this insurance settlement as a personal injury settlement, then you should consider all your expenses before agreeing to a price. The expenses to consider could include medical expenses, financial losses due to injury, and emotional trauma. Also, do not fo (more...)