Best Car Insurance Companies of 2016

Price: It’s the single most important factor for a lot of car insurance shoppers. Choosing a policy based on rates alone could cost far more out of pocket when filing a claim, however, and, statistically speaking, that will happen to each driver at least once every 18 years. It pays to get the right amount of coverage, whether it’s the cheapest package or not.

The best auto insurance companies have more than just competitive prices; they also offer versatile coverage options, superior customer service, a solid financial report, and an excellent shopping experience. I researched all of those factors and discovered that only four of the nation’s biggest insurers impressed me enough that I would recommend them to family and friends.

Find the Best Car Insurance Rates Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Best Car Insurance Companies: Summed Up

Car Insurance Companies	Best For…
Amica	Best Overall
State Farm	Customer Service and Interaction
The Hartford	Policy Options
USAA	Members of the Military

How I Picked the Best Car Insurance Companies

First, I conducted an in-depth analysis of 15 auto insurance providers. I gathered data on 86 different features (like a 24/7 claims center or discounts for electric vehicles), organized them into 12 categories, and scored each company on a 100-point scale. Below are the categories I used, along with the weight each one was given in the test.

Category	Test Weight
Policy Coverage	13%
Vehicle Coverage	13%
Driver Discounts	11%
Policy Management	10%
Getting Started	9%
Mobile	6%
Payment Options	10%
Claim Management	8%
Support	6%
Additional Benefits	6%
Vehicle Discounts	5%
Learning Materials	3%

Next I incorporated learnings from auto experts, insured drivers, and third-party studies into my evaluation and calculated the final scores. I organized this research into three distinct categories, which are outlined below.

1. Claims and Price Satisfaction: I looked at J.D. Power’s 2014 Auto Claims Satisfaction Reports, Insure.com’s Best Car Insurance Companies for 2014, and Consumer Reports’ 2014 Car Insurance Ratings to get a bird’s-eye view of the industry across the nation. I also conducted a survey of 100 insured drivers who had filed a claim within the past 12 months.
2. Ease of Shopping: I applied for quotes from over 15 auto insurance companies to evaluate the shopping experience. I also considered J.D. Power’s 2014 Auto Insurance Purchase Experience Ratings, which asked customers about their personal take on local agents, call-center representatives, and websites.
3. Financial Strength Ratings: I used A.M. Best to gauge financial stability. Any company with a “B” grade or below is considered vulnerable, so I chose companies with an “A-” or above.

The Best Car Insurance Companies of 2016

Amica: Best Overall Car Insurance Company

Amica was the strongest company overall in my research, and ranked number two in J.D. Power’s 2015 customer satisfaction report — that means out of 11,469 surveyed drivers, it had the second highest satisfaction rating among more than 20 different companies. It also received the highest Consumer Reports rating among auto insurance providers. Consumer Reports even noted that an overwhelming number of customers reported “relatively few” problems during the claims process.

Pros

• A high J.D. Power satisfaction rating: Amica received a perfect score in 4 out of 7 categories in J.D. Power’s 2015 auto insurance study.
• High financial stability ratings: Amica boasts a “Superior” financial stability rating from A.M. Best, which is the highest rating available.
• No repair facility restrictions: Unlike most every other insurer, Amica has zero restrictions on which body shop you use for repairs.
• “Platinum Choice” coverage: Amica offers an additional tier of coverage called Platinum Choice, which costs more, but includes identity fraud monitoring, full glass coverage, prestige rental coverage, and rewards for good driving.
• Best array of coverages: Amica offers the most driver and vehicle coverages of all my top recommendations. Its list includes GAP insurance and interior vehicle coverage, which aren’t offered by State Farm, The Hartford, or USAA.

Cons

• Quote process is less than desirable: Whether you start online or over the phone, you will eventually wind up on the phone to get an official quote — that can tack an extra 20 to 30 minutes to the process.
• Fewer driver discount opportunities: Amica is missing a few key driver discounts, including pre-pay, low mileage, and military discounts. Consequently, it scored only 46 out of 100 in my driver discount evaluation.
• Few online resources: There are a few FAQs on the site, but Amica lacks in-depth online materials to help customers get a complete grasp on their purchases without having to talk to someone. Additionally, some policy changes require direct assistance from an Amica agent, which can be time-consuming.

State Farm: Best Car Insurance Company for Customer Service and Interaction

State Farm is the largest car insurance company in the nation, per Insurance Journal in 2016. Fortunately, it’s also one of the best — especially when it comes to the customer service experience. In 2015, State Farm received high praise from J.D. Power for its service interaction and claims handling. And of all the insured drivers I surveyed, it received the most positive remarks by far.

It is incredibly easy to get in touch with State Farm. You can call one of the company’s 18,000 agents, go online, or even send a picture of your damaged car with your smartphone using the Pocket Agent mobile app. Compare that to Amica, which doesn’t allow you to connect with an agent via an app, or file a claim through an agent. State Farm also gets high marks for a pain-free shopping experience that lets prospective customers call their local agent or chat with a representative online if they have any questions.

Pros

• Superior claims handling: No other insurer makes it easier to file a claim — a fact corroborated by its high service rating, 18,000 agents nationwide, and excellent mobile app. Sure, most other auto insurers offer the basic trifecta of phone, app, and email contact to agents, but State Farm’s is the easiest to use by far.
• Great financial standing: State Farm has an A.M. Best outlook of stable, and a “Superior” overall rating — the highest given.
• Best online quote tool: Out of all the competition, State Farm has the simplest online quote tool. In less than five minutes, it’ll guide you completely through the process, replete with thorough examples of coverage options.

Cons

• Missing a few common driver discounts: Like Amica, State Farm lacks two extremely common discounts: pay-in-full, and automatic pay. These two discounts don’t save a ton of money, but are definitely nice options to have — and are offered by my third pick, The Hartford.
• Lacks a couple of important coverages: Unlike its competitors, State Farm doesn’t offer stacked uninsured motorist or new car replacement coverages. That could be a deal breaker for someone who lives in a state with an incredibly high rate of uninsured drivers.

The Hartford: Best Car Insurance Company for Policy Options

The Hartford is only the nation’s 11th largest insurer, but it still packs a punch. In fact, it had the highest score in my 12-category feature evaluation (92 out of 100). It also offers a wide range of policy options and benefits (including rates based on how much you actually drive your car and a new car replacement program for cars totaled shortly after purchase) and was the only insurer to score a perfect 100 in my vehicle-discount evaluation.

Pros

• Mechanical breakdown coverage: Mechanical breakdown insurance helps cover the cost of repairs that aren’t covered by your car’s warranty. The Hartford is the only one of my top picks that includes this coverage.
• Useful policy benefits: The company provides not only a solid set of coverages, but also a great selection of policy benefits. For instance, frequent travelers will appreciate The Hartford’s towing and roadside assistance programs.
• Excellent purchase experience: The Hartford is one of two national providers to receive a perfect “Overall Purchase Experience” score from J.D. Power.

