Archive for November, 2017

How Big Banks Can Bankrupt You Overnight

In the time of the Great Depression, many mortgages were written with a provision that allowed banks to call in the loan at any time. As they began to stumble towards failure, they frantically called loans and foreclosed on properties right and left. According to Dave Ramsey, mortgage laws have changed since those days. This was to prevent such a ruinous cascade of events taking out both the lenders and the borrowers in an “every-man-for-himself” race to survive at the expense of everyone else. However, there are still some sub-categories of loans that remain subject to such provisions– albeit in a backdoor fashion.

The Back Door Callable Mortgage

Of most interest to the general public are the terms that can be included in so-called HELOCs, or Home Equity Lines of Credit. These are financial instruments wherein you pledge the remaining value of the house over and above that of your existing mortgage in return for the right to draw upon that sum whenever you like by simply writing a check.

Protecting the Banks

How Big Banks Can Bankrupt You Overnight

There are two major dangers with such a loan. First, it is based upon the value of the home minus the mortgage held against it. In the event of a housing market crash, that difference between the two can be effectively wiped out by a fall in value of the underlying asset (your home) that serves as collateral. Secondly, it is also based upon your ability to repay the note. If you lose your job, or your second-income spouse dies, you may no longer qualify for the line of credit you have already received.

But Not You

In these instances, banks have been known to freeze the line of credit without notice– meaning that you cannot access any more of the funds than you have already drawn out. Next, they may decline to roll the HELOC over once it does come due. This arbitrary power of the banks can create an immediate problem because there are some HELOCs which are written with annual renewal clauses in them. In other words, some types of HELOC’s can be called due at the option of the lender regardless of whether you have been making your payments on time. In most cases, that effectively wipes out the homeowner and leads to the loss of all their accumulated equity.

How Big Banks Can Bankrupt You Overnight

Put simply, if a bank decides that your relationship with them is more of a liability than an asset, they can mess you over very quickly. According to CNBC, 78 percent of full-time workers are living paycheck to paycheck. This means that for a vast majority of us, we’re one cash flow disruption away from financial disaster. This might be why hundreds of thousands of Chapter 13 petitions are filed every year. If you have exposed yourself to these types of risky loans, are highly leveraged, with minimal emergency savings, you could be setting yourself up for some very stressful times in your near future.

Your Best Bet is to Go With a Trusted Credit Union

Unlike big national banks, credit unions are non-profit entities who operate to maximize the value for their members. At a credit union, you are not just a customer; you’re a stakeholder. While credit unions and banks operate under similar federal regulations and provide similar services, a bank’s priority is their bottom line, not necessarily your bottom line. Not every bank is scummy, but on average a credit union is going to work with you more and treat you better.

The best method for finding financial peace is to get out of debt and stay out of debt. 2nd Mortgages, HELOC’s, Title Loans, and unsecured notes are not tools for your prosperity – they’re ticking timebombs. Don’t sabotage your financial future.  Escape debt, build wealth, and use it to make a difference in your community. You can do it!

Do I Have Enough Collision Insurance?

Car insurance is expensive – we get it. You don’t want to pay more than you have to. But you also don’t want to compound the challenge of an accident with additional expenses. Don’t pay for coverage that you never use, but don’t pay too little and end up paying too much out of pocket. Make sure that you have enough coverage if you are insured for collisions.

The Basics of Collision Coverage

Collision insurance covers you for repair bills caused by collisions. The plan does not cover you for thefts, explosions or damages caused by natural disasters. Receive coverage for all types of collisions that involve other cars and property. Truck accidents are the most expensive types of crashes, costing as much as $20,000 to $100,000 in property damages. And according to George Salinas, these types of accidents are on the rise.

The state has minimum requirements for car insurance coverage. In most states, you need liability, property damage and personal injury protection. This data gives you a good idea of the minimum coverage you need, but it’s a general plan, so many drivers get more coverage.

Determine the Car’s Value

Determine your car’s current value as you obtain collision coverage. Know if the plan covers the full amount of the car because many cars are totaled in collisions and cannot be repaired. The car’s value and your driving record affect the cost of your policy.

Compare Repair Costs vs. Insurance Coverage

Compare the average costs of collision repairs with the costs of insurance coverage to make sure that you are getting enough coverage. Consider the maximum amounts that you would pay for repairs if you ever get into a collision. Then, determine the maximum amount of coverage that the insurance company provides.

