We've been discussing the many advantages of owning Renters Insurance. Click BACK TO PART 1 if you missed the first part. 
Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you and there’s ALSO coverage in your RENTERS INSURANCE for THAT !
For just pocket change a day, RENTERS INSURANCE can provide affordable basic protection for your personal property,
AND in case of a liability lawsuit.
Someone slips and falls in your place,
breaks their leg, or cuts their hand. (bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $300,000 limit is important there (more if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $2/month, you get TRIPLE the coverage. Almost a crime not to take that.
BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Medical Payment also pays for…. YOU GOT IT…. It pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.
BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS ! ! Hopefully you won’t be out that long,
but it’s THERE IF YOU NEED IT ! ! ! !
BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!! (see, I told you....)
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew your policy each year, it will be for the newer IMPROVED amount of coverage.
BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!!!!
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.
“WOW”, you say!
And all for about the price of a DVD a month.
Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.
For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.
Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.
You know what?... Just ask us when you’re here in the office and we’ll walk you thru the whole deductible question. Takes about 3 minutes…
SO what’s the best way to buy this Miraculous RENTERS INSURANCE???
RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.
We have convenient calculators in our office to estimate this for you.
RULE #2 – Take the biggest deductible you can afford. (within reason). What does THAT mean????? Well, don’t increase your deductible from say $500 to $1000 if is only saves you $13/year.
We can help you walk thru those numbers and find the best blend of deductible and price...
Takes about 3 minutes.
RULE #3 – Get at least $300,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.
You need someone who explains and helps you with this. It’s just what we do...
RULE #4 – Only get policies with REPLACEMENT COST coverage. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.
Looks like this. Someone steals your 8 year old TV set that’s worth $75 and a new one is $350, we’ll pay you based on the $350 rather than the $75! VERY COOL!
We automatically add this one too. Unless you don’t want it...
RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.
We automatically add this to all your policies unless (for some reason) you tell us not to.
RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.
We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.
This is so simple and easy to do.
We do all the work for you and in less than 30 minutes, you’ll have protected your stuff, your current assets and your future earnings.
Why somebody wouldn’t have RENTERS INSURANCE is simply beyond me.
So, here’s what you get…
We’ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you're buying the insuance you need: NOTHING MORE, NOTHING LESS.
Yep, you guessed it…
All for about the price of a DVD A month…
No insurance product offers you more BANG FOR YOUR BUCK than simple, but oh so powerful RENTERS INSURANCE….
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
Spring Valley Auto Insurance Quote, Renters Insurance Quote, Homeowners Insurance Quote
My 'Other Blogs'
This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
OK ! I know you’re thinking ‘What could possibly be so Fabulous or COMPLEX about Renters Insurance?’
Well…. Here’s the inside scoop !
Here’s a little overview….
(All policies are slightly different. These are examples of what a typical policy might have.)
WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Renters Insurance,
let’s talk about the WHY!!
Why would anyone need renters insurance….
The answer is simply this…
Because you’ve got LOTS OF STUFF ! !
“No I don’t,” you say…
Well, imagine, JUST FOR SECOND, if you would please…..
You’re sitting outside on a cool October night. You have a warm wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that’s just dumped 30,000 gallons of water on your, now black and flattened residence.
You’re just a little freaked out but you’re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that’s still smoldering from the heat of the fire. It’s all gone: your entire wardrobe, TV and DVD player, stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least…. your treasured iPod.
Here’s a typical list of the average single-person household. If there’s 2 or 3 or more of you, it’s even higher
Personal Property Replacement Value
TOTAL PERSONAL PROPERTY $24,948
You see, here’s the problem with all that STUFF…. You bought it just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it’s all there cluttering up your drawers, your closet and every other space in your place.
I know…You’re probably thinking that RENTERS INSURANCE is really expensive. Well here are the facts….
“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…
Of Course It Could ! !
But we’ll talk about that in a minute.
So…. For just about the cost of a DVD a month, you get protection for
ALL YOUR STUFF.
Protection for all your stuff ANYWHERE IN THE KNOWN UNIVERSE. Doesn’t matter if you’re in the good old US of A, Mexico, China or Australia…
If your stuff is stolen from your car,
IT’S COVERED!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance !
Here’s all the kinds of things that your stuff could be covered for…
So you can see that there’s coverage for many different circumstances. Realistically, the most likely ones you’ll need in your lifetime are FIRE, THEFT, SMOKE DAMAGE and maybe VANDALISM.
