How to Find Cheap Car Insurance for Teens

Do you have a teenager who is about to get their drivers license? If so, there is a good chance that you are getting prepared for the added expense of buying them car insurance. Although it can be expensive to insure a teenage driver, you should remember that there are ways that you can keep costs down. This is not to say that you will pay as much for a teenager as you do for yourself, but you should be able to save some money.

Here are three ways to go about finding cheap car insurance for teens:

Ask your car insurance company if they can offer a discount for adding another driver to your policy. This may be your best option for finding car insurance for cheap; this is especially true if you have a good relationship with your insurer.
Find as many discounts as possible, and attempt to take advantage of all of them. Many car insurance companies will offer a discount if your teenager takes a safe driving class. Although this can be a pain in the neck for your child, it is something that you should sign them up for. Over the course of a year, this discount could save you hundreds of dollars or more.
Do not assume that your current car insurance company is the best option. If they are not accommodating your teen, it may be time to take your business elsewhere. You may find that a change will do you good.
With these three tips, you can find cheap car insurance for your teen. It will always be expensive to insure teenage drivers, but this does not mean that there is no way to save. When you look into every company and the discounts that they are offering, you should be able to save a few bucks.

Three Things to Remember when Filing a Car Insurance Claim

Filing a car insurance claim means that you have been in an accident; quite possibly one that you caused. Although this situation can be intimidating and stressful, you need to learn how to deal with it. When it comes down to it, almost every driver has an accident at some point in time. Knowing what to do when filing a car insurance claim will make things much easier on you.
Always provide accurate information to your car insurance agent/company when filing a claim. This includes everything from the condition of your car to the events that unfolded before and after the accident. By telling the truth, your car insurance company will be able to help you move forward.
Ask about your deductible and anything else that may be affected because of your accident. While you do not want to add too many new dimensions to your accident, there are some details that must be discussed. After all, your insurer is going to want to collect your deductible sooner rather than later.
Get an idea of how the process will move forward. Filing a claim is only the first part of the process. Ask your agent what happens next, as well as what your role is as things unfold. It is important for you to know what is going on so that you can do what is best for your situation. Of course, if you have any questions after you hang up the phone, make sure that you call back. It is better to know exactly what is going on than to run into a surprise.
These three details are very important to remember if you are filing a car insurance claim. They will help you to get your car repaired and back on the road as quickly as possible.

Small Details Matter when Buying Car Insurance

Sometimes it is the small details that matter the most when buying a car insurance policy. This does not mean that you should forget about the major items, but with that being said they are not always the most important. The question is: which small details should you consider the most when buying a car insurance policy?
First and foremost, you will want to look into any extras that your car insurance company is offering. For instance, how much would it cost you to purchase rental car reimbursement? With many providers, you may be able to get this coverage for a few dollars per month. The same thing holds true for 24 hour road side assistance; another very important detail to consider. If you can add these extras for minimal cost, you may want to consider doing so depending on your budget. And remember, every car insurance company has different extras to choose from.
Moving on, details that seem small (but are not) may also effect how much you pay for car insurance coverage. You may not think the difference between a $500 deductible and a $1,000 deductible is much. But guess what? By opting for a higher deductible, your monthly premium could be reduced by quite a bit. A small detail like this, one that looks like nothing on the surface, could end up being a major step in getting the best deal possible. If you are unsure of just how important a detail is, make sure that you ask your agent.
When buying car insurance, you need to consider every detail; no matter how big or small it seems. This will allow you to not only save money, but to understand what you are buying as well. And that is what you want, right?

Three Reasons why Shopping for Car Insurance Online Will Always Work

When it comes down to it, shopping for car insurance online is something that is not going anywhere in the near future. There are many benefits that consumers can take advantage of when they turn to the internet to shop for insurance. Millions of consumers shop for car insurance every year, and the majority of them will use the internet in some way, shape, or form.
Here are three reasons why shopping for car insurance online will always work and be popular among a majority of consumers:
The internet is growing day in and day out. For this reason, more services are popping up and more people are realizing the benefits of shopping online. There used to be a time when consumers were afraid to shop online. Fortunately for the car insurance industry, those days have come and gone for the most part. More and more car insurance agents are going online. They are aware that this is where consumers are shopping, and for this reason they are making their presence felt. Any car insurance agent who is neglecting the internet is making a huge mistake. Consumers are learning about the many benefits of shopping for car insurance online. Just five years ago this was not the case. But as of late, more and more consumers are realizing that they can save a lot of time and money by using the internet. And as you can imagine, where there is a large number of consumers there is sure to be a large number of car insurance companies and agents. As you can see, there is no reason to believe that shopping for car insurance online is going to become obsolete. In fact, it is safe to say that this trend is just starting.

