Finance Tips

The business of underwriting is all about estimating the risk of loss. In broad generalities, that means a red mean-machine driven by a teen is likely to be involved in an accident, whereas a family saloon driven by a homemaker with a baby in back is likely to arrive safely. Although stereotypes are not always helpful, there are some very detailed statistics showing which drivers are most likely to make claims. Not surprisingly, the people who only drive occasionally and at off-peak times when there’s little traffic on the roads have the lowest accident rate. When the statistics confirmed this common sense assessment, insurers wanted to offer low mileage drivers a substantial discount. Unfortunately, large numbers of people are dishonest and claim low mileage simply to get the discount. Faced with this problem, most insurers either refused a discount or only offered a token percentage.

Technology has now come into play. Many new vehicles leave the factory with on-board computing power and transmitters. In the more sophisticated vehicles, this allows the vehicle to signal a garage when maintenance work is required. This technology can also be modified to monitor when and how the vehicle is driven, transmitting the results to insurers. For vehicles without the basic technology installed, black boxes have been developed. They can be plugged into the vehicle’s electronic systems and collect all the relevant data.

This is Big Brother technology to tell the insurer exactly when you drive and how many miles you travel. But it solves the problem of dishonest reporting. So many insurance companies are now offering plans directly based on the mileage traveled in a week. This is of immediate benefit to homemakers and seniors who only make short trips during the day. The most honest of the insurers are offering up to 40% discount to those who use the vehicle the least. It also helps the environment by encouraging people to use private transport less. If people walked more, it would make us less dependent on imported oil. It also reduces pollution. With better air quality, people with breathing difficulties have a better quality of life.

Not everyone approves of this technology. It’s considered an invasion of privacy. Indeed, with the right software, the insurers and anyone else who has access to the data will know exactly where the vehicle has been driven. This could prove involvement in criminal activity or suggest infidelity. Of course, the insurers protest they have no interest in making this data available to law enforcement agencies or anxious wives. But there’s a case about to be considered in the Supreme Court where monitoring a GPS transponder evidenced involvement in drug dealing. It will be interesting to see what our highest court has to say about this use of the technology.

As an example of an insurance plan, State Farm are promoting a Drive Safe and Save Plan in Illinois. This is based on the installation of a plugin device called In-Drive. Effectively, this enables drivers to pay for their insurance by the mile. Car insurance rates can be significantly lowered if you are prepared to accept positive monitoring of your driving. Look for the option the next time you get car insurance quotes from the top insurers. Big savings are available.

Are you looking for a good baby stroller for your family? There are so many models available on the market today, with prices and quality ranging from very low to very high. So how do you find a great stroller without breaking your budget? Here are 5 tips to help you save money on this very important purchase.

Purchase a universal car seat carrier (stroller frame) instead of a travel system. This is such a convenient and inexpensive device for transporting your baby during the first six months. You simply attach the infant car seat onto the frame, and away you go! Baby is undisturbed, and best of all, you have a few months to do some research and decide on what type of stroller you’d like to purchase when your child is older and you need more features. Do lots of research before buying a stroller. After the first 6 months, you will need a stroller that has, as a minimum, features such as a comfortable, adjustable reclining seat, a sun canopy, good-sized storage baskets and cup holders. Make a list of what features are most important to you, then do some research on the Internet to find out what is available. If you can, try out several models in stores. Keep in mind that you will need a reliable stroller for at least the next two or three years (more if you plan on having additional children), so don’t make a rushed decision. And don’t waste your money buying a stroller that has more features than you need. Buy a basic umbrella stroller for short trips to the mall. After the age of 6 months, your baby will be old enough to sit comfortably in an umbrella stroller. These strollers are light, fold up easily and compactly and are very inexpensive compared to full feature strollers. This is the perfect second stroller for running quick errands with your baby, although don’t plan on buying too much stuff during these outings, as the storage capacity of the basket underneath the seat is limited. Look for sales. There are always lots of great deals to be had when purchasing a stroller, especially on the Internet. Online baby gear retailers need to clear out overstock, so last year’s models – which usually aren’t very different than the current year’s newer models – can often be purchased for a lot less. You can also take a look at what’s for sale at warehouse clubs and on eBay and Craigslist. In addition, stroller manufacturers sometimes have good factory sales, so check out their websites on a regular basis. Always request the model year information on a stroller you’re interested in to make sure you’re not getting one that has been lying in a warehouse for the past 10 years! Sell your stroller when you’re done with it. If your stroller is still in good shape when your child has outgrown it, consider consigning it at a baby gear store or selling it on eBay or on Craigslist. Good quality brands of baby strollers have a higher resale value, so this is something to keep in mind when you make your initial purchase.

Buying a baby stroller that is right for your family’s lifestyle is a big decision, but by following these tips, you can save some money and have many enjoyable outings with your baby. Good strolling!