Horizons Online Financial & Insurance Services

AAA Student Lending: Graduates Can Qualify for Financial Aid
By Megan Gorzkowski

Have a question about how graduate financial aid works? AAA can help.

  Maybe you’ve just graduated from college and plan to pursue a professional or graduate degree. Perhaps you’ve been out of school for years, and have decided to return to the classroom due to the economic climate. No matter what your stage in life, your education is one of the most important investments you can make. Here are some tips for financing graduate school.
  • Fill out the FAFSA. There are three types of federal graduate student loans: Perkins, Stafford and GradPLUS Loans. To qualify for any of these, a student must first complete the Free Application for Federal Student Aid. It is highly recommended that you submit your FAFSA online because time is of the essence – some financial aid is distributed on a first-come, first-served basis. Also, you’ll want to be sure you adhere to state and school deadlines. Visit www.FAFSA.ed.gov for states’ FAFSA deadlines.
  • Consider all costs – not just tuition. Many loans cover a variety of grad school expenses beyond tuition. “Loans can be used for living expenses, fees, textbooks, uniforms, supplies and more,” said Shelley Honeycutt, AAA Student Lending Manager. She often uses dental students as an example: Their first-year tools alone can start at $3,000.
  • Think you don’t qualify for financial aid? Think again. Common myths regarding graduate financial aid are that it only applies to full-time students, or it doesn’t cover studying abroad. Both of these are false. Most lenders require students to be enrolled at least half time in a degree program. Each school determines half-time enrollment differently, so check with your prospective schools to see whether you qualify. As for studying abroad, the Higher Education Act of 1992 allows students to receive aid for qualified foreign colleges. The financial aid process for overseas institutions can take longer, so be sure to file early.
  • Ask the experts. If you’ve been out of school for a while, you’ve probably noticed a lot has changed in the financial aid process. Most obvious: The process is almost entirely Web-based now. AAA Student Lending can help students of all ages understand graduate financial aid. If you prefer online help, check out AAA.com/financialaid. You can download podcasts, register for webinars and learn more about the process. You can even complete necessary forms directly on the AAA site. Prefer talking to a AAA specialist? Call the AAA Student Lending Program at (888) 422-2536.
  For more information, check out the new AAA Student Lending Program’s Financial Aid Guide, Third Edition, available for free at your local AAA office or for online download at AAA.com/financialaid.

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Don't Forget to Insure Recreational Vehicles
By Aimée Carrier

AAA recommends having a separate custom policy for RV coverage.

  The days are longer. The weather’s warmer. And thoughts of summertime excursions have begun to occupy our minds.
  In our dreams, this leisure time is uninterrupted. In reality, mishaps may happen.
  “At this time of year, people are putting their motorcycles or recreation vehicles on the road, or taking their boats out from storage. So it’s a good time to consider how these vehicles are insured,” said H.C. Hansen, AAA’s Managing Director of Insurance Agency Sales.
Motorcycles
  Motorcycles can be written into an existing personal-automobile policy.
“The problem is that motorcycles have different needs when it comes to how the policy is configured,” Mr. Hansen said.
  Liability coverage on motorcycles is fairly inexpensive, he said. Medical-payments coverage is more costly, but an important coverage to have.
In Massachusetts, motorcycle coverage is generally written into an existing personal-automobile policy.
  Motorcycle coverage to consider includes:
• Replacement-cost coverage, which protects against depreciation.
• Accessory coverage for permanently attached accessories.
• Safety-apparel coverage.
• Travel-loss reimbursement, including towing and emergency road service, or the cost of living if a trip is interrupted.
Recreational vehicles
  “Good recreational-vehicle insurance takes elements from an automobile policy and a homeowner policy,” said Mr. Hansen.
A separate policy can be more comprehensive, covering items such as interior contents or equipment mounted on the outside, such as a satellite dish, said Deb Vadeboncoeur, AAA Insurance Training Specialist.
  In Massachusetts, RV coverage is usually written into an existing automobile policy, so it’s important to ask your insurance agent for all of the options available, Mr. Hansen said.
  RV coverage to consider includes:
• Extensive physical damage protection (collision, fire, windstorm, landslide, vandalism, etc.)
• Total loss replacement coverage to protect against depreciation if an RV is destroyed.
• Personal effects coverage to protect personal belongings with actual cash value or replacement cost.
• Roadside assistance and emergency expenses.
Boats
  “A lot of people think their boats are covered through their homeowner policy. But a homeowner policy contains only limited liability,” said Mr. Hansen. “Boat owners really need to have specialized insurance to cover collision damages, expanded liability and coverage for collisions with uninsured watercraft.”
  Boat coverage to consider includes:
• Physical damage to cover the hull.
• Uninsured watercraft.
• Trailer coverage.
• Fishing and other maritime equipment.
• Towing and emergency assistance.
  Boaters can also buy protection for water skiers, Mr. Hansen said.
Other vehicles
  Specialty insurance policies can be written to cover most vehicles we use in our recreational activities, including sport bikes, ATVs, mopeds, motor scooters and personal watercraft.

