RRK Cash Solution

Archive for September, 2009

The range of options available to you when obtaining auto insurance quotes can be quite bewildering. This FAQ (Frequently Asked Questions) will answer some of the most common queries. It is intended only as a guide. For more detailed answers and definitions you should check with your auto insurance company.

Do I Have To Have Auto Insurance?
In nearly all states yes you do have to have a minimum coverage in the event of a car accident. The only states where it is not mandatory are Florida, New Hampshire and Wisconsin but these states do require you under their financial responsibility laws to be able to prove that you have sufficient minimum assets to cover the expenses relating to both bodily and property damage due to an accident.

What Is “No-Fault” Insurance?
This form of auto insurance pays for a driver’s own bodily injuries and property damage up to the policy limits irrespective of who caused the accident. It is mandatory in some states but not in other so it would be wise to check with your own insurer to see if applies to you.

What Is PIP?
PIP, or Personal Injury Protection is intended to cover an insured person, passengers and any family members who are covered for some reasonable expenses for bodily injury due to a covered accident, no matter who is at fault. It is not available in every state. Each policy will specify different expenses but the most common are medical and hospital, funeral and loss of income.

What Is Bodily Injury Liability Coverage?
This coverage is to protect the insured from claims by other persons injured in an accident where the insured was at fault. Coverage is usually extended to family members.

What Is Medical Payments Coverage?
Medical Payments Coverage typically helps protect you, covered family members, and covered passengers. It provides payment for reasonable and necessary medical treatment for bodily injury caused by a covered accident, regardless of who was at fault. Typical include expenses are ambulance, emergency room, X-rays and surgery costs.

What Is Uninsured/Underinsured Motorist Coverage?
Uninsured/Underinsured Motorist Coverage typically covers damages to you and your property caused by another driver who doesn’t have insurance (uninsured) or doesn’t have adequate insurance (underinsured) to cover your damages. This coverage varies from state-to-state. Recent trends show a rapid growth in accidents caused by under or uninsured teenagers.

Setting up for family budget and emergency fund is your first step and then staying with it is the second. Actually creating a really nice budget is the easy part but keeping with it becomes the challenge. Today we are dealing with factors like low unemployment and inflation so the family budget and emergency fund has become a lot more important.

If you are not good at handling your home finances you can bring on more problems that necessary. The amount of money you make each month is not as important as how well you use that money. Control over your income and your expenditures needs to be kept well in perspective including your assets and liabilities.

Did you ever consider that the person who makes just a few hundred each month ends up with the same money problems as the person who make thousands of dollars each month? Problems are a common denominator for everyone and just because you make more than most or even less than most the budget is crucial. There are a lot of people who are really very expert at creating family budgets but for some reason it does not help them because they don’t stick to it.

In general, the well constructed budget should be a sixty percent ratio. The sixty percent means that this is allotted to all they most important expenses that are ‘must pay’ kinds of things like food, utilities, housing, car payments, etc. The rest of the money in the budget will then be distributed amongst the rest of the things like retirement, taxes, emergencies, debt repayments, entertainment money, etc. The emergency fund plays an important role as it insures that you budget is not broken when the unexpected strikes.

Every penny that comes into the household and leaves the household finances needs to be accounted for in the budget plan. This needs to be a fine balance between all the money you spend each month. If you take a look at your family budget each day you will always be aware of what you have to spend.

The one thing that will destroy the delicately balanced family budget is impulse spending. If you keep this under control you will not be losing sleep over your finances