Cons

• Less-than-average claims satisfaction: The Hartford received a perfect score in my claims management evaluation, but according to J.D. Power, customers are still less than satisfied — it received only a 2-star rating for service interaction.
• Fewest online educational resources: The Hartford offers the fewest online learning materials among this field of competitors.

USAA: Best Car Insurance Company for Members of the Military

Throughout my research, I found that the company’s stellar reputation holds true. If you are a member of the US armed forces, or are related to one, there is no better option than USAA.

It is one of the three highest-rated automotive insurers in the country. The only downside is its limited availability: USAA only services the immediate families of active and former members of the military. Given those restrictions, the quote process is a bit more intense compared to its competitors, but that’s a small price to pay for its exemplary service.

Pros

• Rated no. 1 nationally for purchase experience: USAA received the only perfect score in J.D. Power’s 2016 report.
• Solid financial stability: A.M. Best gives USAA the highest possible stability rating: “Superior.”

Cons

• Membership restrictions: USAA is only available to members of the military and their immediate family.
• Missing three key vehicle coverages: USAA doesn’t offer GAP insurance, interior vehicle coverage, or new car replacement coverage.

Other Car Insurance Companies to Consider

Progressive

Progressive is worth noting due to its variety of discounts and special coverages that could shave a decent amount of green off your monthly bill. For example, the Snapshot tool allows Progressive to reward you based upon your driving habits. Have an anti-theft device? There’s a discount for that too. The company also offers pet injury coverage — which is included with collision, and comes standard in most states. However, Progressive’s scores across the board were only average, and I couldn’t justify recommending it over my top picks. And, despite what Flo, Progressive’s famous, peppy insurance cashier, would lead you to believe, its mobile apps ratings average out to just under 3 out of 5 stars.

Erie Insurance

If you live in the South, Midwest, or Mid-Atlantic regions, Erie Insurance is worth your consideration. Erie has consistently received high marks from J.D. Power and Consumer Reports, but didn’t make it into my top four recommendations due to limited availability — it only serves residents in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and certain parts of DC.

Outside of that, Erie is one of the best commercial auto insurers, offering policies that come standard with coverage for road service, lawyer fees, and loss of earnings. It also has particularly comprehensive coverage options that include extras such as money toward rental cars after a crash (this is usually an add-on policy with most insurers).

Auto-Owners

Auto-Owners Insurance is available in 26 states located primarily in the South and Midwest. It uses an agent-only model that promotes customer relationships, so if you prefer talking to a human being, Auto-Owners is a great choice. The company also scored a nearly perfect score in J.D. Power’s 2015 satisfaction report, falling short only in the realm of its rental car experience.

States Serviced by Auto-Owners:
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, Wisconsin

Choosing the Right Amount of Coverage

Let’s say I live in Florida and cause an accident that injures another person to the tune of $40,000. If I only have the state’s minimum bodily injury protection ($10,000 per person, $20,000 per accident), I’d be responsible for the remaining $30,000. But, if I had purchased more than Florida’s minimum — say $50,000 per person and $100,000 per accident — I wouldn’t have to pay a single dime out of pocket.

Sure, upgraded coverage means a higher monthly premium. But which would you rather do: Pay an extra $80 a month or wind up owing a lump sum of $30,000 out of pocket? It would take an accident-free 30 years to spend the same amount on the extra coverage. And remember: statistically speaking, you are going to get in a wreck every 18 years. Hopefully, it’s nothing more than a fender bender, but if the worst should happen, you’ll appreciate being fully covered.

That’s why it’s incredibly important to understand what type of coverages you need, and how much coverage you need, before you start shopping for a policy. And in the same vein, it’s also crucial to compare rates that include more than your state’s minimum required coverages (which you can find online at your state’s DMV). You do not want to be the victim of a serious accident only to find out after the fact that you’re underinsured.

Below is a comparison of the coverages offered by my top four auto insurance companies, and a breakdown of each type of coverage.

Vehicle and Policy Coverages	Amica	State Farm	The Hartford	USAA
Bodily Injury Liability	✓	✓	✓	✓
Personal Injury Protection	✓	✓	✓	✓
Property Damage Liability	✓	✓	✓	✓
Rental Car Coverage	✓	✓	✓	✓
Stacked Uninsured Motorist Coverage	✓	X	✓	✓
Uninsured Motorist Property Damage Coverage	✓	✓	✓	✓
Pet Injury Coverage	X	X	X	X
Collision	✓	✓	✓	✓
Comprehensive	✓	✓	✓	✓
GAP Insurance	✓	X	X	X
Interior Vehicle Coverage	✓	X	X	X
New Car Replacement	✓	X	✓	X

Types of Auto Insurance Coverages

Bodily Injury Liability: Coverage against bodily injuries to others in an accident that is your fault.

Personal Injury Protection: Coverage for injuries sustained by the driver or any passengers, often including medical bills and lost wages.

Property Damage Liability: Coverage against property damage to another party in an accident that is your fault.

Rental Car Coverage: Coverage for your rental car if it is damaged or stolen.

Stacked Uninsured Motorist Coverage: Coverage that allows you to combine or “stack” the individual limits of coverage on multiple insured vehicles in the same household.

Uninsured Motorist Property Damage Coverage: Coverage that protects against property damage caused by an uninsured or underinsured motorist.

Pet Injury Coverage: Coverage for injuries to your pets sustained in an auto accident.

Collision: Coverage against any damage resulting from a collision.

Comprehensive: Coverage against any non-collision vehicle damage including fire, theft, or vandalism.

GAP Insurance: Coverage that pays the difference between the actual value of a totaled car and the balance remaining on an auto loan.

Interior Vehicle Coverage: Coverage of personal belongings inside of the car, like your clothes, sound system, or purse.

New Car Replacement: Coverage that will replace a totaled car with a brand-new version if it is less than one year old.

You should shop for a policy every two years

Contrary to popular belief, car insurance companies don’t just calculate rates on risk alone. It goes much deeper than that. Welcome to the world of “price optimization,” which is the practice of setting rates based upon how much insurers think customers are comfortable paying. Simply put, it’s a way to maximize profit.

In 2013, Earnix found that 45 percent of larger insurance companies analyze a ridiculous amount of customers’ personal data (like social media posts, credit scores, and web shopping habits). Then, they churn the data through a proprietary algorithm that estimates how likely you are to shop around. By doing so, they can charge you based upon a perception of your level of comfort, raise profit margins, and do it all without causing you to lift an eyebrow.

The best way to prevent falling victim to this practice is to shop for a new policy every one to two years. Companies are aware of your online activity, so the more quotes you get, the less likely you are to be tagged as someone who won’t jump ship for a better deal. Plus, it helps you find a policy rate that reflects you as a person and isn’t based on predictive analytics.

Find the Best Car Insurance Rates Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Should I use an agent or go online?