So for the price of a DVD A month you get all that…
And just like the TV commercials tell you….
BUT WAIT ! ! ! ! THERE’S MORE COMING IN PART 2 ! ! ! (this WILL begin to sound like a Ginsu Knife Commercial!!!)
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
Spring Valley Auto Insurance Quote, Renters Insurance Quote, Homeowners Insurance Quote
My 'Other Blogs'
This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
We've been evaluating 10 Ways to Beat the High Cost of Auto Insurance. Part 1 included the introduction and Ways 1-3. We'll finish it up here.
4. EVALUATE YOUR MEDICAL COVERAGE -
Medical Payments coverage is designed to pay for injuries sustained by you and anyone else in your car. Particulars of this coverage vary so the details are best discussed with your agent. But, here's the basic idea.
If you have good medical insurance through your work or a private plan, it may be wise to minimize your medical payment coverage on your auto insurance. As far as the coverage applies to you, there is probably a lot of overlapping coverage. It is probably not a good idea to drop this coverage completely as you are never sure just what kind of health insurance others that ride in your car may have. Limits available on this coverage usually range from $1000 per person up to $100,000 per person. Driving around with $100,000 of coverage when you have adequate health insurance may be some overkill. A limit of $1000 or $5000 per person might make more sense. On the other hand, if you do not have adequate health insurance, then the premium for the $100,000 of coverage might be money well spent!
Weigh the benefits and decide what is best for you.
Once again! This can be a very tricky area so the details are best discussed with your agent. A complete understanding of your health insurance coverage is necessary before making any decisions to cut out your auto medical coverage.
5. WEIGH THE VALUE OF "FRINGE" COVERAGES -
Insurance companies offer a variety of coverages other than the core coverages of Liability, Medical, Comprehensive, Collision and Uninsured Motorist Coverage. They offer these coverages because they are additional ways to generate premium dollars for the company. Generally, the company makes money on these coverages. Consider them carefully before buying them even if they are only a few dollars apiece. Some of them are very worthwhile and some are not. You need to make your own best decision.
One of the most commonly offered coverages is towing or emergency road service. The premium is usually nominal and lets face it, even the most well maintained cars occasionally break down. Towing coverage runs about $6 per year. The average tow can cost $30-$50 and more. That's one tow that can cost you seven years of premium. If you think the odds are pretty good that in the next seven years you will need some roadside service, then it might be a good idea to get the coverage.
Auto Death Indemnity is another coverage that is commonly offered. It provides coverage for death when caused by an automobile. It should never be used as a substitute for a good life insurance portfolio. Auto Death Indemnity can insure the principle operators of the vehicle and some companies also offer coverage for the children and other relatives of the insured that reside in the household. This coverage can also provide compensation for dismemberment; the loss of a hand or an arm as the result of an auto accident.
Some companies offer Auto Disability coverage. This is the coverage that is designed to replace part of your paycheck if your are disabled in an auto accident and are unable to perform your normal occupation. The limits of this coverage are usually very limited and again should not be used as a substitute for an adequate disability insurance program.
Remember, these life and disability benefits only pay for losses that are auto related. If you are killed or disabled because you fall from a tree or drown while swimming for instance, these benefits will not pay.
Some people are in either temporary or permanent situations that prevent them from buying basic life and disability coverage. These fringe coverages can offer some coverage but should be backed up with the more traditional forms of life, health and disability insurance whenever possible.
6. DOUBLE CHECK YOUR MILEAGE -
Most companies consider the mileage you drive quite heavily when computing your premium. Be sure to learn from your agent what the categories are and just where the markers are between short and long mileage. Become an expert in this area! It can put dollars in your pocket. Definitions may vary greatly between companies.
There may be categories for annual mileage, long and short mileage for commuting back and forth to work. Some companies may not place you in the commuting category if you drive less than 30 miles per week to and from work. If you car-pool, be sure to count only the miles that your car commutes. If you drive 60 miles per week to and from work but only drive one week out of three then your commuting average is 20 miles per week. If you have a spare car sitting around check to see that it is rated as pleasure only and short annual mileage. Consider alternating cars that drive the farthest to work to possibly get a short mileage rating on both cars. Ask you agent to work with you to find the best combination for your situation.