Car Insurance for a Rental Vehicle

Are you going to be renting a car in the near future? If so, you need to keep one thing in mind: insurance is still very important. Even though you are not driving your personal vehicle, you still need to make sure that you have car insurance coverage. If you do not, you could get yourself into a lot of trouble if anything happens.
There are two ways that you can get car insurance for your rental vehicle:
When renting a car, you can ask the agency if they offer insurance. Of course, this is something that they will probably ask you before you sign the final documents. In most cases, you can purchase car insurance for a rental vehicle for only a few bucks.
Before you purchase additional coverage, you will first want to ask your car insurance company if they cover you while driving a rental. You may find out that they do, which means that you do not have to waste any additional money when renting a car. Make sure that you are 100 percent sure of what your car insurance company covers, and what your responsibility is. In other words, is your coverage the same no matter if you are driving your car or a rental?
Anytime you are driving you need to make sure that you have car insurance. This can be something that you easily forget when renting a car. Luckily, you have two options for getting insurance. You can either purchase it through the rental car agency, or speak with your insurer about what they have to offer. Either way, make sure that you have the appropriate coverage before driving off the lot.

A Good Credit History Can Save You Hundreds Of Dollars On Your Car Insurance

When you go down to get car insurance, you want to get the best deal and the lowest auto insurance rates that you can. There are some facts about your credit score and credit history that may cost you more in car insurance premiums, and this does not just include your credit score. Insurance companies use a number called an insurance credit score. This score takes into account the actual credit score on record, but also a number of other things that affect your rates as well.
Public records may be checked for any liens, foreclosures, bankruptcies, collections, judgments, and charge offs. Keeping these items off of your public record will give you lower insurance rates with most auto insurance providers. Past payment histories may also be checked, and for more detail than just how many times you have been late, including how many days you were late each time. Make sure that you make your payments on time every month to keep car insurance costs low.
The total length of time you have had a credit history can be a factor in your car insurance costs, so if you do not have credit then apply for some to get in the system. Sometimes not having any credit at all is just as bad as having poor credit, so use your credit wisely, but at least establish it and you can get lower car insurance premiums.
Many auto insurance providers will check the number of inquiries for credit when they determine the rates for your auto insurance policy. Insurance companies will look at factors including any new applications for car loans, personal loans, mortgages, credit card accounts, and utility accounts as part of this specific check. Do not apply for credit just because you can, or it could end up costing you more for your car insurance.
The lines of credit that you have open and the types of credit that you use are both usually considered when an auto insurance company determines your risks and your car insurance rates. The credit cards you have will be considered, whether you use the credit cards or not. Only keep credit cards that you use, and close any card accounts which you do not want or need. Only apply for and use the credit that you have to, because these factors will reflect on your auto insurance bill.
The last area of your credit history which will have an effect on your auto insurance costs is your used/available credit ratio. The amount of credit you can use is compared to the credit you actually use, and the lower the ratio is the better your car insurance costs will be.
Knowing all of the areas of your credit history that will be evaluated by the car insurance companies can help you lower the risks involved in these areas, so that you will get great car insurance rates and see substantial savings. If you pay attention to these areas of your credit history, you will get lower car insurance rates on your policy.

Make Buying Car Insurance Fun

Believe it or not, buying car insurance can be fun. Most consumers do not believe this for two reasons. First off, they think that they will pay too much money no matter which car insurance policy they purchase. Secondly, they see nothing fun in the buying process. Fortunately, you can both save money and have fun while buying if you know what you are doing.
The best way to have fun when buying car insurance is to set goals. When you have goals in mind you will find it exciting to chase them during the buying process. For instance, set a goal of locating a quality car insurance policy for less than $80/month. This may sound impossible, and maybe it is. But there is no denying that you will have fun searching for the policy that matches your goals.
You can also make car insurance fun by shopping online. Forget about the stress and sales pitches that go along with calling agents and brokers. You can find a car insurance policy on your own via the internet. And in the end you will find that this is much more exciting than any other way of shopping.
Any consumer can have fun when buying car insurance if they are willing to do so. There is no reason that you have to stress out over this, and end up buying any policy just to end things. Instead, have fun when buying by setting goals and shopping online. This may be more exciting than you ever imagined!

Stop - Buy Car Insurance Online to Save Money

Before you do anything stupid, stop and listen up: if you want to save money on car insurance you need to shop online. This is the best way to not only save money on car insurance, but to also be presented with the largest number of options. When you shop online you are going to take advantage of many benefits. In fact, you will probably be surprised at just how much this has to offer.
How can you save money by shopping for car insurance online? This can be done in two ways. First off, car insurance companies tend to offer the best rates online. They know that most consumers start the shopping process online, so they offer the best deals in order to close the sale. Just make sure that the premium you are offered in your quote is the price that you pay when it finally comes time to put a policy in place.
Shopping online for car insurance will also allow you to save thanks to the ease of comparison. In other words, the ability to compare multiple policies will more than likely lead to a lower price. After receiving several quotes it is quite easy to compare them side by side to see which one is most affordable. While doing this, make sure that you still keep the coverage you are buying in mind. In other words, you do not want to opt for the lowest cost car insurance policy if you are going to have to compromise on coverage.
Overall, stop before you buy car insurance. Have you shopped online? If not, head for the closest computer with internet access. You owe it to yourself to save money by shopping for car insurance online. This is a quick process so you might as well take the time to receive quotes before you do anything that you might regret.