Depending on which companies you consider, you may have to decide whether to do business with an insurance agent or purchase a policy online. If you value face-to-face relationships and personal service, it’s hard to beat an agent. But all agents aren’t created equal. Some are “captive,” meaning they sell car insurance for only one company. Others are “independent,” meaning they can sell car insurance for multiple companies. Here are a few things you should consider for each scenario.

Using Captive Agents

The biggest benefit to captive agents is that many aren’t primarily motivated by commission. That means they have less of a reason to “sell you” and more of a reason to spend quality time educating you. Going with a captive agent also makes sense if you’re already committed to a particular company. Additionally, they will know their company’s policies and coverages from top to bottom.

Using Independent Agents

Independent agents have special access with several companies and help you to find the best rate available. However, some companies pay higher commission than others, and that means you may face pressure to choose a particular company or coverage plan.

During my research, I interacted with several independent agents who refused to give me a single detail about higher-priced plans. Despite my persistence, I was repeatedly asked, “Why would you want to consider something that costs more?” and did not get the information I wanted. On the flip side, if your rates go up after committing to a policy, independent agents are best-suited to help you negotiate a lower price.

Shopping online

Some companies allow customers to do business directly online. If you’re a self-starter, this could very well be the most convenient option. And in some cases, it may also be the cheapest option.

The biggest downside to buying a policy on your own is the risk of underinsuring yourself. Buying the wrong policy, or a policy that doesn’t have state-mandated coverage levels, could cost you a pretty penny if the worst should happen.

The Bottom Line

Remember: The cheapest auto insurance is not necessarily the best. My advice is that you first determine the exact coverages that you need, and then shop around for the most affordable policy. And the best place to start your search is with The Simple Dollar’s quote tool below. Just type in your ZIP code to shop and compare rates from my top recommendations (State Farm, USAA, Amica, The Hartford) and more.

Find the Best Car Insurance Rates Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

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Scrubbing up: St. Luke's leaders ready to get their hands dirty

While the exterior of the St. Luke’s Health Network’s Monroe Campus hospital is nearly finished — aside from its gravel roads and scaffolding — construction crews continue to work on its interior, with inspections for the facility coming in the next month.Crews worked on the hospital off Route 611 in Bartonsville into Thursday evening, while dozens of its future care providers, health network leaders and senior leaders gathered under a pavilion just a short [...]

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Can You Really Make Money From Home by Blogging?

By Holly Reisem Hanna My first experience with a blog was back in 2005. A friend of mine told me that I needed to check out this celebrity gossip blog called, Pink is the New Blog. After reading a few posts, I was hooked. Not only did I enjoy the daily gossip, but I loved […]

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Amazon Prime Could Help You Save Money on Your Student Loans. Here’s How

Amazon Prime Student is already an awesome deal for college students.

For $49 a year (after a free first six months), you get a lot: free, fast shipping on everything from textbooks to toilet paper, grocery-money-saving access to Prime Pantry and — perhaps best of all after a long day of exhausting classes — tons of movies and TV to binge through Prime video.

And that’s just the start: A Prime Student membership may even help you save money on your student loans.

Yep, you read that right! Here’s how.

Amazon Prime and Wells Fargo Team Up to Reduce Student Loan Interest Rates

On Thursday, the two companies announced they’ve teamed up to bring Prime Student members a special discount on private student loans through Wells Fargo, the largest private student lender among U.S. commercial banks.

As a Prime Student member with a Wells Fargo loan, you’ll be offered a 0.50% interest rate discount — and you can stack another 0.25% reduction on top of that by enrolling in Wells’s automatic monthly loan repayment plan.

But what do those numbers actually mean for you?

Forbes writer Maggie McGrath uses the example of hypothetical College Student Cathy, who’s taken out a 10-year, 7%-fixed-rate loan for $10,000 through Wells Fargo.

If she doesn’t start paying until after a 15-month deferral, she’d be looking at a repayment total of $15,202.80.

But with the combined 0.75% reduction through this new deal, that total would be $14,611.20 in the same circumstances — a savings of $591.

Not bad, right? Keep in mind McGrath’s math doesn’t include the actual cost of membership… but more on that in a moment.

To apply for the reduced-interest-rate loan, you or a cosigner will already need to be an Amazon Prime Student member in good standing. Since you can’t sign up for Amazon Prime Student until you actually enroll, this option will help with refinancing or taking out additional loans beyond the ones you used to first enroll in classes.

But the fine print doesn’t specify you have to remain a Prime or Prime Student member throughout the length of your loan — you just need to have the membership in place before the date of first disbursement.

And since you’ll get a free six month trial of Prime Student when you first sign up, that means you might not have to pay a dime for this sweet discount.

To check out the full details for yourself and see about signing up, click here.

Want to Save Money on Your Student Loans?

Before you take Prime and Wells Fargo up on this offer, proceed with caution: Private loans are one of the costliest ways of financing your education.

If you can find a way — any way — to self-fund and avoid student loan debt in the first place, that’s your very best course of action.

A great way to do that? Apply your butt off for lots of scholarships and grants. It’s literally free money, so it’s worth the effort.

Here are 100 scholarships to get you started — and 100 weird ones if you need even more.

Cut down your debt by applying to a school that offers a great financial aid package. Some of the best value colleges in the country may very well raise your eyebrows.

And even if you do decide to hit the books and need to take out loans, look to Federal aid first — its interest rates are lower, especially right now.

“Because they’re tied to the ten-year Treasury note (which fell in May’s auction),” McGrath explains, “rates on federal subsidized and unsubsidized student loans disbursed to undergraduates between July 1, 2016 and July 1, 2017 are now 3.76%, down from 4.29%” from last year. Graduate student loans are at a similar low.

But if you still need private loans on top of everything, it’s worth saving a little bit more with your Prime membership. After all, it’s college — everything helps.

No matter where you get your loans from, do your best to repay them as quickly as you can. We have resources to help!

This guy repaid his student loans before he graduated — all by writing a blog.

And this girl got debt-free before graduation day, too… by working a side-job she designed and then leveraged into a full-time position.

Inspired yet? Here’s our guide to repaying student loan debt, no matter how much of it you have — or avoiding it in the first place.

Happy studies! Hopefully those Prime movies will help — and not hurt — your cause.

Your Turn: What’s your major? And what’s your favorite thing to buy shipping-free on Amazon Prime?

Disclosure: What would Abe do? Probably pat us on the back for placing affiliate links in this post. Thanks for helping us fill The Penny Hoarder’s beer fridge!

Jamie Cattanach is a staff writer at The Penny Hoarder. Her writing has also been featured at The Write Life, Word Riot and elsewhere. Find @JamieCattanach on Twitter to wave hello.