7. DOUBLE CHECK YOUR TICKET AND ACCIDENT RECORD-
Insurance companies handle thousands of policies on a daily basis. They make mistakes on a daily basis! You may be being charged for tickets and accidents that are not yours! Check with your agent to see exactly what items show on your record that may be increasing your premium. If you are not sure what you should have, go to local motor vehicle office and ask for a print-out of your record and compare it with the insurance company records. Removing these errors can save you up to 30% and more on your premium.
8. GET ALL OF THE AVAILABLE DISCOUNTS -
Discounts offered by insurance companies are as varied as the cars they insure. Cross examine your agent to be sure that you are getting every possible savings opportunity that you can! Ask for a list. Check for the availability of the following discounts: Non-Smoker; Accident-Free; Citation-Free; Longevity with the company; Passive Restraint Devices (such as automatic seat belts and air bags); Car Alarm; Over 21; Over 50; Over 65; and Driving Safety Course Completion. Marketing conditions dictate that insurance companies constantly update their discount programs. Be watchful in your renewal notices for notification of new ways to save your premium dollars.
9. USE CARE IN RATING YOUR YOUTHFUL DRIVER -
Certainly one of the most ex
pensive items for young people today is the cost of auto insurance. Because the inexperienced operators do cause a higher percentage of claim costs, they get to pay higher percentage of the premiums. Take heart! There are ways to effectively minimize the impact on your checkbook.
By far, the greatest savings on the insurance bill is wrapped up in the kind of car that the youthful operator drives. Almost 50% of your premium is shelled out to protect the more expensive car that is too valuable to withhold comprehensive and collision coverage. Consider buying a car that is within your "write-off" limit as defined in your Financial Picture. I fully realize that selling this idea to your 16 year-old may be much more of a challenge than just paying the higher premium! But, it will provide substantial premium savings.
Additional tricks for the youthful driver include the Good-Student Discount. The usual threshold is a 'B' average or better but some companies will accept statements from the school that the student is in the upper 20% of the class or similar alternative requirements. Some parents have made the 'B' average the requirement for the young person to drive. No B's- - -No Keys! Check out all of the rules of your company involving the rating of youthful operators. Some companies offer part-time driver rates that are substantially less than the full-time rates. This area can be very tricky! This is the time to get down and get serious with your agent. Also ask your agent when the company will start to charge you the increased rate. Some companies will not begin to charge you the increased rate until the first renewal after the addition of the youthful operator.
10. SHOP FOR SERVICE AND PRICE -
Managing your insurance is not an easy job. The more work that your agent does for you the less work you will have to do. It is important to have both the service you need and the price that you can afford. Some companies offer agent service and others do not. Some cost less, others more. As in each of the management decisions we discussed above, you must weigh the cost versus the benefit. First you must decide what kind of insurance buyer you are. Do you like to get into the nitty gritty yourself or do you prefer to have someone do all of that for you? Are you willing to follow-up on changes and claim activity yourself or do you just not have the time? Do you feel a certain security from being with one company for years or can you jump from carrier to carrier with each renewal notice?
Find out from your company what benefits you gain as you stay with the company over the years. Some companies offer increasingly larger claim-free discounts the longer you are with them. If you encounter some ticket or accident problems, some companies will even reconsider cancellation of your policy if you are a long-time, loyal policyholder. Remember when you shop for insurance to weigh the parameters of your longevity and familiarity with the company, their price, and their service. Consider also the relationship with the agent, his or her willingness and availability to assist you with these ongoing decisions or the availability of service personnel with a non-agent company. You are the consumer. There are companies to suit every style you can imagine. Find what is best for you!
HOW MUCH LIABILITY COVERAGE - 
This is the part of your insurance that pays for the damage done to the other person or property when the accident is your fault. Cut, slice and trim as much as you like in the areas above but be wise here. This is the part that protects your home, your future earnings, and whatever other assets you have managed to accumulate thus far. Some state minimums are down in the $15,000 per person range. A seriously injured person can spend that money without ever leaving the emergency room! Don't be Penny-wise and Pound-foolish in this area. Consider as a minimum at least $50,000/100,000/25,000 or a single limit of $100,000. I would recommend buying more than that but at least start with those limits. This point may not save you a lot of money but it will save you a lot of sleepless nights wondering if that accident that you caused in that one moment of inattention will wipe-out your life savings and your future earnings.