In a head-on collision, the entire front part of the car is damaged from the bumper to the windshield. Replacing a bumper costs an average of $500, and replacing a windshield varies from $200 to $1,000 on average. The prices vary based on the car’s make, model, age and condition.

Add up the repair costs and see if the total exceeds the replacement value of the car. In some cases, you should not extend coverage on your insurance. Save more money by replacing the car altogether. Some insurance companies offer a replacement if you did cause the accident.

Make sure that you are covered for collisions before one happens. Review the policy instead of having a claims adjuster contact you after an accident. By then, it’ll be too late once you discover that the insurer cannot pay for all of the damages. Before the accident occurs, get the full benefits out of your collision coverage plan.

Top Methods To Attain Financial Wealth

You might have heard that numerous people save a certain percentage of their income monthly. Some save 10 percent, others 20 percent, etc. However, no one tells you how they use that money. This is where the difference between building wealth and simply saving money comes in.

Let’s say that you save 10 percent of your income for an extended timeframe. In time, you’ll have built a good nest egg. Notwithstanding, if you choose to invest the same amount of money, you could build financial wealth. If you’re thinking about how to make more money, you should consider this.

Consider Investing Money

Before you get into investing, it’s recommended to look at various options. Perhaps it would be the best to request the guidance of an expert, especially if you’re new in this. It’s up to you to test different strategies that would aid you to accumulate financial wealth.

For example, if you don’t come from a family in which investing money was second nature, it could be intimidating at first. Not to mention that it could be genuinely confusing, considering the wide range of alternatives.

You can choose between index, single and mutual funds. Still, it can be a tad difficult to predict growth and pinpoint the perfect timing for buying stocks. On that note, a safe strategy on how to make more money would be to invest in a few low risk mutual or index funds, which have a decent track record.

This would protect your money. While looking at a mutual fund, make sure you select one that has been operating for an extended timeframe, and has a history of earning profit.

Get Professional Help

If you want to know how to make more money, you should always ask for the opinion of a professional. As a general point, a higher return equals a higher interest rate.

Let’s say that you’re in your twenties. In this scenario, you could opt for products with a greater rate of return as you can wait for the market to recover. As you come closer to retirement, you could embrace more conservative strategies, to ensure that your loss is minimal.

Australian Lending Centre offers some good investment and loan options for those looking to increase their profits. Once you are done reading this, you can pay their website a visit and see which one is the most suitable for you.

Establish Investing Goals

If you want to know how to make more money, you should start by having some clear goals in mind. For instance, you could set an objective, such as attaining financial independence until retirement, or whatever you wish.

An option could be to setting up accounts where you could direct your monthly contributions. We find that this is one of the easiest ways of investing.

Having a monthly goal will help you make progress. Still, bear in mind that if you turn to your savings account every holiday or vacation, you’re doing more harm than good.

The answer to the trivial question how to make more money is, in essence, simple. However, it’s quite challenging to turn towards investments if they are entirely new to you. On a final note, before you start investing, make sure you are free of debt.

5 Insider Secrets To Finding The Best Black Friday Deals Online

The day that all shopaholics wait for all year long is right around the corner. We are referring to Black Friday and all the fantastic deals that come with it making even an average shopper drool over. While the day has a lot to offer, you need to be careful about how you go about it. Black Friday is definitely one of the busiest days for shopping.

The mind-boggling deals of Black Friday are now made available to the consumers online putting an end to their chances of getting trampled during their shopping spree. While it has made shopping a comfortable experience, keeping yourself from buying just about anything has become a tad bit difficult than it previously was.

Therefore, we have come up with these 5 shopping secrets for you to help you make the most out of 2017 black friday sales:

1.      Research

First thing first, Black Friday is not your regular shopping day. You need to do your homework if you are to benefit from this opportunity. You want to get your hands on the best deals, but you must have a budget and a list of items that you are actually in need of. Do your research and compare the prices of the products you have your eyes on days before the big day.

This is especially true if you are an online shopper. Stores release their deals a few days before the actual day. Compare the different deals offered by various outlets on the product you need to buy, then make a wise choice.

2.      Identify the Real Deals

Black Friday is mostly about Christmas shopping, which means most of the items you are buying might be gifts for someone else. Shopping for others is not an easy task. Therefore, you need to realize that not every deal is the best one. Before you make a purchasing decision, make sure that what you are buying would be appreciated by the receiver and is actually worth its price.

