Living in Miami as a single guy with a terrible credit score, my auto insurance bill was out of control.  I’m pretty sure had I decided to pick up comprehensive and collision insurance,  I would have been paying more than most families pay on their mortgage.  Geico was just not cutting it and two years ago, a move was made to Progressive.

Initially, I only saved a few dollars but it was enough where some much needed money was freed up for life’s necessities.  Progressive routinely changed my rate every six months, sometimes in my favor, sometimes in their favor but my rate for only liability insurance consistently hovered around the $110 a month mark.   And for a guy who rarely uses his car to do anything, I thought I was getting screwed.  Not necessarily by Progressive as they were the cheapest carrier I could find, just screwed in general.

As luck would have it however, Progressive decided to launch something called “Snapshot” which tracks the performance of your automobile and can provide you a discount for good driving habits.  Having nothing to lose, I signed up immediately and installed the device in my Mustang.  30 days after using the device, Progress knocked my auto insurance down by $28 a month, making me an extremely happy customer.  Spending 10 minutes to save more than $300 annually was awesome, but today, Progressive is officially my favorite company of all time.

My new policy is slated to begin on the 15th of October and I was mailed my new insurance documents yesterday.  With those documents came a letter informing me that my policy received yet another discount for good driving.  This time, Progressive took another $30 off my bill, bringing the total cost of my monthly auto insurance to just $52!  Taking into account the initial $28 per month discount I received earlier in the quarter, I’ve saved $58 (or 52%) on my car insurance by using the Snapshot device.  That’s an annual savings of more than $700.

Also included in the mail was a return box which I will need to use in order to send the Snapshot device back to Progressive.  I have 30 days to send it back and the postage is already paid for by Progressive.  Now that they are asking for the device back, the discount I have received is final so I can expect this amount to remain consistent so long as I am a Progressive customer who needs to insure his Mustang.

It’s refreshing to see a company live up to their word every once in a while and Progressive far exceeded my expectations.  They’ve done a bang-up job in making sure I’m a long term customer and when the time comes where I need home owners insurance, you bet your sweet boopy I’ll be using them too.  I urge anyone reading this post to consider giving Progressive and they’re Snapshot device a try.  So long as you’re a good driver who doesn’t brake hard all that often, I know you’ll also receive an amazing discount.

• Read more about the Progressive Snapshot program

For the most part, the motor vehicle administrations located statewide throughout the United States have “point systems” which are used to track accidents and violations that impact your driving record. This point system is especially pertinent when one is looking to purchase car insurance. Car insurance companies will order a copy of the applicant’s driving license record to determine what rates to charge. The higher the amount of points you have accumulated, the higher the premium.

This topic becomes a bit confusing when one tries to decipher between the individual state driving record point system and the insurance company’s point system. Every state decides how many points to assign to various infractions committed and over what time period a driver can be held accountable as well as how severe action taken may be. These points are sometimes referred to as demerit points. Each state also sets rules pertaining to how long points stay on one’s driving record and how long an auto insurance company can use such points to determine premiums.

State Point Values

There is no standard point value by state for any one offense. Some states permit certain violations, such as DUIs (Driving Under the Influence) to remain on your record far longer than a speeding ticket. For example, Oregon counts all convictions and avoidable accidents regardless of severity as a single occurrence with no additional points for major infractions while Wisconsin has a point ranking system by severity: minor violations are awarded two points while the most serious infraction is awarded six points. Such information can generally be found on the website of your state’s DMV.

In addition to the unique point system of your particular state, every insurance company has its own method of evaluating car insurance applicants. As it pertains to insurance, it is safe to assume that the more points you have accumulated on your driving record, the higher your insurance premium may be. Because each insurance company has a complex rating algorithm, it is virtually impossible to compare. Typically, you can expect the rating algorithm to put an insurance point value to each infraction (as shown below).

Description	Points (1st Occurrence)	Points (2nd Occurrence)	Points (Additional Occurrences)
At-Fault Accident	2	3	2
DUI	1	2	3
No Charge Violation	0	0	0
Major Violation	4	4	4
Minor Violation	2	1	1
Not-At-Fault Accident	0	0	0
Speeding	3	2	2

Based upon the value established by the insurance company, a different rating factor is then used to increase or decrease the rate or premium. One major violation could have the effect of increasing your premiums by 26% a year. After arriving at a score for a car insurance applicant, the insurance company feeds the insured’s information into a computer which checks through information and spits out an answer. Often, the mathematical algorithms used to arrive at this answer are too complicated for the average insurance representative to discuss, but all should have underwriting guidelines along with any rating change guidelines to help explain.