IT'S YOUR MONEY !
Yes, the proper management of your insurance does take a little time, study, and effort. You can effectively manage those premium notices that previously seemed to be out of control. Learn to weigh the savings with the benefit and make decisions that are best for you. Stay within your Financial Picture and update your portfolio at least once per year. And remember: The money you save just might be your own!
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
My 'Other Blogs'
This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
Insurance has been one of the necessary evils of life for over 100 years. In this day of higher taxes, rising food prices and soaring housing costs, it is possible for you to get a handle on your own auto insurance costs. If you have been frustrated by an inattentive agent and constantly rising insurance premiums, this is the post for you!
Insurance can be complex and technical. Some people are paralyzed by simple buying decisions. Should I have collision coverage on my 15 year-old car? Would it make more sense to have a $500 deductible instead of a $100 deductible? Since I have adequate medical coverage at work, do I really need medical coverage on my car insurance as well?
I will show you how nearly all of your auto insurance-buying decisions can be simplified by answering 3 simple Test Questions.
With the overall cost of living swelling up around us, and insurance taking an increasingly larger portion of our income, it is important that we leave no stone unturned in controlling our insurance dollar! During the period from 1970 to 1990, auto insurance costs rose 40% faster than the overall cost of living. With this kind of increasing burden on your already stretched consumer dollar, it is imperative to get a handle on the auto insurance portion of your budget. One of the most important parts of your strategy is your agent and the working relationship that you share.
Sometimes, a newer agent will be energetic and willing to take the time required to effectively manage your insurance portfolio. But the newer agent may lack the experience required to exercise all of the potential money-saving applications available. Your agent must be experienced enough to know the ins and outs of the rating rules of the insurance company. Each company has rating and underwriting rules that, if properly applied can save you big dollars on your premium.
Your agent must also be willing to invest the time required to orchestrate your insurance portfolio. Older and more experienced agents generally know all of the little tricks but lack the drive and initiative to be of any real help to you. Some of the methods described below require personal and concerned attention. Agents that are too busy to sit down with you and devote the kind of time required to milk every ounce of protection out of your insurance dollar do not deserve your business. If your agent is hard to reach or doesn't appear to be giving you a 100% effort, don't give him or her even 1% of your insurance money!
Find another agent !
There are agents out there that have the right blend of experience and availability for you. Don't sell yourself short here! You should be as willing to spend the time necessary to find a good agent as you are to shop for a competitive price. Furthermore, you must be willing to be ever vigilant in the management of your auto insurance. As you will see in the methods below, each time any part of your life changes, it may require some change in your insurance coverage. Each time one of these changes occur or when you receive your renewal statement, take a moment to consider your current needs verses your current coverage. The longer you wait between review sessions, the more money you may be needlessly giving the insurance company. When your renewal bill comes due, DON'T BE CAUGHT SLEEPING AT THE SWITCH !
TAKING YOUR FINANCIAL PICTURE -
Insurance is simply the management of risk. Owning and driving an automobile is a risk. You risk injury, loss of your vehicle, and potential liability for damage to others. The purchase of insurance is merely an agreement with the company to transfer some of your risk to them. You are saying, "I choose not to assume all of this risk myself. In exchange for my premium dollars, the insurance company will suffer some of the financial loss instead of me." With this thought in mind, you must decide how much risk to transfer and in doing so, decide how much risk you are willing to keep yourself in the from of deductibles and unpurchased coverages.
Before we can get to ways to save money on your premium, you need to take a short inventory of your financial picture.
Before you get to deciding whether to take a $100 or a $500 deductible on your collision coverage you first need to decide that you can reasonably handle a $500 loss. So before we jump into any tricks of the trade, lets take a moment to diagnose your "loss threshold."
Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!
In addition to settling on your personal loss threshold, it is important to consider your previous history of insurance losses. If you have had several losses in the last 10 years, you may be wise to lean more heavily on your insurance coverage. If, on the other hand, you go almost forever between losses, you will save premium dollars by assuming more of the risk yourself in the form of higher deductibles or dropped coverages. Now, if assuming this extra risk is going to give you some sleepless nights and make you a nervous wreck every time you get into your car, then don't do it! Part of what you buy in the purchase of insurance is peace of mind.