This is the difference between an ordinary shopper and a savvy Black Friday expert shopper. While the former would add an item only because it is being offered at a crazy price, the latter would make sure that they are really in need of it before buying it.

On the same note, you need to check the value of the product. An “under $100 item” might start your mouth watering but if it is a non-model cheap product, it won’t be with you for long. This is precisely not what Black Friday is about.

3.      Use Social Media to Access the Secret Deals

“Like and subscribe our Facebook page” is the most common marketing strategy that is used nowadays. And you know what? Retailers and Brands actually have a soft spot for followers exhibiting engagement on their social media platforms. This means the followers get early access to their special offers and promos leaked by brands on social media to increase traffic.

These offers include giving the followers hints about the limited-time discounts or letting them know that a particular brand will be selling at the lowest prices at a specific hour. So up your online shopping game this Black Friday by engaging with your favorite brands on social media.

4.      Use Coupons for More Discounts

For the online shoppers, tools are offering an aggregation of coupons. This lets you save bucks instantly. These online tools hunt the internet to compile discount coupons available so you can choose the relevant one and use it in your order and checkout from the E-store.

Coupons at Checkout and Honey are two of the most popular aggregated coupon tools that you can use. They save you the trouble of looking over the web for the coupons and automatically apply the ones that are relevant to your purchase.

5.      Compare the Deals Again and Again

Finally, here is the last secret from our guide to successful Black Friday shopping. Compare the deals before settling for one, and you can do it simply by using the online comparing tools. They are effortless to use and help you save money. There are some tools which when installed with their add-ons automatically shows the competitor’s price as you select a particular product. Two top-rated online tools allowing instant comparison of prices are InvisibleHand and Priceblink.

Now that you have these inside secrets at your side go on and make this year’s Black Friday shopping spree a success! Happy shopping.

Is Criminal Behavior A Fire-able Offense In Your Company?

People get fired or terminated for a variety of reasons. While most are legitimate, some are not. One thing that can get you fired pretty quickly is criminal behavior off the job. While some people are of the opinion that what you do in your personal life is your own business, many employers beg to differ. While employees have an individual right to privacy, employers have rules about off-site activities. Not only can a criminal act — especially a violent one — land the employee in jail, it can also provide unwanted publicity for the employer.

What is criminal behavior?

Criminal behavior covers a broad spectrum of activities. While there are some minor things like getting a ticket for a traffic violation criminal, it’s hardly something that will land you on the unemployment line. But, if an employee commits a violent crime such as a robbery, assault, burglary or some other extreme felony, they could be fired. It also depends upon the type of job you do as well. For instance, if you’re a truck driver who picks up a DUI, you will likely be terminated. Employees should also understand that employers have a duty to protect their employees. If an employee is arrested for committing a violent crime — even if they get bail — it is highly unlikely that an employer would want them to step foot back on the property.

If you feel that your firing was illegal what can you do?

If an employee is fired for criminal activity, the chances are slim that you can do anything to get your job back. In most cases, employers will cover such issues in the employee handbook. But you may also contact your local Equal Employment Opportunity Commission (EEOC) to find out your options. You can also see if an attorney can help. If your company has a union, you may contact the union representative. There is still no guarantee that you will get your job back.


The bottom line is if an employer has set in stone rules about criminal behavior, the employee may not have much recourse. Also, about 25 states are right to work. This means an employer can pretty much let you go for any reason. Do your homework and find out your rights under the law. But the best way not to get fired for criminal behavior is NOT to commit a criminal act.

4 Of The Best Tactics For Driving More Web Traffic

When you are in charge of running a website, whether it be a personal one or part of your job, you want to make sure that you are driving web traffic to your website and do everything to increase your readership. You may have a clean design and provide everything your clients could possibly desire, but if nobody is clicking on your website, it hardly does you any good. Here are a few proven tactics that will help you increase the number of visitors you get to your website.

Social Media

Some of the most reliable methods to bring viewers to your website are also free or very low-cost. Social media allows you to create a page for your website or business and promote it free of charge. You can use these accounts on Facebook, Twitter, or Instagram to share information about giveaways or promotions or to share posts from your website.

You can also use social media to have your current web visitors promote your website. You can embed little widgets on various pages on your website that allow people to share an article or piece of information on their own social media. This natural advertising comes with a stamp of approval from that user, which can encourage their friends and family to visit your website. To help this, make sure your social media widgets are placed in a prominent location that won’t interfere with the user experience on your website.