Your Duty as a Car Insurance Consumer

As a car insurance consumer you have a duty to yourself. This duty is made up of two details. 1. You need to find a car insurance policy that has the coverage that you want. 2. Your policy should fit your budget. If you combine these two details you will be fulfilling your duty as a consumer. Of course, this is easier said than done for many consumers. Sure, you want to do the right thing, but there is a lot of time and effort that goes into making this happen.
The easiest way to fulfill your duty as a car insurance consumer is to set yourself up for success. If you are not careful, you may be setting yourself up for failure. And if you do this, you are going to waste a lot of time and resources. To set yourself up to reach the above goals, you need to know where to shop for car insurance. This is an easy question to answer: head for the internet. There is no reason to ignore the internet if you are shopping for car insurance. If you do you are only harming your chances of finding the right coverage at a reasonable price.
What is so great about the internet when it comes to shopping for car insurance? The first thing that is a benefit is the way that you can secure quotes in a timely manner. You can have three to five car insurance in your possession in no time at all if you use the internet. In addition, you will also find information on the details of the car insurance industry. And if you are unsure of what you are up against, this is very important.
Your duty as a car insurance consumer is to find a policy that covers you and your car while not forcing you into debt.

Car Insurance Extras: What they are, When to Buy

When shopping for car insurance you need to be careful about the coverage levels that you purchase. As you know, the more coverage you want the more money you will pay. To go along with this, there are some car insurance extras that will increase the cost of your premium. Are you willing to pay more for these extras? Or would you rather leave them out so that you can save money? The answer to this depends on how much money you are willing to spend, and how important you believe these extras to be.

There are many common car insurance extras that you will have to decide on. For instance, rental car reimbursement is common. This is good to have if you are in an accident in you need to rent a car while yours is being fixed. As you know, renting a car can be expensive. But if you have this coverage, the majority of this cost will be covered. Another extra that you will want to consider is roadside assistance. With this, if your car breaks down, needs gas, or runs into any other problem, you can call for free roadside assistance. If you have an older car this is something that you definitely want to consider. But even newer vehicles can run into problems such as a flat tire, etc.

Before you decide for or against these extras, you will want to look at how much they will cost. For instance, if you have the ability to add car rental reimbursement for a couple of dollars per month it may be worth it. Your car insurance company can give you quotes for each extra so that you know exactly what you are up against.

Overall, be careful when choosing car insurance extras. Some are beneficial and others may be a waste of money.

Chance Time for Money when Buying Car Insurance

When buying car insurance you need to decide what is most important to you. Some people want to buy car insurance as quickly as possible because they simply don't want to mess with the process. Others have their mind on the money, and will shop around before buying anything. They have found that comparison shopping will give them the chance to get the lowest possible premium when buying a car insurance policy.

It is a good idea to chance time for money when buying car insurance. What does this mean? Well, when you shop around for car insurance you are going to spend more time than if you simply buy the first policy that you come across. It may not sound like a good idea, but trading time for money will work out in your favor in the long run. For the most part, you can gather plenty of car insurance quotes, including cost, within a couple of hours at the most. The end result is the chance to buy the car insurance policy that is offering the best deal on price.

Don't make the mistake of being in a hurry when shopping for car insurance. If you do, you may end up spending more money than you should. And in this case, the money that you spend upfront will carry on month after month. In other words, paying too much for car insurance is something that will haunt you over the long haul.

Overall, you should be willing to spend extra time shopping for a car insurance policy if it means that you can save money. You may be tempted by the first policy because it looks good, but until you compare it to others you have no way of knowing if you will be saving money or spending too much.

Be Confident when Buying Auto Insurance

When buying an auto insurance policy you need to be confident in the moves you are making. If you don't know what you are doing and move forward without confidence you may find that you are in a bad place with the wrong policy protecting you. Fortunately, it is not difficult to be confident when buying auto insurance coverage. This is nothing more than a frame of mind, and once you are in the "right place' you will not have any problems going forward.
To be confident you need to know what you are doing. Consumers who don't know a lot about themselves, their budget, and the auto insurance industry are not going to be confident. But if you know every last detail, no matter how big or small, you can move through the process with tons of confidence. And when you feel this way there is a very good chance that you will get the policy you want without having to wait too long.
Is your confidence wavering? If so, you need to face this situation. Why are you less confident than before? You may have run into a roadblock, or maybe you are facing a situation that you were not expecting. No matter what, it is important to regain your confidence no matter what it takes.
It is very important to be confident when buying an auto insurance policy. This will help you to get started, to find the right coverage, and to eventually have the nerve to make a purchase. When you are confident in yourself and your decision making abilities you will find it simple to purchase a quality auto insurance policy that you can really identify with.

Auto Insurance Essentials

It is important to know the essentials when buying an auto insurance policy. The thing that makes this difficult is that every consumer is looking for something different. What you consider as essentials somebody else may consider an extra that they don't really need. This is common, but you need to know what is important to you. Remember, you are the only one you need to satisfy when buying auto insurance coverage. Don't decide to buy something because of what everybody else is doing.
An important essential is a reasonable deductible. This is something that every consumer agrees on. When buying auto insurance you need to consider your deductible and what you will be able to afford if you need to make a claim. Are you comfortable with your current deductible? Do you want to change this when buying a new policy?
Another essential is the overall cost of coverage. This may not be a separate component of a policy, but in the long run it is usually one of the most important details. Do you know what you want to spend on auto insurance? If so, will you be able to stick to this number when buying coverage? Only you will know the answers to these questions.
As a consumer you need to know what is important when shopping for auto insurance. The details that are essential to you should be the ones you focus on when shopping for coverage.