What matters most is where you are comfortable. Take a moment to apply a value to your "Loss Threshold." Try thinking in terms of $50, $100, $250, $500, and $1000. How much money can you, with peace of mind, place at risk? As you will see below, once you determine your Loss Threshold, you need only to weigh the cost of the coverage versus the potential for loss to you. Insurance can be a reasonably simple commodity to manage.
1. DROP YOUR COLLISION COVERAGE-
So you have been driving "Old Betsy" now ever since Noah was working on his boat. To you, its worth every bit of what you may have paid for it way back when but to another car buyer, its just an old bucket of bolts, rubber, faded upholstery. Unfortunately, the insurance company views your precious 4-wheeled family member with the same cold business approach as a prospective buyer. Its only worth...well, its worth a lot less than you would hope.
There comes a time in the life of almost every car when its value does not warrant the cost of collision coverage any longer. Collision coverage is that portion of your insurance that pays to fix damage to your car suffered by a collision. You will need this coverage for your car when you are in an accident that is your fault or if your car is the victim of a Hit & Run accident. Looking back to your Financial Picture we discussed above, compare the cost of your coverage with the potential for loss.
In discussions with your agent or by examining your renewal bill, identify the annual cost of your collision coverage. By looking in the newspaper or car-trading publications, determine the actual retail value of your car. Be careful to be objective here and remove whatever emotional attachment you may have to your car that might unrealistically increase its perceived value.
Let's say that the real value of your car is $1200 and the annual cost of just your collision coverage with a $100 deductible is $150. Now here are the Test Questions:
If the answers to these questions are yes, then you might be well on your way to cutting your insurance costs by dropping your collision coverage. These simple Test Questions can be applied to virtually any insurance-buying decision. Take a look at the next example.
2. DROP YOUR COMPREHENSIVE COVERAGE -
Comprehensive coverage like collision coverage is designed to protect your car from loss. Much of the same logic that we applied to collision coverage can be used to decide on the fate of your comprehensive coverage. There are, however some important considerations to weigh in your analysis.
Comprehensive coverage covers almost anything that happens to your car except collision. The most commonly submitted claims are broken windshields, stolen hub caps, stolen stereos, vandalism and theft of the entire vehicle. Note here that many of these losses produce the same
amount of financial loss regardless of the value of the car. It costs virtually the same to replace a windshield in a 75 Ford as it does in an 85 Ford. Consider also that the cost of comprehensive coverage is much less than collision coverage. The ratio between money saved and dollars put at risk is smaller and therefore you may be less eager to drop this coverage. Ask yourself the Test Questions that we did for collision coverage and make an informed decision.
If your vehicle is financed or leased, always remember to check with your financial institution before changing these coverages. Your loan contract may have certain requirements and deductible limitations that somewhat restrict your options.
3. RAISE YOUR DEDUCTIBLES -
If deleting collision and comprehensive coverage puts you at greater risk than you are willing to assume at this time, you may want to consider increasing your deductibles as a compromise. As you increase your deductibles you decrease your premium. The insurance company is going to give you a break on your premium here for two reasons. First, when you have a loss, the insurance company will pay you less money when you have a higher deductible. Secondly, with a higher deductible, you will have fewer claims that are presented to the insurance company in excess of your deductible.
When you take a higher deductible you are saying that you, for the consideration of a lower premium are willing to assume a greater portion of the loss yourself. You trade the certainty of a lower premium for the uncertainty of more loss to you should a claim occur.
If you have decided in your Financial Picture that you are comfortable with a $500 loss (and the premium savings is enough) and you own a car worth $3000 then you probably do not want to drop your collision coverage completely. But you can increase your $100 collision deductible to $500 and your zero comprehensive deductible to $100. Let's examine the numbers. If you save $30 per year on your comprehensive coverage and $65 per year on your collision deductible you realize a $95 per year savings the first year and every year thereafter. You are only increasing your risk by $100 on the comprehensive coverage and by $400 on the collision coverage. Remember you already had a $100 deductible on collision and increasing it to $500 changes your participation in the loss by $400. Again, ask yourself the same questions.
You may be beginning to see that insurance is not all that difficult! If the answers are primarily yes then most likely an increase in deductibles is right for you.
In Part 2, we'll examine the rest of the 10 Ways to Beat the High Cost of Auto Insurance.
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
My 'Other Blogs'
This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
Beware Of Your Term Insurance -- THE TICKING TIME BOMB!
