Archive for the ‘General Insurance’ Category

How to plan for your child’s education inflationary costs?

Thursday, April 16th, 2015

With the ever rising school fees, educational expenses have hit the roof. Parents are ready to even compromise on a lot of their expenses like EMI’s for the sake of their child’s admission in a branded school. There is a trend of around 10% inflation on the child’s current education. Thus, to meet the expenses and the demands and peer competition, there needs to be a plan well in advance.

Immediate School Expenses: So to beat the inflation of around 10% in a short time, just for school fees or admission, there are very few options Bank Fixed Deposits or Recurring Deposits or Debt Funds. This is because, 2-3 years is a very short time for investing in the market for average returns. Hence play safe by investing more for these yearly expenses.

Future Educational Planning: Now, when you need to plan for the child’s future expenses, keeping in mind your dreams, the child’s expectations and your abilities, there needs to be a proper plan well in advance. If you start early, then you can reap the benefits of the Power of Compounding as well. This simply means that the earlier you invest, the larger your money can potentially become because of the Compound Interest that accumulates on the entire fund. Also, when you plan, please do keep Future Value of Money and Inflation in mind.

So, the basic tips to plan for your child’s future expenses would be:

· Start Early- so as to reap maximum benefits. The longer the horizon of investment, the larger your returns will be because of the Power of Compounding. The Power of Compounding would help you accomplish your goals much easily.
· Need Analysis- more often than not, a proper need and requirement analysis is not done and goals and aspirations are not set. This is a very important step so that you know what you need at the end of the day so that you can plan for the same.
· Make a Proper Plan- most people end up taking a loan or making haphazard expenses for the child’s future only because it has not been planned well in advance. If the cash flow analysis properly done at the beginning, the execution of the same will not be very difficult.
· Be Diligent- If the plan has been properly designed, all you need to do is follow the same diligently and not budge from it unless it is absolutely mandatory. Once the need is established, the plan is in place and you follow the same to the T, there is no reason for you to fall short on the plan.
· Review- just like checking on a road map to see that you are travelling on the correct path, it is very important for you to check that you are following the correct path of Financial Planning for your Child’s future expenses. This is perhaps the most important reason for which you are earning and working hard to provide the best to your family. Review is also important because Needs, Wants, Goals, Dreams and Aspirations keep changing with time, lifestyle, etc.
· Contingency Plan- is like making a Plan B so that if there is a requirement for any additional funding at any point of time, there is no shortfall in reaching perhaps the most important destination of your life, i.e. your Child’s Higher Education Expenses!

Thus, by following the simple steps and choosing a portfolio mix with diversified asset classes according to your risk appetite, it would be a cake walk for you to plan for your child’s future educational expenses. However, you need to constantly check and ensure that you are on the right track! All the best!

6 Tips for Planned Investment

Thursday, April 16th, 2015

In economics, there is a concept called “Life Cycle Hypothesis”, which discusses that people
plan their consumption and savings behaviour in the best possible manner over their entire lifetimes. In many ways, this theory explains why people incur high amounts of debt in their early years of earning an income despite lacking a strong financial backup. They do so because they anticipate a higher income at a later stage. This works very well for some people, but not for all. After all, if every individual followed theory faithfully, then the global debt crisis would not even have crept up at all.
The fact is this: Saving is extremely important for the well-being of the individual as well as for the economy as a whole. Some people save a lot of money as well, especially in India where the Financial Savings Ratio for 2011 was as high as 10.9% of the Gross Domestic Product. However, loads of people who “save” reasonable amounts of money in their working years also fail to build up a commendable corpus at the time of retirement or exigency because of their unplanned financial behaviour.

In order to save in a planned and systematic manner, one needs to “invest” money rather than simply save; this ensures that inflation does not eat into the savings. With inflation in India being close to 10-12% p.a. and savings bank accounts paying only 4% interest, a person actually ends up losing 8% of his wealth if he keeps the same in a bank account. The same amount can be invested intelligently and according to the person’s risk appetite and financial requirements, thereby generating more money smartly.