Here is how many Consumers are Buying Car Insurance

Do you know how to shop for and buy car insurance? If not, you may want to take cues from what others consumers are doing. Once you see how others are buying car insurance coverage this may give you the information you need to make things easier on yourself. When it comes down to it there are many ways to buy car insurance. But that being said some are better than other. What will work best for you?
Many consumers have found that calling brokers and agents for quotes is far from the best way to find and buy car insurance. Instead, they are using technology to their advantage. More specifically, they are relying on the internet to secure several quotes. Have you ever given this any thought? Simply put, if you are not shopping for car insurance online you are leaving a lot of information on the table. Not to mention the fact that you may be missing out on the perfect policy.
Not only are many consumers shopping for car insurance online, but most of them are completing the process the same way. Once you find a quote that you like you can then finish the buying process. Soon enough you will have car insurance and will be waiting for your permanent information to arrive in the mail. Sounds pretty easy, doesn't it?
Now that you know that the internet is a great place to shop for and buy car insurance you need to answer one final question: are you going to use this option to your advantage? If you want to get what is coming to you without having to worry that you are missing something you need to follow suit and shop for car insurance online.

Buying car insurance for younger drivers

Motoring costs have soared in 2008 with increases in the cost of fuel, tax and insurance premiums; meaning that keeping a car on the road has never been more expensive. For younger drivers, it gets worse. New plans by the government to increase the tuition period before a learner driver can pass their test means that the cost of getting your licence is also set to increase.

For younger motorists, higher costs will sadly come as no surprise as this age group has been paying higher insurance premiums for years. A lack of driving experience means that they are not eligible for the no-claims discounts that more experienced drivers may be entitled to and they are likely to have higher policy excesses.

As well as a lack of driving experience, younger drivers are also penalised by the insurance industry because of their reputation. This is because young drivers are statistically more likely to have an accident. According to the Association of British Insurers (ABI) , young men aged 21 are 10 times more likely to be killed or seriously injured on our roads than those aged 35 or over. Statistics also show that every day, four people are killed or seriously injured in accidents involving younger drivers.

While insurance will always look expensive to new drivers, there are things that can be done to help keep premiums at a low:

- Avoid modifications: Avoid vehicles with any modifications from the standard manufacture. Even if it’s a second hand car and a modification has been made by a previous owner, drivers will still need to declare this on their motor insurance policy. Adding items such as roof racks or luggage boxes will not generally be considered as modifications by insurance companies. However, with any changes to your vehicle, drivers should call their insurer direct to check whether or not this affects their policy.
- Smaller is better: Choose your car carefully and try to avoid cars with engines over 1200cc; the lower the engine capacity of the vehicle, the lower the premium.
- Shop around for your insurance: don’t accept the first quote that you are given and always try to compare as many quotes as possible. Insurance comparison sites mean that you can now compare more insurance premiums than ever before, and in a fraction of the time. The beauty of using a comparison site as a younger driver is that the insurance companies who are not competitive for younger motorists will automatically be filtered out.
- Do you need a comprehensive policy? Depending on the value of your vehicle, you may want to consider a third party fire and theft policy, rather than a fully comprehensive policy. Drivers will need to be aware though that this type of policy will not cover you if your car is affected by flooding, or if you are involved in an accident where you are at fault.
- Consider your excess: If you increase the amount of excess that you have on a comprehensive motor insurance policy, you can bring your premiums down even further. However, an excess amount is made up of both a compulsory and a voluntary excess. The compulsory excess is set by the insurance company and this amount will vary depending on your circumstances. For example, drivers under the age of 25, drivers with protected no claims bonus or with performance vehicles will find that their compulsory excess will be higher. The voluntary excess is the amount that you choose to contribute towards a claim and by increasing this, you can often lower your overall premium. However, before committing to a policy always check the total excess amount (voluntary plus compulsory) that you will have to pay should you need to make a claim.
- Obtain a Passplus certificate: A PassPlus course can also help to reduce your premiums– this is a course that can be taken once you have passed your test and takes a minimum of six hours. This will generally cover risks such as driving at night, on country roads, on dual carriageways and motorways, and driving in different weather conditions. As well as increasing your confidence as a driver, these courses can help to reduce premiums for younger drivers.
- Add an older driver: Consider adding another older, more experienced driver to your insurance. In some cases, adding a second driver who is over 25 and has a clean licence to the policy can help to reduce premiums if you are a younger driver. However, this will depend on the underwriting criteria for each individual insurer. Some insurance companies will charge for the highest risk driver named on the policy, and it will not matter who drives the vehicle and when.

There are ways to keep insurance costs down but don’t be tempted to alter or omit key information to try and lower your premiums. Being honest with your insurer when you are applying for an insurance policy is essential.

