Ways To Save Money On Teen Driver's Insurance

It's time to hand over the keys to your newly licensed 16 year old. But how do you do it without also handing over 1/2 of your paycheck to your car insurance company? Teenagers are one of the leading cause for auto insurance claims, which means adding a teen driver to your insurance policy can be expensive. But there are some ways to cut your teen driver's insurance costs; here are some of the top tips.

Good Grades: The good grade discount for students will typically save you 15% on their insurance premiums. In order to qualify, most companies require a 3.0 or better cumulative GPA. However, some teen friendly companies offer some additional ways to get the discount including being on the honor roll or dean's list.

Driver's Training: While all companies give a discount for teens who take driver's ed classes (usually 15%), not all classes qualify for the discount. Most insurers require that the classes have a certain amount of behind the wheel time led by a state approved instructor. On-line courses and parent-led courses usually do NOT qualify for a discount. Most companies want to see a state approved course with at least 6 hours of street time included.

Teen Friendly Companies: When it comes to teen driver's, all insurance companies are NOT created equal. Some companies want to avoid teenage drivers at all costs, and the easiest way to do that is to make the rates extremely high. Prices can vary dramatically between companies, so if your current insurer's price seems unreasonable make some calls and check around. With our exclusive TeenSafe DriverTM program, we've had clients come to us who were paying as much as an additional $100 per month MORE than they needed to be simply because they were insured with the wrong company.

Monitored Driving: Some teen friendly companies are helping you keep your teen safe and lower your insurance costs at the same time by giving you the opportunity to monitor your child's driving. Monitoring devices can be installed in your teen's car that alert you to speed violations, aggressive driving patterns, boundary violations and a whole lot more. With most companies, the information is strictly for the parents (it is not shared with the insurance company) so it can be used to give instructions and mentoring on safer driving habits. TeenSafe DriverTM companies know you want your teen to get home safely, and give you tools to help make sure that happens. The bonus is that you can  also get up to 15% off of your teen's insurance costs.

No New Cars!: If you are going to surprise your teen with a new car, make sure it's only new to them. A newer car that requires full coverage is a sure way to skyrocket your insurance costs. Since an overwhelming amount of teens have accidents during their first 24 months of driving, the cost for collision coverage on their car can be quite expensive. Buying a gently used car that does NOT require financing will not require full coverage insurance and will save you big bucks. (To find a car that performs well in safety tests, visit http://www.iihs.org/ratings/default.aspx)

Who's Driving What?: Talk to your agent about how they're matching up the cars and drivers in your household. There's a lot of money to be saved by pairing the right driver to the right car, and your agent should know the right way to rate your teen driver. The best way to find out is to ask "did you rate my teenager to the least expensive car?"

On average, Colorado families should be paying less around $40 per month for you teen that does NOT have their own car, and around $80 per month for your teen that DOES have their own car (with liability only). If you're paying more, you're probably paying too much!

Should You Buy Identity Theft Coverage?

Its 2010, so I know that if you're smart enough to figure out the internet and stumble across a blog (like this one as an example), then you're smart enough to know what identity theft is. You know it's out there happening to people every minute of every day, but will it happen to you? With more than 10,000,000 identity theft victims in 2008 alone* chances are it could happen to you, and since it takes an average of 330 hours of work to repair the damage** you should be prepared for it! The easiest way to protect yourself is with Identity Theft Protection, but where's the best (and cheapest) place to get it?

Google the words "Identity Theft Protection" and you'll get around 52 million results, which makes the question of where to get the best protection for the best a price more than a little overwhelming. Your bank, credit card provider, AND a myriad of on-line companies are all happy to help you protect yourself for $10 - $20 per month, but they usually don't include coverage for your family. One of the best (and most affordable) places to stay protected is through your local, professional insurance agent.

Most insurance companies that sell home insurance also sell identity theft protection as an additional rider on your insurance policy. Not all coverage is the same so you'll want to talk to your agent about specific coverage and exclusions, but most companies include the following benefits for the insurance clients:

1. Coverage is included for everyone in the family for one set price. No need to pay fees for each member of your household.
2. Coverage usually includes monitoring so you can be notified early of any fraudulent activity.
3. You'll have a multi-million (or multi-billion) dollar company AND their team of attorneys working on your behalf to fix any problems.
4. Coverage typically includes incidental charges like lost wages in case you have to miss work to help clear up any problems.
5. Insurance companies are regulated by each state where as independent identity theft protection companies may not be. The result, more consistent results from insurance companies and a place to turn (the state insurance commissioner's office) if your protection plan does not do what it is supposed to.