Similarities among the rating methods include looking at an applicant’s accidents, traffic violations and claims (comprehensive or liability claims). Some insurance companies look at 3 years, some look at 5 years while others look at 7 years. Most look at incidents incurred by any driver that will be covered by the policy during the preceding three (3) year period. Persons that share characteristics with a group having high claims experience are charged more than if associated with a group having lower claim experience.

How Points Affect Your Insurance Premium

To understand in simpler terms, insurance companies base their rates on the risk factors associated with the applicant. Therefore, even if someone rear ends you at a stop light and you deem yourself not to be at fault, if you have had a speeding ticket or other violation prior to this accident, you might be considered an at risk driver. The number of accidents you are in directly affects your premium. You could be in four no-fault accidents, and you could still see an increase in your premiums. The insurance company’s justification: even though the authorities determined these accidents not to be your fault, something must be wrong with your driving if you were involved in so many crashes. Insurance companies may also worry that insurance fraud is playing a role in this equation. It is not unheard of for people to orchestrate accidents to reap settlements from insurance companies. This is why a high number of no-fault accidents could cause insurance companies to be suspicious.

Depending on where you live, you may be able to remove points by attending traffic school. There is normally a limit as to how far back insurance companies can look at your driving record for rating purposes; three to five years is typical.  Thankfully, in my 10 or so years of driving, I’ve never accumulated a point on my license, so my ridiculously high car insurance premium is actually lower than it could be.

The best way to keep points from accumulating on your driving record, thereby raising your car insurance premiums, is to drive safely and obey the law. Unfortunately, you can be the world’s safest driver and still face high rates, as your driving record is not the only component of your application being scrutinized: the year, make and model of the car as well as your credit history/score will also be considered.

As a child, I had what you might call a strange aspiration.  I wanted to become a dentist. Most kids hate going to the dentist because of  all the needles and drills, but twice a year I had a wide smile on my face because I knew that it was dental visit day.

I would start the day knowing that I was getting out of school early, which is always a day to look forward to.  Once I finally made it to the dentist, there was always that enjoyable 30 minute waiting period where I could read my favorite “Highlights” magazine and find all of the missing objects on the back page.  When my turn came up, I was in and out in 15 minutes. While a cleaning and a couple of x-rays tingled, it was well worth the price of an enjoyable day.

Somewhere along the line, my adoration for molars, incisors, bicuspids and canines faded away. Now being older and a wee-bit wiser, I have grown to be like most Americans in hating the dentist.  Check-ups take valuable work time out of my day. And after leaving my office job, I no longer have a dental plan, which is where I’m going with this article in case you were wondering.

This is the first time in my life since I’ve had big boy teeth that I haven’t carried dental insurance.  It’s also the first time I’ve done research on the subject, and shopping for a dental plan has proven to be quite the task.  No matter how hard I tried, I could not find an all inclusive dental plan. Meaning that whenever I needed a procedure, there were going to be out of pocket expenses.

Different types of plans provide different types of coverages, so the first step would be to better understand the types of plans available.  As far as discount dental insurance is concerned, there are three major plan types:

1. Dental Health Maintenance Organization (DHMO) : A DHMO provides coverage to individuals who choose dentists that are part of the DHMO plan.  These plans are generally the cheapest, but restrict the dentists you can visit.
2. Preferred Provider Organization (PPO): A PPO is a little less strictive in that it allows you to choose your favorite dentist.  The plan details are usually the same as a DHMO, and you should check with your dentist to confirm that they will abide by your PPO plan.
3. Indemnity Plan: An indemnity plan is the most straightforward of all dental plans in that you pay a higher than average premium. In return, you receive a standard discount on all dental procedures.  A typical indemnity dental plan would cost $20 a month and cover 70% of all dental costs, no matter the procedure.

The next step in my journey took me to DentalPlans.com, where I was able to compare a large number of dental insurance quotes for free.  An example of the comparison page is below:

The premiums for all of the plans you see on this page are relatively inexpensive and range between $8 and $15 a month.  You’ll notice a tab selector at the top of the page which allows you to not only compare routine work, but also things like crowns, root canals and extractions.  Unlike medical plans, dental plans do not carry things like deductible amounts or co-insurance, so the figures you see above are fairly straight forward.  Most plans cover between 30% and 70% of all dental procedures, so you might be thinking that if you have to have a few procedures done, picking up a plan can save you thousands in just a few weeks.  Think again my friend.