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Cost to Own, Operate Vehicles Rises in 2010

  AAA released the 2010 edition of its annual “Your Driving Cost” study revealing the average cost to own and operate a sedan has risen 4.8 percent to 56.6 cents per mile, or $8,487 per year, based on 15,000 miles of annual driving.
  The study analyzes the cost to own and operate a vehicle in the United States, including the cost of insurance, license and registration fees, taxes, depreciation and finance charges. Operational costs include fuel, maintenance and tires.
  Increases in the costs of fuel, tires and insurance were the primary factors causing the rise. The AAA Fuel Gauge Report listed the national average cost of unleaded gas as 12.7 percent higher than in last year’s study.
  The small sedan category experienced the smallest increase in costs, rising 2.9 percent from last year. The SUV category experienced the largest increase with yearly depreciation rising 10.7 percent.
  Download the 2010 “Your Driving Costs” brochure or it is also available at local AAA offices.

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Tips for Lower Insurance Rates
By Jamie Coelho

  When it comes to auto insurance, think, “Drive safely, save money.”
  For every violation or at-fault accident you’re involved in, you could be penalized, causing your rates to rise, said H.C. Hansen, Managing Director of AAA Insurance Agency Sales. That means that a speeding ticket could end up costing you hundreds of extra dollars on your insurance bill every year for several years.
  To encourage obedience of traffic laws, Massachusetts has a point system in place, while Rhode Island relies on fines, license suspensions or revocations. While penalties vary from one state to another, in all cases, they will cause insurance rates to skyrocket.
  The best way to lower your insurance rate is to drive the speed limit. If you don’t speed, you can’t get a ticket. Avoiding speeding also decreases your chances of an at-fault accident. If you have no violations or accidents, your insurance rates will be significantly lower than someone who has been fined.
  It takes a long time to pay back those fines. In Massachusetts and Rhode Island, it can take two to six years to erase damage done. (If you want to know your status, you can go online to request a copy of your driving record report from your DMV or RMV for a fee.)
The bottom line is, think before you hit the gas. Is it worth the fines? If you keep a clean driving record, you may even save enough money to go on that vacation you didn’t think you could afford.
  Another way to save is to take driver education courses, which can result in a 5 percent deduction on auto insurance rates in most states. Training courses aren’t just for new drivers either. In some states, adults, especially seniors, can save a significant amount by taking advanced driver safety classes. Check with your auto insurance agent to determine the possibilities.
  “In fact, it’s a good idea to do a periodic insurance review with your agent to discuss any new changes that could affect your rates,” Mr. Hansen said.
This can include factors such as a change in commute. People who drive less gain low mileage discounts. And people who use public transportation can earn a reduction.
  “The risk isn’t as great, because they’re not on the road as much,” said Mr. Hansen.
And new drivers can get discounts for good grades. “Insurance companies realize that a good student is someone who is more responsible, resulting in less probability of violations or accidents,” he added.
  For teens, that A+ earns good points with Mom and Dad and your insurance bill.

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Take Five: Shopping for a New Car

