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- Checking in with Chris $$$$$
What Has Happened This Year???? The Federal Reserve has taken a very hawkish stance on the position of interest rates in it’s fight to stem persistent inflation. The September Consumer Price Index came in at 8.3%, an increase which was much higher than expected. Jerome Powell, the head of the Federal Reserve stated that they have a dual mandate to control inflation at 2% a year, and full employment at or near a 4% unemployment rate. They realize that increasing interest rates will cause some increase in the amount of unemployment. They have now raised the Federal Funds Rate to 3 ¼% and announced that they expect to raise interest rates again in November by ¾% and December by ½% with a peak interest rate or terminal rate of approx. 4 ½%. This would be the highest interest rates we have seen in almost 20 years. Where do they go from here? The Fed will have to pivot to a change in interest rate policy sooner than later, and probably much sooner than they would like. As of last Friday, the Bank of England had to step in and stem the collapse of the bond market in London. This was due to terrible inflation and interest rate policy by the new Prime Minister to help their citizens deal with a 80% increase in fuel costs for the winter. We are going to see disruptions in the credit markets as the Fed continues to raise interest rates causing our dollar to become very expensive around the world and many other currencies to lose value quickly, destabilizing their countries. The Fed pivot will put a floor under this uncertainty. There are two main factors that will drive their decision that they will not want to do. First, the interest on the debt of the United States is in excess of 30 trillion dollars, and frankly we just can’t afford 4% interest on all of that debt, which is almost 25% of the entire budget of the federal government. Second, food costs around the world. As our dollar has appreciated it has made food that we export so much more expensive around the world leading to the World Food Bank, the United Nations, and various other organizations to ask the Central Banks of the World to rethink their rising interest rate intentions and projections. The Federal Reserve has 400 of the world’s economists on staff to help with their policymaking projections. Based on this year’s results, I think they need 401 as somebody is missing that actually knows what is going on out here in the real economy! Geopolitical Wow, what a year…again! For the past 30 years we have had a very stable balance of trading in the world markets. There have been a few hiccups in 1998, 2008, and 2018, but for the most part a stable trading environment until now. Now the Chinese and the Russian Federation are attempting to create their own currency to replace the American dollar on the world stage. Why is this happening? As we continue to increase interest rates, which increases our value of the dollar, other currencies feel “left out” as they are now worth so much less. Now CEO’s all over America are telling their logistics departments to get out of China as soon as feasibly possible. They have shown they are an unfair trading partner cannibalizing our technology. They require companies to turn over intellectual property rights in order to operate in their country. This has also caused huge supply chain issues as they will not use American vaccines for the covid virus, and they have shut down many cities larger than the size of New York this year with a complete lockdown. China would have been thought to have a rational policy on commerce and keeping themselves at the forefront of growth as a world economy, nothing could be further from the truth. They continue to try and use vaccines that are only 44% effective and shut down cities as a result. VERY problematic. The Ukraine War has led to 13% of the World’s food supply being taken out of production. This is only half the story, almost 60% of the world’s fertilizers come from this area of the globe, putting immense pressure on the food supply for everyone, but most importantly for poor and barren countries which must purchase most of their food from this region. Look for the US to increase purchases of Canadian fertilizer and produce more from our own natural gas production. Energy One of the biggest factors of disruption this year has come from the war in the Ukraine causing significant issues with supplies of natural gas for Europe. The price of natural gas in the United States today is about $6.35 and in Germany