A recent survey from the Insurance Research Counsel states that hundreds of thousands of driver have let their insurance lapse because of financial hard times. As the jobless rates climb, so will the number of people choosing to go uninsured. The story is the same, “which bill do I pay the insurance or the electric?”
The trend is bad news for everybody on the road. If you're hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage -- almost half of states require the added coverage -- but this may boost your premium.
Many of the people on the road are either uninsured or underinsured, and so you have to protect yourself. Your odds of being in an accident with an uninsured driver are substantial.
One of my clients had a down turn in his business and reduced his coverage to a bare minimum to save costs. Against my advice, he cancelled all covergaes except liability. As you can probably guess, he was hit by an uninsured driver, who then fled the scene. In tough economic times, he now has substantial damage (in excess of $10,000) that he has to pay. To make matters worse, he was injured.
Motorists driving without insurance also face risks. If you are found at fault for the accident and a judgment is awarded, a court could order liens on you assets. If you don’t have attachable assets, you could be set up on a court ordered “payment plan.” Also, driving without insurance is illegal in 48 states and the District of Columbia.
It’s an ugly situation, so before you decide to let all you policies lapse, talk to you agent. There are often things that can be done to ease the financial pressure without sacrificing your long term financial future.
Thursday, December 18, 2008
Tuesday, December 9, 2008
Gadgets! Gadgets! Gadgets!
I saw this in Forbes and thought it was interesting…From Bluetooth to Blackberrys, from Widgets to Wifi, the way we live, work and play is being transformed by technology.
• 82% of cars in 2009 will be equipped for Bluetooth wireless communication.
• 14 million subscribe to Blackberry.
• 31% of cell user’s text message daily.
• 160 million I pods have been sold worldwide.
• 4141 Widgets are on Yahoo.
• $500 million in projected sales of GPS devices by 2015.
• 82% of cars in 2009 will be equipped for Bluetooth wireless communication.
• 14 million subscribe to Blackberry.
• 31% of cell user’s text message daily.
• 160 million I pods have been sold worldwide.
• 4141 Widgets are on Yahoo.
• $500 million in projected sales of GPS devices by 2015.
Wednesday, December 3, 2008
Put Identity Theft Protection on Your Shopping List
Last month, someone in Newark, New Jersey got my debit/visa information and nearly emptied my account. Fortunately, my bank, Bank of America, caught it and put an end to their evil plan. But it got me thinking; we should all take extra care during this time of year.
The craziness of the holiday shopping season creates ample opportunity for crooks bent on stealing your credit cards or financial information. People become tired, the stores are crowded and so it’s easy to become less guarded about personal information such as driver’s licenses, personal checks, social security numbers and credit cards. Thieves can take this information and empty bank accounts, open credit cards and even establish phony insurance policies.
I did a little Google searching and found that nearly 8.5 million Americans had become victims in 2005 alone.
Here are some tips that may help:
• Keep the amount of personal information in you wallet or purse to a minimum.
• Guard your cards; don’t let people see them
• Always take your receipts and don’t throw them in a public trash
• Only buy from reputable on-line retailers
• Order a copy of your free credit report and make certain it is accurate
• Password protect your credit cards and bank accounts. (And use real passwords, not your kid’s name, or your DOB.)
• Monitor your accounts. Know how much money you have.
• Do not give you personal info out over the phone or online unless, you initiate the contact.
• Shred personal documents.
To irritate the crook even more, have the credit reporting agencies to put a fraud alert on your account. This way, they must notify you before opening a new account or changing an existing one.
Even if you do all those things, you may still become a victim. So, call your insurance agent for help. Some insurance companies include identity theft coverage as part of their homeowners’ policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. This coverage gives you reimbursement for the expenses associated with the identity and credit restoration process including phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). They may also include the added services of a fraud specialist to assist and guide victims through the process of restoring and protecting their identity. Contact your insurance agent or company representative to find out what kind of coverage is available. The cost is minimal ($25 per year at State Farm) and well worth the investment.
Now that you are protected, go out and spend some money and fuel the recovery!
The craziness of the holiday shopping season creates ample opportunity for crooks bent on stealing your credit cards or financial information. People become tired, the stores are crowded and so it’s easy to become less guarded about personal information such as driver’s licenses, personal checks, social security numbers and credit cards. Thieves can take this information and empty bank accounts, open credit cards and even establish phony insurance policies.
I did a little Google searching and found that nearly 8.5 million Americans had become victims in 2005 alone.
Here are some tips that may help:
• Keep the amount of personal information in you wallet or purse to a minimum.