Every single discount plan I could find, including ones that are paid for by employers, allow for only $1,000-$2,000 worth of annual coverage.  This means that when you have used up $1,000-$2,000 worth of dental discounts, you are now paying full price for any other procedures or visits made within a calendar year.  I tried to find a more expensive, all inclusive dental plan but came up empty.  It got me wondering if having only $1,000 worth of coverage is worth the cost of carrying a dental plan.

Even though there is a limit to the amount of coverage I can obtain each year, spending just over $100 a year for $1,000 a year is the right investment.  Right now, I certainly don’t need anything more than two yearly checkups, but I don’t want to be caught with an extreme tooth-ache without having that insurance to fall back on.  Even if you don’t think you need dental insurance, the benefits exponentially outweigh the costs, so don’t go another minute without making your whites pearly.

In May, I wrote about how I decided to install Progressive Snapshot, a device that tracks the performance of my car while I drive.  This device can tell you at what time you’ve driven, how fast you drive and at what speed.  Progressive offers this service to all policyholders who drive a vehicle launched 1996 or later as a way to gather data on drivers, while potentially saving them money on car insurance payments.

After driving with the Snapshot device for one month, the verdict is in.  Progress has decided to cut my auto insurance payments by 27%!  This means that my normal $110 a month auto insurance payments will now be $81 a month, and that’s a pretty nice savings of $350 a year.

The discount I received however is only temporary until Progressive decides to take back the Snapshot device.  This is done to ensure that my driving habits for one month are similar to my driving habits forever, and while there is no immediate timetable that I must leave the Snapshot device installed in my Mustang, the longest time-period is six months.  Progressive also states that during this period, I could stand to gain yet another discount, however smaller than the one already received.  Since I only use this car to run errands and take the occasional trip once a blue moon, I’m confident this discount will stick and I might even be able to reduce my car insurance even further!

Perhaps the nicest part of this whole experience was just how simple this entire process was.  After signing up online for Snapshot (which took all of 60 seconds), I received the Snapshot device, installed it and just watched as my data was complied.  Progressive allows you to check your driving performance everyday, informing you of high risk driving times, rate of speed, distance traveled and hard brakes.  All of these factors led to my 27% initial discount and once 30 days was up, Progressive immediately revised by auto insurance rates and sent out my new contract.  I had to do absolutely nothing after installing the device and only when I return it (Progressive provides a box with prepaid shipping) will I have to do anything else.

So long as my rates remain reasonable with Progressive, I predict I’ll be a lifelong customer of theirs.  My discount remains in tact as long as I have this car insured with Progressive, and should I decide to insure any other car, I can request another Snapshot device and start the process over.  Progressive makes it very clear that there is no risk on the consumers end to try this program, and policyholders can only receive a discount from this program, not a surcharge.  If you have Progressive auto insurance and are looking to lower your rates, Snapshot is a must.

In October of 2009, I decided that I would no longer run the 9-5 gauntlet. And with that decision came a few immediate changes in my life.  Working from home and for myself meant that I could set my own schedule, make my own decisions and only have myself to blame when something I’ve implemented did not work out.  For me, the upside to this decision was infinite because I was slowly getting beaten down by “the man” and couldn’t take it anymore.  Unfortunately though, there were downsides to my decision, two of which I’m dealing with right now.

The first of these downers is the amount of taxes I now pay as an independent contractor.  Unknown to me at the time was that I would owe a self-employment tax that my previous employer use to pick up.  Half of my social security and Medicare taxes were paid for when I had that office job, but now I foot 100% of the bill.  The second and more important change was that I no longer had health or dental insurance from my employer.  Truth be told, five months since my decision you still won’t find me visiting any hospitals or dentists because I still don’t carry any medical or dental insurance.  I’m relatively healthy and now that I never leave the house, I have only my apartment to fear for an accident. But I’ve tempted fate long enough and now it’s time to find my own health insurance plan.

Like any important decision, this one is going to take a little time and a lot of research before I decide on the plan that’s right for me.  Before spending thousands of dollars a year, I’m going to educate myself as best I can on the coverage that suits my needs, and that means going through the following step-by-step process.