  The snow is off the ground, and you’re ready to shop for a new car. AAA answers your questions about car buying.
  1. What are this year’s hot cars? Small SUVs and crossovers such as the Chevrolet Equinox and Honda CRV are still popular. People like their functionality, decent economy and ability to handle New England winters. Even with Toyota’s recent problems, the most popular “green” car is the Prius. For 2010, it is more powerful, handles better and returns superior miles per gallon. Many members have voiced an interest in the Ford Fusion. The reason, some said, was Ford didn’t take any government money, making it a solid choice over similar General Motors and Chrysler models. The Mazda 3 offers decent room and good handling and is fun to drive. The Volkswagen Golf and Jetta SportWagon share similar traits and combine the newest diesel engine to deliver great fuel economy.
  2. What are some new safety features I can expect to see? Volvo’s City Safety system detects a potential low-speed crash and automatically applies the brakes to minimize or prevent it. Drowsy-driving detectors monitor the driver’s attitude and can tell when he or she is showing signs of fatigue. Lane-departure warning uses a camera to look at the painted lines in the road and sounds a signal when the driver drifts out of the lane. A lane-departure correction system improves on the warning system and will make minor corrections with the braking system to keep the car in lane. Blind-spot warning systems use sensors mounted on the car to detect when a vehicle is in your blind spot and lights an icon in the side-view mirror. Night-vision cameras give the driver a better perspective of a dark roadway or even spot a pedestrian by the side of the road.
  3. Someone suggested AAA AutoMaker could help me find the right car. What is that? This online tool makes it easy for you to research, create and compare any make and model. At AAA.com/AutoMaker, find new car pricing, information on rebates and incentives, reviews and 360-degree views of the vehicle inside and outside. Top 10 lists include the “Coolest Cars Under $18K.” Plus, there’s information on insurance, financing and warranties.
  4. At what point in the car-buying process should I apply for financing? You can secure financing before buying a car, and the pre-approval process tends to be a popular option. Still, if you choose to apply for financing after you find your vehicle, the application process is quick and simple.
  5. What kind of information will I need to provide when applying for an auto loan? The credit application is standard: It requires your name, address, date of birth, social security number, annual income and two years of employment history. During the application process, you’ll be asked about the specific vehicle you’re buying so the lender knows the value of the collateral being financed. In most cases, closing a loan requires no more than a purchase and sales agreement, an insurance binder and a copy of the vehicle title.

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Take 5: Homeowner’s Insurance

  First-time homebuyer? AAA Insurance Managing Director H.C. Hansen answers your questions on homeowner’s insurance.
1. We just put down a deposit on our first home. When should we start looking at homeowner’s insurance?
  Now. Your mortgage company will require you to have an insurance binder at the closing, and your insurance agent should have up to 30 days to inspect the home for insurability. This is different from the home inspection, where uncovered faults help you negotiate some money off the price. The insurance inspection will verify that the home does not have any major issues — such as an aging roof — and is insurable.
2. What will the insurance agent need from me?
  Keep in mind your policy will cover the cost of rebuilding the home — which is not necessarily the amount of the mortgage since that includes land value. Your agent will use “replacement cost” software to determine the cost of rebuilding the home to a similar state. Things you should know include the square footage, number of stories, whether the floors are hard wood or carpeted, if the countertops are granite, and if there are decks, porches or swimming pools. You’ll also be asked if you own any pets; dangerous animals, like certain large dogs, may make you ineligible for homeowner’s insurance in the standard market.
3. What about insuring my personal belongings?
  The formula for determining the correct amount of property coverage — which covers the home’s contents — is generally 70 percent to 80 percent of the home’s value. If you’re buying a $300,000 house, your contents could be insured at $240,000. While some may look to lower that amount, reducing the coverage will not save you any money. Also, remember that jewelry must be scheduled separately on your policy.
4. How will I know if I need flood insurance?
  If the home is in a hazardous flood zone, your mortgage company will require flood insurance. Otherwise, your agent may recommend flood insurance, as necessary. It typically costs less than $400 a year when you’re in a preferred flood zone, and may turn out to be a lifesaver with some of the major flooding New England has been prone to in recent years.
5. How can I save money on homeowner’s insurance?
  The best thing you can do is to combine your home- and auto-insurance policies through the same insurance agent. Some AAA members have saved upwards of $1,000 by reviewing and combining policies with AAA Insurance.

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Consider Resale Value Before You Buy a Car

