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Insurance Tidbits
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AUTO INSURANCE
Insuring Teenage Drivers
Inexperience and immaturity make it much more likely that a teenage driver will have an accident than an adult driver. A driver in the age group of 16 to 19 is four times more likely to have an accident than an older adult and twice as likely to die in an auto accident (in some states, a 16 year old is three times more likely to have an accident than an older adult). A 16 year old is three times more likely to have an accident than someone 18 to 19 years old. Over one-third of all deaths in the 16 to 19 year old range are due to auto accidents.
From an insurance stand point, it is more expensive if your child has a vehicle driven primarily by them. Consider not getting your child his/her own vehicle and letting him/her drive a family car. If you insist on providing him/her with an auto, consider buying an inexpensive, but reliable, used car. Anticipate at least one or more fender benders. In general, you are better off not buying collision insurance and not reporting these minor claims...an increased claims frequency can result in higher premiums or nonrenewal.
Unless it is impossible, do not insure your child's auto under a separate policy. It is almost always advantageous, from a pricing and coverage standpoint, to have your child's auto on your policy. In addition, since statistics show conclusively that teenagers have a higher claims frequency and severity, make sure you have a personal umbrella policy with at least a $1 million limit. The cost can be as low as $150, but could be as high as $300 or more. Still, it's a bargain to protect yourself and your assets from catastrophic loss.
Have your child complete a driver's education program. That can reduce your premiums.
If applicable, ask for a "good student" discount. If your child's grade point average is "B" or better, you could get a discount of 10 to 20 percent or more.
Most importantly, practice sound loss control. When dealing with teenage drivers, preventing accidents is more important than relying on insurance to fix things. Insurance can replace your vehicles and pay for broken bones, but it can't replace the most important thing in life...your child. So consider the following:
Talk seriously to your child about the danger of driving, including driving under the influence, horseplay, etc. Use statistics from Web sites such as www.iii.org to impress upon them how dangerous driving can be.
Consider prohibiting your teen from transporting more than one passenger. Wisconsin's state graduated licensing laws requirethis for the first nine months. Reckless behavior is directly proportional to the number of teens in a vehicle. By limiting the number of passengers, you reduce the chance that peer pressure and dares might result in your child taking foolhardy chances.
Consider having your child sign a "contract" similar to the one at http://www.parentingteendrivers.com -- if anything it will get his or her attention.
Driving is a privilege, not a right. If you child violates your rules or the rules of the road take the privilege away from them until they can demonstrate that they understand the seriousness of this responsibility and the possible consequences of their actions.
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Insuring Teenage Drivers
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HOMEOWNER'S INSURANCE
Homeowner's & Renter's Insurance Tips
According to the Wisconsin Office of the Commissioner of Insurance, although Wisconsin enjoys some of the nation's lowest homeowners insurance premium rates, it's not immune to the homeowners insurance market changes being experienced by most of the country. Premiums are increasing and insurers are tightening their underwriting standards. These changes in the homeowners insurance market can be attributed to a lackluster performance in investment markets and more than usual natural disasters recently.
Over the last several years, the United States has been experiencing an unusual number of natural disasters resulting in many more claims made to homeowners insurers. Think of the damage caused by the wildfires in the West, the hailstorms in the Mountain States, the tornadoes in the Midwest, and the hurricanes and tropical storms along the coasts. While some natural disasters occur each year, it seems that over the last several years, they have been more severe, more frequent and occurring at odd times. Very severe tornadoes went through Kentucky, Tennesse, Indiana and Ohio in November. Tornado season is usually long past by mid-November. (Wisconsin, too, has experienced an increasing number of severe storms; the Ladysmith tornado over Labor Day, the tornado in Siren and the windstorm in Manitowoc and Sheboygan counties, just to name a few.)
Insurers invest the premium dollars they collect to pay for future claims, so investment income is another important component of an insurer's ability to pay claims. The below-normal performance of their investment portfolios coupled with increased claim activity has resulted in many homeowners insurers raising premium rates and tightening underwriting standards. What can informed insurance consumers do in this kind of market? The first thing to do is check with an insurance agent to see if the premium can be lowered by increasing the deductible. Nowadays, a $50 or $100 deductible on homeowner's insurance may not make sense. Think about the main reason for homeowners insurance -- protection from catastrophic events. Raising that deductible to $250, $500, or even $1,000, if they can afford it, should save consumers more in premium than the amount of the rate increase with the current deductible.
