Do You Need to Be Rich to Save on Auto Insurance?

America is a society built on merits. It is believed that your rewards will mainly be based on merit. If you work hard and do the right things you will get the rewards. Is this the case in car insurance? If so, companies must be basing your premiums mainly on your driving and claim records. Good drivers with no traffic violation tickets and recent claims should be given the largest discounts.

Do Good Drivers Get the Cheapest Car Insurance Rates?

They do get decent savings there is no denying it. However, a simple quote analysis can show that an average driver with a speeding ticket and a small claim can get cheaper rates than a driver with spotless records for over five years. There are so many other factors considered that you need to do well on several areas to get the best premiums.

What Other Factors Are Influential on Your Premiums?

Your credit score, zip code and background plays as important role as your driving records with most auto insurers and in most states. For example, you can be charged twice as much if you live in a city center where low income households are dominant compared to nice suburban neighborhoods.

Your zip code can be so influential that moving only two blocks away into a different zip code zone can save you a lot of money. This raises a particular question. Are some zip codes singled out by financial services companies that your policies and loans would be more expensive if you live there? Insurers would argue that accidents and auto crimes are higher in certain areas and that is why the rates higher in those zip codes.

However, there is a concern that their pricing reflects other socioeconomic factors than just accident statistics when it comes to rating neighborhoods. Unfortunately, what goes in their zip code profiling is secretly guarded by each firm. If we were to put it plain and simple, they have the tools to discriminate if they choose to do so and they are allowed by most state insurance laws.

The second factor that favors the rich is credit scores. If you are a single mother who is just scraping by you may not have a great credit history and you will lose out on your vehicle insurance savings. The premium difference between having a good and poor credit can be as much as twenty five percent. This is more than the good driver discounts offered by many companies.

Sure, maintaining a good credit score should have its merits. However, should it outweigh more obvious merits when it comes to automobile insurance? Should it qualify you for more discounts than having great driving records?

And it doesn’t end there as there are other factors that can push you down in the favored driver list of most carriers. Having a highly respected job, homeownership, graduating from university and even paying the premium upfront are some of the things that qualify you for discounts. If you are poorer, you are likely to have a blue color job, be renting and want to pay with installments. As a result you miss out on large savings. It is a softer way of saying you will pay a lot more.

What Can You Do About High Premiums?

What you need to keep in mind is that every company is different in the way they look at an applicant and calculate premiums. While company A may be caring a lot more about things like credit score, zip code and home ownership and less about driving records, company B can be completely opposite. You need to find the company that favors your particulars more than the others.

So, how do you go about it? If you know a good independent broker you should talk to him/her about finding the best deals for your circumstances. They should know where to look. Alternatively, you could go on websites like Cheap Auto Insurance .net and get a few quotes online yourself. This process takes about ten minutes for each quote. It may turn out to be the most financially rewarding half an hour you spent lately.

The fact is that companies have their own reasons and agenda. Their practices can be bordering on discrimination and favoritizm. However, you are free to choose whichever company you like and you have many alternatives. We live in an open market economy where consumers are free to choose.

This actually has been the defence used by many states when the practices of insurers brought to their attention. They concluded that consumers can go somewhere else if they don’t like a particular company or the way they are treated. They are not forced to accept a quote or buy a policy from a particular company although it is legally required to insure a vehicle before you can drive.

Learn From Home With These YouTube Channels

Here is a nice selection of YouTube videos that will help you learn from home. Most of them are set up so you do not need qualifications in order to enjoy or understand them, but some of them can get a little in-depth. They all have educational and entertainment value, and the fact they are free is just icing on the cake.

Veritasium Science Trailer

There are plenty of demonstrations and experiments on this channel to keep you interested. There are interviews with scientists and lots to learn. It is a video blog, which means the content themes are a little mixed, but it is all good information.


There is a fair amount of general content you can learn from, and there are educational videos that may be used by higher education students and by K12 students.

ASAP Science

The science used and shown within this channel is not higher level and not too complicated. It uses science to explain why things happen to us in our day-to-day lives, and it explains the processes we see in technology around the home and gives science lessons on thing that most people find interesting.

Massachusetts Institute of Technology

This is a YouTube channel from MIT and it features technology and science videos and lessons. They are featured on YouTube so there is no restriction on who may watch them, and because they are on YouTube they are free. It is very good of the Massachusetts Institute of Technology to publish their teaching material. They are adding to the collective knowledge of a nation and beyond and they do it at a sacrifice to themselves.


They work on experiments that have a very visual side to them, which makes for very good and entertaining science lessons. The videos are made for entertainment value with the science coming in, not so much as an afterthought, but simply as an explanation for the things you just saw.