  Financing, gasoline, insurance and repair charges are all costs of owning and driving a car, but they’re rarely the most significant ones – at least not during the first five years of a car’s life.
  Depreciation, or the loss of a car’s value, is by far the greatest expense for most motorists. The typical vehicle retains only about 35 percent of its original value after five years, according to Kelley Blue Book data. For a $25,000 car, that’s a loss of nearly $16,250. Not even a gas-guzzler or a lemon is likely to come close to needing $16,250 worth of fuel or repairs over five years.
  Unfortunately, resale value is an after-thought for most new-car shoppers, who tend to select the vehicle of their dreams or what fits their budgets, not the car that’s the smartest investment.
  But if you consider the resale value before you buy a car, you might keep money in your pocket down the road when you sell it or trade it in on a new model, said Jack Nerad, executive editorial director of Kelley Blue Book’s Web site, kbb.com. For example, if you buy a $25,000 car that retains 45 percent of its value instead of 35 percent, you could save about $2,500.
  So, how can you find out what a car is expected to be worth several years from now? Amid the recent economic turmoil, predicting automotive resale values has become trickier. Still, most models from certain automotive brands consistently have high resale values. Why is that? A solid reliability/dependability record helps, Mr. Nerad said. But even more important, he added, is a certain stylishness or perceived desirability that makes used-car buyers willing to pay a little extra.
  That could explain why 2009 Mini and Volkswagen models – brands with spotty reliability records – hold their values so well. Vehicles from both automakers are seen as stylish and fun to drive; they should retain about half their original sticker price after five years. Other brands with better-than-average resale values include Acura, Audi, BMW, Honda, Infiniti, Lexus, Scion, Subaru and Toyota.
  Nevertheless, if you’re one of those uncommon individuals who is content to drive a car until its wheels fall off, you can forget about resale value and depreciation. No matter the brand, a 10-year-old jalopy with 300,000 miles on it won’t be worth more than the value of its scrap.

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10 Planning Tips to Make the Most of Your College Tour
By Shelley Honeycutt

With the right preparation, you can help your teenager find a college that’s a perfect fit.

  Applying to college can be stressful and time consuming. Students are faced with stiff competition, action-packed schedules and life-changing decisions. Planning a successful college tour can help your student make better and more informed choices. Making the most of your campus visit can be essential to your student’s long-term college success.
Tip #1: Call Ahead
  Contact the Admissions Office to set up your tour. Most colleges prefer about two weeks notice. Set up appointments to meet with Admissions, Financial Aid and a professor or adviser in the major you plan to study. Once you finish the guided tour, take your own tour. Plan time to walk around campus, eat on campus and see other facilities that weren’t on the tour.
Tip #2: Think Green
  Narrow the number of colleges on your list by participating in virtual college tours and fairs before deciding which campuses to visit. Most schools offer virtual tours on their Web sites. Consider participating in a virtual college fair such as CollegeWeekLive.com. This is a way to save time and money and reduce your carbon footprint!
Tip #3: Get Directed
  Many campuses are sprawling. Don’t waste your time getting lost. If you are renting a car, rent a GPS with it or print a TripTik before leaving home. This is a great time saver and could cut down on stress for everyone. And, know where to park on campus. Most colleges will have a campus map you can download.
Tip #4: Check the Calendar
  If you are visiting a college with a big sports team, you may not want to visit during the State Championship. Look at the other events booked for that time. Lectures, political debates and other similar events can cause traffic and make hotel rates climb.
Tip #5: Go Off Campus
  When you choose a college, you are deciding where your child will live for the next four years. Take time to go off campus and explore the community. Use public transportation if this will be the primary mode of getting around. Pick up local publications. Visit nearby points of interest like the local walk-in clinic, dentist or other services your student may need during the year.
Tip #6: Fewer Frills
  Consider booking hotels with fewer frills. Since the purpose of your trip is to visit the campus and see the surrounding community, your time in the hotel will be minimal. Look for lower cost hotels with fewer amenities to help minimize costs.
Tip #7: Talk to Students
  Who knows the campus better than the students who live there? You can get candid feedback on a variety of topics. Talk with them at the dining hall, campus bookstore or student center.
Tip #8: Take Notes
  Taking notes can be a family activity. With all of the information you take in on one college tour, it is likely you will not remember everything. Take notes during each tour and discuss them during your trip back home.
Tip #9: Take a Break
  Whether you’re taking a long road trip or flight, everyone needs a break from the routine. Plan to take a hike or sightsee between colleges A and B. You’ll get some exercise and new perspective.
Tip #10: Let a Professional Help
  Planning a college tour can be challenging and time consuming. Consider getting a professional to help with car rentals, hotels, plane tickets and estimated travel times. College tour planning is available through AAA and Best Western, who have partnered to save you even more money. Visit AAA.com/financialaid. Ms. Honeycutt is AAA’s Student Lending Manager.

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It’s FAFSA Time: AAA Can Help With Financial-Aid Process
By Kimberley Edgar

Applying for financial aid need not be overwhelming.