is nearly $77. Yes, you did read that correctly, more than 10 times as much. How did they get themselves so dependent on Russian oil and natural gas especially after being a cold war adversary for the last 70 years? Greed and conversion to the lower cost alternative energy sources which could not provide enough energy. The North Sea has a vast amount of wind turbines for energy production, the problem this year is that the wind almost didn’t blow, so no electric was produced. Russia stepped up and provided a very reliable huge quantity of gas at a very low, predictable cost. At the same time Europe, specifically Germany, were closing their coal, nuclear, and oil producing electrical power plants. They were becoming ever more dependent on potentially unreliable sources. Cheniere Energy is working diligently to meet the demand in Europe with ocean going super tankers from our ports here in New Jersey. So, we are selling the Marcellus Shale gas from western Pennsylvania and eastern Ohio to our friends in Germany and other European countries. On October 5th, OPEC meets in Vienna to discuss production cuts of up to a million barrels a day of oil. This has come from the decline in oil from almost $122 a barrel to near $80. Transportation Cargo rates have plummeted 75% from last year and there are only 6 ships waiting to unload off the coast of California compared to over 100 last year. Freight rates on trucking and railroads continue to decline with FedEx stating they will be seeing reduced freight shipments for the coming holiday season. Cargo shipowners are cancelling sailings as global trade flips from backlogs to empty containers. Where do we go from here? The Federal Reserve will pivot, even if it’s to say they don’t feel they will need to raise interest rates as much as expected. Asset prices in stocks and bonds will improve with a better outlook on interest rates, inflation, and the war in the Ukraine. The outcome of the mid-term election has resulted in a higher market six months later in every election except for one back 40 years ago. The darkest month of the market on an annualized basis is September, and we thankfully are through that. Corporate earnings will not be as bad as feared as supply chain issues will have worked themselves out on many fronts through the remainder of the year. Where do we see the future? Cloud computing – This area will continue to drive productivity gains throughout the manufacturing and services sectors. At this moment in time, we are seeing a lull in this trend, but this is only temporary and will resume in 2023. Cybersecurity is an ongoing concern for many companies especially as they have more employees and clients who are working remotely and potentially not covered by their company’s threat protection environment. The US is the leader in cybersecurity, and with millions of threats being created on a daily basis, this is very good news for our country’s future. Innovation – many companies are taking this time to look at what they are working on, profitable at, and deciding if they are still on the correct path. Look for massive amounts of mergers and acquisitions as companies try and capitalize on much lower values of potential targets. Agriculture – a true bright spot in the economy continues to be our ability to produce much of the world’s food supply. The President last week asked American farmers to look at double crop production for next year to increase our carryover of stocks as they have become perilously low around the world. Droughts in much of the food producing areas of the world contributed to this along with the war in the Ukraine. Artificial intelligence, genetics, and alternative labor sources will play a big part in this drastic productivity gains we should see this decade. Space - The ultimate innovation. Look for us to have manned moon missions within five years, and a moon base by the end of the decade. The target for landing on Mars is still 2033, but Elon Musk states he will be able to do it much sooner. This will spur significant technology gains as the Apollo program did in the 1960’s. I hope you were able to find some helpful information included in this newsletter, please let us know if you would like to have information on any specific subject. $ Money Matters $ Chris Chris Schiefer is a Registered Representative with Securities offered through Cambridge Investment Research, Inc., a Broker/ Dealer, Member FINRA/SIPC. Investment Advisor Representative Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Legacy Capital Advisors, LLC are not affiliated.