It's these times, when so many major homeowners insurance companies are tightening up underwriting standards and raising their rates, it's good to be a smart insurance consumer.
Download this information as an Adobe Acrobat Document:
Homeowner's & Renter's Insurance Tips
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HOMEOWNER'S INSURANCE
Homeowner's & Renter's Insurance Tips
According to the Wisconsin Office of the Commissioner of Insurance, although Wisconsin enjoys some of the nation's lowest homeowners insurance premium rates, it's not immune to the homeowners insurance market changes being experienced by most of the country. Premiums are increasing and insurers are tightening their underwriting standards. These changes in the homeowners insurance market can be attributed to a lackluster performance in investment markets and more than usual natural disasters recently. Over the last several years, the United States has been experiencing an unusual number of natural disasters resulting in many more claims made to homeowners insurers. Think of the damage caused by the wildfires in the West, the hailstorms in the Mountain States, the tornadoes in the Midwest, and the hurricanes and tropical storms along the coasts. While some natural disasters occur each year, it seems that over the last several years, they have been more severe, more frequent and occurring at odd times. Very severe tornadoes went through Kentucky, Tennesse, Indiana and Ohio in November. Tornado season is usually long past by mid-November. (Wisconsin, too, has experienced an increasing number of severe storms; the Ladysmith tornado over Labor Day, the tornado in Siren and the windstorm in Manitowoc and Sheboygan counties, just to name a few.) Insurers invest the premium dollars they collect to pay for future claims, so investment income is another important component of an insurer's ability to pay claims. The below-normal performance of their investment portfolios coupled with increased claim activity has resulted in many homeowners insurers raising premium rates and tightening underwriting standards. What can informed insurance consumers do in this kind of market? The first thing to do is check with an insurance agent to see if the premium can be lowered by increasing the deductible. Nowadays, a $50 or $100 deductible on homeowner's insurance may not make sense. Think about the main reason for homeowners insurance -- protection from catastrophic events. Raising that deductible to $250, $500, or even $1,000, if they can afford it, should save consumers more in premium than the amount of the rate increase with the current deductible.
It's these times, when so many major homeowners insurance companies are tightening up underwriting standards and raising their rates, it's good to be a smart insurance consumer.
According to the Wisconsin Office of the Commissioner of Insurance, although Wisconsin enjoys some of the nation's lowest homeowners insurance premium rates, it's not immune to the homeowners insurance market changes being experienced by most of the country. Premiums are increasing and insurers are tightening their underwriting standards. These changes in the homeowners insurance market can be attributed to a lackluster performance in investment markets and more than usual natural disasters recently. Over the last several years, the United States has been experiencing an unusual number of natural disasters resulting in many more claims made to homeowners insurers. Think of the damage caused by the wildfires in the West, the hailstorms in the Mountain States, the tornadoes in the Midwest, and the hurricanes and tropical storms along the coasts. While some natural disasters occur each year, it seems that over the last several years, they have been more severe, more frequent and occurring at odd times. Very severe tornadoes went through Kentucky, Tennesse, Indiana and Ohio in November. Tornado season is usually long past by mid-November. (Wisconsin, too, has experienced an increasing number of severe storms; the Ladysmith tornado over Labor Day, the tornado in Siren and the windstorm in Manitowoc and Sheboygan counties, just to name a few.) Insurers invest the premium dollars they collect to pay for future claims, so investment income is another important component of an insurer's ability to pay claims. The below-normal performance of their investment portfolios coupled with increased claim activity has resulted in many homeowners insurers raising premium rates and tightening underwriting standards. What can informed insurance consumers do in this kind of market? The first thing to do is check with an insurance agent to see if the premium can be lowered by increasing the deductible. Nowadays, a $50 or $100 deductible on homeowner's insurance may not make sense. Think about the main reason for homeowners insurance -- protection from catastrophic events. Raising that deductible to $250, $500, or even $1,000, if they can afford it, should save consumers more in premium than the amount of the rate increase with the current deductible.
It's these times, when so many major homeowners insurance companies are tightening up underwriting standards and raising their rates, it's good to be a smart insurance consumer.
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