“INSURANCE AND THE NEW FAMILY”

There is no feeling quite like the thrill of starting life out on your own.  Newly married with a new address, a new life, and new rules.  You can enjoy the freedom to make your own decisions, to be your own person, and to live life by your own guidelines.  This is one of the happiest times of your lives together.  It is also one of the most confusing.

 

As you begin your new lives on your own, many questions start to arise.  Who gets to sleep on which side of the bed?  Who gets to priority for the TV remote control?  Who controls the joint checking account?  How do you change your name and address on all your legal paperwork?  How do you go about getting your own car and home insurance?  This is where I can help you.

 

Auto insurance is a big concern for new young couples starting out on their own.  They are typically concerned about rates increasing and premiums becoming unaffordable.  Rate increases may occur when a driver spins off of a parent’s policy onto their own policy.  This can be caused by loss of a multi-car discount, loss of a multi policy discount, loss of a claims free or long term policy holder discount a parent has had, or changing to a new rating territory.  Most young people will try to prevent these rate increases by keeping their car insured on their prior parents policy instead of getting their own.  This creates some serious coverage gaps.

 

If the young driver buys a new or used car and can’t reach their agent before the car is taken off the lot, there may not be automatic coverage for this new car.  Also, if the new car is titled to the new young driver, the state DMV may require that owner to have his/her own policy for that car.  The insurance needs to be in force before a license plate can be granted for that new car.

 

There are many ways a new young driver can save money on their auto insurance premium.  Carrying higher deductibles for both collision and comprehensive coverage is the most common savings tool.  Changing the policy to Limited Tort another way to save money.  Changing the uninsured and underinsured motorists coverage limits to non-stacked can also save.  Please be careful in electing these changes to your auto policy coverages.  Be sure you discuss them with your agent in detail and are comfortable with the changes you make.  A good agent with experience in these areas can fully explain the pro & cons of the changes and weigh them against the cost savings.

 

A great way to save money on insurance premiums is with multiple policy discounts.  A homeowners or renters policy can protect your home, your belongings, and your premise liability, while saving you money on both your auto and property premiums .  Keeping all of your insurance with the same company and agency pays many dividends, and not just in premium reductions alone.  If a claim ever occurs that causes damages affecting both policies, there is only one call to make.  You can also review both policies at the same time with the same agent to make sure all of the information is concurrent.

 

Life insurance is important for a new young couple too.  The auto and home policies protect your tangible assets, but what about your most important asset…your life!  A death of a loved one is tragic, emotionally draining, and financially devastating to a young couple.  The surviving spouse is left with 100% of the bills and 50% of the family income.  Life insurance can provide funds for the surviving spouse to remain in the home and keep their present standard of living.

 

This new and exciting time in a young couples life is full of many changes and adventures.  Along the way there may come a time when the advice of a specialist is needed.  Please feel free to email or call me at the above listed number any time.  I will be happy to answer any questions you may have.  Best of luck on your new lives  together! 

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