The best part about getting your identity theft protection through your insurance company is the competitive pricing. At about $7.50 per month for the entire family the price is tough to beat. Insurance companies already have a vested interest in protecting your family, and if they can add on a service that you might buy elsewhere then it solidifies your relationship and keeps you as a client for longer. It's a proven fact, the more things your insurance company takes care of for you, the more loyal you are and the longer you remain a customer. Besides, insurance companies already have teams of attorneys on staff; having them take care of identity theft cases is another way to maximize the money they're paid.

There are plenty of places to get your identity theft coverage. Should you have it? That seems like an easy question to answer...YES! And since you can protect your entire family with a dedicated team of attorneys and the resources of a billion dollar insurance company, $7.50 per month seems like the best deal around.

Talk to your local, professional agent today about adding on this important coverage for your family.

*Javelin Strategy and Research, 2009
** ITRC Aftermath Study, 2004

What If My Insurance Company Doesn't Want To Pay My Claim?

You've had the same insurance company for years and you've never had a problem. Fortunately, you've also never had a claim. Now, you need help with a car accident or a hail storm or something else that should be covered under your insurance policy but you're being told you don't have any coverage and you're on your own for the damages. "What, no coverage!?! After paying for insurance all these years?!?" It can (and does) happen, but there might be some things you can do to get things paid for anyway. Here are a few tips in case your insurance company does not want to pay your claim:

1. Contact Your Local Agent. You personal agent represents the insurance company, but they work for you! The insurance company may write the paycheck, but the clients are where the pay comes from. No clients...no income, so call your local agent and get some personal help. Although an agent cannot change the company's rules, they often know the best way to get claims paid with the company they represent. They also have a relationship with the claims representatives that you don't have, and they can go to bat for you on why your claim should be paid.

2. Ask To See Your Policy. All insurance policies list what is - and what is not - covered under the policy. Sometimes a claims representative may read the policy one way, which you may be able to interpret differently. At the very least, if you look at the specific portion of your policy that the insurance company is using to deny your claim you may be able to find another way to present things to help get them paid for.

3. Talk To The Claims Manager. No one likes it when you ask to speak to their manager; claims representatives are no different. Sometimes just asking to speak to a claims manager will get an uncooperative claims representative to be more fair about things. If it does not, be ready to plead your case in a calm and professional way to the claims manager. The manager can often make adjustments or exceptions on a claim that allows you to get your damages taken care of.

4. Have Your Claim Taken To Claims Committee. If all else fails, ask that your claim be taken to the claims committee. Although this typically takes a week or two, it can often lead to claims being paid that have previously denied. A claims committee is typically made up of 4-5 people in different positions that may see a claim differently than the original claims representative. The committee will vote on your specific claim, similar to the way a jury votes in a trial. If the commitee finds in your favor then your claim will be paid regardless of what has previously happened.

What You Should NOT Do When Trying To Get Your Claim Paid. Although it can be difficult after hearing that your claim is not going to be paid, it is important to try and remain calm. Yelling or swearing at your claims rep usually does not get you anything but hung up on. Claims reps are people too, and they don't want to be screamed at any more than you do. Threatening to leave the company will usually do little to help your cause either. While the insurance company wants to keep you as a client, it is typically not factored into the decision on whether your claim is going to be covered. Threatening to sue is also not effective. Insurance companies have attorneys on staff that get paid to review claims for possible lawsuits, and handle any issues that may come up.

Your best bet when dealing with an insurance company that does not want to pay your claim is to get help from your local agent and have all of your facts and figures straight in case you need to dispute an insurance company's decision. Although it does not always feel like it, your insurance company really is on your side and wants to resolve things for you as quickly as possible. Remember, the company you're dealing with may be a corporate giant, but the claims rep you are talking to is just another person like you. Being nice can go a long way.