Thus, planned investment is the key to a sound financial future. The key word here is “planned”. It means:

1) Considering one’s future goals

2) Taking into account one’s expenses and liabilities

3) Ascertaining one’s

– Risk Appetite

– Horizon for Investment

– Investment Objective

4) Deriving a plan for the same

5) And most importantly, sticking to this plan and reviewing it from time to time

It may sound difficult but it is not so difficult in reality. After all, we are talking about the most interesting thing in your life – YOUR FINANCES and YOUR MONEY! The charm of achieving such a goal makes the path seem simpler.

6 Basic Tips to keep in mind while making a Planned Investment

1. Create a Goal Sheet and Chalk out the Larger Objectives of Your Life: It may sound silly, but actually penning down larger financial objectives – like your daughter’s higher education at a foreign university in 20 years or your son’s international tennis tournament in 15 years, etc. – can prepare you to become disciplined enough to continue such investments over the long term. Your objectives may vary with time and lifestyle changes but the broader goals will remain more or less the same.

2. Make a Proper and Diligent Plan and Continue with It: The most important step for planned investment is conducting a cash flow analysis or preparing a financial plan either by yourself or through a professional, keeping the above mentioned factors in mind. Try to stick to your plan as much as possible without deviation so that the larger objectives of your investment are fulfilled.

3. Review the Plan Once, or at the maximum, twice a year: It is necessary to review your plan once or twice a year. But reviewing the same every day or every week will not serve any purpose. This is because the investment horizon of any investment tool is determined by the objective, and hence, should only be reviewed after a certain period has elapsed.

4. Have a Health Insurance Family Floater Plan: People often take their good health for granted and do not plan for rainy days. Hence, health insurance usually takes a back seat unless you feel the pinch of medical bills yourself. To plan for a sound financial future, it is important to maintain a healthy lifestyle along with a health insurance plan. This ensures that:

Medical expenditure does not eat into your earnings

The flow of income does not stop for medical reasons

This is true for all members of a family, which is why a comprehensive family floater plan is recommended.

5. Build a Contingency Fund: You can do so in a savings bank account, a liquid mutual fund or some other similar tool. Such funds should be set aside for medical exigencies and other emergencies so that investments intended for the larger financial objectives are not eaten up during this cash crunch. Avoid touching this investment under any circumstance and plan effectively by taking emergencies into account

6. Educate your Nominee: Your nominee should know about all your investments and your will so that your family remains financially protected even if something unforeseen were to happen to you. By maintaining a healthy lifestyle, you should live a long life. Nevertheless, when talking of planned investment, remember that it should be system driven and not person driven; it should be automated such that all kinds of financial worries are eliminated. Most people make the mistake of depending upon a lawyer or a friend with power of attorney but this often leads to incidents where the family does not receive the money that was due to them. Hence, educating your nominee is one of the basic steps you should take for planning your investment in a systematic manner.

How to Save Money for Investing

Thursday, April 16th, 2015

Money has diverse roles to plays in all our lives. From meeting our daily requirements to helping us fulfill our life’s goals in the future, the value of money cannot be undermined. In today’s unstable economic conditions, it is important to be prudent and invest for a steady future ahead. And saving your hard earned money is the first step towards this goal. This assures us safety of future cash, and helps us to meet unexpected financial emergencies.

Where saving means setting aside a certain amount of money for a purpose, investment results in wealth building and yields returns on your savings. Here are a few practical tips to start saving now and invest for a steady future ahead.

1) Define Your Goals
We all have goals, whether it is to buy a car, or funding our child’s higher education. Define your goals well. This gives you a clear picture of what you need to save towards. The more your goals the more you need to save and invest, so that your hard earned money would reap benefits at the right time.