Auto Refinancing

Written and sponsored by rateGenius Auto RefinancingAuto Refinancing is like mortgage refinancing, but with distinct differences. One is that a house appreciates in value, cars do not appreciate, therefore, you cannot extract cash from your auto loan. In fact, most people are upside down when they refinance. Auto refinance is basically paying off your current high interest auto loan with a better, lower interest loan.
The Auto Refinance ProcessYou want lower payments, a lower interest rate, and maybe a short payoff term, but what does the process entail? The steps in the auto refinancing process include:
Auto Refinance Application - sending the information about your financial and auto situation
Identifying the lender that best matches your refinance needs
Talking to a loan specialist, who will explain everything from loan changes to your approximate savings
Getting you to complete the loan forms and mail them back
The title transfer, loan payoff, and warranty and insurance paperwork is completed
There is no cost to you. Any fees by the state, extended warranties, and/or GAP insurance are added into the loan balance.
BenefitsRefinancing not only frees up money in your pocket, but can also have a positive impact on your credit.
Some other benefits to refinancing your car loan include:
Car loan monthly payment savings
Interest rate savings on current loan
Up to 60 days of deferred payments - take a break from paying!
Opportunity to purchase GAP insurance and an extended warranty, all added into your loan for long term savings
The service should be completely free!
Things You'll Need
18 years of age or older
Car Info
Make, Model, and Year (no more than 5-7 years old)
Mileage (no more than 80K miles)
Packages and Options
VIN (if you have it)
Loan Info
Current Lender Name and eventually the Account Number
Current Payoff Amount (must be over $10K for most lenders)
Current Interest Rate
Current Monthly Payment
Financial Info
Monthly Income (must be over $1800 per month)
Monthly Debts
Employment Background
Social Security Number

Auto Insurance Quotes

For Years I was one of those drivers who just paid for my auto insuranceautomatically without ever thinking about the growing costs. It makes me shudder to think about how much money I've paid out over the years... which is why I want to share with you a fast way to potentially save big time on your annual motoring insurance bills and to let you in on a SECRET that your insurance company doesn't want you to learn. Using this easy but potent method enabled me to literally 'Half' my annual auto insurance bill and you could quickly do it too.
When I first stated using this technique I was astounded and confused why some car Insurance companies were so much less than my normal insurance provider for the same type of cover. I even confronted my previous insurance provider to ask why, as you may expect, they couldn't give me a reasonable answer... Then it suddenly hit me!
Have you also found this... Your auto insurance costs rise each year even if you have never claimed. Statistics show the longer you are with an insurance company and have not claimed the less risk you should pose to the company and so your insurance costs should, theoretically, be REDUCED every year. It would seem that insurance companies only apply statistics when it helps to increase the cost of the policy.
Imagine if you could really SLASH your annual insurance bill. What could you do with that extra money? In my case the extra savings goes on our annual family vacation and believe me it's a significant contribution. We actually managed to nearly half the insurance costs of both our cars which amounts to a tidy sum. I have to say it's quite a good feeling lieing on a relaxing sunny beach watching the kids playing in the water knowing that my insurance company has made a nice contribution to the cost of our vacation.
As I mentioned previously about my original insurance company not willing to give me an reason for why my insurance costs were increasing instead of getting less. It's not really that they couldn't give me an answer; it's more like they didn't want me to know the real reason.
This is what I had discovered... Insurance providers are always looking for NEW customers, their main focus is on obtaining a bigger market share at almost any cost in an attempt to beat the other insurance providers, and they go out of their way to attract NEW customers.

They even offer massive discounts to NEW clients, discounts that they would never normally give to their current clients. This is why YOUR annual costs increase every year rather than drop, you are covering the costs of the special offers passed on to NEW customers. Does that make you angry? I'm sorry if it does it was not my intention to get you all worked up. I just wanted you to realize what was going on and to understand why your insurance bills are continually growing. The great news is that you can also now begin to take advantage of those special discounts and get low cost auto insurance, just as I have done and you could save massively on your motoring insurance renewal costs.

The secret to acquiring low cost auto insurance is to beat the insurance companies at their own game. Each time you need to renew your auto insurance you need to put yourself out there as a potential NEW client and attract the best discounted auto insurance deals available.

It takes a little extra work, but there are web sites out there that make it easy to find the best offers.
Now you know the secret you will never have to pay max rates for auto insurance again.