- Paying a High Cost for Car Insurance? Consider these Money-Saving Tips
WEDNESDAY, SEPTEMBER 7, 2022 Almost everyone has to carry car insurance. As a result, you’ve got to factor it into your household expenses. However, if you aren’t careful, you might find yourself paying a high (and increasing) cost for coverage. Don’t let this happen to you. With a careful review of your policy, as well as conscientious driving practices, you can keep costs manageable. 1. Drive Safely. Always. One way insurers determine your insurance prices is by reviewing your driving record. If they see you have a lot of license suspensions, wrecks or driving charges, they might view your as hard to insure. Your riskiness places more of a cost burden on the company. As a result, they will likely charge you more for your coverage. The safest drivers usually qualify for the lowest rates. Therefore, commit to safe driving practices. Put down you phone, don’t speed and review the rules of the road. If you ever feel you need a tune-up, consider taking a defensive driving course. Many insurers offer discounts to drivers who can prove they’ve passed these courses. 2. Ask About Discounts and Policy Savings Speaking of discounts, you can lock in policy savings in a variety of ways. Some insurers offer discounts for students, retirees or loyalty club members. Others offer discounts for good credit, auto-payments or auto renewals. The next time you renew your policy, ask your agent about the discounts available. 3. Work Out a Payment Plan Insurers offer a variety of ways to pay for your coverage. Some clients pay monthly. Others pay quarterly, semi-annually or even in lump sums. If you have the money to pay the full premium, it might be a good idea to pay all at once. If you find it better to pay by the month, this method might help you always know how much you can expect to spend per month. Ask your agent the benefits and risks of each approach. 4. Adjust Your Coverage, But Do So With Caution You have the opportunity to change your coverage as needed. Doing so might make your policy more budget friendly. For example, your car’s value might depreciate over time. As a result, you might be able to reduce your collision or comprehensive coverage. Or, you might decide to increase your policy’s deductible. This will increase how much money you have to pay for damage before the policy pays. Your insurer might reduce your premium costs because you now represent a lower cost risk to them. However, only make changes to your coverage after thorough scrutiny. You don’t want to reduce your coverage to the point that you will face financial trouble when accidents happen. Therefore, talk to your agent about smart ways to make policy changes.
- 4 Types of Additions to Business Owner’s Policies
TUESDAY, AUGUST 9, 2022 Business Owner Policy or BOP is a type of business insurance. It is a basic policy providing the most common types of coverage most businesses need. Purchasing a BOP plan makes sense for many companies because combining these commonly needed policies can significantly reduce costs. However, Business Owners Policy plans do not always cover all areas of need. Most policies cover property insurance, liability insurance and business interruption insurance. What to Add to Your BOP Plan Making changes to your existing business insurance or adding to it is always good practice for companies who may be facing additional risks. The following are four types of commonly added coverage to BOP plans. #1: Professional Liability Insurance This is a higher level of liability insurance than a BOP policy offers. With the high cost of litigation, smaller businesses have a growing need for more extensive protection. If you are a medical or dental provider or other professional, you may need this coverage to protect against higher lawsuit risks. #2: Employee Practice Insurance Protection from employee claims against your company is also a growing need for smaller companies. Harassment claims or discrimination claims, for example, can be very costly to most businesses today. This policy can minimize those risks. #3: Business Vehicle Insurance If your business operates a vehicle for any component of the company’s operation, you need to have business vehicle insurance in place. Commercial auto insurance applies to everything from fleets of trucks and vans to the vehicle you use for meetings and appointments if it is a business-only vehicle. #4: Workers Compensation Most BOP plans do not include workers compensation, but it is available as an additional component to your company’s plan. If you have employees, you may be required to maintain this coverage. It aids in covering medical and other losses in situations where an employee is hurt on the job. Having the right business insurance can give you peace of mind. It can also provide you with the reassurance that your company is covered in situations where you could not prevent or even manage the financial implications. Modify your BOP plan to include these and other coverage applicable to your business.