2) Cut your Debt
Keeping your debt at low levels is an important step towards saving money. Where a home loan may prove advantageous as it works towards building an asset, what we are essentially talking about here are unsecured loans such as credit card dues and other personal loans. Unsecured loans carry a very high interest rate of around 30-40%. So reducing such debt could help you save money unquestionably. Credit cards do come with its share of convenience; however its usage must be done with diligence. Pay up all credit card dues well before due date. If you have personal loans, work towards repaying them at the earliest.

3) Have a Budget
Maintaining a monthly budget is a very important step to monitor your spending and your saving. A budget does not imply you need to curtail spending. It just helps you understand your spending pattern and plan your savings on a regular basis. Draw up a monthly plan of your necessary expenses such as children’s fees, household expenses, medical expenses etc… Set these essential expenses apart. Utilize the balance to save and invest.

4) Spending Wise
Apart from just creating a budget, the key to saving and successful investing also lies in spending your money wisely. Allocate your resources towards necessity expenses and towards savings and investments. Necessities come first and other non essential expenses take their turn second. Stay away from impulsive buying. Various sales and offers are often quite a treat, but hold on. You actually may not require them. Look for suitable bargains when the necessity arises to buy a particular item.

5) Prioritize
After having listed your goals and needs, it is important to prioritize them. What’s your immediate needs and what requires to be met 20 years hence? Prioritizing them helps to streamline savings and effectively channelize them towards investing. For example saving regularly in a long term plan may cater to a long term goal such as children’s education. For short term goals of buying a car or towards holiday expenses, a bank fixed deposit may prove advantageous. So prioritize to effectively manage money

6) Educate yourself
It is never too late to educate yourself on matters of personal finance. Be aware of all the options available to save and invest. Numerous options from bank deposits to regular savings plans exist to suit different needs. So understand your profile and use the most appropriate option available for you.

7) Save for a contingency
Have a contingency fund in place that would meet emergency and unforeseen expenses such as a job loss or medical costs. Not having a contingency fund may derail your savings and investment plan towards long term financial goals. Besides, you may also end up using your credit card or opt for unsecured loans resulting in a high interest rate debt.

Credit Affects Your Insurance

Wednesday, October 10th, 2012

The fact that credit history influences the chances of getting approved for a loan
is common knowledge, but most people are unaware their credit score determines how
much they pay for insurance. In many cases, insurance companies do not properly
disclose these tactics and individuals are notified after their insurance rate has
increased.

Take the example of Mathew Williams from New York. He was notified by his insurance
company that his annual premium would be increased by $628 based on his recent credit
score. Matt moved fast to check his credit report online and found his credit score
had fallen from 680 to 540, a drastic decrease. He had recently been in a car accident
and numerous unpaid medical bills were left on his credit. So not only did he eventually
have to pay these medical bills, Matt was forced to pay the higher insurance premiums.

A credit score can range between 300 (lowest) and 850 (highest). Theoretically it can
be 900 but that’s rare. Credit scores ranging 600-650 are considered fair and over
700 is pretty good.

Why is an individual’s credit score used by insurance companies to determine rates?
The insurance companies evaluate risk and then reward customers who are less likely to
incur losses with lower premiums. The best way to do this is by using the credit scores
reported by the credit unions to determine if the applicant is responsible. It is
important to realize your credit score affects the cost of your insurance premiums.
Insurance companies are looking at the credit report to measure insurance risk rather
than credit-worthiness.

An insurance research firm found out that 92% of the top 100 auto insurance companies
in the country use credit data when underwriting new policies. These factors which are
considered by insurance companies that are relevant to calculating risk include,
bankruptcies, judgments, collections and delinquencies. The different number and the
types of credit accounts a customer has and the length of account history are also
considered. Insurance companies say that credit scores are justified to correlate a
low credit score with increased risk. According to studies, people who fail to pay
their bills are more likely to file a claim.

Today, more than 90% percent of auto insurance companies nationwide use credit scores
as a means of deciding rates. A large number of home insurance companies are slated
to follow the same standard. Currently, California and Maryland are the only states
that prohibit credit-based insurance scoring.