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Napolitano to speak at Pike County Chamber

Beth Nikles, Chairperson of the Pike County Chamber of Commerce Signature Event Committee, is pleased to announce the upcoming Chamber’s 2016 signature event, “An Evening with Andrew P. Napolitano.” Cocktails begin at 6 p.m. and dinner at 6:30 p.m. Aug. 25 at Silver Birches in Hawley.Those interested in attending, please visit the Pike County Chamber of Commerce website at http://ift.tt/29SO0un or call 570-296-8700. Tickets are $125 per person and include a [...]

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Can You Rollover a 403b into a Traditional IRA? Absolutely!

With most people transitioning through several employers during their career, it is fairly common for them to leave a trail of employer-sponsored retirement accounts behind. While it’s possible to let each of these accounts continue growing on their own, this is rarely the best option for your finances. In fact, you would almost always be much better off taking your old retirement accounts, including 403(b) plans, with you.

Fortunately, it’s not that difficult or time-consuming to roll your 403(b) into a new account you can monitor yourself. Once you have left an employer, you have several options for rolling over your 403(b) funds into another type of retirement account such as a traditional IRA or a Roth IRA.

What is 403(b)?

When you are talking to someone who has a 403(b), it’s fairly common for them to not understand what type of retirement account they actually hold. In fact, when asked, they will usually refer to it their “tax-sheltered annuity”. This is primarily because, when 403(b)’s were initially adopted, insurance companies were the first ones to get their foot in the door. Because of this fact, most people who had a 403(b) had an annuity that was tax-sheltered.

However, that isn’t always the case these days. While tax-sheltered annuities were popular at first, you will find that many other investment companies take part in modern 403(b) plans.

In fact, 403(b) plans and the investments they hold are extremely diverse. As such, the definition for this type of account is fairly diverse and broad as well. According to the Internal Revenue Service, 403(b) plans can be described as follows:

A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.

Individual accounts in a 403(b) plan can be any of the following types.

• An annuity contract, which is a contract provided through an insurance company.
• A custodial account, which is an account invested in mutual funds.
• A retirement income account set up for church employees. Generally, retirement income accounts can invest in either annuities or mutual funds.

As you can see, 403(b) plans can take on a different shape or set-up depending on where they are offered and what type of selections the plan administrator has chosen.

The most important factor to remember, however, is that 403(b) plans are treated much like employer-sponsored 401(k) plans in the real world. First off, both types of plans are funded with pre-tax dollars, allowing the investments to grow on a tax-deferred basis until retirement. Second, a 403(b) plan offers the same maximum contribution annual as 401(k) plans, which is $18,000 for 2016 if you are ages 50 and below. If you are over age 50, you can make an additional $6,000 in contributions in 2016 with what is known as a “catch up contribution.”

Advantages of Using a 403(b)

If you are offered a 403(b) plan by your employer, it is almost always a smart idea to begin making contributions. In fact, 403(b) plans offer several distinct advantages, some of which are similar to those offered through employer-based 401(k) plans. Here are some of the biggest benefits you’ll get from using a 403(b):

Contributions are made on a pre-tax basis, which can lower your taxable income. Just like contributions you may have made to an employer-sponsored 401(k) plan, the money you deposit into a 403(b) is pre-tax. As such, the contributions you make annually can lower your taxable income and help you save on your tax annual tax bill.

Your savings grow tax-free. After you make pre-tax contributions to a 403(b) plan, your money will continue to grow tax-free until you reach retirement and beyond. You’ll only be required to pay income taxes on distributions when you take them.

Take contributions later in life when you might be in a lower tax bracket. Since you won’t pay taxes on 403(b) funds until you are in retirement in most cases, you have the potential to pay lower taxes in the future as well. Since most people in retirement fall into a lower tax bracket, it is reasonable to assume they might pay lower taxes in the future.

You may get an employer match. Just like employer-sponsored 401(k) plans, many not-for-profit employers who administer 403(b) plans offer a company match. This is the closest thing to “free money” you’ll ever find, so it’s always wise to contribute enough money to your work-sponsored 403(b) plan so that you’ll get the full benefit.

Contribution limits remain relatively high in 2016. Just like employer-sponsored 401(k) plans, maximum contribution levels remain high for 403(b) accounts. For 2016, you can contribute up to $18,000 to a qualifying 403(b) plan if you are age 50 or younger. If you are ages 50 and older, you can contribute up to an additional $6,000 in what is known as a “catch up contribution.”

How to do a 403(b) Rollover

Since many people work for several employers during their working years, it is fairly common for people to have several retirement plans, including 401(k)s and 403(b)s, they need to roll over.

If you do a direct rollover of funds into a traditional IRA account, you will avoid the mandatory 20% federal income tax withholdings assessed on retirement funds withdrawal. You can open an IRA account at any financial institution offering this type of account. Generally, speaking, you will need to complete the 403(b) rollover by the 60th day following the day distribution is received.

The IRS does allow for two exceptions to the 60-day rollover rule, however. In the case of financial hardships or unforeseen circumstances, you may be allowed an exemption. Exemptions are not guaranteed and the IRS will require proof of financial hardship, such as hospitalization or any other kind of financial crisis. Unforeseen circumstances can come in different forms, but they typically include situations where your funds are frozen in your account for some reason.

Typically, you only need to complete a signed contribution form which is required by the IRA trustee in order to rollover the funds into the IRA account. You will need to check with the specific financial institution regarding its rollover policies prior to conducting the transaction to avoid delays in processing.

To roll your 403(b) into a traditional IRA, you will also need to consult with the plan administrator of your 403(b) account to make sure you are completing the appropriate paperwork. Some will require a distribution request to be completed before assets can be rolled over. Meanwhile some administrators will also need a letter of acceptance from the IRA trustee/financial institution. These documents will provide proof that funds are being transferred to a legitimate retirement plan account.

One important note: You’ll need to make sure the rollover is processed as a ‘direct’ roller, meaning that fund distributions are payable and sent to only to the IRA trustee. If the fund distribution is made payable to you, your plan administrator is required to keep a deduction of 20% for federal tax withholdings. Rolling over a 403(b) account into an IRA needs to be done correctly or you will face stiff tax penalties for early withdrawals.

Pros and Cons of Rolling Your 403(b) into a Traditional IRA

While the benefits of rolling an old 403(b) into a new account can vary depending on the situation, the biggest benefit you’ll likely receive is the gift of having more options than you had before.

Generally speaking, IRAs offer more investment options than 403(b) plans. The biggest advantage you get when you roll over a 403(b) into an IRA is the fact that IRAs offer greater flexibility when it comes to how you invest your money. Once your funds are rolled over, you can invest them into mutual funds, index funds, and even individual stocks.

If your 403(b) plan offered fairly limited investment options, having a traditional IRA will make you feel like you have unlimited options at your fingertips. And if you prefer a certain investment style – such as investing mostly in index funds – having a traditional IRA makes it much easier for you to stick to that plan for the long haul.

The biggest disadvantage that comes with rolling an old 403(b) into a traditional IRA is that an IRA may cost more money to maintain over time. Where you may not have paid transaction costs for your 403(b), you will find that running a traditional IRA can be costly.