In addition to creating a natural social media presence, you can run ad campaigns on your social media accounts. These ads are fairly low-cost and often blend in with regular content, so they don’t annoy social media users. You can schedule your ad campaigns to run at the optimal times for the demographic you are trying to attract.

In addition to using social media for advertising, you can run ads on other prominent websites. Start looking into resource websites for your industry and see if they offer ad space. Placing ads on these websites may be a little more expensive, but they have the added benefit of reaching a wider and more diverse audience than social media ads do because they are more constant than social media ads.

Search Engine Optimization

There is no point in trying to drive traffic to your site if you aren’t focusing on search engine optimization (SEO). This is the number one factor in getting people to visit your website. If you don’t show up in search results, people are going to visit your competition instead. There are a wide variety of things that you can do to increase your SEO, but starting with the basics is important.

Search engines need to know what your website is about, so make sure you have an accurate meta description and that you are using keywords properly. If you don’t use them enough, you won’t show up for the topics you have. If you overuse keywords, you may actually get a penalty for keyword stuffing. You should also make sure that your website converts easily to mobile use. Most people use their phones for the internet, so search engines prioritize websites that work well with both desktop and mobile users.

Encourage Reviews and Testimonials

People want to know how legitimate your website is and any services that you offer. They can glean some information from your website, but hearing from other customers can be very reassuring. Good reviews show that you are legitimate and help convert casual viewers into actual customers.

Display any testimonials you get from customers on your website and encourage people who buy your products to leave a review when they get their purchase. This builds your credibility as a vendor. On the other hand, if you are getting bad reviews, make sure you reevaluate and correct any business practices that aren’t working.

In any method of gaining web traffic, it is always essential to reach as many people as you can. The more people you can reach out to, the better your chances of building a loyal following. That loyal following is one of the most invaluable resources you can have, so don’t ever underestimate or neglect them.

5 Careers That Allow You To Give Back

Find a career is one of the biggest decisions of your life, and most people just take what they can get that pays the most. But what if you want a career that does more than just raking in the cash? What if you want a career that actually gives back? Don’t worry, there are plenty of careers out there for you. However, we’ve put together a list of the careers that we feel give back a little more than the rest. Here are our top 5 picks for careers that help you give back and lift up!

Adoption Case Manager

Stories of children who don’t have a family pull at everyone’s heartstrings, but not a lot of people have the ability to do anything about it. If you want to help these children, working on adoption cases is one of the best ways to make a difference. You help place these children with a family who loves them and wants to keep them forever. Your job is to focus on the children, which is rewarding in so many ways. With your help, fewer children need to go to bed wondering if they’ll ever have a ‘real’ family. Fewer parents will be wondering why they don’t deserve children.

Emergency Responder

Maybe you want to have a direct hand in improving people’s lives every day? Then consider becoming an EMT, firefighter, or police officer. With a career as an emergency responder, you will be providing care, protecting others, and literally saving lives. Though these may be difficult careers, they provide the kind of differences to others that will last a lifetime. However, this job requires a strong constitution. While you get to help others, you will be encountering them in some of their darkest and scariest moments. While they may be grateful for your help, they probably wish it wasn’t necessary. These jobs will require your compassion while maintaining a thick skin.

Senior Life Enrichment Coordinator

Does your passion lie in making someone’s golden years a little brighter? If you’re fun, creative, caring, understanding, and full of life, then being a senior life enrichment coordinator may be just the career for you. Enjoy your career planning fun trips and activities for seniors who are living in assisted centers, as well as tending to every individual’s different needs. You can make every day better and create new memories for those who need a little extra help in their retirement years.

Crisis Counselor

Perhaps you want to help turn someone’s life around when they’re at their lowest and feel that they have nothing left? Though this career takes a lot of commitment and strength, it’s a very rewarding path. When you choose a career as a crisis counselor, you give much-needed support to people who have found themselves in devastating situations. Whether they’re suffering from an unexpected death in the family or from losing everything due to a natural disaster, you can help others find the strength to carry on and rebuild.

Teaching Special Education

Are you patient, understanding, able to motivate those around you, and accepting of differences? Then consider a career in special education. Teaching children who have mental, emotional, or physical differences can be one of the most rewarding careers. It not only offers a lifetime of fulfillment and meaning for you but for those that you work with. Having a great teacher can make all the difference in the world, especially for children who are at a disadvantage. Your role as their teacher will help shape their lives into something more than it would have been otherwise.

