How can a parent help their teen realize being responsible can save boatloads of money
especially in Auto Insurance. This bit of advice can set your child up for a successful start to
accumulating money for good things like a down payment on a home instead of high cost insurance
due to mistakes made by youthful indiscretion. At the end of this article is a link to visually show your
child the difference over a lifetime including Mortgages, Car Loans and Credit Cards.
This does not even include the effect of higher Insurance cost on Home and Auto.
What they need to see is without the insurance cost even in the calculation that
Excellent credit was $406,367 over a life span and bad credit was $788,875.
Add another $50,000 at least to difference in Insurance over a lifetime I would guess.
1. Live by commitments, not by feelings.
Let's look at a sober minded parentally coached new driver that committed to some agreements
for the privilege of driving either a car their parent owns thus insures or maybe just helps pay for.
He or she takes advice compared to one that knows it all
and thinks they can speed, text while driving and break the rules.
Help your teen know what they do can change your life as a parent that is legally responsible in many ways for their actions.
A policy in Worcester, Mass for a driver with less than 3 years but has 5 points will cost
an easy $5000 to $6000 a year until those points drop and the driver goes over 3 years and then 6 years with many companies.
2. Seeking wisdom—skill in everyday living. Knowing how to make good decisions.
If that young person lets their insurance lapse that is a black mark because the Insurance carriers see that as irresponsible
thus they think this person is more likely to get in an accident, maybe be fraudulent or act in other foolish ways.
It would be a great help to help your young adult know they are judged on the way they handle their lives. This is from credit,
to how they drive, to their grades. A good student is given credit on their policy if under 6 years driving by most companies
either on their parents policy or their own.
3. Choices are yours to make and results are yours to experience.
Do you see how irresponsibility makes it a tougher go? EVERYTHING costs more!
Your car loan, your mortgage, your insurance.
The young adult that pay attention, resists speeding, has the patience to stop at stop signs etc
will see their insurance rates head down more and more over the years. On the other hand
the example of the person that keeps getting tickets, accidents and cancellation notices is just going to
continue to pay through the nose. They are proving themselves to be less responsible.
4. Keep your promises.
Before handing over the keys talk about some agreements.
Talk about how peer pressure is really just a test of your backbone and resolve.
When family identity is strong peer pressure is weak. Remember ...teenagers do
not rebel against authority they rebel against a lack of relationship.
5. Character is the basis of all leadership.
Good driving habits, obeying laws that are there for the safety of all,
paying your bills and handling money responsibly shows character.
A leader will carry the knowledge that good decisions are better for his or
her life. Giving in to any peer that pressures you to do anything that could
result in paying for years to come or your whole life is where the leader is
separated from the follower. See the Lifetime Cost To Debt Tool.
Is buying online VS agent better or riskier?
If you are not well versed in auto or home insurance it is possible to make a big mistake
inadvertently when buying insurance online without a local agent. I can't tell you how
many people came into the agency with a policy they bought online and
we pointed out a very dangerous coverage mistake.
Imagine if you thought you chose $100,000 for damage to someone else's property and
what you really chose on the drop down menu was $10,000. These people did not realize
this is an important coverage because it has the high
probability of being used.
This coverage pays to fix what you hit. ( Example- you drive into a guardrail, it is icy and your car slides into a house etc.)
You think you have plenty of time to take a left hand turn
and did not mean to cut some car coming straight ahead. That car hits you and you get pushed into another vehicle.
One vehicle is a van that carried expensive frozen inventory. Because of the accident, the refrigeration was shut off. The other is
a $75,000 Mercedes which hit a light pole in this mess of an accident. If those vehicles ending being totaled you could easily be over $100,000.
Yes, the city or town wants their light pole fixed too and you caused the Mercedes to hit it.
Another coverage that I see overlooked is because the insured did not realize they need to choose Substitute Transportation to
replace their car while their vehicle is being fixed.
Yes...you need that coverage if you would be inconvenienced without a car for a week or 2 while your car is being fixed.
The substitute transportation coverage cost approximately $6-$8 extra a month. (more or less depending on the town or age and experience of driver)
The best 2 stories I have this past year is that I noticed 2 clients that were charged with accidents that were easily not their fault. I asked
if they received the surcharge notice with the form they needed to
fight the points if they feel they have a could case. We called the Merit Rating Board requesting another one be sent to them.
