Protect Against Collisions and More If you drive a car in the United States, liability insurance must cover it. This type of policy pays for medical and property damage resulting from a vehicular accident. You can also purchase comprehensive and collision insurance to cover other costs. These additional coverages help protect the value of your car should it be damaged. If you are calculating how much it will cost to buy a car, you need to take into consideration the cost of insurance as well. In this article, we’ll review the basics of car insurance and the best auto insurance companies in America, including costs, pros and cons. This is a brief introduction to automobile coverage. Liability Coverage When an accident occurs, liability insurance covers you, household members and authorized drivers for the costs associated with property damage and bodily injury. It covers the cost to repair or replace property damage that you caused. [youmaylike] You are also covered if you cause the bodily harm or death to someone else while you are driving the car. This includes medical expenses, loss of income and specified legal defense costs. Collision Insurance If you are involved in a collision, this type of insurance will help pay for repairing or replacing your vehicle. If the collision is your fault, the coverage may extend to other damaged vehicles involved in the accident. States do not mandate that you buy collision insurance, but your lender or car dealer will if you finance or lease the car. Policies offer a range of deductibles, which is how much you’ll have to pay for repairs before the insurance kicks in. Larger deductibles lower the policy premiums but expose you to more out-of-pocket expenses if a collision occurs. Comprehensive Insurance Comprehensive insurance covers damage to your car that occurs for reasons other than a collision, including theft, fire, vandalism, weather and natural disasters. This coverage is often required if you finance your automobile. You can add riders to this insurance to provide coverage of additional costs, including auto towing, glass repair, daily rental while your car is in the shop and emergency roadside service. As with collision insurance, you can set the deductible on your comprehensive insurance policy to cut your premium costs. Gap Insurance If your car is severely damaged in an accident or other incident, you might find that your comprehensive and collision damage won’t provide enough coverage to pay off the amount you owe on the vehicle. Many policies pay only the fair market value of a totaled car, which might be only 80% of the amount you owe. You can buy additional insurance to plug this gap and ensure you can pay off the car loan in full if the vehicle is destroyed or stolen. Normally, car leases require you to buy gap insurance. If you pay cash or pay off your loan, you can save money by avoiding or dropping gap insurance when no longer needed. Top Five Auto Insurers These five insurers all offer full coverage policies and many additional services. Amica Amica is a superstar among car insurers, winning accolades from Consumer Reports and J.D. Powers. It’s known for handling the claims process smoothly. The average annual cost for full coverage: is $1,360. Pros You can have your car repaired at any body shop, without restrictions. Offers a premium package which, for an additional cost, provides full glass coverage, rental coverage, good driving rewards and identity fraud monitoring. Superior financial stability rating from A.M. Best. Cons Missing some discounts, such as military, low-mileage and prepay discounts. Must speak on the phone to get a quote. Sparse website when it comes to customer education. State Farm State Farm is the country’s largest multi-line insurance company. It excels in customer service and regularly garners high marks from customers. The average annual cost for full coverage: is $1,337. Pros Superior financial stability rating from A.M. Best. Excellent online quote tool, getting customers a quote in as little as five minutes. Easy claim handling and top service from its more than 18,000 agents and its easy-to-use mobile app. Cons Doesn’t offer coverage for new car replacements or uninsured motorists. Missing prepayment and automatic payment discounts. The Hartford While only 11th in size, The Hartford is big when it comes to policy options. It offers rates based on your actual driving as well as full replacement of new cars when destroyed shortly after purchase. Average annual cost for full coverage: N/A. Pros Solid benefits, including superior roadside assistance and towing programs. High marks from customers for their purchase experiences. One of the few insurers with mechanical breakdown coverage for out-of-warranty repairs. Cons Mediocre service interaction according to J.D. Power surveys. Sparse online learning materials. Geico Geico is the second-largest U.S. car insurer. It is a favorite among tech-savvy geeks who appreciate the insurer’s mobile app and excellent online service. The average annual cost for full coverage: is $1,627. Pros Geico offers plenty of ways to save, such as multi-vehicle, driving history and vehicle safety equipment discounts. Special savings for active and retired military members and federal employees. Full-featured mobile app for getting quotes, buying insurance, managing your policy, submitting claims, summoning roadside assistance and making payments. Cons Human help may be in short supply, as just about everything is handled online. No gap insurance is offered. USAA No insurer matches USAA for service to military members. Unfortunately, it's only available to active service members, their families and retired veterans. Average annual cost for full coverage: $896. Pros Superior financial stability rating from A.M. Best. Top-ranked purchase experience score from J.D. Power. Cons Missing gap coverage. Doesn’t offer interior vehicle coverage or new car replacement coverage. Limited availability. The Right One for You Competition in the insurance industry helps drive down prices and prompts insurers to offer money-saving features. For example, your carrier might reward you for a safe driving record and for having a long-term relationship with the insurer. The right insurer for you is highly rated for service, offers the exact coverage you want and does so at an unbeatable price. You should always gather multiple quotes before selecting an insurer, and make sure you get credit for all applicable discounts.
