Nine Ways To Lower Your Auto Insurance Costs

Written by S. Nicole Thomas


Nine Ways To Lower Your Auto Insurance Costs

You may not realize it, butrepparttar insurance rates you pay for your car can vary dramatically depending onrepparttar 112023 insurance company, agent or broker you choose,repparttar 112024 coverage is you request andrepparttar 112025 kind of car you drive. Listed below are a number of things you can do right now to lower your insurance costs.

1. COMPARISON SHOP. Prices forrepparttar 112026 same coverage can vary by hundreds of dollars, so it pays to shop around. Ask your friends, checkrepparttar 112027 yellow pages or call your state insurance department (phone numbers are on back page). You can also check consumer guides, insurance agents or companies. This will give you an idea of price ranges and tell you which companies or agents haverepparttar 112028 lowest prices. But don't shop price alone. The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feeling forrepparttar 112029 quality of their service. Ask them what they would do to lower your costs. Checkrepparttar 112030 financial ratings ofrepparttar 112031 companies too. Then, when you've narrowedrepparttar 112032 field to three insurers, get price quotes.

2. ASK FOR HIGHER DEDUCTIBLES. Deductibles representrepparttar 112033 amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by 15% to 30%. 3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGE'S ON OLDER CARS. It may not be cost-effective to have collision or

College Savings Plans – are they the best choice for my child?

Written by Vanessa McHooley


College Savings Plans – are theyrepparttar best choice for my child?

College Savings Plans, also called Section 529 plans, are one ofrepparttar 112022 best ways to save for college because they offer:

-Tax advantages -A variety of investment options -Flexible contribution options -Parental control -Little impact on eligibility for need-based financial aid

Tax advantages

Investments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes. Redemptions are also exempt from federal income tax if they are used to pay for tuition, room and board, fees, books, supplies, or equipment.

Most states also offer tax advantages, at least if you enroll inrepparttar 112023 plan for your own state. In addition, contributions may be deductible on your state income tax.

In addition to these income tax benefits, College Savings plans can be a valuable estate planning tool. The accelerated gift option allows you to average gifts over $11,000 per beneficiary over a five year period with no federal gift tax. This means you can contribute up to $55,000 per beneficiary in one year with no gift tax. Contributions are immediately removed fromrepparttar 112024 donor’s gross taxable estate (and included inrepparttar 112025 estate ofrepparttar 112026 beneficiary). Investment options Most states offer three or more investment options ranging from conservative to aggressive. One is usually an age-based portfolio that invests mainly in stocks while a child is young, then shifts to bonds and money-market funds as college years come closer. 529 plans are managed by experienced investment companies, such as Vanguard, Fidelity, and TIAA-CREF. Contribution options Anyone can contribute money on behalf of a beneficiary, allowing friends and relatives to giverepparttar 112027 gift of education. In addition,repparttar 112028 minimum investment amount required to open an account is usually lower than mutual funds require, making section 529 plans affordable for lower income families.

States set their own contribution limits for college savings plans. Most states base their limit on an estimate ofrepparttar 112029 amount of money needed for seven years of post-secondary education. Limits range from $146,000 to $305,000.

In addition, most states allow you to regularly transfer funds from your checking or savings account to your 529 plans. Some states even let you set up payroll deductions. Parental control

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