1. Why I NEED Health Insurance

Something I learned at the age of five when biting through an electrical cord is that I’m not invincible.  Even though I keep myself in relatively good health with exercise and home cooked meals, routine check-ups and emergency care are necessary to keep myself that way.  Should the time come when I am unfortunate enough to need expensive medication or a medical procedure, I want to make sure that I “can afford” to stay alive.

My finances are certainly not where I want them to be, but without health insurance, I am taking a huge risk in saving a few bucks now for a potential catastrophe later.  All of my current payments and bills will now take a backseat to making sure I’m alive long enough to pay them. The cost of surgery without insurance would derail all of the progress I have made over the last few years.

2. Understanding the Medical Mumbo Jumbo

When you carry health insurance through your employer, you are usually limited to the types of coverages available to you.  Because you only have to pay a fraction of what you would had you worked on your own, the downside to having limited options is outweighed by the money you save over time.  For me, I have the entire health care system available (99% of the health care system would be more accurate), and I want to review the most common plans taken out by consumers today.

• PPO: PPO stands for “Preferred Provider Organization” which means that my coverage will only extend to a list of doctors and hospitals that the insurance company provides.  Should I want to visit a doctor that is not on my PPO list, I will probably be responsible for 100% of the costs.  PPO’s are the most common of health care plans for individuals like myself, and as long as I can find a doctor and hospital that I like, I would imagine this is the plan for me.
• HMO: HMO stands for “Health Maintenance Organization” and those three letters continue to make consumers cringe.   HMO’s are usually the plan you will find provided by your employer because it caters to group rates.  While generally the cheapest of all health insurance policies,  the rules and regulations that need to be followed in order to be covered are very strict.  Getting medical treatment from anyone outside your HMO group must be first cleared by the HMO.   It’s important to know exactly what is and is not covered because going in blind to a visit can result in a hefty bill later.
• HSA-Eligible Plans: HSA plans are extremely similar to PPO’s in the sense that you can choose which doctor and hospital you want to visit.  The added benefit to this plan is that pre-taxed income can be put aside in an interest bearing account, known as a Health Savings Account (Hence the HSA) so when you file your taxes at the end of the year, less of your income is taxed.  If you’re wondering why you wouldn’t always choose this plan vs. a PPO, the HSA-Eligible plans have a much higher deductible than that of a PPO.
• Indemnity Plans: If you’re more of a free bird that likes to take care of things on your own, then the indemnity plan is perfect for you.  Indemnity plans are much more expensive then their above brethren, but you have the freedom to choose any doctor or hospital you want and usually any coverage or treatment you want as well.  An indemnity provider will pay a certain percentage of every visit, medication or procedure and all of the reimbursement paperwork is taken care of by you, not the insurance company.  Freedom comes with a heavy price in the medical insurance world.

In addition to the plan types, there are a few health insurance terms that you will need to know in order to get the best coverage possible.

• Copayment: The copayment is the amount of money that you will owe before any service is provided.  For example, if your insurance provider says your office visit copayment is $20, that’s just how much each doctor’s visit will cost you.  The remaining costs, whatever they are, will be paid by the insurance company.
• Deductible: Your deductible is the amount of money you will be asked to pay for your medical expenses each year before your insurance will take full effect.  Should you have a $1,000 deductible and need a procedure that costs $5,000, you will be required to pay $1,000 out of pocket and the insurance company will pay the remaining $4,000.  Unlike auto insurance deductibles which are applied with each claim you submit, deductibles for health insurance are for the entire year. So if you have multiple procedures in one year, you are not required to meet the deductible each time.
• Coinsurance: A sneaky little tactic that insurance companies use is providing coinsurance, which is the money covered after your deductible.  Assuming you have already paid your deductible for the year and have a coinsurance amount of 20%, you will be asked to pay 20% of all future medical costs out of pocket.  A 0% coinsurance amount means that after your deductible, you are 100% covered. So if you can find a 0% coinsurance at a reasonable price, that might save you thousands in the future.

3. Deciding Just How Much Coverage I Need to Carry

Because I am on an extremely tight budget right now, I won’t be able to get all of the coverages I would want. But I will be able to find the ones that I need.  Luckily for me, I’m young, have no pre-existing medical conditions and have only myself to care for, so the plans I will be shopping for should all be relatively inexpensive (when compared to what’s available).  The five questions you should ask yourself before deciding which coverages are best to suit your needs are:

1. How many times do I plan to visit the doctor for routine check-ups this year?
2. How much money did I spend on health-care last year?
3. Do I have any pre-existing medical conditions?
4. Am I looking for a specific benefit in my coverages or is this a general plan?
5. What is my budget for health insurance?

