Have Enough Insurance Protection

Insurance isn’t maybe the most exciting subject but one that Darlene and myself feel is important to cover with our Teenage Boys. We want them to know that they need to protect their assets as their assets grow. Especially since today with all the Lawsuits that are filed. It is hard to not watch TV in our house and not have many different Personal Injury Lawyer Commercials come up on TV. Insurance costs a really big expense most people have and the costs can vary so much from company to company.

In our situation we are one of the lucky families that have no debt so we have more that we want to protect from losing.

We have higher amounts of Protection to help us with that. But since we have our Emergency fund complete, we are able to have higher deductibles so we can have lower cost for our Insurance.

We have Term Life Insurance on Darlene to Protect her income from her day job till she fully retires and the boys are out of the house. We are looking at Umbrella Policy’s currently for more Coverage now that Logan is driving.

Here are some ways we lowered our Auto, Home and Life Insurance cost lately and our plan for the future.

  1. Many Quotes once a year. We get quoted from many different Insurance Companies. We are currently with Geico. Just weeks ago, we called 9 different Insurance quotes for Logan’s Auto Insurance and Home Owners Insurance. When getting quotes make sure to go down your current insurance bill for how much coverage you have so you are comparing apples to apples.
  2. We raised our deductibles up on our Cars and Home Owners policies to help get our six-month premium down.
  3. In the future after Logan has had his license for a year and he is 18 years old. We are going to transfer the car that we gave him for college in his name. Then we will get him his own Insurance with lower coverage amounts since he has no assets to protect. That should help lower our premiums more until Seth gets his driver’s license. Reminder this is what we did and for the entertainment for the show – that is if Insurance is entertainment. LOL so seek out Professional Insurance agent for your situation.
  4. We stress to the boys to maintain a 3.25 grade point average in school to help save on their car insurance premiums.
  5. Some companies offer other discounts for like Defensive Drivers Class or to if you would put a tracker on your car for six months to see how well you drive. Just some other ways that you could save on car insurance premiums.
  6. When getting quotes we ask for other discounts like if they will bundle Home and Auto or Renters Insurance if you don’t own a home. That can help save you money on your Insurance expenses.
  7. Life Insurance is something some people don’t believe in it. I feel it is for your loved ones and to help them out if something happens to you. We have a Term Policy on Darlene since she has our main source of income. Term we prefer for the lower Insurance premiums and we are not interested in spending more for some cash value polices. We have assets to pay for our Funerals. So, no need for Insurance for that. We want to be cremated anyway which is a lower expense. Term Insurance can save some people up to 90% over some other Insurance products. We tell the boys to have 10 to 12 times their income in Term Insurance when they have a family until they are Financially Free.
  8. Roadside Assistance on Insurance policies. If you have AAA insurance you may want to compare the rates and the benefits to what the company you are getting Car insurance was. We were able to save money canceling AAA and adding it on to our Car Insurance policy.
  9. Check with your Health Insurance company on what they cover for Medical coverage in case you are in an accident. You may be paying for duplicate coverage. Normally your health Insurance policy will be a better value since it probably covers such health problems. But check with them first. It can save you money on your Car Insurance premiums.
  10. We don’t file any small claims that are less than our deductibles. We only let the Insurance company know when we need it for over what our deductible amount is so they don’t raise our rates.
  11. The older our car gets the lower the value is on it. We like to check the Kelly Blue Book value on line but you could always go check with a car dealer and see what they say your value is. If our car value gets under $3,000, we think about dropping Collision Insurance and saving us more Car Insurance premiums.
  12. We also figured out how many miles we drive on each vehicle and let the car insurance company know. We saved more money on auto car insurance since now working from home I normally only drive 3,000 to 4,000 miles a year.
  13. Umbrella Insurance is something to check with your insurance agent if you don’t have it. Especially if you have a lot of assets that you want to protect. We don’t want to lose our net worth so that is why we are looking at Umbrella policies. I just feel it is better be safe with all the lawsuits going on.
  14. When car shopping thing about how much Car Insurance may be also. We check with Insurance companies on what it would cost for different makes, models and years of cars we are looking at. It could save you some money.
  15. Disability Insurance is saved for last but it is an important one we feel. When I was working I always bout it. Check with your employer and see what they cover and when it starts paying out and of course what the cost is. Then shop around with Insurance agents to get the best coverage. Disability coverage I believe will replace 60 to 75% of your income while you can’t work. I know of people who had freak accidents and being out of work for three to six months. They had no emergency funds and no other sources of income so they ran up a lot of debt.

Our total Insurance from Health, Auto, Home and other Insurance will cost us this next year $6,415 due to Logan being on our Car Insurance. Ouch…. If our home expenses come in at $50,000 that would be 12.83% of our Total Expenses. If Logan wasn’t on our car insurance our total Insurance expense would be 8.83% next year.

We hope that with Logan getting the Insurance in his name next year that it will help build up his credit rating. We hope the boys learn from us and live Debt Free. To pay cash and if they do use a Credit Card for points that they pay the balance off at the end of the month.

We suggest that everyone has an Insurance Agent that they trust and like to work with so they can get the correct products and coverage for their situation. Insurance agent is an important part of our Financial Team that we have. The above is just showing what we do and in no way advice for your situation.

I will say again though because I feel it is so important – Shop around for the best price for the amount of coverage you need. You can save a lot of money getting quotes from many companies. We have switched twice since moving down here in Arizona. It wouldn’t be a bad idea to shop around once a year.

Here is two positive quotes I like; “There is no way to happiness; happiness is the Path.” By Buddha

“Change Your Thoughts – Change Your Life” by Wayne W. Dyer

Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.

Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.

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