WHAT KIND OF INSURANCE IS BEST FOR ME?
If you’ve read any of our other reports, you’ll know that even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”
I want to end that for you.
I know that not all insurance is "created equal". Life insurance is certainly no exception. Placing all your coverage in TERM LIFE INSURANCE can be one of the costliest mistakes you could make.
To help us get started, please answer this question for yourself:
WHEN DO I WANT MY LIFE INSURANCE TO BE IN FORCE?
(IN FORCE means that it’s paid, current and ready to pay a death benefit if you should die. )
Well, the obvious answer is: WHEN I DIE!! Of course…
OK, when do you plan to die????
The next obvious answer (at least MY answer is) When I’m old.
VERY OLD.
THE OLDER, THE BETTER!
Let’s face it. You purchase life insurance really hoping that you’re NOT going to use it any time soon. And you know what? Odds are that you probably won’t. Most likely you’re going to die when you’re older – Much older. But just in case you don’t, you purchase life insurance to protect the financial future of those you love.
So let’s look at the facts of term life insurance. Nothing emotional or prejudged – Kind of like an FBI agent just examining the evidence to see where it leads.
Here’s what Term Life Insurance life rates look like. This is just a typical example for a $100,000 5 year Term Policy, Male, non-tobacco rates. You can get different rates from a hundred different companies. What will be the SAME from ALL THE COMPANIES is the UPWARD TREND of the rates.
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FACT #1 – Term life insurance is not very expensive when you are young. Notice how the rate doesn’t even change for the first 3 years.
FACT #2 – Term life insurance premiums increase as you get older. Take a look at the chart. Except for the first few years, the rate increases EVERY YEAR.
FACT #3 – Term life insurance gets VERY EXPENSIVE when you’re older. Notice how it increases VERY SLOWLY until about age 50 when it really starts to take off.
FACT #4 – The premiums you pay for term life insurance never come back to you. You see term insurance is kind of like renting an apartment. Certainly cheaper every month than buying a house, but when you leave you leave all your hard earned money with your landlord.
FACT #5 – At some point in time, you’ll look at your monthly premium for your term life insurance and say, “I just can’t afford this any longer.” It usually happens just about the time you retire and your income is going down a little and the cost of your life insurance is rocketing through the roof! Check the premium at AGE 71… WOW!
Could be a problem, don’t you think?
At age 71 you may not need the insurance any longer. But let’s just say that you do. Maybe the house isn’t quite paid for, there’s some money you’d like to leave to family, grandkids, spouse, your church… could be a hundred different reasons. The problem is that if you want to keep your insurance, you probably can’t because it’s just become too expensive for you.
Wouldn’t you like to have the option to keep it or not?
Let me show you how you can have that choice then by making a simple decision today.
Get a small permanent life insurance policy today that will give you options when you are older.
Here’s what permanent insurance can do for you.
1. Provides you with insurance you can keep for the rest of your life.
2. NEVER increases in premium.
3. Usually allows you to stop paying the premiums just about the time you retire and REMAIN INSURED FOR THE REST OF YOUR LIFE.
4. Sometimes you can even have the policy PAY YOU a monthly income.
(I’ll include a few more for you at the end of this section…. Look or this little guy again. ---------------------->
Remember -- Odds are you’re going to live and your term insurance isn’t going to pay a death benefit for you. But it fills a need when you’re young. Generally in your younger years 30-55, your financial responsibilities are high. You have kids, house payments, extra cars, college to pay for, on and on and on…
Usually, when you hit 55-60 or so, those obligations are MUCH LESS! You don’t need the amount of life insurance you needed when you were younger. The kids are out of the house, you have fewer cars to “support”, college is done, the house is paid for (or nearly so…).
BUT…. There will still be expenses to handle when you die – Funeral, maybe some small debts to pay off, or possibly you need to provide an income for your spouse at the loss of you retirement income.
The cheapest way to pay those expenses is ALWAYS WITH SOME LIFE INSURANCE. Much cheaper than drawing money out of the savings account.
But here’s the problem with that…
If you need $500,000 of insurance coverage today because your obligations are still in the fast lane, you probably can’t really afford to buy all of your life insurance as PERMANENT insurance.
$500,000 or permanent insurance would cost you at least $300-$400 per month.
And here’s the answer….