The last one is the most important one because you should never let money get in the way of your health.  If you find that the coverage you feel most comfortable with is a little out of your budget, do your best to cut the fat from other areas before deciding against a lesser health insurance plan.  You’re no good to anyone if you’re not healthy.

4. Comparing Health Insurance Quotes Online

EHealthInsurance.com continues to be the best site for comparing health insurance plans. In fact, it was just voted by Kiplinger to be the best health insurance website around.  The process is very simple and will only take a few minutes of your time.  After filling out my zip code, gender, age and whether or not I’m a student that uses tobacco, all of the available coverages in my area are displayed.

My apologies for the poor graphic above; the site constraints make it tough to see, but I will gladly explain what I view when doing the search.  Each plan is listed with 6 categories.  The first that you can see is the provider name, followed by the plan type (PPO, HMO, etc.), then the yearly deductible, followed by the coinsurance percentage, office visit costs and finally the monthly cost of the plan, which again is legible in the graphic.  Generally, the plans will be laid out from cheapest to most expensive. Of the 131 plans available to me, only two would cost more than $300 per month. But 10 would provide me a deductible of $500 or less.  Not too shabby.

In addition to the coverage prices and options, you will also find links under each plan. These links help with choosing a doctor within the plan, the full details of what the plan provides, and any reviews that have been written by consumers.  If you are looking for a specific provider or cost, you can change the search terms on the left hand navigation bar so your results are closer to what you are looking for.  Taking a brief look right now at what’s available to me, I’m extremely confident that I won’t need to go any further than EHealthInsurance.com to find the best plan.

5. Making the Leap and Applying for Health Care Coverage

It should be noted that the quotes you see in the example above may be different than the one you end up paying.  Each provided quote assumes the same information for every applicant, which is that you are an extremely healthy individual with no pre-existing medical conditions.  After you have decided on the coverage that works best for you, go through the entire process of entering your personal information on the insurance companies secure website and find out what your actual monthly cost is.  Whatever the increase in cost is for your first selection, you can expect to see the same type of increase on any of your other selections.

Health insurance has been a hotly debated topic for decades now and even more so with Congress passing a law to nationalize our health care system.  Freedom to choose your own doctors and coverage amounts may not be available much longer, but while they are, make sure you put your fears to rest and go about the right way to find a health care provider.

If you’d like to compare health insurance plans and costs, visit eHealthInsurance.com.

In 2010, proposed rules were issued and approved by the National Association of Insurance Commissioners (NAIC) for measuring the Medical Loss Ratio (MLR). The MLR is part of the Affordable Care Act (ACA), a law that puts into place comprehensive health insurance reforms that is intended to hold insurance companies more accountable, will lower health care costs, guarantee more health care choices, and enhance the quality of health care for all Americans. The MLR is the amount of every insurance premium dollar that insurance companies have to spend on medical costs or improvements to quality of care. This amount, which has been established at 80 cents (small groups and individual policies) to 85 cents (large group policy holders) of each premium dollar, has been an integral factor in the ACA’s efforts to control health insurance premiums.

The remaining 15 to 20 cents can be used for expenses such as payroll, advertising, overhead and profits that do not directly benefit customers. Companies that fail to meet this test must rebate funds to subscribers. For example, if an insurer collects $100 million in premiums for large-group coverage but spends only $75 million on legitimate medical care, the insurer would have to return $10 million to the policyholders. In 2010, Cigna Healthcare’s medical-loss ratio to date was 82.3% whereas BlueCross BlueShield of Tennessee’s most recently calculated medical-loss ratio from December for both group and individual under-65 plans was 85.3% percent.

The hotly debated topic is what counts as “health care.” The criteria can vary widely from company to company. Individual plans allocate much more of their premium dollars to administrative costs compared to large group plans, according to a study published in April by the Senate Commerce Committee. Proponents of the MLR believe that this will be an ideal way to regulate premium increases and keep insurance premiums lower, while opponents believe that such regulations will discourage insurance companies from investing in administrative services such as information technology and other medical management systems, which could save consumers money in the long run.  According to Bob Laszewski, president of consultancy firm Health Policy and Strategy Associates, “This will absolutely have unintended consequences and the consumer will suffer.”