There are a variety of opportunities to give back and you don’t have to compromise your earning potential to do so. While some of them might not be the most glamorous jobs, there is the satisfaction that will help you enjoy your job. To make sure you end up where you want to be, make sure you seek support from counselors while you are still in school. Even online programs offer personalized support to help you achieve your goals.

Are Home-Sellers In Canada Required To Provide Insurance?

Many families looking to buy a home in Canada find themselves with questions about how insurance works and if the seller is required to provide it. While home sellers are not required to provide insurance in Canada, many will offer some sort of insurance as an added incentive for buyers, so be sure that before you make an offer on a new home, you clarify the insurance situation with the seller.

The Rules:

While home sellers in Canada are required to provide deeds, mortgage information, and current property tax bills, they are not required to provide insurance for the buyer. Home sellers will generally have homeowners insurance on the property until the day they move out as a precaution, so buyers don’t generally need to worry about damage to the house just before they close the deal. However, once the title is transferred, the former owner is no longer legally responsible for the property.

Why Some Sellers Offer Insurance:

It may not be required, but it isn’t uncommon for sellers to offer some type of home insurance that can be transferred to the new owner to make potential buyers more likely to make an offer. Many Canadian home sellers will offer home systems and appliance breakdown insurance, which is transferred to the new owner once the property sale is finalized. Home systems and appliance breakdown insurance usually applies for one year, and covers high maintenance costs for unexpected breakdowns or other problems to protect the new owners.

Insurance for Buyers:

It’s also important to note that if you’re buying a new home and getting a mortgage, you will be required to get homeowner’s insurance. This rule is designed to protect the mortgage lender in the event that the property owner defaults on their mortgage.

The bottom line for prospective buyers is this: because home sellers in Canada aren’t required to provide insurance, the best course of action is to inquire about insurance before you make an offer. It is all about getting in contact with the realtor. According to Calgary Listings, “enjoy the rewards of working with an experienced professional and receiving personal customer service.”

The realtor will ensure you have all the information necessary when going to buy a home including whether or not the seller will provide the insurance.

The realtor will also know whether or not the insurance can be transferred to you after the sale is complete; in some cases, sellers will be amenable to offering insurance if they know that it’ll make you likely to close the sale. Once you do purchase your new home, be sure to get homeowners insurance right away even if you aren’t taking out a mortgage, as once the title is transferred to you, you’re financially responsible.

5 Things To Know About Your Home and Property Insurance

Did you know that 63.7% of Americans owned homes by mid-2017? This is the around the same percentage in 1988. Homes may rising in cost, but just as many Americans purchase homes. Have you just purchased your dream home? Now you need to buy insurance for it. Here are a few things you should know about your home and property insurance.

Policy Exclusions

What does your home insurance policy cover? The last thing you want to hear when you go to file a claim is that your insurance doesn’t actually cover that. For example, most policies don’t cover earthquake and flood damage. To avoid any nasty surprises later, go through your plan with an insurance agent you can trust. They will help you understand the content of the policy document and exactly what it does and does not cover.

When to Stop Paying

If your bank initiates the foreclosure process, continue maintaining your home insurance. If you cancel your coverage, the lender will buy a force-placed policy for your property. Lender-placed insurance costs more than an insurance policy you purchase yourself, so if this happens, reinstate your old policy or get a new one. Present evidence of coverage to your lender, and ask them to discontinue their policy.

Replacement Cost

The replacement cost of a property may differ from its market value. Let’s assume the home insurance on your property covers up to $200,000, but that a disaster happens and in order to repair or replace your home, it’ll cost $250,000. Your insurance won’t cover anything more than $200,000, so you’ll have to take care of the remaining $50,000 yourself. Home insurance policies often cover more than the market value of the property for this reason.

Your Home’s Cash Value

Sometimes a disaster strikes and you choose not to replace your home. In this situation, the insurance company would write you check for the home’s cash value. But how do they know the cash value? They start at the replacement cost of the home, and then deduct the depreciation of the property. The remainder is the cash value. Don’t confuse cash value with replacement cost. Replacement cost stays the same, even as property depreciates over time, so if it’s been 10 years since you purchased your home, your home’s cash value could be tens of thousands of dollars less than the replacement cost.