Insurance Litigation in Latin America

Insurance Litigation in Latin America: What lawyers need to know?
When industries suffer large-scale accidents and the production losses are estimated in hundreds of millions of dollars the insurance market is seen as the remedy when an event of this nature takes place. Learning about how insurance mechanisms operate is increasingly important, not only for the companies involved in the claim but also for the public, press and the companies’ advisers: including, of course, the attorneys of all of those involved in the accident.
Attorneys can face questions on the sense and scope of exclusions in policies, limits and sub-limits of coverage, how the reinsurance sales systems work and particularly the content of the contracts between the insurer, assignor and reinsurer – as well as the implications that these contracts may have for the company and for the claim which they may eventually face.
The expansion of the Latin American economy over the last years has been driven by the strong demand for raw materials, especially from Asian countries.
It is well known that since 2004, China in particular has become the exporting countries of Latin –America’s biggest customer. The increase in demand from such a large country has driven the price of some raw material to prices never seen before. As the Economic Commission for Latin America and the Caribbean (CEPAL in Spanish) has pointed out, world economic growth and the increasing participation of China, India and other Asian economies has boosted trade for South American countries by 31 per cent since the 1990s.
The same organisation has also pointed out that manufactured goods coming from some Latin American countries have shown a sustained growth reaching almost 20 per cent in 2005. For example, in Brazil, exports of manufactured goods currently represent 56 per cent of the country’s total.
Many of these Latin American companies, either private or state, are coping with this high demand by working at the top of their productive capacity. Some trade on their future assets and most sell practically all the commodities – unimproved raw materials which require short transformation processes as metals, energy, food and consumables – they produce daily.
With companies producing high commercial value goods at a pace never seen before, with a secured demand and sales with amazing profit margins, it’s not hard to imagine how catastrophic any event which might totally or partially paralyse this production would be.
Thus, in the case of a mining company which produces three million dollars in copper a day, or in the case of an oil company which could produce twice that, interrupting their operations could cost them several hundred million dollars. In high price periods such as now, two or three months of discontinuance would have a severe impact on a company, even when all necessary measures have been taken to mitigate the losses.
It is then that all thoughts turn to insurance, particularly those policies which cover loss for business interruption and which indemnify damages for discontinuance of production. Increasingly, insurance programmes to protect physical goods and contracting are just a small chapter in the complex insurance process of big businesses. Precisely due to the high daily production level, insurance for protection from loss for damages for business interruption has become these businesses’ risk managers’ greatest worry nowadays.
The policy Contract
The value of the amounts insured and the technicality of their structure make these policies especially complex, not only in their design but also in their interpretation. This complexity is added to by the re-sale mechanism of insurance companies, which is often unfamiliar not only to the companies but also to their lawyers. This re-sale occurs because in business interruption insurance for big companies in mining, oil, energy, manufacture and even in-bond assembly of various goods, the insured amounts are usually so huge that it is impossible for the local insurance companies to take the risk by themselves. They must resort to the coinsurance mechanism, through which they share the risk with other local insurance companies, and more importantly they resort to reinsurance, a mechanism through which they assign part of the risk to foreign reinsurance companies which generally operate from the sophisticated European and American markets.
The participation of these entities in the insurance chain makes insurance contracts more complicated for the companies’ legal counsel, especially when clauses which establish deductibles, sub limits, exclusions, coverage conditions and specific mechanisms for the calculation of loss are incorporated in these contracts. If a serious event affects the operation of such a mega-business, not only are the insured company’s own mechanisms for these contingencies activated, but also the mechanisms of local insurance companies. Legal counsel will also quite certainly be expected to consider the procedures that the reinsurer in London, Zurich or New York has established for such great claims of policyholders with operations in Latin American countries.
The risks are usually so big that the number of reinsurers intervening in the sale of reinsurance of just one company can add up to 10 or even more. Each one has not only its own contingency policy and specific procedures but also its own language and ruling law, making claim management many times more difficult than at first may seem.
Once a claim of this kind occurs, it is not only the law firms advising the insured companies for whom the scenario is particularly complex. Reinsurers’ lawyers often lack knowledge of the regulation of Latin American markets, and this ignorance of insurance law of each country can mislead them. For example, when interpreting local insurance contracts, it is natural for reinsurers’ lawyers to apply reasoning using their own legislation, which sometimes opposes the regulatory processes of the local markets.