At the last minute the NAIC, backed by the Department of Health and Human Services (HHS), amended the proposal to allow the insurance industry to count marketing campaigns performed in conjunction with state and local public health departments as medical expenses. As a result, insurance companies would be allowed to count their collaborations with public health departments as quality improvements. This means that partnerships between private, for-profit health insurance companies and cash-strapped public health departments for such things as public health campaigns would be included in the expenditures of your premium dollars to improve your health.

Currently, there are few legitimate public-private partnerships. The ones that do exist most often take the form of marketing campaigns which focus on public health issues such as smoking cessation. If this rule stands, industry experts believe the private sector will slowly start to infiltrate public health territory and the following will occur:

1. Premium dollars will be spent on marketing campaigns re-classified as “health awareness”
2. The legitimate existence and funding for real public health department initiatives will be weakened as the energies of scarce public health staff are used to determine whether particular insurance company campaigns are genuine or not
3. Public health campaigns such as cessation of smoking can help insurance companies identify and then “cherry-pick” customers, either excluding smokers from coverage, or charging them more (excess charges remain legal even after new rules take effect in 2014)

The insurance industry is also lobbying to avoid counting investment income, or the taxes they pay on investment income for purposes of calculating the MLR.  According to industry experts, these are the taxes that they should be paying to support state and local health departments.

One thing is for certain, Health and Human Services has to certify the NAIC’s recommendations before they take effect. This could entail a long, drawn out struggle. As Americans face a mandate to buy health insurance starting in 2014, consumers want assurance that health care companies will spend their money on medical care.

I’ve tried and tried and tried to find a car insurance provider who is willing to offer me a lower rate on car insurance but it’s of no use.  Even though I feel like I pay way to much with my current provider, Progressive, it’s becoming clearer to me that it’s actually a lot cheaper than anyone else.  $110 a month simply for the lowest liability coverage needed on one car that I never drive still feels ridiculous, but when Geico and StateFarm offer the same insurance for $200 … I feel better knowing I’ve had Progressive since day one.

• UPDATE: I received my discount!

That said, I understand a little bit as to why my personal car insurance is so high.  For starters, I live in the worst city in the world (Miami) when it comes to auto insurance rates and being a 27 year old male with poor credit who drives a sports car, I fit the bill of being high risk, even though I have a flawless driving record.  Thankfully, luckily, whatever you want to call it, Progressive is now offering up to a 30% discount for taking part in their Snapshot driving program.  Allow me to provide you the details.

Applying and Installing Snapshot

When I first saw commercials advertising the snapshot device, I was a little skeptical that the process would take a ton of time, and the results I would receive would be minimal.  Even though I’m only halfway through the process, I have to admit things couldn’t be easier.  To get started, I logged into my Progressive account and simply asked to take part in the program.  After agreeing to the terms and conditions, I was done.  Two days later I received an email from Progressive letting me know my snapshot device had been shipped and yesterday, I received it in the mail.

Included with the device, which looks like a larger, strangely shaped USB drive, was a few packets of info on what I can expect going forward.  I also received a quick tutorial on how to plug this device into my car and up until today I had no idea where my car’s data port was located.  Installing it took all of 5 seconds and to make sure I did it correctly, the snapshot device is now blinking green lights.  Also included was postage so that when it comes time to return the device, I can do so at the expense of Progressive.

How Snapshot Can Save Me Money

Once snapshot is installed, it will remain that way for at least 30-days, as Progressive collects data on my driving habits.  This includes how often I drive, at what time of day I drive and how I drive.  Things like breaking hard and driving after midnight can take away from your discount so make sure you drive on the straight an narrow.  Once the 30-day period ends, Progressive should have enough info to provide you an initial discount (or surcharge believe it or not).  This discounts is good every month you stay with Progressive and as long as you keep the current automobile insured with them.

In some cases, Progressive will ask you keep snapshot installed for an additional amount of time, which could result in an additional discount.  However, this could also mean that the initial discount they provide will be adjusted after more data is collected. Not every Progressive policyholder can qualify to receive the snapshot device and if you drive a car pre-1996, you’re out of luck.  The snapshot device can only be plugged into data ports post 1996 so insuring your old car won’t become any cheaper.

Snapshot Conclusion

I decided to take a chance on this device because I know I barely drive my automobile.  Even though there is a very small chance a surcharge could be added I hope Progressive will provide me a sizable discount.  Considering how simple the process of receiving the device and installing snapshot was, I would recommend any Progressive policy holder take advantage.  I’ll be sure to update everyone on just how much money (if any) I save using this promotion but for now, I’m thrilled with how things have “progressed”.