  Gathering documents. Checking deadlines. Visiting Web sites. Searching for scholarships.
“And don’t miss filing the Free Application for Federal Student Aid, no matter what your family makes,” said Shelley Honeycutt, AAA’s Student Lending Manager. “Every family should file the FAFSA every year, no matter what.”
  There’s so much involved in planning to attend college, and the AAA College Planning Center has plenty of resources to help navigate the dates and deadlines.
  Visit AAA.com to:
• Find information about different federal and private loans.
• Browse a section on Financial Aid 101 with information on how to apply, types of aid, scholarships and award letters.
• Cull information from resources that include the financial-aid checklist for high-school seniors and their families, a guide on how to choose a college and a glossary of terms.
• Learn tips on planning your college tour.
• Download your free copy of AAA’s Financial Aid guide.
  “The guide is critical, especially if you’re a senior in high school or parents of a senior in high school,” said Cathleen Dionne, Student Lending Specialist. “The college tour also is big for juniors – it has some good tips, particularly if this is your first child heading to college.”
  The Web site also lists AAA’s education and communication opportunities – free seminars and Webinars, newsletters and podcasts.
  “We offer this information in different media to meet everyone’s needs,” Ms. Honeycutt said. “If you’re time-stretched, the Webinars are there for you. If not, the seminars are available for you to attend in person.”
  One of AAA’s newest resources – Spanish podcasts on financial aid – also is available at AAA.com and has been quite the hit.
  Within hours of AAA posting the podcast, several education-community leaders responded asking if they could use it.
  Versions of the five English podcasts also were expected to be available in Spanish by the beginning of this year: “Scholarships,” “How Financial Aid Works,” “All About the PLUS Loan,” “All About the Stafford Loans” and “10 College Tour Tips.” All podcasts are available for download.

Planning Checklist

Here’s a checklist of admissions and financial-aid dates to help navigate the seasons:
WINTER
• Attend AAA’s Student Lending “Financial Aid 101” seminar/webinar.
• Check your colleges’ filing deadlines for the Free Application for Federal Student Aid, which can be submitted anytime after Jan. 1. If possible, complete your tax forms first for the most accurate information.
• Receive your Student Aid Report several weeks after filing the FAFSA. It outlines the amount of money your family will be expected to contribute to education costs.
• Check whether your colleges require you to file a College Scholarship Service PROFILE or other supplemental financial aid forms. Be aware deadlines vary by school.
• Search for scholarships.
• Send SAT/ACT scores to your schools.
SPRING
• Acceptance letters arrive.
• Financial-aid award letters arrive, summarizing the amount and type of aid you’re receiving. This may include grants, scholarships, work study and loans.
• Consider attending AAA’s “Comparing Award Letters” seminar.
• Accept, deny or appeal award letter.
• Attend AAA’s college-funding options seminar.
• Search for scholarships.
• Once you’ve selected a college, send in your deposit by the deadline.
SUMMER
• Send final transcript to your college.
• If you need additional funds, apply for unsubsidized Stafford Loans (for students), federal PLUS loans (for parents), or private loans.
• Make a plans to attend college orientation.
• Make a moving day list.
• Contact new roommates.
• Search for scholarships.
FALL
• Narrow college list.
• Ask for recommendation letters.
• Write application essays.
• Create master calendar of deadlines.
• Attend financial-aid events.
• Learn about PROFILE/FAFSA deadlines.
• Check early-action/decision deadlines.

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Take Five: AAA’s Deposit Program

  AAA Southern New England Financial Services Director Gerald Zeoli answers your questions about AAA’s deposit program with Discover Bank.
1. I knew AAA offered Financial Services, such as auto loans and mortgages, but I didn’t know about your deposit program. What does it entail?
  AAA and Discover Bank have partnered to bring you exclusive member-only rates on high-yield deposit products — money market accounts, CDs and IRAs. Discover Bank carries a five-star rating from Bankrate.com and is FDIC-insured up to $250,000 — so you can feel confident knowing your money is invested with a trusted financial institution. And every account comes complete with the outstanding service you’ve come to expect from AAA and its partners.
2. Are there special benefits for AAA members?
  You’ll receive exclusive, high member-only rates on personal accounts. The interest rates offered through the AAA Deposit Program beat the national average when comparing similar terms. There is no minimum deposit required to open a CD, and with money markets, you can open an account with no minimum deposit as long as you achieve an average daily balance of at least $1,500 by your third statement cycle.
3. What’s the difference between a money market account and a CD?
  A money market account is a savings account with check-writing capability that offers a higher rate of return than the traditional savings account. As long as you maintain that $1,500 average daily balance, you can write checks and use online banking from the account and use a AAA debit card to withdraw money or make purchases wherever the Discover Card is accepted.
  With a CD, you deposit money with the intention of keeping it there until it matures — and you can choose maturities ranging from three months to 10 years. Your money earns interest at a fixed rate, offering predictable returns; the longer the maturity, the higher the interest rate. You can keep interest payments in your CD account or transfer it to another account of your choice. There is a fee if you withdraw your deposit early.
4. How can I keep track of my investment?
  You can watch your money grow with 24/7 online banking, and you can view up to six months of activity online for both CD and money market accounts. Money market account statements are mailed monthly. CD statements are printed annually.
5. How do I take advantage of this program?
  You can open an account in the way that’s most convenient for you: Log on to AAA.com/deposits, call (888) 728-3230 or stop into your local AAA office and ask for an application.