The laws and regulations that govern insurance are decided at the state level. This
means that your place of residence actually determines what information companies
gather and how they can use it, to assess insurance risk. It is important to be
focused on removing the negative points from your credit report to increase chances
of receiving lower insurance rates. Insurance Policyholders are classified as
preferred, average or high-risk. This classification has a considerable impact on
what rate an insurance company charges you.

Tips to avoid low credit scores

•Keep an updated list of all accounts, due dates, balances and credit limits
(automate your bill paying process).

•Pay bills as soon as they arrive (as many as 100 points can be deducted per default).

•Keep an eye on all accounts carefully (keep balances low and spend around 1/3rd
of your credit limit).

•Minimize credit card applications (avoid unnecessary credit).

•Check your credit report at least once a year.

Do I Need Disability Insurance?

Wednesday, October 10th, 2012

Disability is an unpredictable event that has the capacity to restrict your capacity of making a living. In case you become disabled in case of any event, your ability to make a living becomes restricted, although you may have enough money in your bank account, in order to meet your short term demands. However, if there is no income all money is bound to get over, within a period of years. In such circumstances there arises a need for disability insurance. The people make purchases of the property brought and also casualty insurance, in order to protect their possessions such as houses, cars and furniture. Life insurance is also considered to be the most common form of insurance that provides an insurance policy in order to provide income to the survivors. Disability insurance is not much common as other forms of insurance, but it is the best insurance to protect you in case of disability, when you are not able to work.

Disability Insurance is very important like any other form of insurance. This is particularly important, if you are single with no other specific means of support. In case of married people, you may be able to support yourself with the income of your spouse. However, in all these circumstances your financial obligations do not decrease, as you still have your children to support or parents to look after. It is a misconception that disability insurance is important for those people who work in a hazardous environment and occupation. It is equally important to purchase disability insurance, as disability can occur even when you are at home. There can be accidents at home as well as workplace; hence all those who work and earn a living should purchase a disability allowance. Statistics reveal that there are always high chances for getting disabled for more than a month, than the chances of dying prematurely. The main reason for this is the development of science and technology, particularly in the field of medicine, and many medicines have been developed with the capacity of treating complex disabilities and injuries, that were previously considered to be very fatal.

There can be many facilities that are associated with disability insurance. In case you are injured at the time of working, you are entitled to receive certain disability benefits, from the workman’s compensation insurance. The amount you receive is highly dependant on the policy that is adopted by the state of your work. In case a revision is made in the liability insurance, it shall be able to offer you limited disability insurance. Many government and private pensions plans are also available that provide you certain benefits, that is based on total disability, permanent disability or a certain amount of reduced retirement benefit, that is in proportion to the amount that has already been received as an amount of insurance. There is a social security that is associated with the benefits. In case you are eligible to get the dividends, you may not be able to get it, after six months you have become disabled, as there is an imposition of social security as a waiting period.

Roles for Insurance Agents and Brokers

Wednesday, October 10th, 2012

Insurance Agents and brokers are the people, who pass the licensing examination that is conducted by the Insurance Department. In order to clear this examination, you are required to have a thorough knowledge of the different Insurance policies, rules as well as practices. These people provide us all possible help whenever we desire to obtain coverage from an Insurance company. The agents work on behalf of the Insurance companies, as their sales representatives, in return of a commission. There is a difference between insurance agents and brokers and the functions of both need not be confused. The basic difference between the two is that the work of the agent is to write policies, while that of the broker is to help and assist the customer, when he is making the policy.

There are many factors that we are required to take into consideration, before we purchase a contract. In cases where the Insurance is secured, the basis of the security is required to be seen. It is to be seen whether the security is on voluntary basis or on the basis of residual market. We can also ask for a detailed breakdown of the policy details so that we have a better understanding of all the features, that includes certain explanations that is related to deductions, premiums as well as coverages

In return of all the services provided by the Insurance agents and brokers, they receive commission. They usually provide us with a written memo that states the fee that they are charging. There is a limitation in maximum fee charged if the placement is made through an Auto Plan. If the placement is through other kinds of sources like the voluntary market, then there is no limitation to the fees charged, as long as everything is provided in writing in the agreement. It is to be kept in mind that the agents and brokers are in no position, to offer you cash, as any kind of inducement.