There is another layer of dissociation between the company making the claim and the reinsurers. The local insurance companies which take this kind of risk are usually international companies, with strong technical support and well constituted procedures. They are cautious in selling on reinsurance contracts, since the seriousness and solvency of the reinsurer is their guarantee of payment. Many productive companies trust this process, and contract their insurance through brokers or examine only the primary policy without worrying very much about what happens further on in the reinsurance contract. However, this may be where the final fate of their claim will be seen.
Negotiating the maze
What should a lawyer focus on when faced with a difference of opinion between policyholder and insurer, and the negotiations this kind of problem implies, or a possible insurance lawsuit?
First, it is fundamental to know and completely understand the insurance policy under which the claimed risk is covered. This, which at the beginning seems elementary, does not turn out to be simple when there are differences in the interpretation of a word, a number, a paragraph or exclusion. Such a difference could mean the policy is no longer self-sufficient, and lawyers will need to go back to its history, to its underwriting process and to the record of negotiation among those who participated in its emission and contracting. In this regard, the broker’s responsibility turns out to be particularly relevant since, especially in Latin American countries, they usually act as sole connection between insurer and policyholder.
In such cases, lawyers must also be apprised of the particular laws on insurance contracts, as well as some special civil laws of each country which go further than insurance matters and which regulate, for example, the way to construe contracts. Familiarity with local insurance regulators’ administrative regulations, many of which monitor the detail of contracts and the mechanisms for entering into an insurance contract, is also essential.. But this analysis of these layers of regulation related to the link between policyholder and insurer does not end in the direct insurance contract when dealing with million-dollar claims and great risks. The terms of the reinsurance contracts between the local insurer and the reinsurer will be the determining factor in deciding the claim. Every lawyer for a claimant in such a case must know the laws regulating the contracting of reinsurances, as well as the reinsurance mechanism applied to the specific risk about which the law firm is advising.
In general, in Latin American countries, reinsurance does not alter anything in the contract the direct insurer and the policyholder, and the claim payment may not be deferred because of reinsurance. Strictly speaking, reinsurance keeps obligations between local insurer and policyholder inalterable. However, modern reinsurance contracting practices often makes the role of the reinsurer in the claim payment decision fundamental - and even beyond that which local legislation allows. This is mainly due to the inclusion of Claim Control Clauses and Claim Cooperation Clauses in reinsurance contracts.
The Claim Control Clause establishes as a precondition to coverage that the local insurer get written authorisation from the reinsurer to make any payment or to even reach any agreement regarding a payment which may affect its responsibility. For this reason, if there is a complaint on the policy, the direct insurer must usually submit to the guidelines the reinsurer lays down regarding the adjustment and payment process of the claim.
The Claim Cooperation Clauses are less restrictive for the direct insurers. They do not impose direct control over the pay-off process, since the condition of requiring written authorisation is eliminated. Simple notices or information relay is all that is required. Some clauses are stricter than others, depending on the requirements imposed by the reinsurer.
Both of these clauses, which are part of every modern reinsurance contract, force the local insurer to be very careful in managing the claim. Reinsurers can refuse indemnification payment, and this has a direct effect on the policyholder. This situation is even more complex for the insurance company and its lawyers when, for the same risk, there are two or more different reinsurers, or when foreign legislations and jurisdictions come into play - or even a mix of both.
Neither the lawyer of a policyholder nor the lawyer who in each country is advising the reinsurers should or may remain indifferent to the contracting mechanisms of reinsurance. Much less can they disregard the reinsured-reinsurer conflict or its effects on the company which has contracted the insurance and which has suffered the claim. There is absolutely no doubt that some of the insurance mechanisms and the reinsurers’ support allow these productive Latin American companies to concentrate their effort on the development of their business, knowing that their assets and products are backed by sound and well structured insurance contracts. Equally, it is important to accept that just as the world of business in general is not exempt from conflicts; neither does the world of insurance lack them. Quite often lawyers are required to guide their clients through these difficulties in the best way possible.
Whether your client is in the energy, mining, or agriculture sectors, or one whose line of business is to award insurance or reinsurance, the lawyer who defends a client in an insurance conflict will sooner rather than later realise that it’s an exciting world where there also is a lot lo learn.