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Reverse Mortgages Can Help Seniors Stay at Home
By Kimberley Edgar

Reverse mortgages may help homeowners 62 and older stay in their homes.

  It used to be AAA’s reverse-mortgage professionals saw one in five people they worked with have an existing mortgage to pay off.
  But that has risen to four in five, as increasingly more seniors have to mortgage their properties to make ends meet, said Deb Imondi, Vice President of AAA Southern New England Bank.
  In one instance, a 71-year-old woman juggling the pressures of caring for her ailing husband – who has Alzheimer’s – and physically handicapped daughter – who battles multiple sclerosis – came close to losing her home in a scam, Ms. Imondi said.
  AAA teamed with a prominent Boston law firm working pro bono to help the woman secure a reverse mortgage.
It let her satisfy existing liens, reclaim her house of more than 50 years and have peace of mind – and she had some money left over, Ms. Imondi said.
  While it’s a heroic example of AAA saving the day, it’s one of many where AAA’s reverse mortgages help seniors stay at home.
  Homeowners at least 62 years old are eligible to tap into their equity and take a reverse mortgage. Earlier this year, the loan amount limit rose to $625,500, which translates to potentially more equity available for higher-valued homes.
  Those opting for the Home Equity Conversion Mortgage from the start are ensured they won’t have to make a monthly mortgage payment for as long as at least one of the owners lives on the property. These represent the majority of reverse mortgages in the United States.
  Homeowners must continue to pay taxes and insurance, but it’s more feasible without a monthly mortgage payment.
  “With sufficient equity, existing mortgages can be paid off, relieving a homeowner of their monthly outgo, thus improving their cash flow,” Ms. Imondi said.
AAA’s trusted professionals can help seniors determine what works best for them.
  “Each mortgage is structured to the borrower’s needs; therefore, it is important to speak with an experienced professional who has dealt with issues of estates, trusts, liens and family situations that can impact the transaction,” Ms. Imondi said. “It’s important you know with whom you are dealing and that you bring trusted family or advisers into the discussions.”

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Good Idea to Consider Flood Insurance
By Brandie M. Jefferson

Flood damage is not covered in homeowners insurance.

  Sure, you had some water in your basement this summer, but there were record amounts of rainfall throughout New England. Does a little rainwater mean your house is at risk for a flood?
  Maybe. Maybe not.
  But, especially since flood damage is not included in homeowners insurance, it’s always a good idea to find out.
  “Even if you don’t think you’re at risk, take a look,” said Frank Doyle, Senior Vice President of AAA Insurance Agency.
  Last year, you may not have been required to buy flood insurance. But if you plan on moving, or even refinancing, it’s an especially good idea for you to check again.
  The federal government is reclassifying flood zones in cities and towns across the country, and New England is no exception.
  An insurance agent can determine whether your classification has changed, Mr. Doyle said. That goes not only for homeowners, but for renters, too.
  Who should get insurance? “Look at the exposure and consider the costs and benefits,” Mr. Doyle said. But in general, he added, fewer homes are insured than should be.
  The Federal Emergency Management Agency has designated the entire state of Rhode Island as flood prone, but as of 2006, less than 4 percent of households — about 15,100 residences — had flood insurance policies. In Connecticut, about 37,400 homes are insured against flood damage and in Massachusetts, 50,200.
  Some people have already had to deal with the effects of flooding after southern New England experienced the wettest July on record, according to the National Weather Service.
  But autumn is typically when New England sees the heaviest rainfall, Mr. Doyle said, so if you didn’t have any flooding, you’re not out of the woods yet. And if you did have flooding this past summer, be prepared for more.
  Homeowners should be aware that water damage in the basement is not covered by flood insurance. If you know your basement is prone to water, don’t keep valuables on the floor, and don’t put too much work into refinishing it.
  For flood maps and other information on flooding, visit www.fema.gov/hazard/flood/ or www.floodsmart.gov.

