Let's Play Risk!
Risk is one of my favorite childhood games - although I was really never very good at it. I often found most of my pieces being easily captured and the few that I had left were not powerful enough to capture my enemy. So you can say I was pretty much a 'loser' at this virtual game of war.
But when dealing with Insurance and the decisions of whether to purchase it, how much is needed or to bypass coverage altogether - it is important to think about this game of Risk. Here are some ways to become a 'winner' at this very real game of insurance coverage.
One thing to keep in mind, whenever dealing with risk, is to never Risk more than you can afford to lose. I know that is not the first time you have heard this saying. I try to remember it while playing another favorite game of mine - Poker. You should never bet more chips than you are comfortable losing. Easy to comprehend, right? Well, when making decisions about insurance - you need to keep the same frame of mind.
If your house gets blown away in a tornado - would you be comfortable having to build a new one from your savings? If the answer is yes - then don't purchase homeowners insurance. If you don't have enough in savings and investments to build a new home, then homeowners insurance is a wonderful idea!
If your ten year old car is only worth $1000 and you have an accident, would you be financially alright to purchase a different vehicle? This would be after your insurance company totals your vehicle, subtracts your $500 deductible and sends you a check in the mail for the remaining 500 bucks. Keep in mind that your collusion premium might cost a couple hundred dollars just for the coverage. Is the Risk of losing your car worth more than the annual premium you have to pay - probably not, so drop the collision.
How about Liability insurance? This type of insurance offers a set limit to offset the amount a lawsuit may require you to pay because you were negligent in some way and caused a physical or mental loss to another.
Is the Risk of possible paying hundred of thousands better than a hundred or two for coverage with 1 million dollar limits? I'm guessing here, it's probably not.
A pretty scary statistic out there is the average amount of liability insurance U.S. consumers purchase with their auto coverage is $100,000. But we all know with today's medical bills that $100,000 will not last very long when it's up against bills for x-rays, life flights, surgeries, scans, medications and intensive care units. Once your limit is paid - you become financially responsible for the rest. But the common consumer also does not know that by simply adjusting your deductibles to the next level can find enough savings in your premium to add the next level or two of liability insurance. Seriously - I know it's hard to believe but it is true!
Talk to Your Agent today or better yet - give us a call or visit us online to find out more ways we can keep your insurance shield stronger than ever while relaxing the burden it takes onto your wallet!
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Strong and Secure - Your Shield of Security.
JW Hoban & Associates
blogged by: jerry usher
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