Renting a Moving Truck - What Kind of Insurance You Need

     It's time to move; the boxes are packed, the truck is loaded and you're about to drive off into the sunset towards your new home. Then you wonder, what happens if I have an accident on the way? Who's responsible to fix the truck? What about all of your precious cargo in the back? You start to question "what kind of insurance do I need for this move?"

     There are 3 primary concerns when you are renting a truck to move your belongings from house 1 to house 2. They are:

1. What if something happens to the truck?
2. What if I crash into someone and hurt them?
3. What about all my stuff in the back?

The size of the truck plays a part in the answer, as does the specific coverage provided by your insurance company, but in general here is what you should know.

What if something happens to the truck? Most insurance companies provide coverage to rental trucks, but ONLY if they are UNDER 10,000 pounds. Since you probably won't have your truck scale with you when you're looking for a rental, it is typically for the smallest (or 2 smallest) trucks available to rent. Any truck heavier than 10,000 pounds is considered a commercial vehicle and therefore it is typically not covered by your personal auto insurance policy. The way to get the coverage is to buy it from the rental company. It's an extra expense, but it's far cheaper than buying a new truck if you crash the rental!

What if I crash into someone? Unfortunately, answer number one usually applies to question number two as well. Liability coverage (the coverage in your policy that protects you if you are liable for other people's injury or property damage) will probably need to be purchased from the rental company if the truck you are using is heavier than 10,000 pounds. However, many insurance companies will have a provision that extends your liability coverage to other vehicles as a back up coverage. This means you may only need to buy the minimum coverage offered by the rental company if you carry good liability limits on your personal insurance policy (something that we've recommended repeatedly!)

What about all my stuff in the back? Most insurance companies will extend coverage from your property insurance to cover your personal belongings while in transit. HOWEVER, you must have an active property policy (insurance on either the place you are moving out of or the place you are moving in to) in order for there to be coverage. Also, some companies require that you add an endorsement to your policy. There may be a small extra charge for the endorsement, but it is a very small expense compared to replacing everything you own if something were to happen during your move.

Check with your local, professional agent for the specifics on your policy, and have a safe move!

Mary did the right thing for her family

We lost one of our clients a couple of days ago. We spoke to Mary’s daughter on Tuesday, 4 days before a passer-by spotted her car at the bottom of a ravine 250 feet below the road; she was worried because her mom had not come home the night before. On Saturday, 2/27/10, Mary's daughter was notified that her mother was ejected from the car after it went off the side of the road and was killed. I saw the story on the news and immediately thought back to my last meeting with Mary just one month ago. Our conversation about her job loss and her largest priority – taking care of her family – stuck with me. I never imagined it would be the last time we would speak.
Last month, we invited Mary into the office for her annual insurance review; something we had done with Mary for the past 9 years in a row. Mary never turned down our annual meeting and as always, she was pleasant and attentive as we reviewed her insurance program with her – car, renters and life insurance. Since our previous visit, Mary had lost her job and was living off of her unemployment benefits. She was using the time off to spend time with her brother who was terminally ill and care for her disabled son. Although she was anxious to get back to work, she was thankful for the time she had to spend with them both.
Mary only had one concern she brought up at our last meeting; she needed to reduce her insurance costs. She needed to make adjustments to make ends meet until she found a new job. We went over some options with her car and renters insurance. Then, we moved our attention to her life insurance but she did not want to discuss any changes to her life insurance plan. She was very adamant that she would not lower her life insurance coverage because that money was there to take care of her family in case something happened to her. Her permanently disabled son always needed help and if she was not there to give it, money would need to be available to make sure someone else would be. She would rather cancel one of her other policies (if it came to that) before lowering or cancelling her family’s life insurance. We were able to make enough tweaks for Mary to last another 6 – 12 months before we would need to consider more drastic alternatives. Hopefully, that would buy Mary enough time to find another job.

Mary did not make it another 6 - 12 months. Just one month after our meeting something happened that could have happened to anyone. Colorado’s icy roads took Mary’s life. Someone else will have to care for her disabled son. Someone else will have to look after her family. Fortunately, because of Mary’s commitment, her family’s financial loss will not equal their emotional loss. Mary did the right thing for her family and she set a great example for the rest of us. You will be missed, Mary.