We should always try to obtain the best kind of coverage. In order to fulfill this purpose, we may contact the different brokers and agents, so as to find the best insurance deal. There are several ways, in which we are able to find the best broker and agent-the most common method is by seeking help from a happy and satisfied relative. It is in our best interest to approach the best brokers and agents, so that we get the best policy.

Beware of insurance fraud

Wednesday, October 10th, 2012

Pocketing Premium Payments
In the absence of payment of premium, an insurance policy is more than likely to be declared void. It is common for a policyholder to make such payments through an agent, usually the one through whom he purchased the policy. One oft-repeated insurance fraud occurs when an agent does not pay a premium to an insurance company, leaving the customer stranded without the insured risk being covered. A fraudulent agent may be found sometimes to be gambling that a client won’t have a claim and makes the premium money his own.

To insure yourself against such uncalled-for risk, you can eliminate to agent from the process of paying the premium. Whenever possible, you can as well pay your insurance premiums by check or money order made payable to the company, not to the agent or agency.

Law is there at your rescue, in case a dishonest agent thus deceives you. Agents failing to turn over premium money to an insurance company are liable to lose their licenses. Agents may also be dealt with face criminal theft charges if they keep the money for their personal use.

Churning
In case of churning, an agent tries to sell an extra policy to a person already having a policy with a cash value. Churning usually occurs when an agent promises the person a new policy at a low cost. The fraud rests in the policy so meagerly priced because the rest of the premium is being drawn out of the cash value of his or her first policy. The new policy in due course eats up the cash value of the first policy.

The policyholder will be left trying to arrange for money to pay for both policies, or his or her coverage will lapse.

Sliding
Unscrupulous agents try to sell you coverage you either don’t want or don’t need by telling you it is part of a “package”. They may even totally suppress from you the extra coverage. This is a case of sliding.

Sometimes agents look to “slide” in additional coverage that carries a high commission along with the low commission coverage you are purchasing.

Among the kinds of items most commonly used for “sliding”, that agents “slide” are accidental death coverage, guaranteed renewable term life insurance, or motor club membership.

Stacking
More often than not, one policy covers a consumer’s needs in each insurance area. However, for investment purposes some consumers may intentionally decide to buy more than one annuity or life insurance policy. Some agents try to sell you pointless multiple policies, claiming that you are in need of extra coverage. Known as tacking, this happens most frequently with life or health insurance policies.

Twisting
Insurance agents generally receive their biggest commissions for the first year a policy is in effect, with lower commissions in later years. With the purpose of profiteering, some agents may “twist” the truth and press you to change policies or companies, mostly in case of life insurance policies.

However, you should be cautious about changing any of your policies, because there could be downsides. For example, health insurance policies typically don’t pay compensations for illnesses diagnosed before the policy took effect. Also, some policies may have a waiting period. So, you need to take notice of all the pros and cons and weigh them properly before changing an insurance policy.

Other Ways
Disreputable agents may at times sell made-up insurance policies. While some claim to be representing the federal or state government, there are others using the license of a former or retired insurance agent.

Verify with your state’s Department of Insurance to make sure the license of an agent or company by getting in touch with them by phone or online.

Workers’ Compensation Fraud Hoaxes One and All

Wednesday, October 10th, 2012

The workers’ compensation insurance system is a no-fault scheme for reimbursing workers with medical expenses and wage losses as a result of on-the-job injuries. This is calculated to come to the aid of people who have been injured on the job in a way acceptable in the eyes of law. Most states call for full payment of medical and rehabilitation expenditure for injured employees and up to two-thirds of wage loss payback in the period of their being incapable of working. What all these mean is that workers’ compensation is an alluring target for insurance criminals, on the prowl to hoax actuaries for in a bid for illicit money-making.

