RSS Feed

Financial Fitness Blog

Are you wisely protected? An example

 Permanent link   All Posts

Tim GanoungIn our article, “Are you wisely protected?”, you learned that insurance consumers fall into one of three categories—the Wisely Protected, the Exposed and Unaware, and the Unintentional Over-Spender. While nearly everyone THINKS they are Wisely Protected, few actually are.

If you’re like most people who treat auto and home insurance like a commodity—or one-size-fits-all—you risk leaving yourself (and your family) exposed to financial loss or purchasing coverages you don’t need. Here’s one example to help illustrate our point.


Two 40-year-old men drive a 2010 Chevy Malibu. Person A is spending money on the right things by maximizing his dollar and having appropriate coverages.

Person B is spending on the wrong things, with low deductibles and about half the liability coverage. In this example, Person B is actually paying more than Person A and is not getting nearly as much for his money.

Premiums shown are for illustrative purposes and are not meant to reflect your situation.

PERSON A  
Auto insurance, 2010 Chevy Malibu Coverage limit
Bodily injury $250,000/$500,000
Property damage $100,000
Uninsured motorist $250,000/$500,000
Underinsured motorist $250,000/$500,000
Medical payments $10,000
Comprehensive $250 deductible
Collision $500 deductible
   
Umbrella policy None
Annual premium $476
PERSON B  
Auto insurance, 2010 Chevy Malibu Coverage limit
Bodily injury $100,000/$300,000
Property damage $100,000
Uninsured motorist $100,000/$300,000
Underinsured motorist $100,000/$300,000
Medical payments $5,000
Comprehensive $100 deductible
Collision $250 deductible
   
Umbrella policy Do not qualify
Annual premium $496

Give us a call

Remember, we're here to help you become a better insurance consumer. Let us take a look at your needs and existing coverage so you can find out if you're wisely protected. Call 1-800-279-4010.

This article is for informational purposes only and is not intended to constitute legal, financial, or tax advice. Certain recommendations or guidelines may not be appropriate for everyone. Consult your personal advisor or attorney for advice specific to your unique circumstances before taking action. Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details. Certain policy exclusions and limitations may apply.

 Tim Ganoung, Personal Insurance Consultant