I’ve been trying for years to reduce my car insurance bill. But for some reason, no matter how good of a driver I am and how much older I get, it doesn’t happen.  I drive my car less than almost any other American, and I still pay over $100 a month just for liability coverage.  Five years ago when I bought my 2003 Ford Mustang, it had 23,000 miles and today, this car has 51,000 miles.  More than half of the 28,000 I’ve driven came from driving up and down the east coast while in school, but now that I’ve been working from home, I would estimate I drive 25 miles a week.  For insurance, I’m paying $1 a mile, which is unacceptable.

Unfortunately, my options are limited as to how I can save money on this expense.  I’ve done my due diligence, shopping around for months looking for a cheaper rate, but Progressive is as good as it gets.  Owning a sports car and living in Miami is just killing me, and I really can’t change either of those facts.  But one of the ways I have been able to reduce the amount of money I spend on car insurance is not to pay for collision or comprehensive.   At the time, the decision to only carry the necessary liability coverage was made because I couldn’t afford a $325 monthly insurance payment.  Now that my financial situation has improved, I still choose to avoid the added costs because quite frankly, it’s a rip-off.

The value in collision and comprehensive car insurance comes only if your car is damaged or stolen.   After all, it’s insurance, and the only time a customer receives value in insurance is when something bad happens.  For a guy like me who never drives, the odds of getting into an accident are slim to none.  Also slim is the chance of this car being stolen, as it’s garaged in an “odd” location.  Justifying a $200 expense each month, means justifying a $2,500 expense each year and it’s just not going to happen.  I receive absolutely nothing in return for my payments, other than the peace of mind I already have.

Instead, I take the $200 a month I would have paid for these services and I put it into an online savings account.  If the day should come where I have to fix damage to my car, I can draw from the savings account and pay out of pocket.  Outside of standard upkeep, which isn’t covered by car insurance anyway, I don’t expect any major repairs to my vehicle for years so by the time I actually need to draw from the savings account, I’ll have more than enough saved.  Two immediate benefits from this decision are:

• Even though I have to pay out of pocket repairs, my car insurance does not increase because I won’t report the accident.
• I earn a return on the money I save from not paying car insurance

My choice was not without complete risk however.  I suppose there’s a chance that tomorrow on my way to the grocery store, I’m struck by an idiot who wasn’t paying attention. But by not having paid for collision for more than four years, I’ve saved enough where the risk is covered.  And, as I continue to get older, my perfect driving record will only help in reducing my car insurance rate.  Perhaps there will come a time when collision and comprehensive insurance are affordable and smart, but that day is not in the near future.

Carrying only the mandatory auto insurance certainly isn’t for every consumer, however I would suggest it’s the right idea for most.  Obviously, the cheaper you can find added coverages, the more likely they make sense, however millions of Americans carry unnecessary coverages rather than save the money they would have spent.  If you currently pay a high price to insure your automobile, consider dropping a few coverages and saving that money instead.  Yes, you’re taking a risk but if you dot your I’s and cross your T’s, it will be a calculated risk with a great reward.

Progressive Insurance is one of the fastest growing insurance companies in the US. Currently, Progressive has over 12 million premiums, which makes it the third largest auto insurer behind State Farm and Allstate.  They also have an impressive website and Progressive has taken their snazzy website and decided to pack some of its features into an application for use on the iPhone.  We tested out the app and laid out all the features below.  Some features are reserved for policyholders while others are open to everyone.

Features for Policyholders

If you are already a Progressive Insurance customer, you can benefit more from the Progressive app than a non-policy holder.  Each Progressive customer has a Progressive.com account.  With this application, you can log into your account directly from your iPhone.  When you are logged in, you can check when your payment is due and easily make a payment, assuming you have already saved your billing information to your account.  This feature might come in handy if you are on the move and forget to make your premium payment.  It can be dangerous to miss this payment, as you don’t want to be left uninsured.

Anyone who has snapped a picture using the iPhone’s camera is well aware of its capability.  The Progressive app takes advantage of that technology by allowing you to submit a claim and include photos taken on your iPhone.  This might prove useful if you return to your car after a particularly violent storm to find a tree branch has fallen on your windshield.  You can instantly snap a picture of your poor vehicle and submit a claim to Progressive.  An insurance agent will have to follow up with you via phone, but submitting a claim with the app will help speed the process along.

