A recent Wall Street Journal article noted that, “…car-insurance premiums have risen 8.3% on average compared with a year ago, according to S&P Global Market Intelligence…And premiums are expected to rise another 5% to 10% in 2023, Triple-I estimates…Driving those premium increases are higher costs for replacement parts, labor and the evolving technological sophistication, which makes repairs of new vehicles more expensive…”
The author offered four ways to save as rates rise. We’ve summarized them below:
Reduce your coverage. The author uses a rule of thumb that suggests multiplying your annual premium by by 10 and comparing that result to the trade-in value of your car. If the 10-year premium exceeds the value of your car, you might consider dropping your collision and comprehensive coverage according to their analysis. We’ll add that most insurers will itemize the cost of adding collision and comprehensive coverage for you so you could even do the math using just those portions of the annual premium if you’d like. Either way, the point is you should have a good reason for over-insuring an old vehicle.
Raise your deductible. If you have a solid emergency fund, you might consider raising your deductible to reduce your overall insurance bill. The author gave an example where a consumer raised his $250 deductible to $2500 and saved almost $500 in annual premium payments. It may not make sense in your case but you should at least make the call to your carrier or agent and check it out.
Shop around and demand discounts. A financial advisor mentioned in the article suggested spending 2 hours annually shopping around for your insurance and understanding all the discounts available to you. We’ll add that if you get you insurance from an independent agency (like us), they can do the shopping for you.
Share driving data. Many drivers are reluctant to do so, but adding apps to your smartphone that allow insurers to track your driving habits (speeding, hard braking, fast accelerations, idle time, etc.) can result in significant savings over time if the data confirms you are a better underwriting risk as a result of being a safe driver. This is a case where invading your privacy through data collection can actually save you money.
All four suggestions make sense. In the very least you should consider number 3 and enlist an independent helper with your best interests in mind if you’d rather not tackle it yourself.
Thing Two
Looking Out For Those Who May look Out For You In The End
Think about it - you've done a lot of life planning and preparation for your future and those you care about. You've worked hard, saved, invested, bought insurance, planned for retirement, and probably already have a Will. But what about planning and sharing your health and medical wishes with your family - do your loved ones know what they are? If not, you may be putting them in the very unwelcome position of having to make critical and life-sustaining treatment decisions on your behalf. The fact is, by law, that's exactly what they will be required to do.
As uncomfortable as the subject may be, each one of us is susceptible to life-threatening conditions every day. Even though it's impossible to plan for every incident, having your medical and health care wishes established in a legal document can be very comforting for both you and those who care about you. That’s where Advance Directives come in.
What Are They?
Advance Directives are legal documents that are better known as either a Living Will or a Power of Attorney for Health Care. As a competent adult, you have the right to give consent for all your health care decisions. However, if for some reason you are physically unable to give consent for treatments or procedures, these documents will provide direction to your family and the health professionals who care for you.
The advances of modern technology and the human body's ability to sustain itself have created many new liabilities and difficult decisions for health care professionals. That's why it has become increasingly important for you to take a proactive role in the planning of your future medical treatment.
Living Will
In the event of a terminal health condition, this important document will give your health care professionals instructions about the type of medical treatments you wish to have. A Living Will is only acted upon when your physician, along with two others, agree that you will not regain consciousness or an acceptable state of health.
In addition, you have the option to name a trusted relative or friend as a Power of Attorney who, in these circumstances, is authorized to make health care decisions on your behalf.
Providing your family and physicians with an expression of your final health care desires will comfort your loved ones in a situation that will already be difficult and emotional.
Power of Attorney for Health Care
In this document, you will designate someone to make decisions about your medical care in the event that your medical condition leaves you unable to communicate your wishes. The person you name will be authorized to speak for you, not only when you are in a terminal condition, but any time a health condition occurs where it is determined that you are unable to make your own decisions.
You can also include instructions that establish the types of medical treatment you prefer, and under what circumstances you would like these decisions made.
If you’ve decided to get and Advance Directive you should:
• Initiate discussions with close family members, your physician(s), and the person you intend to name as your Power of Attorney for Health Care. This will help you clarify your wishes, and at the same time provide those close to you with important information for future medical decisions.
• Evaluate your health condition and make an effort to determine the possibilities of medical treatment you may need in the future. Use the guidelines you develop as a basis for your documentation.
• Complete and sign the document you have created, adding or modifying any wording to best describe your wishes. It is extremely important to follow and witnessing instructions that are on the form accurately. Most states require two "disinterested" witnesses. Be sure to cover your bases. Family conflicts, special circumstances or specific legal concerns may require additional legal documentation. In that case, you may want to consult an experienced attorney.
While we’re not attorneys and therefore can’t offer you legal advice, we can help you create these documents. All that would be left after you filled out (electronically) a form and answered a few questions would be for you to print the documents and have them signed by you and your witnesses. You may still wish to have an attorney review them after they are prepared, but in many states (including Georgia), the law says you do not have to have a lawyer prepare living wills and health care powers of attorney for you. Your documents need only to be clear, concise and within the guidelines of the laws of your state. Let us know if you need help with this. It’s a fairly quick process and can save your loved ones from having to endure headaches on top of heartache when the time comes.
Thing Three
Just A Thought
“It takes considerable knowledge just to realize the extent of your own ignorance.” - Thomas Sowell
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