They filled it out and sent their $50 and received their date for a hearing.
Bottom line is both customers won and had a lot of money refunded from the prior year plus their policy went down in the current term.
Agents have eyes to see what you may miss. Call us today for a free quote. Really think hard about Buying Online VS Agent.
An good agent can be your best decision because he or she watches out for you.
Total Loss Car Accident?
If you totaled your car then here are some helpful tips to negotiate the Actual Cash Value of your vehicle.
Actual Cash Value vs Replacement Cost
The actual cash value is usually not going to be what it costs to replace a car. So maybe you had a major accident and the car is totaled,
the price tag to buy a new car will always be more than what your totaled car was worth at the time of the accident.
Instead of choosing the actual cash value option on a policy if the policy has that endorsement, choose coverage that provides for replacement value.
This is why it is important for you to read your paperwork and do your homework when purchasing a policy. When the policy comes in there are explanations of extras you can buy
like Replacement Cost but there is a price and many people are not willing to pay it.
For future reference replacement cost in many cases, not only is payment provided to purchase a new car, but additional expenses like sales tax,
title and transfer fees may also be included, although you may have to ask for these expenses to be included or covered.
Replacement value car insurance is certainly much more expensive than accepting actual cash value coverage.
However, for many people, the added premium is well worth it when they consider the expense of replacing their vehicle.
the Actual Cash Value Determined?One of the ways the value of an asset is determined is to calculate or decide what the replacement cost of a car would be, then deduct an appropriate amount for the age and wear of the car.
By definition in court cases, the replacement cost is described as "the entire cost of complete repair or replacement of an asset--taking no deductions for depreciation."
This indicates clearly that the replacement cost is higher than Actual Cash Value. So the replacement cost is calculated, then deductions are made to arrive at the actual cash value of an asset such as a car.
Sometimes this definition favors the insured, and sometimes the insurer. For example, imagine a car with an estimated value of $14,000 is destroyed in a tornado.
The insurer has defined the actual cash value as the cost of replacing the car minus deductions for age.
Replacing the car often costs more than the car it is worth at the time, particularly if it had high mileage or a great deal of wear.
The cost of new cars goes up over the years, and cars always depreciate over time.
If the replacement cost is higher than the car is worth on the market--say it costs $23,000 to replace with a brand new car, then the insurer
ends up with a higher settlement using the replacement cost method to determine actual cash value.
Tips To Negotiate the Actual Cash Value of Your CarThese are some tips for helping Policy Owners to figure out how to use knowledge of the system for a reasonable offer from an insurer.
The below was offered at carsdirect.com
Source & credits: www.exame.abril.com.br
São Paulo – Um plano de seguro para o mesmo carro, a mesma pessoa e o mesmo endereço pode ser até três vezes mais caro entre diferentes seguradoras. É o que mostrou um levantamento feito pela plataforma de comparação de seguros Compara, levando em consideração as opções oferecidas para os dez carros mais roubados de São Paulo.
A maior diferença aconteceu com o Fiat Toro, o 10º da lista dos mais roubados: o seguro mais barato foi cotado em 4.050 reais, enquanto a oferta mais cara estava em 12.554, preço 210% maior. As simulações foram feitas considerando o mesmo perfil – masculino, solteiro, 30 anos – e também um mesmo endereço dentro da cidade. As cotações foram feitas em cinco seguradoras diferentes para os 10 carros da lista.
ranking dos carros foi baseado na lista de veículos mais roubados em 2018, feita pela Superintendência de Seguros Privados (Susep), órgão responsável pela regulação do setor. No ano passado, o carro mais roubado na cidade de São Paulo foi o Chevrolet Onix, seguido pelo Hyundai HB20 e o Voyage, da Volkswagen.
O Fiat Siena, com diferença de preços de até 161% entre a seguradora mais barata e a mais cara, e o Gol, com diferença de 151%, também ficaram entre os modelos com maior variação de preços nas opções de seguro.
LEIA MAIS: https://exame.abril.com.br/seu-dinheiro/valor-de-seguro-de-carros-pode-variar-200-de-uma-seguradora-para-a-outra/