Insurance Needs in Retirement

Your goals and priorities will probably change as you plan to retire. Along with them, your insurance needs may change as well. Retirement is typically a good time to review the different parts of your insurance program and make any changes that might be needed.Stay well with good health insurance

After you retire, you'll probably focus more on your health than ever before. Staying healthy is your goal, and that may require more visits to the doctor for preventive tests and routine checkups. There's also a chance that your health will decline as you grow older, increasing your need for costly prescription drugs and medical treatments. All of this can add up to substantial medical bills after you've left the workforce (and probably lost your employer's health benefits). You need health insurance that meets both your needs and your budget.Fortunately, you'll get some help from Uncle Sam. You typically become eligible for Medicare coverage at the same time you become eligible for Social Security retirement benefits. Premium-free Medicare Part A covers inpatient hospital care, while Medicare Part B (for which you'll pay a premium) covers physician care, laboratory tests, physical therapy, and other medical expenses. But don't expect Medicare to cover everything after you retire. For instance, you'll have to pay a large deductible and make co-payments for certain types of care. Medicare prescription drug coverage is only available through a managed care plan (a Medicare Advantage plan), or through a Medicare prescription drug plan offered by a private company or insurer (premiums apply).To supplement Medicare, you may want to purchase a Medigap policy. These policies are specifically designed to fill the holes in Medicare's coverage. Though Medigap policies are sold by private insurance companies, they're regulated by the federal government. There are 12 standard Medigap plans, but not all of them are offered in every state. All of these plans provide certain core benefits, and all but one offer combinations of additional benefits. Be sure to look at both cost and benefits when choosing a plan.What if you're retiring early and won't be eligible for Medicare for a number of years? If you're lucky, your employer may give you a retirement package that includes health benefits at least until Medicare kicks in. If not, you may be able to continue your employer's coverage at your own expense through COBRA. But this is only a short-term solution, because COBRA coverage typically lasts only 18 months. Another option is to buy an individual policy, though you may not be insurable if you're in poor health. Even if you are insurable, the coverage may be very expensive.Don't overlook long-term care insuranceIf you're able to stay healthy and active throughout your life, you may never need to enter a nursing home or receive at-home care. But the fact is, many people aged 65 and older will require some type of long-term care during their lives. And that number is likely to go up in future years because people are increasingly living longer. On top of that, long-term care is expensive. You should be prepared in case you do need long-term care at some point.Unfortunately, Medicare provides very limited coverage for long-term care. You may be covered for a short-term nursing home stay immediately following hospitalization, but that's about it. Other government and military-sponsored programs may help foot the bill, but generally only if you meet strict eligibility requirements. For example, Medicaid requires that you exhaust most of your assets before you can qualify for long-term care benefits. Even a good private health insurance policy will not offer much coverage for long-term care. But most long-term care insurance (LTCI) policies will.LTCI is sold by private insurance companies and typically covers skilled, intermediate, and custodial care in a nursing home. Most policies also cover home care services and care in a community-based setting (e.g., an assisted-living facility). This type of insurance can be a cost-effective way to protect yourself against long-term care costs--the key is to buy a policy when you're still relatively young (most companies won't sell you a policy if you're under age 40). If you wait until you're older or ill, LTCI may be unavailable or much more expensive.Weigh your need for life insuranceIf you're married, you want to make sure that your spouse will have enough money when you die. You may also have children and other heirs you want to take care of. Life insurance can be one way to accomplish these goals, but several questions arise as you near retirement. Should you keep that existing policy in place? If so, should you change the coverage amount? What if you don't have any life insurance because you lost your group coverage at work (though some employers let you keep the coverage at your own expense)? Should you go out and buy some? The answers depend largely on your particular circumstances.Your life insurance needs may not be as great during retirement because your financial picture may have improved. When you're working and raising a family, the loss of your job income could be devastating. You often need life insurance to replace that income, meet your outstanding debts (e.g., your mortgage, car loans, credit cards), and fund your kids' college education in case something happens to you. But after you retire, there's usually no significant job income to protect. Plus, your kids may be grown and most of your debts paid off. You may even be financially secure enough to provide for your loved ones without insurance.It may make sense to go without life insurance in these cases, especially if you have term life insurance and your premium has increased dramatically. But what if you still have financial obligations and few assets of your own? Or what if you're looking for a way to pay your estate tax bill? Then you may want to keep your coverage in force (or buy coverage, if you have none). If you need life insurance but not as much as you have now, you can always lower your coverage amount. It's best to talk to a professional before making any decisions. He or she can help you weigh your needs against the cost of coverage.Take a look at your auto and homeowners policiesIf you stay in your home after you retire, your homeowners insurance needs may not change much. But you should still review your liability coverage to make sure it's sufficient to protect your assets. If you're liable for an accident on or off your premises, claims against you for medical bills and other expenses can be substantial. For additional protection, you might consider buying an umbrella liability policy. It's also a good idea to review the coverage you have on your home itself and the property inside it. Finally, if you plan to buy a second home, find out if your insurer will cover both homes and give you a discount on your premium.Auto insurance raises some similar issues. Review your policy to make sure your coverage limits are high enough in each area. Again, having the right amount of liability coverage is especially important--you don't want your assets to be put at risk if you cause an auto accident that injures other people or damages property. Weigh your need for any coverages that are optional in your state. Finally, look into ways to save on your premium now that you're retired (e.g., discounts for low annual mileage or senior driving courses).

Risk Factors and its Effects on Car Insurance Premiums

The premium that drivers pay for auto insurance depends on certain factors, specifically called risk factors. Based on previous driving records, miles driven per year, age, etc, a driver’s risk factor is evaluated and is directly proportional to the insurance premium he or she must pay. To make sure you pay the lowest premiums possible, think about these factors and what you can do to make them advantageous for your situation:Driving Violations and AccidentsInsurance companies have one thing in mind: a significant number of accidents or moving violations equals to greater accident risk. Some insurance companies even penalize drivers with a bad record, which usually lasts for a number of years. Bottom line is, the more driving violations you have, the higher the premium. If you want your premiums to decrease, keep your record clean. Vehicle TypeThis is where insurance companies and car owners understand each other’s demands. Car owners of the latest, most expensive models usually get insurance with better coverage, which means higher premiums. Cheap cars cost less to insure because car owners have the option to disregard other types of coverage that are not applicable to their vehicles. OccupationNo, they don’t check your salary. Not yet, at least. For insurance companies, a significant relationship exists between the business use of your vehicle and the premium you must pay. If your job description includes long hours of driving such as being a door-to-door salesman, expect a higher premium. Credit RatingA better credit rating will save most drivers from higher premiums since many insurance companies believe that poor credit history is susceptible to higher risks. GeographyThe place where you reside can also dictate your insurance premiums. Living in congested cities or areas with a lot of traffic prone to vehicular accidents raises the risk factor of drivers. High crime rate, specifically of vehicle thefts, also leads insurance companies to charge higher premiums. EducationDrivers with higher educational attainment are charged with lower premiums. OthersYears of driving experience, lower miles driven each year, theft protection devices and multiple cars and drivers also offer opportunity for premium discounts. Some factors which cannot be adjusted, such as age, gender, and marital status can also affect a driver’s risk factor. Most insurance companies see drivers under the age of 25 with higher potential risk of being in an accident. Women are also considered as safer drivers than men, while a married person has lower premiums compared to a single one with the same driving record. By calculating your risk factors, you can easily get lower premiums which could save you a lot for the years to come. Just remember though, each insurance company has a different take on insurance premiums, so it’s always best to compare the rates of multiple companies for your particular situation.