Sometimes when you get in an accident or need to file an insurance claim, you inevitably have to dig through crumpled paperwork stuffed into your glove compartment.  The Progressive iPhone app allows you to access all your insurance information, including your Insurance ID card and policy details, wherever you have your iPhone.  This can help ease a process that is never terribly enjoyable.

Lastly, if you are a Progressive policy holder, you can use the app to locate a service center.  This combines the utility of your phone’s GPS with the capability of Progressive’s service center search.  Progressive also offers an option where they will take care of your entire claim including arranging and guaranteeing all repairs.

Features Available to Everyone

If you aren’t a Progressive customer, you likely won’t find their iPhone app to be extremely useful—unless you really like to watch Progressive TV commercials, which the app facilitates.  To be clear, the app does offer certain helpful tools.  For instance, you can find a local agent by entering your zip code.  The app will return the agent’s contact info, location, and availability.  In addition, you can use the app to request a car insurance quote. Unfortunately, if you want a quote for a motorcycle, boat, or car, you have to contact Progressive by phone. The feature I found to be most convenient was the vehicle comparison tool.  Researching vehicles is somewhat of a strange hobby of mine.  The Progressive app allows you to compare vehicles based on safety information, vehicle recalls, crash test results, and the cost to insure the respective vehicles.

In summary, I would say the Progressive app provides a nice convenience for Progressive policy holders, and is largely unnecessary for non-policy holders.  In addition, filing a claim still ultimately requires you to talk to an insurance agent.  Although this review focuses on the app for the iPhone, Progressive also offers a similar app for the Android phone.

In the context of life insurance marketing, you probably see far more advertisements for term life insurance than whole life insurance.  The reason for this is term life insurance is almost always the better option.  However, like most financial decisions, there are costs and benefits that come with each respective life insurance option. Term life insurance is life insurance that covers you during the life, or term, of the policy.  Terms range in length from 1 to 20 years. Whole life insurance, on the other hand, covers you for your entire life.  In this post, we are going to outline the pros and cons of whole life insurance to help you make a more informed life insurance decision.

Why Whole Life Insurance is a GOOD Idea

Assuming that you are paying your monthly premiums, a whole life insurance policy will cover you for your entire life.  The idea of ceaseless life insurance coverage comforts many customers.  Typically, term life insurance policies won’t cover you after age 65.

Whole life insurance differs from term life insurance in its provision of both a death benefit and a savings account.  A portion of your life insurance payment is set aside in a savings account often meant to serve as retirement account.  Insurance agents refer to this as “forced savings.”  You can withdraw or borrow against the cash value of your savings portion of your insurance policy.  In addition, if you outlive the life of the policy, you can receive cash back, which acts as another security feature to ease consumers minds.

Why Whole Life Insurance is a BAD Idea

It might be difficult to quantify the price you would be willing to pay for ceaseless life insurance.  However, you can guarantee that you will be paying far more for a whole life policy than a term life policy.  The whole life premiums generally cost 5 to 10 times more than the term life premiums.  They are usually paid at a constant cost on an annual basis.  The reason for this higher cost is the savings account aspect of whole life insurance, mentioned above.

Whole life insurance policies appeal to people who want insurance coverage despite their old age.  Once you think about the reason for having insurance, you realize this justification is flawed when applied to most people’s situations.  In case of your unfortunate demise, life insurance is supposed to provide for the people who depend on you.  This sounds fantastic, but as you reach age 65, you will likely realize that your kids are old enough to care for themselves and your loans or liabilities will have already been paid off.

Some insurance agents sell whole life insurance to unsuspecting customers by stressing that a portion of your premium is invested in bonds, money-market products, stocks, and other financial products that collectively serve mainly as a retirement fund.  Again, this might sound fantastic as forced savings takes the savings responsibility out of your hands.  However, maintaining these funds under your life insurance policy typically comes with large commissions and high fees.  If you prefer to invest your money in the best product for retirement, the whole life insurance policy will leave you dissatisfied.  Sure, a whole life policy bundles insurance and retirement together.  Unfortunately, that neat package will cost you dearly in retirement savings.

In summary, for the average interested party, the benefits of whole life insurance lie in its mental comfort (insurance forever!) and its offer of a forced savings account.  However, I do not believe these benefits outweigh the significant additional costs and the lost revenue from investing your retirement account poorly.  Avoid whole life insurance if possible and look to secure your family’s future with term life insurance instead.