Insurance Plans To Avoid
by Liane Wood CIP

It seems that there is an insurance policy out there to cover anything and everything under the sun - but do you really need all that insurance??

Many people buy insurance out of fear rather than on need and that's a mistake. So how do you decide what to buy and what to avoid when it comes to insurance?

Well to begin with, start thinking of your insurance as something to protect you from financial disaster. It's not there to reimburse you for every small loss. This change in thinking alone will help you avoid buying insurance for things you can handle yourself.

Mortgage insurance is something many people are offered by financial institutions when the mortgage papers are signed. The insurance is there to pay off the balance of your mortgage if you die. So, the reality is that you pay a set premium each month for the length of your mortgage but the amount of your coverage goes down as you pay off your mortgage. Most people are much better off buying a life insurance policy that will pay out a specified amount in the event of death, like term insurance. This way, your mortgage can be paid off and your family would have some money left over to pay for other things.

If you have a credit card, loan, or line of credit, you've probably been offered credit insurance. Again this is a type of life insurance. You and your family would be better off buying a life insurance policy for a set benefit amount.

Involuntary unemployment insurance is another coverage that is typically offered to credit card holders and those with loans or lines of credit. Best advice - take the money you'd pay in premium and build an emergency fund of your own.

What about extended warranties and cell phone insurance? Even the big ticket items like large appliances come protected with a warranty and the chances of them breaking down afterwards is very low. With the prices of cell phones it just doesn't make sense to buy insurance for them. Even if you lose your phone or break it, most people can afford to replace a cell phone.

The next time you're offered some of the above mentioned insurance products be sure to take a moment and ask yourself if you really need the coverage. You may be just fine without it, or better off with a different type of coverage. Whatever your decision is, be sure to take your time making it and think it through!

Thinking of Moving or Buying a New Home?

With spring arriving many people will start thinking about moving. Something that very few think about is how their choice will affect their ability to get property insurance and how much they will pay for insurance.

Here are some tips on what to watch for:

• Location!! Areas without fire hydrants, areas prone to break-ins, areas far away from police stations and fire stations are more likely to have higher insurance premiums.
  
  
• Construction materials - Buildings constructed with less combustible materials like brick or stone should cost less to insure because they're more resistant to fire damage
  
  
• The age of the building - Newer buildings have newer electrical, heating and plumbing systems and are less susceptible to fire and other hazards
  
  
• If there's a fireplace or woodstove your insurance company may want you to have it inspected before providing coverage to ensure that it was properly installed
  
  
• Pools add to the replacement cost of homes and they also increase the risk of someone being injured on the property. Both of these things mean higher premiums
  

Keep these things in mind while you look for a new place to live! Happy home hunting!

Fuel Efficiency Comparison Tool

NRC (Natural Resources Canada) has a great tool for comparing the fuel efficiency of vehicles. Whether you're looking for a new car, or want to see how yours measures up you can check it out here:

http://oee.nrcan.gc.ca/transportation/ tools/compare/compare-search-one.cfm?attr=8

According to NRC the top 10 fuel efficient cars for 2006 are:

1. Honda Insight (hybrid)
2. Volkswagen New Beetle TDI Diesel
3. Toyota Yaris
4. Honda Civic (hybrid)
5. Toyota Prius (hybrid)
6. Hyundai Sonata
7. Volkswagen Jetta TDI Diesel Wagon
8. Pontiac Vibe
9. Toyota Matrix
10. Ford Ranger

Liane Wood is a chartered insurance professional and registered insurance broker specializing in personal and small business insurance.

Visit her website at: www.Insurance-Rates.ca.

Liane Wood is also an associate broker of Brokerforce Insurance Inc.