Another disadvantage that comes with traditional IRAs is the fact that, in the event you ever file for bankruptcy or are on the receiving end of a lawsuit, your funds in an IRA are not protected by the Employee Retirement Income Security Act. This act was established to ensure invested monies are designated especially for retirement and cannot be used for debt purposes.

Note: Regarding the ERISA ruling and your IRA, at least $1 million in IRA assets would be protected if you filed a bankruptcy claim. With lawsuits, it’s a different story. It really depends on the type of lawsuit you are embroiled in and, most importantly, the rules created in the state you live in.

Another Option: Convert Your 403(b) to a Roth IRA

If you don’t want to roll your 403(b) into a traditional IRA, you can consider rolling it into a Roth IRA instead. Since Roth IRAs are funded with after-tax dollars, however, there are huge tax considerations to contemplate if you choose to roll your 403(b) into this type of account.

When you roll your 403(b), 401(k), or other tax-deferred retirement account into a Roth IRA, you’ll have to pay income taxes on the amount you roll over that year. This can result in a huge upfront expense if you have a lot of money saved in your 403(b) already, but many people do it anyway for myriad reasons.

Since Roth IRAs are funded with after-tax dollars, they work differently when you use them and when you’re ready to begin taking distributions. Here are some of the benefits you can get from rolling your 403(b) into a Roth IRA:

You won’t have to pay income taxes when you begin taking distributions. Since Roth IRAs are funded with after-tax dollars, you can begin taking tax-free income distributions when you are ready to retire. If you think you might be in a higher tax bracket when you retire several years or decades from now, having an income stream that is not taxed can be a huge boon for your finances.

Owning a Roth IRA can help you diversity your tax liability in future years. If you also have a 403(b) or 401(k) plan, adding a Roth IRA is a smart way to diversify your tax liability. Where you’ll pay income taxes on distributions from tax-deferred accounts when you retire, you won’t need to when you take distributions from your Roth IRA.

You don’t have to take required minimum distributions (RMDs) at any age. Where most tax-advantaged retirement accounts like 401(k)s and 403(b)s require you to begin taking required minimum distributions (RMDs) at age 70 1/2, the Roth IRA has no such requirement. If you want to keep your money in your account for a lifetime, the Roth IRA will let you do so with no penalty.

Your heirs won’t face a tax bill when they inherit your Roth IRA. Since Roth IRAs are funded with after-tax dollars, they make it easy for your heirs to inherit tax-free money when you die. If you’re worried about leaving your heirs with a huge tax bill and lots of red tape, you can rest assured that your Roth IRA will leave neither.

The Bottom Line

If you have a 403(b) or several retirement accounts left with old employers, it’s smart to determine whether you should roll those accounts into a new one. Most of the time, doing so will help you simplify your life by consolidating your retirement into one place. Plus, you may even become eligible for more or better investment options if you choose a traditional IRA or Roth IRA for your rollover.

As always, it’s smart to consult your financial advisor and tax consultant before you make any big financial moves or roll over old accounts. The more you know and the more questions you ask, the better off you’ll be.

Save

Save

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Not Your Average Ski Bum Gig: Liftopia is Hiring a Work-From-Home Rep

If you’re a skier or boarder, you know lift tickets can be pretty expensive.

But if you become a member of Liftopia’s team, you can score some sweet discounts — in addition to a substantial hourly wage.

If you’ve ever bought lift tickets online, you might have used Liftopia. The ecommerce site is the largest seller of lift tickets and a great pricing tool for ski resorts.

The company is growing quickly, and now they’re looking for a remote seasonal partner operations representative for the 2016-17 winter season, which runs from September to April, depending on Mother Nature.

What You’ll Do as Work-From-Home Rep for Liftopia

Although Liftopia is in the business of snow, with this part-time gig, you can work shore-side in San Francisco or — even better — from home.

You’ll support the Partner Operations Team and manage phone and ticket queues. You’ll also handle some data: audit systems, handle ticket barcodes, reload ticket inventory, upload inventory and process resort closures — to name a few of your tasks.

During the season, you’ll work three to five shifts a week, which run five to six hours on weekdays and four to five hours on weekends. Either way, you won’t exceed 30 hours a week. You will, however, have to work holidays and weekends.

Note: You’ll be expected to start between 6 a.m. and 9 a.m. PST. Just make sure to consider the time difference if you’re over here on the East Coast like us!

Liftopia Benefits — Including Lift Ticket Deals!

First and foremost: You’ll make $17 an hour. In addition, you’ll get deals on lift tickets and receive “sweet Liftopia swag.”

If you’re based in San Francisco, great. You’ll become part of a casual, dog-friendly office environment that features Wednesday afternoon socials.

If not, you can opt to work from home in flannel pajamas in your favorite ski town.

Are You Qualified For This Work-From-Home Gig?

Liftopia seeks people who have two or more years of experience in customer service, hospitality or account management support.

You should be a strong writer and verbal communicator, and you need experience in building solid client relationships. The company also wants you to have troubleshooting and analytical skills, which will help you roll with any glitches or changes.

Other qualifications? “Fun! Our team can get a little weird at times.” The weirder, the better.

So if you’re passionate about skiing, have solid customer service skills, want to work from home and you’re a little weird, check out the full description and apply to this opportunity today — before the snow rolls in.

Your Turn: Would you work holidays to reap some of these sweet benefits?

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

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$1,500 in Rent — for That?! Here’s How Much Space You’ll Get in 30 U.S. Cities

Paying rent is not a good feeling.

On the first of each month, I feel like I’m throwing a significant percentage of my paycheck into a black hole — or worse, to my landlord.

On the bright side, I’m paying for a comfortable amount of space; if I lived in a different city, that might not be the case.

That fact really hit home when I looked at a recent study from RENTCafé, which revealed how many square feet $1,500 in rent will get you in 30 American cities.

Although I knew rent varied widely depending on where you live, the results — and especially the visual way in which they were presented — were pretty striking.

You’ve gotta see it for yourself…

How Much (or Little) $1,500 in Rent Gets You in 30 Cities

Using data from its sister company Yardi Matrix, RENTCafé analyzed “apartment size and rent data across all multifamily rental properties of 50+ units across the 30 largest US cities by population.”

Here are the results (hover over a city to see exact numbers!):

Top 30
Create your own infographics

Wow.

In other words, if you somehow managed to find a studio in Manhattan for $1,500 per month (good luck!), it would fit “inside the living room of a four-bed, three-bath Memphis home you could rent for the same amount of cash.”

By the way, this isn’t the first study we’ve seen that makes Tennessee look like a pretty good place to live…

Not impressed by your city’s square footage?

It might be time to move, get some roommates, trade skills or rent out your spare room on Airbnb. You could also try using one of these creative strategies to lower your rent — or negotiate it before you move in.

Or, consider buying a place.