Life insurance is the ONLY kind of insurance you buy where you’re GUARANTEED to make a claim. Your term insurance may or may not be in force when you die. Your permanent insurance will be.
And here’s the real rub! Even if you decide to pay the additional premiums, TERM insurance is usually only renewable to a certain age. You may live longer than the policy can be renewed
Here’s some more benefits of permanent insurance if you choose UNIVERSAL LIFE as your policy:
5. Your earnings are TAX DEFERRED which means Uncle Sam actually is helping you pay your insurance prem
iums.
6. Your policy PREMIUMS are flexible which means that if you hit a period of financial hardship you can actually STOP PAYING for a short period of time and continue to be insured.
7. You can adjust the amount of your coverage up and down depending on your changing needs. (you’ll need to be insurable of course to increase the coverage unless you’ve planned ahead by adding GIO to your policy. Good to get, but too much to explain here. Ask me when I see you.)
Get the numbers on your own permanent insurance plan. For just the price of a Starbucks a day OR LESS, you can have the peace of mind that comes with owning a permanent insurance plan that can make your life so much easier when you are older.
NO obligation, no pressure, just take a look then decide.
Just give me a call 619-670-1000 or drop me an email to dennis.volz.b8t6@statefarm.com
I just need to know three things:
1. Your age
2. If you want $50,000, $75,000, or $100,000 or permanent insurance (you can choose any amount above $50,000 of course, but most choose one of those three.)
3. Do you use tobacco in any form?
I’ll print out an illustration of your policy and meet with you for about 15 minutes and then let you decide.
It just doesn’t get any better -
OR EASIER - than that…
You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!
Sincerely,
It's a Good Life !
Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com
My 'Other Blogs'
This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
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We're a 30+ year insurance agency serving the greater San Diego County area. We provide world class service to our customers and comprehensive insurance coverage.
Visit my Agency Web Site...at www.DennisVolzInsurance.com
I've been in the insurance business for over 30 years. I absolutely love what I do and couldn't imagine any other kind of profession...(well, maybe zillionaire actor or a famous musician, but other than that)....I'm happy doing what I do.
We strive to be the "small-town", personable insurance agency backed by a major, nationwide insurance company.
Our mission is to enable our policyholders to effectively manage the risks of everyday life, help them recover from the unexpected when it happens and to realize their dreams through conservative, conscious, methodical investment opportunities.
The Dennis Volz Agency specializes in custom-packaging insurance needs. By packaging needs together, we are able to offer great discounts as well as convenience for our clients. Many of our clients for example choose to combine their Home, Auto, & Life insurance into one easy monthly payment.
Another specialty of the Dennis Volz Agency is servicing the Real Estate and Mortgage Industry. We offer real estate agents and mortgages brokers the opportunity to align themselves with the nation's largest home insurance company. Our company insures 1 out of 5 homes in the United States! As a local office, we can work closely with clients, whether it be in the evening, weekend, in person, or online. One phone call to our office and you will know why we are one of San Diego's fastest growing Insurance Agencies.
We love to work with first-time home buyers and renters who are on their way to homeownership. We encourage all our clients to have a regular savings plan and written budgets to help them acheive their dreams.
We also help families manage the hazards and blessings of raising a family with excellent coverage for youthful drivers and offering to counsel them on the habits of safe driving along the way.
Finally, we love to protect the most important asset, the bread winners in the household with cost-effective, comprehensive life insurance protection.
Graduated from San Diego State University in 1974. (yes it was in existence then...:) ) After that I spent 3-1/2 years in the United States Marine Corps as a Supply Officer (right choice for me..."We Stay in the Rear with the Gear")
Married to one lovely lady for almost 35 years now. Three amazing children all twenty something. One grandson, 2 dogs.
Did some stunt flying in my younger years for fun. Had a blast doing that. Once our first child was born, thought it best to knock that crazy stuff off. Had lots of fun growing up in the 60's. Saw concerts by Joe Cocker, The Temptations, Martha Reeves and the Vandellas, Stevie Wonder, Neil Diamond, The Turtles. Never managed to catch my fav group of all time in concert -- The Beatles. Have all their stuff on my iPod though and love to drive around San Diego rockin to the Sound of the Sixties.
Now I'm thrilled to be a dad and a grandpa and enjoy times spent w/ the fam just hanging around doing everything and nothing.
It's definitely a good life and I look forward to making many good friends here on ActiveRain.
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