If an accident on your property harms other people, you could be found liable. Fortunately, home insurance policies often cover this types of situations. One thing to note, however, is that a force-placed policy covers less than a regular home insurance. It doesn’t provide coverage for your personal property. Creditor-placed policies also don’t offer liability coverage, so if anyone gets hurt, that’s on you. If a lender ever tries to repossess your home (whether through your permission or not), continue making insurance payments so you can guarantee you’re covered for situations like this.

When it comes to insurance policies, being keen is essential. Knowing these five things will help you avoid trouble in the future. After buying home insurance for your property, keep up with payments and you’ll be covered for just about anything—except for those pesky exclusions.

5 Reasons To Shop Around For Car Financing

Your monthly car payment consists of both the principal on the loan, and the interest paid to a lender. While you may have little control over how much you pay for the car, you do have control over your interest rate. Let’s look a little closer at the best reasons to shop around for a car loan and how to get a better deal on your vehicle.

Look for the Best Rate

Talking to a local lender may make it easier to get the best rate on a loan. Those with bad credit may get better terms from an online lender compared to at a dealership. Coming to a dealer with a loan in hand may also offer you more leverage during negotiations.

Get Leverage Over the Dealership

You don’t have to accept the loan offer you got from a credit union or online bad credit lender. However, it does guarantee you can get the car you want, even if the dealer wants to play hardball. In most cases, you have 30 days to accept financing terms offered by an outside lender.

Know Your Budget Ahead of Time

If a credit union offers you $10,000 for a car, it should be a sign that this is what you can afford to spend on a car. In many cases, car dealers will try to sell you a car based on the affordability of the monthly payment, which rarely reflects the affordability of the car itself.

Check Your Credit Ahead of Time

Your credit score will play a major role in the loan terms that you may be offered. Applying for a loan before going to the dealership gives you an excuse to check your credit ahead of time. Doing this reduces the odds that a dealer tries to tell you that your credit is bad because you will know whether this is true or not.

The Lender May Check the Condition of the Car

A lender may ask for a vehicle history report prior to making the loan. This may help you find out if it has been involved in any car accidents or has other damage. Ultimately, this may also help you make a better decision about your next vehicle purchase.

Shopping around for a car loan can provides a variety of benefits. In addition to getting a lower interest rate, it can also help you determine how much you can afford prior to going to a dealer. This may help you get a good deal regardless of the tactics a salesperson may try to use.

How An Auto Accident Affects Your Insurance Rates

You’ve probably heard somewhere that car accidents tend to increase your insurance rates. Before you start panicking after an accident you should know some of the facts. Whether or not a rate increases and how high the increase is, depends on the insurance company’s policy. There are three common factors that determine a driver’s insurance rate after an auto accident.

Your Driving History Affects Your Premium

Some insurance companies look at the driver’s past driving history to determine whether to increase a premium. With most companies, poor driving history—like having multiple traffic tickets—is likely to influence these insurance rates. Most companies that view driving history as a determining factor charge higher rates after the accident and when the driver is joining the insurance company. Over time, however, if the driver has not had anything else added to his motor vehicle record, the rate usually decreases. This is because good driving is rewarded, and the insurance company is less likely to see the driver as reckless.

Your Rate Usually Increases When You’re At-Fault

Similar to receiving traffic tickets, being at-fault in a car accident is frowned upon when it comes to receiving a good interest rate. Insurance companies look at whether or not a driver has recently caused any car accidents. At-fault accidents make drivers appear to be more of a liability, and insurance rates can be higher for this reason. Even small infractions like side-swipe accidents after not checking a blind-spot can influence with certain providers. If the driver hasn’t had an at-fault accident, or if it’s been years since they have, insurance rates usually decrease.

Your Age May Determine Your New Insurance Rate

Statistics usually show younger drivers have car accidents more frequently, and insurance companies tend to follow statistics when deciding on their next move. Many teenagers and younger adults are often distracted behind the wheel, whether the distraction arises from phone-use or from talking to other passengers. Although not all young people are careless, the data shows that people in younger age groups are likely to have at-fault accidents and therefore, the company’s risk of having to pay out money to claimants increases. As the company’s risk increases, so does the driver’s premium.

Some insurance companies look at all three of these factors to determine future insurance premiums while other companies may only have one determining factor. Companies tend to follow the data that’s in front of them, however, so the fact remains that age, driving history, and past at-fault accidents are important in determining how much a driver should be charged for coverage.