It might not be as difficult as you think: You can get help with this program or this one, or in certain cities, even find a house for free.

Your Turn: How did your city stack up?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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FREE STUFF ALERT – 10 Free Things You Can Score This Afternoon

Photo by klabusta

I love FREE Stuff. I’ve gotten so good at hunting down free things that visiting my mailbox everyday is like opening a treasure box. There are 1000’s of companies willing to send you free samples, free coupons, and free products just to promote their company. All you have to do is give them your address.

Here are 10 FREE Things you can get right now:


1. FREE Yoplait yogurt
2. FREE Barbara’s Organic Cereal
3. FREE Fresco Taco from Taco Bell
4. FREE UniBall Pen
5. FREE Science Diet Dog Treats
6. FREE Purex Detergent
7. FREE Aveda Shampoo for Men 
8. FREE Mini-Tampons from OB
9. FREE Bagel at Brueggers
10. FREE Box of Cream of Wheat

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Engaged? 8 Financial Steps You Need to Take Before You Get Married

Recently engaged? Congrats!

Between tasting cake and trying on dresses, being financially responsible is probably the last thing on your mind…

But, before walking down the aisle, it’s essential you and your fiancé get on the same page.

Specifically, here are eight financial steps to take after getting engaged to help get you there.

1. Have the Money Talk

vgajic / Getty Images

Hopefully, since you’ve committed to spending your life together, you’ve already talked money with your honey. But if you haven’t, better late than never.

As I outlined in this post about moving in together, you should have a DTM (Define The Money).

“Schedule a time to talk so that your partner doesn’t feel blindsided and so that you can each do a little homework beforehand if need be,” suggests love and money expert Farnoosh Torabi.

Share important numbers like your income, debt and approximate credit scores.

Discuss how you’ll merge your finances once you’re married, and what (if anything) else will change money-wise.

2. Get Drunk and Look at Your Credit Scores

Spanic / Getty Images

Once you’ve had the money talk, it’s time to verify your credit scores. Since this can be a sobering experience, we recommend having a few drinks beforehand.

You can check your scores for free on Credit Sesame — you don’t even need a credit card to sign up. You’ll also get a free credit report card to show you exactly where your credit shines… and where it could use some improvement.

If you discover one (or both) of your credit scores is less than ideal, then it’s time to create an action plan.

Will you follow this mom’s tips for paying off $64,000 of credit card debt in two years? Implement one of these inventive strategies? Automate your payments so you never miss another one?

Or, will you consider a credit-builder loan with a company like Self Lender?

Here’s how this innovative idea works: Even if you have poor or no credit, Self Lender’s partner bank will loan you $1,100, which is held in a FDIC-insured certificate of deposit (CD) account. Each month, you’ll make a $97 payment on your loan.

Because these payments are reported to the credit bureaus, you’ll build credit history as you pay back the loan. At the end of the year, you’ll be able to cash out the $1,100 (plus a little bit of interest) — and also enjoy a new and improved credit score!

3. Open a Joint Savings Account

RomoloTavani / Getty Images

If you don’t already live together, you will soon. So it’s probably time to open a joint bank account.

Not only will this make it easier to pay your shared bills, but you can also use it to save up for your wedding expenses.

One of our favorite banks is Aspiration, because its Summit checking account has no minimums and no monthly fees.

Plus, it offers an interest rate that’s around 100 times what a normal bank offers.

By keeping your wedding savings in a separate, online-only account, you’ll be less likely to touch it. And by keeping it in an interest-earning account, it’ll grow even faster than you anticipated!

4. Earn Some Extra Dough

AGrigorjeva / Getty Images

You know what’s super romantic? Not going into debt — or dipping into savings — to pay for your wedding.

If you need some extra money to pad your new joint account, here are a few ideas:

Earn Cash Back on Everything You Buy

Weddings are expensive, which is why I like to use a cash-back rewards site like MyPoints.

Once you sign up for a free account, it’ll give you 1.4% cash back on purchases at Target, 5.4% at Walmart — and even 2.7% back at MyWeddingFavors. There are more than 1,000 stores on its list, so you can purchase nearly everything using this method.

Plus, when you spend your first $20 through the portal, MyPoints will give you a free $10 gift card to Amazon.

Drive for Uber

Do you have a car that’s 2001 or newer? Like meeting new people?

Then becoming an Uber partner driver might be right up your alley.

With this job, you can earn hundreds extra per week — on whatever schedule works best for you.

Watch Swagbucks Videos

Like MyPoints, Swagbucks will give you points (called SB) for doing all sorts of online activities — but our favorite option has to be watching Swagbucks videos.

And right now, the site will give you $5 just for signing up!

5. Plan Your (Frugal) Dream Wedding

Image Source / Getty Images

Weddings can be insanely expensive (exhibits A and B), but they don’t have to be.

For starters, the stat about weddings costing $30,000 is inflated; you and I both know it’s possible to host a lovely event for much less than that.

Here are some posts to help you plan a beautiful wedding on a budget:

• 101 Super Smart Ways to Save Thousands on Your Dream Wedding

• These 8 Websites Helped Us Save $21,781 on Our Wedding

• Planning a Frugal Wedding: 7 Crazy Ways to Save Money on Your Big Day

• We’re Saving $11,650 by Throwing Our Reception Months After Our Wedding

6. Start Making Snowflakes

MagMos / Getty Images

If you’ve gotten this far, you’re serious about starting your marriage on the right financial foot. And paying back debt is probably one of your goals.

You may have heard of Dave Ramsey’s snowball method — but what about the snowflake method?

With this strategy, instead of making one lump payment each month, you make several smaller payments.

“Basically, any time you find yourself with extra cash, you should use it to make a payment on your credit card,” explains Mike Peterson at DebtGuru.

Why does this work?

“If you wait and save up to make a large, traditional credit card payment, that extra money might just slip through your fingers,” he continues.

But these micropayments (whether they’re $2 or $200) slowly chip away at your balance.

“If you do that again the next week, and the next, all of those small payments start to stack up,” he says.

Wondering where you can get small amounts of money to use as debt snowflakes? We’ve got a couple ideas:

Paribus

Do you shop online? Then you need Paribus in your arsenal.

This handy tool scans your inbox for receipts — and if it finds one an item whose price has been reduced, it snags you a refund for the price difference.

A snowflake here, a snowflake there. It all adds up!   

Stash

Don’t have any debt to worry about? Lucky you; it’s time to invest.

Stash is an easy-to-use app that lets you start investing with only a few bucks. Even better, the company will give you $5 just for signing up.

7. Discuss Your Future Goals

Pekin / Getty Images

To build your ideal future together, you have to figure out what it looks like first.

Although you’ve probably already covered most of the biggies, it won’t hurt to do a deeper dive on the following topics:

On Kids

If you plan to have kids, how will you raise them? Will you give them an allowance? Will you help them pay for college?

Raising kids who are money-smart — but not spoiled — can be challenging, but is well worth the effort.