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Insurance Agents Can Help You Choose the Right Auto Policy
By Kimberley Edgar

Make sure your auto insurance policy has the proper coverages.

  In this day of drive-through convenience, it can be easy to sacrifice common sense to save a few dollars and cents.
  It’s no different with insurance purchases, so take some time to understand the nuances of various coverages and what offers the best protection for you before buying them. They are more complex than Happy Meals, and while there are some things that can be do-it-yourself projects, choosing the right coverage is something that’s best achieved working with a knowledgeable professional.
  “The last place you want to learn you aren’t covered is at the scene of an accident,” said Frank Doyle, Senior Vice President of AAA Insurance. “You want the peace of mind you get from working with an insurance professional when choosing the right coverages, deductibles and taking care of the risk we all have on the road.
  “By placing all of your insurance together, you avoid the gaps that can be created when looking at each policy on its own. The best savings and best coverage are usually available when combining your home, auto and other insurance with one agency.”
  In Massachusetts, the dynamic of managed competition adds to the complexity of an insurance policy. Buyers can quickly follow a recipe for disaster when choosing coverage on their own because the best deal doesn’t always ensure the best coverage.
Licensed and trained professionals, AAA’s insurance agents will be able walk policy-holders through the coverages and explain how underinsuring often unwittingly exposes the policy-holder to risk, leaving them vulnerable.
  One example is minimum limits to comply with state law. While a policy-holder might meet the letter of the law by taking out coverage to carry the legal minimum, the practical reality is if that motorist rear-ends and totals a $50,000 Cadillac during an ice storm, the policy-holder will be responsible for the outstanding balance.
  In another scenario, a policy-holder might opt to carry lower bodily-injury protection and leave themselves vulnerable. Working with AAA’s trusted insurance professionals also means policy-holders aren’t hanging out there by themselves when there are questions or claims.
  AAA’s insurance agents assist when there’s an accident. They help avoid disputes with the company. They are available to take payments and are familiar faces when you call or visit the office.
  And when policy-holders compare apples with apples, part to part and coverage to coverage, they will find, most times, it is the same price – if not lower – to buy through AAA’s insurance agents.
  And, in essence, they are getting the services of insurance agents for free.

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Take 5: Auto Loan Tips

  AAA’s Financial Service Counselors answer your questions.
  Q: What advice would you give someone who is in the market for a new car and will need an auto loan?
  Michael Woodhead: Research the vehicle and shop around with the dealers for the best possible price. Dealers need to move the vehicles off their lot and it’s a buyers market.
  Nancy Turner: Knowledge is key and networking is extremely helpful. In addition to our AAA branch staff and call center, AAA.com provides valuable information on buying a car, as well as financing and protection options.
  Q: At what point in the car-buying process should I start working on financing?
  JoAnn Accetta: When you start thinking it’s time to buy a vehicle then get yourself pre-approved right away.
  Mr. Woodhead: You can apply for financing 30 days before purchasing the vehicle. It will give you enough time to shop, drive the vehicle, determine what vehicle fits your needs and get a pre-approval with a guaranteed rate.
  Q: What materials will I need to apply for a loan?
  Mr. Woodhead: To apply for an auto loan, you’ll need basic information such as full name, address, work and home numbers, Social Security numbers, employment information and vehicle information, if known.
  Mirna Arevalo: Once you’ve finalized on a vehicle, we’ll need to collect paperwork — like a purchase-and-sales agreement and an insurance binder — if the purchase is from a dealership.
  Q: What can I expect when applying for a loan with AAA Financial Services?
  Mr. Woodhead: You can expect an experienced Financial Services Counselor to offer low, flexible rates and fast approvals.
  Ms. Accetta: We will work with the dealer and insurance agent to assure things go smoothly.
  Ms. Turner: You can expect personal attention from beginning to end. It is customized for you. After your application receives a credit decision from a lender, you are contacted, given information that is needed to close your loan — via fax. A convenient time is scheduled to sign paperwork and receive your check.
  Q: When should I consider refinancing a car?
  Ms. Turner: Consider refinancing as soon as you’re aware the rate you obtained through the dealer can be lowered or that your term can be shortened. Once the first payment is made, the new loan can be processed. For optimum savings, refinance within the first year. After that, the savings will be less because a larger portion of interest has already been paid. We are ready to advise and assist in every way possible.

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Do the Math: Scholarship Searches Add up to Savings
By Kimberley Edgar

Scholarship searching can yield some great results.