- How to Reduce Workers’ Comp Claims by Improving Ergonomics
FRIDAY, JULY 22, 2022 Ergonomics is the science of optimizing an environment for maximum safety and efficiency. In the workplace, emphasizing ergonomics will not only improve your bottom line and boost employee satisfaction, but it will also reduce the number of workers’ compensation insurance claims made as a result of improving safety. Below, we outline several key tips for improving your workplace’s ergonomics. Tips for Improving Workplace Ergonomics 1. Identify the challenges you face. Start by narrowing your scope. While numerous ergonomic improvements may be beneficial, you want to focus on the major problem areas first. How do most of your workers’ comp claims occur? How do most injuries occur in general? Are back injuries common? What about slips and falls? Are you at risk of exposure to harmful environments or substances? It’s best to isolate the biggest problems first. 2. Conduct risk assessment. Starting with the most severe risks and working your way down the list, conduct a thorough risk assessment to determine what solutions could amend (or at least improve) each situation. One great way to do this is to ask your employees directly: What ergonomic changes could benefit you and make the work environment safer and more efficient? You can request this information in person, in a formal meeting, or with a survey that employees can fill out at their leisure. 3. Implement changes. It’s possible not all of the improvements you note will be possible right away. That’s okay. Start with the most glaring changes that can be implemented the most rapidly. As soon as you start making improvements to ergonomics, you should start to see a reduction in absences, workplace injuries, and workers’ comp claims. 4. Cultivate a strong safety culture within your workplace. It’s important that your workplace cultivate a proactive safety culture. This means making your employees aware that you care about their safety and the related ergonomics of how your business operates. Start by holding regular safety seminars. Incentivize attendance any way you can. Additionally, post safety information on the walls, in break rooms, in bathrooms, and elsewhere. Hand out safety flyers, and send memos if you need to. Finally, create an easy way for employees to make comments or suggestions to you about workplace safety and efficiency. Take these comments and suggestions seriously. Although improving ergonomics may not have been at the top of your list in terms of reducing workers’ compensation insurance claims, as you can see, it can certainly make an impactful difference to employee satisfaction, workplace safety, and overall insurance costs.
- What Does General Liability Insurance Cover?
MONDAY, JUNE 20, 2022 Though businesses often require different types of insurance depending on industry risks, every single business can benefit from general liability insurance. This type of coverage offers valuable financial protection to your business, as well as to your customers. In particular, this coverage can protect against the resulting expenses if your business is held responsible for injuring a third party or damaging their property. Essentially, it can save everyone involved in a covered incident from large out-of-pocket costs. What exactly is covered by general liability insurance? These incidents involve damages sustained by third parties that stem from your business and employees. Let’s look at a few examples of incidents that could be covered by general liability insurance. A customer enters your store, happy to be out of the rain for some shopping. She doesn’t see a puddle near the entrance and slips and falls on the tile floor, breaking a leg on her way down. She must get medical attention and miss a few weeks of work while she recovers. Since it’s the responsibility of your business to clearly mark hazards and promptly clean them, this customer can make a claim against you to recover her lost expenses and income. A delivery man enters your business with a parcel and is surprised to see clutter everywhere. He accidentally knocks a stack of junk with his toe, which causes a heavy object to fall on top of him. Again, his injuries can be attributed to your business since it’s your responsibility to maintain a safe, tidy workplace. An employee is painting the exterior of your store’s windows for the season and a metal cart full of supplies accidentally drifts away because the wheels weren’t properly locked. Before the employee can catch it, the cart slams into a customer’s car, leaving a huge dent and a broken tail light. This too would fall under the responsibility of your business. Even though your business takes safety precautions, accidents can happen at any time. And if a customer or other third party suffers an injury or property damage at the hands of your business, general liability insurance can provide the necessary financial support to get through the incident. We’ve got you covered. Call CSI Insurance LLC at (800) 589-9740 for more information on business insurance.
- Does Farm Insurance Cover Cattle?
