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Health & Fitness

Sick of Insurance? Turn That Frown Upside Down!

Sick of your insurance? Don't understand it? Does it feel like paying taxes? Learn more about insurance and saving money. Tips for youthful drivers featured in this post.

We're all exposed to the invasive advertising tactics of insurance companies these days. It seems at times you can't go anywhere or watch anything on TV without seeing some insurance company's marketing campaign. Discounts here, save money there, blah blah blah. Unfortunately, this over-exposure and inundation has caused most people to associate insurance with the word "UGH!"

The truth is that everyone needs insurance, yet very few people are interested in talking about it. Many consumers are so worried about fighting off the next sales pitch that they neglect to ask the important questions. That's why we've decided to start a little insurance FAQ blog; we want to help you understand what your hard-earned money is purchasing.

Think about your monthly budget for a second... What is your largest expense on a regular monthly basis? Most likely, your answer is a mortgage or rent payment. What comes next? Car payment? Groceries? Where does insurance fall? 

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Realistically, insurance is usually the third or fourth-largest expense in a household's budget, yet most consumers bury their insurance statements in the file cabinet and never look over their policies. When you purchased your car, did you tell the car salesman you had an income of $xx,xxx and you'll buy whatever he's got on the lot? Most likely not. Since insurance is a large piece of your budget, it's important to understand what you're getting for your money, and actively manage that expense.

Let's put all the brand names and sales pitches aside—the goal of this blog is to help you better understand your insurance. We're going to help you make sure you're getting the most for your insurance dollars, while also educating you on some exposures you may not be aware of.

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Anyone have TEENAGE DRIVERS? Let's start there!

Teen drivers are a topic that cause most parents to hear the "Jaws" soundtrack in their heads; the insurance company smells blood in the water, and it's time to dig deep into that checkbook!

It's usually not that bad. Yes, teenage drivers are a higher risk. They are more likely to be involved in an accident and therefore the premiums for young drivers are more expensive. Most companies provide opportunities for teens to lower the impact on Mom and Dad's pocketbook—here are a couple facts about youthful drivers you may not know:

1. Most companies have different age classes within the "Youthful Driver" classification. The rates decrease as they hit milestones, such as ages 17, 19, 21, 23 and finally 25. After age 25, they are considered an adult driver.

2. Most companies give discounts for grade-point averages higher than 3.0 in the previous semester/trimester/quarter. No B's, No Keys!

3. Some companies also have safe driving programs for youthful drivers to complete. Completion of these programs will get you an additional discount.

4. Accidents and violations only last three years on the driving record (as far as insurance companies are concerned). If Suzie has a fender bender, it's not the end of the world. Your rates will most likely increase by the specific company's surchargeable limit (10 to 40 percent, usually), and will stay that way for three years. As soon as the accident is three years old, the surcharge falls off.

We'd like this blog to be interactive! If one of our posts has you scratching your head but doesn't quite answer your question, please feel free to ask. If we get some good questions, we may even create a separate blog post specifically dedicated to them. Thanks for reading, and stay tuned next week for more!

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