5 Things You Need to Know About Insurance

As many of you know, I am now a licensed insurance agent. I love that every day I get to help meet people's needs. I love the competitive and rewarding environment. One part I don't like, however, is how I have to deliver bad news to uneducated clients. When I say uneducated, I'm not talking down about them--that is what they are. That is what most of you probably are, and that is what I was before I went through licensing training and practical sales experience. I talk to person after person who have completely screwed themselves over and continue to do so. They always ask: "Why is my insurance so high?" or "Why won't the company I want take me?" Well, I'm going to tell you a few things you may or may not know. If you do, congratulations. If you don't, you may have an icky financial future. Yes, icky.

1) "No Prior Insurance" is the rating killer you'll be slapped with if you let your coverage lapse even a few hours. If you've got no prior, you're looking at rates sometimes a hundred dollars higher than you're accustomed to paying. This isn't just with top-rated companies like the ones that I work with, it's everywhere. 

How to avoid this: I don't care how down-in-the-dumps you are. If you have to let some monthly payment slide, I understand. I've been there. But do NOT let it be your insurance. You'll be costing yourself way more money than you could ever save.

Also, if your insurance expires on March 25, your new policy needs to be in effect ON March 25, not March 26. The expiration is effective at 12:01 AM on the day and waiting to find new insurance until that day or even the next puts you in a lapse. The best companies, like the Hartford, Safeco, or Metlife, will not even accept you. And companies like them often offer you the best prices as well as protection.

2) The liability side of your insurance covers the damage you do to OTHER people. I can't tell you how many people say to me "I only need minimums. It's an old car." Makes me face palm every time. I don't care how old your car is; neither does the person you hit. If you're in an accident and someone is injured or their car is damaged, those 25,000/50,000/15,000 coverages aren't going to cover it...and that's just in Tennessee. There are some states That require only 10,000/20,000/5,000. Now, what do those numbers mean, anyway? The first number is the limit of how much any one person can receive. The second is the limit of money that will be paid out for injuries per accident. The last is the limit for property damage (such as a vehicle being destroyed)...now that you understand these things, I'll take you to my next point...

3) State minimums are for morons. If you're driving around with the bare minimum in liability, you are endangering all of your assets. Taken from a legal website, here's an idea of how much the AVERAGE accident ends up costing a person--not catastrophic accidents, just run-of-the-mill ones. Here they are:

Average comprehensive cost of motor vehicle crashes per injured person:

• Comprehensive cost of a death: $4,100,000
• Comprehensive cost of an incapacitating injury: $208,500
• Comprehensive cost of a non-incapacitating evident injury: $53,200
• Comprehensive cost of a possible injury: $25,300
• Comprehensive cost of no injury: $2,300

Yeah, imagine injuring a person. Along with the stress of the damage to your own vehicle or your own body, you are now liable for tens of thousands of dollars that, guess what? your insurance company is absolutely not going to pay. You dig your own grave when you don't have sufficient coverage. People always say "I'm a good driver, nothing will happen." Well, if they were on purpose, they would be called appointments, not accidents. Stop thinking you're invisible and get good coverage. Again, here's a good segway to my next point:

4) Having double or even triple the coverage usually only costs about $5-$15 extra monthly. I talk to people every day who have purchased expensive, brand new vehicles. Hell, they're probably calling on a smart phone with a pricey data plan. But they say things about insurance like "the cheapest is the best." I'm sorry, what? If the cheapest were the best, you would be driving a jalopy. Know where to spend your money. Having flashy things is just ridiculous if you're too stupid to protect your stuff. Insurance is what insures that you won't lose your Mercedes, iPhone, brand new Nikes. Get your shallow self some education and protect your future.

5) Not a homeowner? Renters insurance is the best-kept secret on the market. It usually only costs about $15 a month to protect yourself and all of your stuff. Did you know that even "full coverage" auto insurance doesn't pay out items are stolen from your vehicle? What would you do if everything you had was stolen? What would you do if your place burned down? Your landlord isn't liable for anything. Neither are your neighbors--even if they cause the fire. Renters covers all of that. It even covers you for liability outside of your vehicle. f you accidentally bump into an old lady at the supermarket. She falls over, breaks her hip, and sues you. With renters, you're covered. Seriously. You need it. Don't make the mistake of thinking nothing will ever happen to you. Because if it does, you'll be in a pickle.

I know that's rough stuff to stomach. So, here's a yummy Goulash recipe to help settle your tummy and make your heart glad...

2 medium yellow onions

1 package whole wheat elbow macaroni

1 large can crushed tomatoes

2 lbs. ground beef (preferably lean)

3 garlic cloves

Various spices

Chop the onions, press the garlic (with a garlic press, duh) and cook them with the beef in a large pan until browned. Boil the pasta, drain, and place in pan with meat. Add crushed tomatoes. Stir and season to taste. I used Season All, salt, pepper, crushed red pepper, and a bit of sage. Delicious, hearty, and full of lycopene.

And so easy to make!

I recommend pairing it with an episode of one of my favorite TV shows, Once Upon a Time. If you're not caught up, you should find a way to watch it from the beginning. Heartwarming story, really. Especially if you're into fairytales. Nice twist on a few of those.

Give your inner child a hey-day.