THURSDAY, MAY 5, 2022 Having living creatures under insurance is a unique requirement for many farms. If your farm primarily makes money from animals and cattle, you could face heavy financial loss if something happened to your livestock. Without the appropriate insurance, you could face replacing your livestock and cattle out of pocket, which can be incredibly expensive. Thankfully, many farm insurance policies come with the option of livestock insurance. What Does Livestock Insurance Cover? Livestock insurance can cover the farm’s livestock in case they are injured or killed due to accidents such as: Fire Lightning Explosions Smoke Riot or civil commotion Vandalism and theft Collision with a vehicle Overturn of a vehicle (while in transportation) Earthquake and flood Types of livestock covered under this insurance include cattle, buffalo, pigs, sheep, goats, chickens, horses, bison, deer, llamas, alpacas and more. There are also endorsements you can add to your livestock insurance to cover other incidents such as wild animals. If coyotes attack and kill your cattle, a wild animal endorsement can help compensate for replacements. There are also other coverages available for attacks by dogs, accidental shooting, drowning, loading or unloading accidents, additional acquired livestock and falling objects. What Does Livestock Insurance Not Cover? Unfortunately, livestock insurance can’t cover everything when it comes to your farm animals. In general, livestock insurance does not cover the death of an animal caused by old age or disease. If your cattle ages and dies of natural causes, it may not be covered under a basic livestock insurance policy. There are different types of livestock insurance policies in regard to animal mortality, however: limited animal mortality and full animal mortality. A limited animal mortality coverage policy covers the death or injury of livestock and cattle covered by many of the above incidents, such as fire, collisions and vandalism. A full animal mortality coverage policy, on the other hand, can cover accidental and natural damages such as illness and sickness. Full animal mortality coverage does not cover preexisting conditions or injuries and death caused by the owner, such as an accidental shooting of the cattle by the owner. Your farm insurance needs may differ from your neighbors’ depending on your livestock and specialties. Be sure to shop around, compare quotes and ask insurance agents questions so that you can find the best farm insurance and livestock insurance policy to protect your farm from accidents.
- Preventing Motorcycle Theft
TUESDAY, APRIL 12, 2022 Since motorcycles are easily accessible, they are highly prone to theft. If you like to hit the open road on two wheels, review the below tips to help avoid having your bike taken. HELP PREVENT MOTORCYCLE THEFT - When you get off your bike, shut off the ignition and then lock it. - Lock the forks (disk brakes). Purchase locks that are brightly colored to discourage potential thieves. - Lock multiple motorcycles together if you are traveling in a pack. - If you are riding alone, lock your motorcycle to a stationary object that cannot be dismantled such as a light pole. - Install an alarm on your bike that sounds when it is tampered with. - Check on your bike periodically when you are at a public event, especially shortly after you arrive. - Park your bike in front of a security camera or close to your room, when staying at a hotel for the evening. - Store the title for your motorcycle in your home; not in the compartments or saddlebags on your bike. - Mark your bike with a unique symbol or mark and take photographs of that. If your motorcycle is stolen, you can present this information to the police. - Always keep your motorcycle registration and insurance information with you when riding.
- How to File a Commercial Auto Insurance Claim
FRIDAY, MARCH 11, 2022 If your business owns or uses vehicles for work, you likely have commercial auto insurance policy to protect against damage and financial loss. A lot of the coverages, and the way these claims are filed, are similar to personal auto insurance. The main difference is that the driver of a commercial vehicle isn’t always the policyholder. If an employee gets into a wreck while driving a company’s commercial vehicle, they will have to speak with their employer, who will then help to file a commercial auto insurance claim. Document Everything. The employer must be able to offer as much information about the accident as possible. The when, where, how and who is critical. Employees involved in an accident should keep record of the accident and report immediately to their employer after receiving medical attention as necessary. This will help the claims process. Have the Vehicle Inspected Any time a commercial vehicle is involved in an accident, it should be inspected by a professional. This can give you an idea of the damages and costs of repairs. If the cost of repairs amount to less than the cost of your commercial auto insurance deductible, you may not want to bother filing an auto insurance claim. On the other hand, if the cost of repairs are significantly higher than the price of your deductible, you may want to file a claim for compensation. Review Policy and Contact Insurance Agency Double check the coverage available on your commercial auto insurance policy to make sure that the damages (and injuries) are covered. Commercial auto insurance policies often have the same exclusions and limitations as personal auto insurance policies. Once the vehicle has been appraised and the policy reviewed, contact your insurance agent. Provide them with as much information as possible, including pictures and a police report, if filed. This will help determine fault of the accident (if your business operates within a fault state) and how much compensation your business is entitled to. File a Timely Claim There is usually a time period in which you must file a claim to be entitled to compensation. It varies per policy, but it is generally within 30 days after the accident occurs when you must file a claim. Waiting too long can cause your claim to be denied and compensation for damages or injuries withheld. Always make sure medical attention for all parties is sought immediately.