With your partner, compare notes about what your parents did right (or wrong) and decide what your strategy will be.

On Retirement

When would you like to retire? Where? How aggressively do you want to save for it?

If you start investing when you’re young, you won’t be like the many Americans who can’t afford to stop working.

Make sure you and your partner are on the same page, then plan for the future accordingly.

On Spending

What are your priorities? Would you rather have a nice car, or frequent vacations? Is a big house important to you?

Money can cause a lot of tension in relationships — often due to differing views on how to spend it. Clarify your priorities before they become a problem.

8. Book a Bodacious Honeymoon

pixdeluxe / Getty Images

Once all the madness is over, it’s time to get away. (Personally, I feel like this is one of the most exciting parts about getting married!)

Your honeymoon might seem like a long time away, but the earlier you start the booking process, the cheaper it will be.

Whether you want an urban adventure or a beachside escape, here are a few ways to make it more affordable:

Use Points and Miles

If you start early, you might even be able to fund your honeymoon entirely on miles and points.

Read this post to get started with frequent flyer miles, then check out these blogs and other resources.

Travel to a Cheap Destination

Not only would I recommend seeking alternative accommodation when you travel (Airbnb can save you lots!), I’d also suggest seeking an alternative destination.

Instead of Italy, visit Croatia; instead of Hawaii, head to Mexico. No matter what you want, there’s probably an alternate destination to serve your needs for half the price.

For some inspiration, check out this list of six destinations where dinner for two is less than $20.

Book Your Flights Carefully

A lot of factors determine how much you’ll pay for your plane tickets. Your best tool in the fight against sky-high ticket prices? Knowledge.

To get the best deal, here’s how far ahead you should book, when to buy and when to fly.

By following these eight steps before you say “I do,” you’ll give your new marriage the solid financial foundation it needs — hopefully allowing your money to last as long as your love does.

Your Turn: Are you engaged or married? What steps would you add to this list?  

Disclosure: This post includes affiliate links. Adding these links helps us keep the lights on in The Penny Hoarder HQ, which makes it a lot easier to play shuffleboard after a long day of deal-seeking!

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Am I Dreaming? This Cambodian NGO Will Pay You to Hike With Elephants

You could say I’m obsessed with elephants.

I went to elephant camp in Thailand, I have an elephant tattoo — and this video of a baby elephant in a kiddie pool is the first thing I turn to when I’m feeling sad.

So it’s taking pretty much all my energy not to apply for this job I just found in Cambodia.

The position is an elephant and forest interpretive guide with the Elephant Livelihood Initiative Environment (ELIE), a NGO in Mondulkiri, Cambodia.

If you’re as passionate about pachyderms as I am, keep reading…

How to Work With Elephants in Cambodia

The primary goal of ELIE, the organization you’d be working with, “is to improve the health and welfare of captive elephants and assist in their wild counterparts.”

As a guide, you’d work alongside “a local counterpart to conduct a daily tour program” and educate visitors “on the elephant situation, forest conservation, the local indigenous community and ELIE/EVP projects.”

Because you’ll be working with visitors all day, you must be a “bubbly, outgoing and resourceful person.” You’ll also need to hike “across tough terrain to get to the elephants,” so you have to be in good shape.

Other requirements include a background in outdoor education, a “keen interest in wildlife” and a first-aid certification and driver’s license.

You’ll be paid in local currency; the exact amount isn’t specified, but the listing says it’d be “more than enough to cover your living expenses while here.”

It hasn’t been enforced for many years, but all foreign workers are required to have a Cambodian work permit. From my research, it doesn’t look too difficult to get and costs $100.

This is a full-time position, with an initial commitment of at least one year. It starts at the end of August or beginning of September, and the application deadline is July 31.

To apply, send your resume and a short introductory video to jemmabullock(at)gmail(dot)com.

As the job listing says, “the more crazy and interesting the video — the better.”

If you get the job, let me know — I’ll be on the next plane for a visit!

Your Turn: Do you love elephants? Is this your dream job?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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More first-time buyers now rely on Bank of Mum and Dad

Hannah Nemeth

bank-of-mum-and-dad.jpg

The number of first-time buyers who ask for financial help from friends and family has gone up by 6% over the past 20 years, according to a new government survey.

The number of first-time buyers who ask for financial help from friends and family has gone up by 6% over the past 20 years, according to a new government survey.

While 21% of first-time buyers asked for help from friends and family back in 1994-1995, in 2014-2015 the number had risen to 27%, the English Housing Survey has revealed.

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10 Landing Page Tactics That Will Turn Casual Visitors into Converting Customers

When was the last time you took a long hard look at your landing pages?

On paper, landing page optimization seems easy enough. In fact, you’re probably following some sort of formula to design your landing pages.

Follow a few basic principles, capture the attention of your visitors, put to rest any doubts they may have, urge them to purchase, and let the money pour in.

Right?

In reality, it’s not this easy.

My experience with landing pages has taught me that it’s hard work to design the perfect landing page.

There are principles to follow, sure. But there’s also a lot of information you need to gain before you can design that killer landing page.

• What are your customers thinking?
• How did they find your landing page?
• What headline is going to grab their attention?
• What device are they using?
• What pain are they experiencing?
• What’s going to make them convert?

That final question—what’s going to make them convert?—is the most important one.

You want to know what I really care about when it comes to landing pages?

Conversions.

I just want more conversions.

You probably do too. According to the studies, “only about 22 percent of businesses are satisfied with their conversion rates.”

Let me get to the point. Here are 10 landing page tactics I’ve had immense success with and that can help convert even casual visitors into customers. 

1. Keep it minimal

The “less is more” idea rings true throughout many aspects of marketing.

Science and research have shown that this minimalist mindset and strategy lead to breakthroughs in life and business.

What Minimalism is really about is reassessment of your priorities so that you can strip away the excess stuff—the possessions and ideas and relationships and activities—that don’t bring value to your life.

What’s true in life is true in digital marketing too.

Tommy Walker’s expert article, “Why ‘Simple’ Websites Are Scientifically Better” tells exactly why and how the mind responds to a simple, minimalist website.

Your landing page is no exception.

The simpler, the better.

Saturate your landing page with a lot of unnecessary extras, and you’ll be sure to distract and confuse your visitors.

One area where marketers often go wrong is having multiple offers. In fact, 48% of landing pages contain multiple offers.

However, multiple offers can decrease conversions by 266%!

That means you need to keep things relatively sparse and avoid giving your visitors a cognitive overload.

Take a look at this example from Vimeo:

Bold and beautiful, right?

This landing page for Vimeo Business wants you to do one thing and one thing only: Get Vimeo Business.

There is no doubt in your mind what your next action should be.

• If you are the wallet-out-ready-to-buy customer, you’ll click the green CTA.
• If you’re the I-need-to-do-a-little-more-research kind of customer, you’ll watch the video or scroll down.