• Guard your cards; don’t let people see them
• Always take your receipts and don’t throw them in a public trash
• Only buy from reputable on-line retailers
• Order a copy of your free credit report and make certain it is accurate
• Password protect your credit cards and bank accounts. (And use real passwords, not your kid’s name, or your DOB.)
• Monitor your accounts. Know how much money you have.
• Do not give you personal info out over the phone or online unless, you initiate the contact.
• Shred personal documents.
To irritate the crook even more, have the credit reporting agencies to put a fraud alert on your account. This way, they must notify you before opening a new account or changing an existing one.
Even if you do all those things, you may still become a victim. So, call your insurance agent for help. Some insurance companies include identity theft coverage as part of their homeowners’ policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. This coverage gives you reimbursement for the expenses associated with the identity and credit restoration process including phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). They may also include the added services of a fraud specialist to assist and guide victims through the process of restoring and protecting their identity. Contact your insurance agent or company representative to find out what kind of coverage is available. The cost is minimal ($25 per year at State Farm) and well worth the investment.
Now that you are protected, go out and spend some money and fuel the recovery!
Monday, November 24, 2008
“Is Our Home Fully Insured?”
In Southern California, during the wildfires, this question was asked many times. And the answer is that 40% probably were, while 60% were underinsured by an average of 20%. So, as you can imagine, there were some nervous people in So Cal when the temperature rose and the Santa Ana winds blew. To make sure you are fully covered, follow these simple steps:
1) Know how much is your home is insured for. You can find this information from the Declarations Page (it comes with the policy) or call your agent.
2) be aware that the replacement costs are about $200 to $250 per square foot.
3) To be fully reimbursed, document what you own. In cases where there is a dispute, documentation always wins. Keep receipts, photos and videos of your stuff. I made a documentary called “All My Shi*.” I went from room to room with a video camera narrating, “This is the couch I bought at Pier One in 2005 for $800….” Not stuff for the Academy, but it works. Once you’ve done that keep the video at your office or in a fireproof safe.
4) In the event of a disaster, call your agent and he or she will be able to help you get sorted out with emergency funds for hotel rooms, clothes and food.
The claim process can be scary, so lean heavily on your agent for guidance. But the best way to be prepared for a claim is to be certain your coverages is current. Spent 30 minutes a year with your agent and review your policies. Not only with you sleep better knowing you are adequately covered, but your agent is usually good for a cup of coffee and a cheesy keychain.
1) Know how much is your home is insured for. You can find this information from the Declarations Page (it comes with the policy) or call your agent.
2) be aware that the replacement costs are about $200 to $250 per square foot.
3) To be fully reimbursed, document what you own. In cases where there is a dispute, documentation always wins. Keep receipts, photos and videos of your stuff. I made a documentary called “All My Shi*.” I went from room to room with a video camera narrating, “This is the couch I bought at Pier One in 2005 for $800….” Not stuff for the Academy, but it works. Once you’ve done that keep the video at your office or in a fireproof safe.
4) In the event of a disaster, call your agent and he or she will be able to help you get sorted out with emergency funds for hotel rooms, clothes and food.
The claim process can be scary, so lean heavily on your agent for guidance. But the best way to be prepared for a claim is to be certain your coverages is current. Spent 30 minutes a year with your agent and review your policies. Not only with you sleep better knowing you are adequately covered, but your agent is usually good for a cup of coffee and a cheesy keychain.
Monday, November 10, 2008
Guest Blogger: Stacia Deutsch
It was an amazing week. This week, I bought insurance. For most, this wouldn’t seem like such a big deal. Covering your house, your car, your family against some catastrophe hopefully will never occur is a rather mundane necessity. But for me…this simple act of holding insurance papers in my hand was an amazing moment. One of those that instances that you tuck away in your memory file…never to forget.
I am divorced. Having been married for most of my adult life, there are a few things I never actually did for myself. Sure, I managed the house, the kids, the daily ins-and-outs of a job and family, but there were a few things that remained in “his” domain. It seems a little sexist in light of gender equality, but did I really need to be the one to roll the trash cans to the curb? File the taxes? Or obtain the insurance? No. Those were his tasks… I stepped back and was never involved.
Now, things have changed. I remember the day I first pulled those trash cans to the curb myself. I felt the pang of failure that our relationship hadn’t weathered the tests of time, but I also felt resolute, that feeling of accomplishment when you know things are going to be okay and that you will be survive whatever is to come. Pretty big feelings for such a tedious task.