- 3 Events That May Affect Your Life Insurance Policy
WEDNESDAY, FEBRUARY 9, 2022 As important as it may be, many people forget to review their life insurance each year. However, the consequences of failing to review your policy are severe. Without an annual review, you could be underinsured or your former spouse could still be your beneficiary. To avoid these problems, review your policy annually, and whenever any of the following events happen in your life. Getting Married Marriage is a life-changing event that warrants a review of your life insurance policy. Although death may not be a topic you want to talk about following your nuptials, it's a necessary conversation. The sooner you talk, the sooner you can make the changes to your life insurance. Like most people, you want to make sure that your family is financially secure in your absence, and one of the best ways to do that is with a life insurance policy. Having or Adopting a Child A new addition to your family is a joyful event. As such, it's natural to want to give him or her the world, including preparing for their future. With that in mind, you must review your life insurance policy when you are expecting or adopting a child. Buying a Home After you've married and had a child, it's natural to want a home for you and your family. Purchasing a home is a big move in life. It's the largest investment most people make in their lives. Whether you are the sole breadwinner in your household or not, a reduction in household income due to loss can cripple the family. In some instances, surviving members lose their homes. You can protect your family from this reality by purchasing life insurance. With the right policy, your death benefit can pay off the remaining balance on your mortgage and allow your family to retain the home they've grown to love over the years. Commit to reviewing your life insurance policy each year so that you can continue to provide for your family if you are no longer around. Additionally, if you experience a life-changing event, contact us to set up an appointment for a policy review so we can make sure you have the insurance you need. Protect your family’s future. Call CSI Insurance LLC at (800) 589-9740 for more information on your life insurance options.
- Do's and Don'ts to Protect Your Home During a Winter Power Outage
FRIDAY, JANUARY 14, 2022 Most of us don't fret too much over a winter storm. In most cases, it blows through and life is back to normal in a day or two. But in more severe situations, heavy snow, ice or wind can knock down electric lines, leading to a power loss in homes that depend on it for heat. You should know what to do and what not to do in this situation. 1. Have an emergency supply of food, water, flashlights, batteries and medicine. A battery operated radio is also handy for keeping informed about weather and news. 2. Plan a way to heat your home without power. Stock up on wood for the fireplace (make sure it is inspected and usable) or kerosene for a portable heater. If you have a generator, keep a supply of fuel. Make sure you know how to use your backup heat source in a safe manner. 3. If you have a well, fill containers with water for washing and flushing. 4. Cover doorways with blankets to close off the room with the heat source and use only that space. 5. Open faucets to slow drip to prevent pipes from freezing. Wrap at-risk pipes with newspaper or insulation to keep them warmer. 6. Do not open the refrigerator or freezer to prevent the cold from leaking out, which can cause your food to spoil. If power isn't back on in 24 hours, you can pack snow in to keep food from spoiling. 7. Do not travel unless absolutely necessary. 8. Do not go near any power lines on the ground. 9. Check on neighbors, especially the elderly who may need help with shoveling snow. A brief power outage usually isn't a serious situation if you've prepared for the possibility. Take steps to make sure you're ready for a winter storm and if it does happen, use caution to stay safe until power is restored.
