Let’s do a little experiment. Take 60 seconds and write down five (5) things you hope to accomplish in the next five (5) years. Got it? Awesome. Now, I want you to take a moment and write down five (5) things you want to accomplish/do/buy/have/experience by the time you retire (approx. 65). What are your life goals? Maybe you want to travel the world, graduate college, make a ton of money, have a nice house, have a family, have kids, have a great job…really there are as many answers to this question as there are people. Now….how many of you thought about the steps that it will take to achieve your goals?  If you don’t have a PLAN to ACHIEVE your goals, it’s very unlikely that you will ever reach them.

Most people think of insurance as a dry, boring topic that they try to avoid and get over as quickly as possible. I get that, I used to think the same thing. My realization shifted, however, once I did my goal planning and realized that just like I needed a PLAN to ACHIEVE those goals……I also needed a PLAN to PROTECT 1-) Myself now and 2-) My future self, earnings and the life that I’m working to build. Tony Robbins once said, “Setting goals is the first step in turning the invisible into the visible”. How does insurance work in this whole goal setting and life achieving process? I’m glad you asked 😉

Liability Protection:

  • This protects you from legal liability for property or bodily damage that you cause to someone or someone’s something (property).
  • This liability protection applies for renter’s insurance, home insurance, auto insurance, etc.
  • So what does that look like?

RENTER’S INSURANCE:

  • Normal ranges of liability coverage on a renter’s policy are about $100K- $300K, however, for my clients I always recommend and on my personal policies I carry, $500K liability coverage. The difference in this extra protection level is a few dollars a YEAR! Kind of a no-brainer…..
  • But how does it work?
  • Case Study: So let’s say you’re one of the cool kids and you have a party over at your house/apartment, etc. One of the people at your party slips on the icy steps and hits their head. They’re upset, they sue you. How are you going to pay for this?
  • Answer: It’s coming out of the liability protection level for your renter’s policy.
  • I mentioned it’s a few dollars difference for $300K coverage versus $500K coverage….which would you rather have in the event of a law suite?
  • TAKE AWAY: Always choose the higher level of liability protection. The cost of the policy far under- weighs the risk and impact on your future earnings and goal reaching if you don’t.

AUTO:

  • How does liability protect you on your auto insurance?
  • Case Study: You are headed home from a friend’s house. You’re tired, distracted, etc. You run a red light and hit a car pulling out into the intersection. In this car is a couple with their two kids coming home from a road trip to see Grandma. Their car is jacked up. The driver hit her head. The kids sustained injuries in the back seat.
  • And you’re sitting there thinking, “What do I do now?!?”
  • You think about the impact you’ve had on this family.
  • The impact that this is going to have on YOUR life as well.
  • Yes, they will probably sue you. Yes, you will likely be looking at a HUGE pay-out. No, chances are pretty high that your bank account savings will NOT cover this.
  • This is where your AUTO Liability comes into play. This is why we recommend the highest coverage levels you can do for your auto coverage. When you need it…..you’ll wish you had it and those few dollars you saved will seem pretty dumb.

If you’ve looked at an auto policy, you’ll notice that auto liability is broken down a little differently.

  • Take a look! There are THREE numbers that you’ll see. (For example: 100/300/100)
  • What this means is that (in this example) there is: $100K per person bodily damage liability per accident, $300K bodily injury liability for all people involved per accident and $100K property damage liability per occurrence.
  • In the case provided a second ago……$300K for bodily injury damage for the parents and two kids coming back from grandma’s house goes pretty fast.
  • Take Away: Always choose the higher level of liability protection. The cost of the policy far under-weighs the risk and impact on your future earnings and goal reaching if you don’t.

Besides Liability: What else is covered on my Renter’s policy?

In addition to your liability protection, renter’s insurance covers:

  • Your personal property: TV, clothes, computers, cameras, game systems, stereos, etc.
  • It gives you somewhere to stay if your apartment, condo, etc. that you are renting is damaged and you can’t live there. Fire, flood, hurricane, etc…..
  • It can help cover some of the extra expenses like having to use a laundry mat, etc. since you are misplaced from your home.
  • Something to consider/ MANAGING YOUR PREMIUM: Choosing a higher deductible on your renter’s policy will help lower your premium. Keep in mind, however, that the deductible is the amount that YOU have to PAY BEFORE the insurance company pays out. Higher deductibles lower the premium cost……but don’t set it so high you can’t pay it.

 Besides Liability: What else is included on my Auto policy? 

  • Comprehensive coverage: This covers damage to the body of your auto from things like a tree falling on your car, a rock hitting your windshield, or a deer running into your car. This also helps cover the cost for repairing the damages. Deductible applies.
  • Collision Coverage: Just what it sounds like…..you hit a car, hit a light pole, hit a road blocker…this covers the damage done to the body of your auto. Deductible applies.
  • Roadside assistance/towing: If you choose this on your policy, it can be much more cost effective to add it to your auto policy than to get a program such as AAA. This can cover things like locking your keys in the car, running out of gas, getting jump started, getting towed, etc.
  • Medical Payments/ Personal Injury Coverage: This helps cover the treatment of injuries for the driver of the passenger/s of the policyholder’s car. It can also help cover lost wages from the driver or passenger/s of the policyholder’s car.
  • Uninsured/underinsured motorists coverage: This applies when someone hits you that doesn’t have insurance OR if it is a “hit and run” scenario where you don’t know who hit your auto. There is a deductible for this coverage, however, in this case, YOUR auto insurance policy would pay to repair damages done by someone else to your car.

 Insurance is all about MITIGATING RISK, helping you BUILD and PROTECT your LIFE and FUTURE. Set yourself up for success and PLAN. ACHIEVE. and PROTECT your future.

Best Regards,

Kelley Carter, CPIA

#BraunAgency #757INSURANCE

_____________________________________________________________________________________________________________________________

The Braun Agency’s mission is to help you get from where you are to where you want to be financially by planning, achieving your plan and protecting your plan from unexpected events.  In the process, our goal is to deliver insurance services in a manner that exceeds your expectations.  See what The Braun Agency can do for you today. Give us a call at 757-452-4563 to speak with one of the licensed, professional members of our team or request a contact here. The Braun Agency. We’re on YOUR side. 757-INSURANCE.