It must be admitted that, the huge mass of workers’ compensation claims are honest. Still, one cannot deny that billions of dollars of false claims are produced each year before insurers from patients and unscrupulous doctors who either blow up the degree of injuries or just engineer them at the very beginning. Those actually paying the price for this offense are the honest masses. The annual payment of American businesses cross billions of dollars in higher insurance premiums and other expenditure such as production holdups, restrictive costs and equipment substitutions on account of workers’ compensation hoax. These costs reflect in higher prices for goods and services.

Mastered by some fraudulent doctors, lawyers, employees (claimants) and even employers themselves, deceit in workers’ compensation has manifold forms. Many doubtful workers’ recompense claims are for soft tissue injuries, such as strained
muscles, headaches, whiplash and snowballing constant concern. These types of claims being exceedingly tricky to refute, they are eye-candies for those intending to swindle the workers’ compensation insurance mechanism.

General Insurance Consumer Tips

Wednesday, October 10th, 2012

Buying an insurance policy is basically not much different from buying any other valuable. You need to examine all options, before zeroing on the policy you would like to put your money into. When you insure any valuable — be it a life, or any material possession, ensure that you everything you possible can on not only the policy you are buying, but also the competing ones. So, you should be enthusiastic and exuberant enough to shop around, focused and inquisitive enough to ask questions, and wise and judicious enough to compare prices, rates and benefits. Make sure you are comparing the same coverage. A policy may cost less, but at the same time, may provide fewer benefits.

1) Examine information about the company’s financial strength.

2) Never deal with a salesperson who is “just passing through”. This is primarily because he or she may not be there to provide service when you require it.

3) Ensure that you have got hold of the agent’s name, address and phone number. Keep safe from an agent who refuses to give his or her name and company accreditation or leave a business card.

4) If you have any queries about an agent or broker contact data, go ahead and consult the Department’s Bureau of Producer Licensing.

5) Feel free to ask about the agent’s qualifications, experience and education in insurance.

6) Be alert while dealing with insurance agents of companies that declare or mean in whatever way that they are authorized by the government, labor groups, teacher groups or other professional organizations.

7) Never let emotions get the better of you when you make your purchase.

8) Don’t feel pressurized into making a decision hurriedly. Keep in mid that any insurance policy available currently will still be there to buy the next day.

9) Do not hesitate to tell an insurance agent to leave your home immediately, if you are in no mood to eat into your precious time.

10) Never be “stampeded” or frightened into buying coverage you may not need in actuality.

11) Make sure you know what insurance benefits you already have before you dwell on purchasing additional policies.

12) Keep safe from duplication. You may have the same coverage in a current policy as those being offered to you in a new policy.

13) If you are considering substituting your current policy with a new one, make sure to have gone into the depths of the costs, benefits and conditions associated with each policy, as well as risks associated with a change.

14) Submit correct and complete information on an insurance application to avoid problems in future. Go through and understand what you are signing. When putting your replies for questions on an application, your declarations should be accurate, honest and recorded as you stated. You are accountable for information that bears your signature. Your policy could be declared void if information is misrepresented. Errors and omissions can lead to higher premiums or coverage terminations. So, make sure everything has been put down correctly and clearly.

15) Never ever assume that the policy premium quoted will be the actual premium of the policy, or that the policy will even be approved for coverage. Premium quotations are based on the information provided at the time. If the insurance company finds any of the information supplied to be incorrect or develops some additional information, the original premium quoted may alter or the company may even refuse to issue a policy.

16) When switching from one insurance company to another, do not annul your existing insurance policy until you are assured of the price and that you have been accepted by the new insurance company.

17) Never make payment in cash. Payment by check ensures proof of payment and allows you to stop payment if necessary. Always make the check payable to the insurance company. Avoid making the check payable to the agent.

18) Never sign an application for any insurance until you have read and verified the correctness of the information.