- The Who and What of Professional Liability Insurance
THURSDAY, APRIL 29, 2021 The Who and What of Professional Liability Insurance A business cannot succeed without customer satisfaction, and your goal is obviously to provide expert services and an all-around great experience for your customers. The company that puts its clients first, after all, is certainly more likely to succeed even during challenging times. Still, you cannot avoid the fact that mistakes can happen in any business, no matter how hard you work to prevent them. When they do, they could harm clients, who might blame the company and expect compensation. In these cases, you’ll likely wonder how your business insurance will be able to help you out. One of the benefits you might need to tap into is a special type of benefit called professional liability insurance. What is Professional Liability Insurance? Liabilities are things for which you are responsible. Your business needs liability insurance because, when you are responsible for someone else’s problem, you are usually obligated to pay for their losses. Professional liability insurance is a specific benefit designed primarily to assist you when you cause financial harm to a client as a result of mistakes. Here’s an example. Now that it is tax season, CPAs are in high demand. They are expected to file their clients’ returns accurately, or else they run the risk of putting the client in the way of trouble from the IRS. Still, no one is immune to mistakes, and tax law is very complicated (particularly in the age of COVID-19). If a CPA were to make a mistake on their client’s taxes, then the client might face financial harm, and might blame the tax preparer for this loss. Many will even consider taking legal action, and even if this mistake was entirely unintentional, the fact is it still occurred. It is professional liability insurance that will help the CPA repay the client without facing a huge financial loss themselves. Who Can Professional Liability Insurance Help? Even if a mistake was made without malice, it was still a mistake. You are obligated to provide expert services to your clients, so when something goes wrong, you must take responsibility for it. This will include compensating the client for their own losses, in many cases. Your professional liability insurance will help you make such remittances. As a result, your own financial standing won’t suffer just because you are obligated to repay a client. Generally, this coverage can extend to multiple professional service providers. These may include accountants, attorneys, bankers and other professional organizations. Ask your agent if professional liability insurance can be a benefit to your company, too. They can help you determine how much coverage you need, and tailor it to your operating liabilities.
- Easy Ways For Young Adults to Lower Their Car Insurance Premiums
TUESDAY, APRIL 27, 2021 Easy Ways For Young Adults to Lower Their Car Insurance Premiums When you’re young, starting out on your own might lead to some financial challenges. After all, you now have bills to pay, and probably a limited budget with which to pay them. How can you keep ongoing costs, like your auto insurance premiums, as affordable as possible? Premiums can vary widely, and sometimes your own actions can impact how much you pay for a policy. In most states, car insurance is mandatory. Still, though you must pay for it, you shouldn’t have to worry about cost becoming a burden. Keep in mind some of the ways that you can help keep your auto insurance affordable. 1. Commit to Safe Driving Those who are more likely to file auto insurance claims are usually going to pay more for their coverage. Such drivers include those who have a history of numerous claims, and those who have numerous previous infractions on their driving records. Your history will show that you might be a cost risk to the insurer, and as a result, they might raise your rates. Committing to safe driving is always in your best interest, and here are a few obvious ways to do so: Obey all the rules of the road at all times. Don’t use mobile devices. Keep your license and registration up to date. Never drink and drive. If you want a tune-up on skills, consider taking a defensive driving course. These classes can help all levels of drivers learn where they might be making mistakes. At times, car insurers offer discounts for those who pass these courses. 2. Ask your insurer about other discounts There are many insurance discounts available to the average driver. Perhaps you are a student or a member of a military or professional association? Maybe you drive your car less than 10,000 miles per year. In each of these cases, you might qualify for more policy discounts, which can equal significant savings on top of those brought by good driving habits. 3. Consider Carrying a Higher Deductible Deductibles outline what portion of a vehicle’s damage is your responsibility to pay for, rather than your insurer. For example, a $500 deductible means you pay for the first $500 worth of damage, then your insurance pays the rest. Therefore, by carrying a higher deductible, you lower the amount your insurer has to pay for a claim, and therefore you reduce their assumed cost risk. Therefore, consider carrying the highest deductible you can reasonably afford, if you want to see reduced insurance prices. However, never carry one so high that it will strain you financially when you have to pay for damage. As always, set up your car insurance with the help of a trustworthy, independent insurance agent. Many agents can compare the prices of various policies and insurance providers. This can help them pinpoint the most effective and affordable coverage for your needs.