You may not learn things that will help you with your academics, but you can keep up with new technological developments and find reviews of gadgets you may purchase.

Discovery Channel

Their YouTube channel is based on the episodes they show on their TV channel. It obviously doesn’t show all the episodes or people would tune into the YouTube channel over their TV channel, but they do have quite a few educational videos on there for you to enjoy.


You can watch the videos on this channel if you are simply interested in technology and gadgets. It is good entertainment, but also serves as inspiration and learning for people that are working with or studying technology and creative design. Finding out how things work may inspire ideas that some students may put into their dissertation or term papers to show their knowledge is up to date.

Minute Physics

This is a very fast paced video channel that offers videos on physics. They have tried to inject a little life into what many consider to be a dull and lifeless subject. They give explanations for the things you see based in physics with the hope you will become interested in physics as a result. Despite the name, the videos do run longer than just one minute.


Google have a lot going on and with their channel you may find out what that is. They have a lot they can teach you and they offer a lot you can learn from. They explain their latest inventions and they have a lot of educational programs you can follow and learn from. They are the owners of the most powerful research tool in the world, so it is plausible to assume they have a very lot they can teach people.


With this channel you can learn about the history of science, and you can learn about the newest developments when in science. It is framed for students but may be watched by all as entertainment.

Scientific American Space Lab

They have videos all about space and the lessons they give are not too advanced, so everyone is able to use them. They offer videos that are informative and about exploration and astrology.

Kipkay’s Hacks, Pranks, and How to Videos

With this YouTube channel you can learn how to make fun objects and devices from the things you have in your home. It is not structured in any form of academic way, but a lot of the principles are based on things you may learn in college or school.

Sick Science

They show videos about science that people can see and touch every day. They have videos about scientific concepts that people see around them. It is about bringing science down to a level where people may see the amazing side of it without needing an education in science before being able to understand the content of the videos.

Making The Buy And Hold Strategy Work For You

With alleged stories of average Joes earning their millions in the stock market, it’s no wonder why so many others have gotten into the bandwagon and tried their hand at investing as well. The get-rich-quick scheme is rarely effective and most often untrue. Regardless, the lure of landing a sudden windfall is too much to resist. One of the many names which are floated with the aim at convincing individuals to invest their savings in the market is Warren Buffett. By being in an advantageous position during the 2007 subprime crisis, Buffett was able to purchase perpetual preferred stocks of Goldman Sachs.

However, while thousands upon thousands of budding investors look up to Buffett as their inspiration for making it big, the truth is that they hardly follow the man’s advice or trading style. This is because in the commotion of new-economy companies and stocks, and small start-ups like Twitter suddenly making it big and becoming a dozen-fold worth more than it started as, Buffett still believes in traditional strategies like “buy and hold”. In a bid to make it big fast, investors are buying stocks of unknown start-ups, keeping their fingers crossed that the start-up becomes the next Facebook, and then enthusiastically sells when the stocks go up before they plummet down.

Buy and hold may not give you high yields in a fast pace, but Warren Buffett was able to make his billions out of it and subsequently keep them, so why aren’t you giving it a try, yourself?

What is the buy and hold strategy?

The buy and hold strategy is a passive market investment strategy which involves buying stocks and holding on to these stocks regardless of the changes in the market conditions. The buy and hold strategy is meant to be a long-term strategy which offsets whichever losses one might incur in the short-term with the idea that the long-term income will prove to be more beneficial. The buy and hold is the opposite of active trading. On top of the idea that the long-term outcome will be better than any short-term return is added advantage of the buy and hold strategy minimizes fees and commissions which one would have to constantly pay for if engaged in active trading. Also, because you don’t have to time the market with regards as when to buy or sell stocks, buy and hold is extremely easy to implement. Moreover, you don’t need to worry about bad timing decisions in relation to selling or buying stocks.

How does Warren Buffett take advantage of the hold and buy strategy?

Of course, Buffett does not invest in just any company. On the other hand, he sizes up the company and even takes a close look at the way that it is being managed. There’s a reason why Mr. Buffett does not invest in technology companies – he simply does not understand it enough to be able to predict how the company will fare in 10 years. This is one tip which, when used alongside the buy and hold strategy, will give anyone investing success. You can, of course, apply this lesson according to how it applies to you. If you are more familiar with the food and beverage industry, then go ahead and buy shares of Coca-Cola (NYSE:KO). On the other hand, if you’re well-versed with the furniture industry, then Nick Scali Ltd (NCK:ASE) may be your cup of tea.

Kent Farell, a registered financial planner, shares the best insights on financial management and investment. He also loves to give wise tips about spending, saving and overcoming debts.