19) Make sure you read and make out what you are signing. When answering questions on an application for insurance, your answers should be accurate, honest and recorded as you stated. You are responsible for information that is otherwise authenticated by your signature. Your policy could be declared void if information is proved to be false.

20) When you receive your policy, make a thorough review the policy’s coverage, including the omissions, with your agent.

21) If you feel like reducing your premium, consider going in for a higher deductible. The deductible is the amount you must pay yourself before the insurance company pays the remainder of the claim. Ensure that you understand how your deductible is defined (per occurrence or illness, per individual or family).

22) You may get in touch with your state Insurance Department’s website to licensing status of an insurance company.

Go through premium payment options. Many companies offer the facility of installment payments for low administrative fees. Premium payments too may be financed. When opting for this, take careful to review the premium finance contract.

When Your Car Is Stolen

Wednesday, October 10th, 2012

When your car is stolen, it is a scary and distressing event. Most of us never dream of this possibility, so we do not know what to do when it occurs. The first thing to consider before the car is stolen is what you can do to prevent it from happening. There are things you can do to make it next to impossible for someone to steal your vehicle, thus preventing the problem in the first place.

The most obvious way to keep a thief from taking your car is to put anti-theft devices on it. This not only prevents your car from being stolen, but it also often lowers your insurance premium. Such anti-theft devices include lo jacks and car alarms. Also, locking your vehicle whenever you are not in it is a big deterrent for would-be thieves. Today’s cars have anti-theft features built right in that make it difficult to steal a locked car. If you can, park your vehicle inside a garage or in an area with plenty of lighting.

There are other preventative measures you should take so you will be prepared if your car is stolen. You may want to have your vehicle identification number engraved in a place on your car that is hidden from view. Thieves often alter the VIN number on your car, so etching it in a hidden place will help it to be identified if it is stolen and altered.

You should keep copies of all your important paperwork somewhere other than in your vehicle. The paperwork you need to copy includes your insurance information, registration, driver’s license, receipts for expensive additions to your car, and other receipts that will help identify the car as yours, such as a receipt for a major repair. Of course, the original insurance and registration papers should stay inside your car at all times.

Another tactic to help you in the event of a theft is to have pictures of your vehicle in your file. This proves the value of the car if you should need to submit a claim to your insurance company. Also, if the police are searching for your car, the picture may help them find it.

With these measures in place, if someone should try to steal your car, you will be prepared. If this occurs, you may feel like panicking. Knowing what to do will help keep you calm. Here are the steps you need to take to ensure that you get your car back as quickly as possible.

The first thing you need to do is telephone the police. You should give them a thorough description of your vehicle, including any special features that would help them identify it. You can give them the license plate as well. You should have this number committed to memory so that you can quickly give it to the police officer and get your car back in one piece. Remember, the sooner you get the description to the police officer, the more likely it is that you will get your car back without any damage. Don’t forget to tell the police where your car was stolen. This gives them a starting point for their search.

Once you have described the theft and your vehicle to the police, follow any instructions they have for you. You may need to deliver copies of your insurance, registration, and other paperwork to the police department. Do this right away. If you find that your car was not stolen and the incident was just a matter of miscommunication, tell the police department immediately. You do not want someone you care about who is driving your car to be pulled over by the police and arrested.

Next, contact your insurance company. Even while the police are searching for your vehicle, the insurance agency can begin to process your claim. This way you can get a rental car quickly without cost to you.

It may happen that you find your car before the police do. If you do, call the police and give them the location, but avoid approaching the car. The thief may be hiding nearby and may attack. Also, if there is any evidence in the car that could lead to the arrest of the thief, this could be damaged when you start messing with the car. You do, after all, want this thief captured and punished for stealing your car!

These steps are simple, and they will help you stay protected in the unfortunate event of a car jacking. Also, make sure you do not forget about your insurance company. They are there to help you through this situation, and they want to see you back in your car driving down the road. If you forget what to do, always call the police first and your insurance company second. They will tell you exactly how to proceed to get your car back as quickly as possible.