FINANCE: Understanding Protection for the Modern Student Co-Op with Alex Grimnes and Brandon Fry (Part Two)

Protection Part 2:

Car Insurance is a necessary key to protection for everyone, even college students… especially college students.  Income restraints drive uninsured college students to justify driving without insurance.  Doing so is dangerous for you and others on the road. So, because it’s so vital, I am cutting out all of the filler.  Let’s get to the meat and potatoes of car insurance, and move to better understand this crucial aspect of protection.

The more you know about car insurance, the better off you are.

-       Insurance rates change frequently often times creating the illusion that insurance companies are just trying to rope in an extra buck. Although that may be true, rate changes occur because insurance companies are required to back up their policies with cash in their accounts. Interest rates adjust because these companies have to compensate for both the amount of cash available and their overall revenue. Why is this information useful? When shopping for car insurance, whether by yourself or with an agent, it is not always the case that an independent firm has competitive interest rates compared to others. It is limiting to work with only one insurance firm instead of diversifying with an independent agent.

-       Secure your investment in your insurance.  In most cases, people wouldn’t throw money into stocks or funds without gathering some sort of information on the company or product.  Whether it is with an online brokerage, financial advisor , or a friend, information is key, and the more information gathered, the stronger the investment choice.  Car insurance is the same way; take time to gather information in order to make a smarter investment.  Independent brokers will survey different company policies, looking for a combination of aspects that are valuable to the policy you are looking to build.

-       Brandon Fry, financial advisor at Maxim Wealth Strategies, mentions three keys to building a strong car insurance policy. They are:

1.     Have Sufficient Coverage:  Often times a mere $5 extra per month can double the amount of your policy’s coverage. The state minimum may not be sufficient in a students’ situation. For example, the Utah State Minimum for car insurance is $25,000/$65,000. To increase your coverage to $100,000/$300,000 is a matter of a few extra dollars per month. This increase could be a world of difference for you and the drivers around you.  However, price is not the only important aspect to keep in mind when searching for insurance.  Ensure that the coverage that you pay for is worth the bill.

2.     Find An Agent Who Is Willing To Back You Up:  Most independent agents are willing to do the work necessary to build a policy that fits your requirements. When working with an agent, keep in mind a Win/Win or No Deal mentality. An agent that cares and is honest will find a policy that fulfills expectations on both ends of relationship. As stated earlier, do your research to make a better-informed decision.

3.     Find a Price That Is Right For You:  Students are often covered by their parents’ car insurance and thus may have sufficient coverage. For those aren’t covered by their parents’ policy, it is not impossible to find car insurance that fits their budget.  I am not into scare tactics, but take the first step in protecting yourself - and potentially your family - by researching information about insurance, researching an experienced and hard working agent, and finding a price point that will not over-extend your financial boundaries.  Keep in mind: Win/Win or No Deal.

 Overall, take the time to investigate insurance with a reputable agent, and protect yourself from the harsh realities – loss of your license, hefty fines, or possible jail time - of driving without insurance.

Stay Smart,

Alex Grimnes

READ MORE - FINANCE: Understanding Protection for the Modern Student Co-Op with Alex Grimnes and Brandon Fry (Part Two)

FINANCE: Understanding Protection for the Modern Student Co-Op with Alex Grimnes and Brandon Fry (Part One)

These days, it seems as though everyone has a different opinion on insurance.  How much to get, where to get it, and which highly paid actor to listen to on those clever but misleading low quote insurance commercials.  Unfortunately, a lot of these opinions on insurance become over-exaggerated and obscure, and cause more damage than good. Insurance is one aspect of finance that can make any individual, let alone a college student, cringe without the right information. 

Fortunately, there is a way to find clarity through all of the muck and misperception of insurance.  That clarity is through education and finding a basic understanding of what insurance is, why we pay for it, and the benefits of not only protecting yourself, but protecting others.

So, let’s break down on key aspect that most college students continue to ignore.

Renters Insurance:

It’s true that the majority of college students either lives with parents or rents out an apartment. In the case of which a student resides at home, renters insurance doesn’t necessarily apply, but for the rest of us that live in apartments, condos, rented houses, etc, renter’s insurance is a necessity that is often overlooked.  There are a few key points often misunderstood about renter’s insurance that we would like to clear up.

           

1.     Renter’s Insurance not only covers stolen items, but also provides liability insurance. Why would you need liability insurance? Well, for accidents or lawsuits that happen outside of vehicles, you need to be covered. 

2.     Renter’s Insurance is cheap.  For around $120 a year, you can protect that fancy new laptop, television, commuter bike, and much more.

3.     Your landlord DOESN’T have insurance on your possessions. Let’s imagine that your building burns down, you are not covered under the landlord’s insurance to protect your things. Now, I know that a building burning down is kind of a long shot, but think about things that happen every day.  If a pipe breaks and floods the apartment, the landlord isn’t liable. If a window is left open and the sprinklers damage all of your possessions, the landlord isn’t liable.

So, what is the alternative? For the price of one 30 Pack of Miller a month, you can protect not only your possessions, but also cover your back for the accidents that happen outside of a vehicle. No matter what your opinions on insurance, for around $100/year, you can protect yourself from losing those things that you rely on the most.

Stay Smart,

Alex Grimnes 


www.maximwealthstrategies.com

READ MORE - FINANCE: Understanding Protection for the Modern Student Co-Op with Alex Grimnes and Brandon Fry (Part One)