I am forty years old and for the very first time in my life, I have now arranged for my own insurance. I got the papers this weekend and have not stopped smiling. I will forever thank State Farm Agent, Jim Seilsopour. He understood that this was a big moment for me. I might have a master’s degree, but I didn’t have the right vocabulary. He explained the coverage in terms I could understand. He explained umbrellas and liability. Jim asked me questions about MY home: Did I have an alarm system? Sprinklers? Was MY community gated? We talked about MY car, the one I use to take my family where they need to go. Jim made sure everything was protected.
When I took those papers from him, held the folder that said State Farm blazoned across the front, I had an indescribable feeling well up inside me. I had taken another step in my independence. It was a combination of strength and power mixed with security and protection. I must admit that buying insurance was an even better feeling than pulling out the trash cans…
If I feel this great about insurance…I can’t help but wonder how I will feel when I finally pay my own taxes for the first time?
I am divorced. Having been married for most of my adult life, there are a few things I never actually did for myself. Sure, I managed the house, the kids, the daily ins-and-outs of a job and family, but there were a few things that remained in “his” domain. It seems a little sexist in light of gender equality, but did I really need to be the one to roll the trash cans to the curb? File the taxes? Or obtain the insurance? No. Those were his tasks… I stepped back and was never involved.
Now, things have changed. I remember the day I first pulled those trash cans to the curb myself. I felt the pang of failure that our relationship hadn’t weathered the tests of time, but I also felt resolute, that feeling of accomplishment when you know things are going to be okay and that you will be survive whatever is to come. Pretty big feelings for such a tedious task.
I am forty years old and for the very first time in my life, I have now arranged for my own insurance. I got the papers this weekend and have not stopped smiling. I will forever thank State Farm Agent, Jim Seilsopour. He understood that this was a big moment for me. I might have a master’s degree, but I didn’t have the right vocabulary. He explained the coverage in terms I could understand. He explained umbrellas and liability. Jim asked me questions about MY home: Did I have an alarm system? Sprinklers? Was MY community gated? We talked about MY car, the one I use to take my family where they need to go. Jim made sure everything was protected.
When I took those papers from him, held the folder that said State Farm blazoned across the front, I had an indescribable feeling well up inside me. I had taken another step in my independence. It was a combination of strength and power mixed with security and protection. I must admit that buying insurance was an even better feeling than pulling out the trash cans…
If I feel this great about insurance…I can’t help but wonder how I will feel when I finally pay my own taxes for the first time?
Sunday, November 2, 2008
Are Your Important Employees Covered?
As a successful business owner, you know that everyday operations hinge on that employee who knows the business better than anyone but you. You know, the one that has been with you longer than nearly anyone else.
It takes time to build a business and hire and train quality employees. Most smaller businesses have those indispensable employees with skills that are critical to its success. If something should happen one or more of your key employees, will you be prepared?
The death of any employee is tragic. However, when a key employee dies, the loss is financial as well as personal. Finding and training the right person to replace your lost employee can be costly.
A life insurance policy on key employees can help cover the expense associated with finding, attracting and training a new employee. It can also assure creditors and customers that your business will continue.
Premiums for a life insurance policy can be only a small fraction of the death benefit while that death benefit may be received free from federal income tax.
Your business is an important part of your life. Each of your employees is important to the success of your business. Make sure your business will survive the loss of your best and brightest employees.
Sunday, October 26, 2008
Embrace Life, No Matter What
Have you ever heard, “If I had only had more time.”
As people grow older, some may have regrets about all the things they did not do. Not taking an exotic trip or missing visits to family members might top the list. Your list might even include “not running a marathon.” One of the biggest regrets may be not telling a loved one how much you care.
One thing is for sure: The more you enjoy life and prepare for the unexpected, the fewer regrets you may have.
While no one can possibly do everything on a lifetime to-do list, there are plenty of ways to show people you care. One way is to make sure your family has the financial means to continue living their current lifestyle if you are no longer around.
Life insurance is one way to do just that. A strong economic foundation includes adequate life insurance coverage; enough to cover a mortgage, college tuition or outstanding debts.
There are many online sites, including statefarm.com®, that provide calculators to determine your life insurance needs. A qualified insurance professional can help you choose a policy to meets your needs and fit in your budget. Once a policy is in place, you can revisit it, especially during different life events, to make certain the coverage is still appropriate.
Knowing you have provided for your loved ones will give you peace of mind so you can enjoy doing the things you’ve always wanted to do. It may not mean training for a marathon -- but, then again, it might.
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