  Few would turn down free money.
But while there are billions of dollars available, many scholarships go unclaimed each year – only about 7 percent of college students take advantage of these funds to help pay for tuition.
  It’s like the Publisher’s Clearing House sweepstakes: The check doesn’t just arrive in your mailbox – you can’t win if you don’t apply.
  The money isn’t going to transfer into your bank account on a wish – students need to undertake a scholarship search.
  “It’s seems like it might be a lot of work for a little result, but if it’s done right, scholarship searching can yield some great results,” said Shelley Honeycutt, AAA’s Manager of Student Lending.
  When people do the math, it’s hard to argue the merits of applying for scholarships: Someone who secures three scholarships worth $1,500 annually not only sees a savings of $1,500 in today’s tuition, but also sees an estimated savings of $731.60 in interest. That translates to a total savings of $2,231.60 each year, or $8,926.40 over four years. The estimate is based on 10-year terms at 8.5 percent on a federal PLUS loan.
  And the best time to search for scholarships is now.
  For every 100 scholarships, a student should find 10 qualified scholarships. For every 10 scholarship applications submitted, a student will typically win one.
  AAA Southern New England members who sign up at AAA.com to receive the student-lending newsletter by e-mail will see a general scholarship highlighted each month. Generally the application deadline will fall within 30 days of the e-mail.
  “A lot of folks say, ‘It’s too late – all the deadlines have passed,’” Ms. Honeycutt said.
“But there’s no universal deadline for scholarships – they’re sprinkled throughout the year.”
  Among other resources AAA offers members in its College Planning Center at AAA.com/financialaid is a section on scholarships.
  One tool is a 12-minute podcast that reviews scholarship-searching methods.
AAA also offers free workshops on scholarships, and whether a member attends a live seminar or a Webinar, AAA will review scholarship searching techniques.

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Protect Your Home While Traveling
By Kimberley Edgar

Ask a neighbor to park a car in your driveway so it appears your house is busy with activity while you’re traveling.

  Members looking to enjoy some well-deserved R&R also can enjoy peace and security knowing their homes and cars are protected while they’re on the road.
  A good first step is to speak with one of AAA’s trusted insurance agents about protections and coverages. But here’s some advice from AAA’s Senior Vice President of Insurance Frank Doyle.
Rent a car
  Instead of worrying about possible damage to your vehicle while navigating the nation’s roads away from home, consider renting a vehicle while you’re away.
But if you choose this option, don’t assume you have the insurance coverage you need only to learn later you don’t.
  “The last thing you want to have happen is to drop off the car at the end of your trip and experience a world of hurt because they want to secure the value of the vehicle on your credit card,” Mr. Doyle said.
Howdy Neighbor
  If you’re friendly with your neighbors, let them know you’re going to be away and how to get in touch with you should anything arise. If your relationships are strong, you might ask them to park their cars in your driveway while you’re away so it appears as though the house is busy with activity. Family and friends are another good group to tap if you’re uncomfortable divulging these details in your neighborhood.
Shut off your water
  This is more applicable in winter months when the snowbirds vacate their homes in the Northeast and head to Florida.
Toys
  Those trampolines, motorcycles, bicycles and pools should be secured so they don’t leave the premises after you do.
Alarms
  Be sure to turn them on while you’re away. And, of course, don’t forget to lock all doors and windows.

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Check Out Auto Insurance Quotes on AAA.com
By Kimberley Edgar

  AAA has mastered the art of connecting members to products and services and offering well-timed sage advice on a variety of matters.
And AAA has expanded its service online with the launch of a new insurance quoting tool for Massachusetts residents.
  Since early this summer, the online quoting tool at AAA.com has become a popular service for people looking to investigate auto-insurance costs. It’s available 24/7, 365 days a year to provide flexibility for users to obtain auto-insurance quotes whenever and wherever they have access to the Internet.
  “It lets drivers get an estimate of their insurance costs, featuring AAA’s program with Commerce Insurance,” said Frank Doyle, Senior Vice President of the AAA Insurance Agency.
  Answer a series of basic questions to get a quick quote and gauge your auto-insurance costs, whether you’re adding a new vehicle to the garage or another user on your policy or evaluating current coverage.
  Online help is available through a live chat. “It allows people to check out more scenarios than they might often ask an agent to quote and then go back and work with an agent,” Mr. Doyle said.
  He advises people speak with one of AAA’s insurance professionals to ensure they understand the impact of dropping various coverages that might appear to save money in the short term but could prove more costly.

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