Either way, Vimeo’s got you hooked.

Why? Because this is a minimalist landing page with zero clutter, zero friction, and zero hurdles to conversion.

By avoiding complication and excessive choice, you will help your visitors to maintain better focus, which is a surefire way to boost conversions.

2. Use the five-second rule

The pop-it-in-the-microwave culture we live in means one thing for landing pages.

Stuff happens fast.

Instant engagement is essential, and you need to get straight to the point.

That’s why I like to treat it as if I’ve got only five seconds to capture the attention of my visitors.

How do you achieve this?

This goes back to my first point about taking a minimalist approach. Often a snazzy headline, an image, and a CTA are all it takes.

Also, keep key benefits above the fold so that visitors can be persuaded to buy without having to scroll down.

Craig Tomlin, a usability expert, explains why five seconds matter:

The reason five seconds is so important is because of research studies which demonstrate that visitors to websites take a very short amount of time (in some cases a  fraction of a second, as little as 50 milliseconds) to judge the quality of a website.

What about those “research studies?”

Take a look:

Let me reiterate:

It takes five seconds or less for a user to decide whether or not they like your website.

Whether or not you realize it, you’ve proven the power of the five-second rule when you look at landing pages.

For example, let’s say you saw this ad in your SERP.

What happens next?

You see this page:

It took me 1.86 seconds to read the headline, subheadline, and CTA. (I timed it.)

Do I like it or not?

Keep in mind, I’m being subtly influenced by the color of the website, the image behind the text, and the negative space surrounding the information.

In less than five seconds, I’ve decided whether or not I like this page and whether or not I’m going to click on the CTA “get started now.”

That’s the power of the five-second rule.

3. Make load time lightning fast

As I mentioned in one of my posts on Quick Sprout, for every second delay in page response, there is a 7% decrease in conversion rate.

This ties into the five-second rule: visitors should be able to get the gist of what you’re offering and understand the inherent benefits of it within five seconds.

If your landing page is cumbersome and slow to load, scale back your content, and do whatever it takes to speed it up.

To test your website’s speed, use Google PageSpeed insights. All you need to do is plug in your website URL, and get a quick score.

4. Ditch carousels and sliders

You could make the argument that these look cool from an aesthetic standpoint.

Maybe that’s why so many marketers think that it’s a good move to use carousels/sliders above the fold on a landing page.

But in reality, this can be a deathblow to your conversion rates.

To prove this point, the University of Notre Dame tested a slider on its homepage and found that approximately 1% of visitors clicked on a feature:

Not exactly ideal, is it?

When users see something, they will click on it. If that “something” keeps changing, the likelihood that they will click on it drops.

The bottom line here is that such elements only add to the “busyness” of a landing page and detract from its value.

Decide what your landing page should display—instead of a slider or carousel—and stick with that.

5. Use plenty of white space

Today’s average visitor is a skimmer and scanner.

They don’t want to get bogged down with lengthy paragraphs and bulky blocks of text.

In fact, “a study found that good use of white space between paragraphs and in the left and right margins increases comprehension by almost 20 percent. Readers find it easier to focus on and process generously spaced content.”

You can make it easier for visitors to navigate their way through your landing page by following this principle.

Notice how Buffer uses white space on its landing page:

If I were to cram all that content together, it would take up a tiny corner of the page.

There’s not a lot of stuff. The white space on the page makes it easy for my brain to analyze the information and decide what to do next. The result? I’m more likely to make the right decision—the decision to convert.

Apple is famous for its use of white space. Its branding, product design, and even its store layout is founded on the importance of negative space/white space.

Its MacBook landing page shows the use of white space:

Take a page from Apple’s playbook, and use more white space.

6. Use social proof for leverage

It’s pretty undeniable that humans are social creatures by nature, and we’re all influenced by others, at least to some extent.

Often, all it takes to convert someone who’s on the fence is a bit of social proof.

For instance, you might include a list of some top companies who have used your product/service, along with their logos.

I’ve dubbed this term “logo porn.”

On Crazy Egg, I display some of the recognizable companies who have used the product.

This doesn’t take up a lot of space, and visitors can quickly scan your landing page without a lot of effort.

Leadpages uses the same approach on its landing page (which, ironically, is about landing pages):

This can really boost your trustworthiness and reputability in your customers’ eyes.

7. Make contact info readily available

Putting yourself in the shoes of prospects is critical for increasing conversions.

For all they know, you’re some charlatan, snake oil salesman who’s just going to take their money and run.

To alleviate their fears, it’s helpful to include your contact info so they can view it without having to click on anything.

I Done This, a team productivity tool, displays its contact information at the top of the landing page. If you’re so inclined, you can pick up your phone and give them a call.

This piece of information lets your page visitors know you’re a legitimate business with an actual physical location, which should put their mind at ease.

8. Pepper in testimonials

Although this tactic might not seem exactly cutting-edge or game-changing, it can still help conversions.

Testimonials (especially with pictures) can really hammer home the value your product/service provides.

Quip’s landing page provides a great example of how this works:

As HubSpot shows, testimonials that display a name, picture, position, and company logo are particularly powerful.

Sometimes, the testimonials can come from well-known people. Other times, they could come from ordinary people, more aligned with your target customer.

I Done This displays some testimonials from both groups of people. (Dan Pink is a well-known author.)

Testimonials like these can help a casual visitor start thinking about becoming an actual customer.

9. Add video

Did you know that using videos on landing pages can increase conversions by 86%?

That’s not a number to scoff at.

I realize that this seems to be at odds with me recommending a minimalist layout, but it’s possible to keep it simple while incorporating video.

Take a look at ClickFunnels. Its landing page displays a video that starts playing automatically when I hit the page:

It’s quirky. It has real people. It has dialogue.

I’m hooked.

After spending a few minutes of my life watching the video, I’m more likely to convert. Why?

Because I spent time watching the video. And because while watching that video, I realized the importance and usefulness of the product.

Just keep it relatively brief (five minutes max), and use it as an opportunity to educate and entertain your visitors and create a personal connection.

10. Add social share buttons

While the debate over just how much of an impact social shares have on SEO continues to rage on, you can’t deny that having plenty of social shares on a landing page can have a positive impact on conversions.

This is yet another way to use social proof to your advantage.

Conclusion

Even those visitors who don’t have any intention of buying when they reach your landing page can be persuaded to take action if you use the techniques I showed you above.

Landing page optimization can be complicated. It can be confusing. And it can take a lot of time to get in the mind of your customers and determine how to satisfy their needs.

I would never recommend that you shortcut the research, the persona development, and all the hard work that goes into creating a compelling landing page.

However, I realize that sometimes you just need a brief guide or a list of tactics like this one.

These ten methods will allow you to jump into any marketing situation, create effective landing pages, and convert those casual visitors into customers.

Are there any other specific landing page optimization techniques you’ve had success with?

Source Quick Sprout http://ift.tt/2alUR3X