Did you notice that S&P has threatened to downgrade our credit rating on the international scene. If that does happen and the dollar drops, there’s an inevitable conclusion. Suddenly everything we import is going to be that much more expensive. Our recovery from the recession has been slow enough. If everything imported goes up in price, families will not be able to cope. Worse, if the world thinks the US might default on its debt, the country will have to pay more interest on the money it borrows. That will force the banks to raise the interest rates for us. Mortgages and loans will go up. Of course, this is all a horror story and it will never happen because the Democrats and Republicans will agree on how to cut the deficit. . . Meanwhile that leaves us struggling to make ends meet and trying to find every possible dollar of saving there is to be found.
When it comes to insurance, there’s an interesting balancing act going on. The number of people driving uninsured has been rising steadily. In some states, it’s as high as 20% of drivers on the road. Mainly this is forced by the high rates although some ignore the law anyway. The irony of this is the more drivers without insurance, the more the rest of us have to pay. That’s either directly as premiums or indirectly because we take out additional cover against uninsured or underinsured drivers crashing into us. All this is putting the profits of the insurers under pressure. If they keep increasing the premiums, this is a vicious cycle and more people stop buying. So the insurers are now playing games with us. They increase the premiums and then offer us discounts or bonuses. The idea is to keep as many people as possible paying about the same total. So you have to play the game and shop around to find all the discounts and then check out whether you qualify. Let’s see how it works. Any driver passing into their 50s is one of the safest on the road – statistics never lie. So insurers could lower the premiums automatically, or offer a loyalty bonus if you renew, or offer discounts. Most offer discounts to “mature” drivers. To qualify you usually have to go through a defensive driving course. The AARP’s website has a locator tool telling you where the nearest course is being run. This can give you up to 10% saving. At the other end of the scale, young and inexperienced drivers also qualify for a discount if they go on a safety course approved by their insurer. To qualify, ask your insurer which courses are accepted in your area. So when you get the first round of car insurance quotes, check which discounts you have. Then run the search again changing, say, the amount of the deductible. Each time you run the search, change a variable so you can work out what discounts are available and how much they are worth. It costs nothing to run the search. If you have more time, telephone the insurer offering what looks the best car insurance quote and ask about what additional discounts are available. The rule is, if you never ask, you cannot receive. Find out how you qualify to save money.