Safe Investments for Seniors to Consider
One of the most beneficial components of investing is time. Time is a factor in compound interest, helping your money grow exponentially over the years. Time also allows you to ride out downfalls in the market, sticking to your investments until their value returns (and avoiding a loss in the process).
But what if you didn’t get an early start in your investment journey? What if you are just now considering investing your money, well into your older years?
Lucky for you, there is never a bad time to begin investing. There are always ways for you to safely and reliably grow your savings, accounting for your own personal plans and preferences. Seniors will need to change their investment strategy a bit — especially when compared to younger investors — but that doesn’t mean it’s not still well-worth the effort.
Let’s take a look at what investing means for seniors, where to begin and things to keep in mind along the way that are unique to older investors.
Is Investing Safe for Seniors?
It’s important to remember that no true investment is without risk. There is always the chance that, at the very least, your money will not earn its expected return. With some investments, there’s even the chance of losing your money altogether.
This is why investing is considered a long-term strategy. By starting early, one can ride out the rough investment waters that recessions and economic hiccups can bring, and come out the other side relatively unscathed.
With that said, can investing still be a good idea — or even safe — for older generations, especially those who may need to access their savings sooner rather than later? Without the benefit of time, investing is admittedly a bit trickier for seniors — but that doesn’t mean it’s impossible or even inadvisable.
By opting for investment vehicles that inherently carry a lower risk, seniors can still enjoy an impressive growth in their savings that is both impactful and safe. The only difference is that this growth may not be as profound as it is for younger investors who have a higher risk tolerance.
Before investing, seniors should sit down to map out their current financial situation, their future plans, and even their present-day cash flow. This will allow them to determine exactly what level of risk they can comfortably tolerate, and which investment vehicles are the safest for their savings.
Investment Options for Seniors
Technically, there is nothing stopping a 70-year-old from investing in the exact same places as a 30-year-old — meaning that the investment options for seniors are not officially limited in any way.
With that said, there are a few savings vehicles that are a much smarter choice for older investors, as they offer better protection and lower risk levels. This includes things like bonds, certificates of deposit, bank savings, money market accounts and even fixed annuities.
Each of these options provides a low level of risk for investors. On the flip side, though, they also offer a lower return than more aggressive investment products.
As you’ll notice, there aren’t any individual stocks or target-date index funds included in this list. While seniors can certain opt to save their funds in those types of vehicles, older investors are usually recommended to choose from one of these safer, more reliable options.
Investing in Gold
If you're hesitant to invest your money or expand your cash portfolio, you may consider investing in gold. Gold has always been considered a safe option for investment, as its value doesn't ebb and flow the same way as the financial markets. Gold has always held historic value, and is expected to continue to be of high value for years to come.
Birch Gold Investment Companies is the leading dealer for precious metals in the United States. If you're considering investing in gold you should consider their services. They are headquartered in California, but serve clients across the country. You can choose two options: purchasing gold items, or converting your IRA or 401k into a precious metal investment. For the latter option, you can choose between gold, silver, platinum or palladium.
What’s Different About Investing as a Senior?
Any investor knows that the more risk you take on, the greater the (potential) reward you could see on that investment. For seniors, there is a need to lower the risk tolerance in an effort to avoid financial ruin during — or immediately before — retirement.
For example: let’s say that you invest in an exciting fund, only to watch the economy take a nosedive the following year. Common knowledge would advise you to leave the money alone and wait for the market to bounce back. And if you’re 28 years old, you can afford to do so for the next 15 years, until your investment regains its value.
However, if you are 65 years old and entering retirement, you cannot afford for something risky like that to happen. Sure, a riskier investment could earn you a greater return, but it could also wipe out your entire savings in an instant, leaving you without any liquid resources.
Each of the five savings vehicles in the chart above offers a return on investment, and a safe place to store one’s nest egg. Some are better than others, of course; the vehicle you choose will depend on your own personal plans, how much you hope to earn and your cash flow at any given time.
Why Should Seniors Continue to Invest Their Money?
The best money is free money, and the earnings on your investments are essentially just that. There is no age or life stage during which free money isn’t ideal, either.
Whether you’re 27 or 77, investing is always a wise decision if you have the cash flow to do so. This allows you to take whatever savings you may have and grow it into something even bigger. That concept is especially important (and impactful) for older generations, most of whom are likely retired already and not earning any additional monthly income,
With that said, the older you get, the more intentional you will need to be with your investing. Younger investors can afford to take on the risks involved with certain investments, riding out the waves over the decades to come and slowly rebalancing their portfolios to account for less and less risk.
Older investors simply can’t risk losing their life savings so late in the game. They have already reached the “low risk” stage of their finances, which limits the types of investment vehicles they should choose.
By opting for a safe investment — such as bonds, fixed annuities, CDs or even a high-yield online savings account — seniors can enjoy a notable return while also resting easy that their money is secure.