Investment and Insurance Strategies that Make Your Retirement Planning Simple and Successful.

Understanding your auto insurance policy is not always easy.

You know what you’re getting when you pay your mortgage and utility bills each month.  But do you know what you get when you pay your auto insurance premium?

Peace of mind.  That’s true if your coverage limits are adequate to pay liability costs and repair costs in the event of a crash.  However, if your limits are inadequate you could pay even more out of your pocket.

The purpose of auto insurance is to pay for repairing cars and liability expenses for people involved in an accident.  By investing a little time to better understand your auto insurance policy you can lower your insurance premiums, while increasing your coverage.

There are several coverages in an auto policy: liability, uninsured and underinsured motorist, physical damage, medical expenses and others.

Liability coverage includes both bodily injury and property damage.

Bodily injury liability protects you against financial loss because of an injury you may cause someone else, while property damage liability protects you for damage you may cause to the property of others.  For example, if you hit another vehicle and the driver suffered a broken leg, bodily injury covers the other driver’s medical and rehabilitation expenses, pain and suffering as well as other damages. Property damage covers damage to their vehicle and costs for the loss of use of the vehicle. 

In states with no-fault insurance laws, your company will pay for your medical expenses, wage loss and other benefits, up to your Personal Injury Protection endorsement limits. Your company will pay regardless of who was at fault for the accident.  Any other drivers involved will be covered by their own auto insurance policies.  No-fault insurance laws also place limitations on the ability of drivers to sue other drivers for damages caused in an accident.

State law may allow you to choose medical expenses coverage. This coverage pays medical bills for you and your passengers as a result of an injury caused by an auto accident, regardless of who is at fault.

Even though auto insurance is mandatory in most states, studies show nearly 15 percent of households have at least one uninsured vehicle.  Uninsured coverage protects you in the event the other party doesn’t have any insurance.  Underinsured motorist coverage fills the gap when the other party doesn’t have enough insurance to cover your injuries.  

According to the State of Oregon’s Oregon Automobile Insurance guide.

The levels of coverage you need. Buy enough to protect your assets; minimum levels of coverage may not be enough:
– Bodily Injury and Property Damage Liability (Oregon law requires a minimum of $25,000 per person/$50,000 per accident for injury to others and $10,000 for damage to the property of others);
– Personal Injury Protection (PIP) (Oregon law requires a minimum of $15,000 per person);
– Uninsured Motorist coverage (Oregon law requires a minimum of $25,000 per person/$50,000 per occurrence for bodily injury);
– Comprehensive/Collision coverage (optional).      

When there is physical damage to your own vehicle it is covered through collision and comprehensive coverages.  Collision coverage pays for the damage to your car due to impact with another vehicle or object.  Comprehensive coverage protects your vehicle from loss or damage from such things as vandalism, theft, hail and fire.

There are other optional coverages your insurance company may offer like death benefit coverage, emergency road services and vehicle rental.  Some companies also offer 100 percent repair/replacement coverage for new cars through four model years, after which the coverage returns to actual cash value.

Even with all of these coverages you can control the cost of your auto insurance.  The easiest way is to be a good driver.  Most insurance companies offer discounts if you have not had an accident or moving violation for three to five years.

Discounts also may be available for having anti-theft devices, multiple policies, multiple vehicles, safety devices, anti-theft devices and for being a good student.

You also can save money by increasing your collision and comprehensive deductibles.  The higher the deductible, the lower your premium will be.  However, it’s important to know how much you can afford to pay when faced with an unexpected claim.

It’s a good idea to review your auto insurance policy with a financial representative such as Your Portland Financial Advisor, once a year.  He will identify changes you need to make in your coverages. A financial representative can also suggest ways to cut the cost of your auto insurance. This notice provides no coverage, nor can it be construed to replace any provision of your auto insurance policy. You should use only your policy to determine coverage. If there is a conflict between the policy and this summary, the policy will prevail. 

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Chances are you probably haven’t given a thought to how dramatically your life would change if you suddenly were unable to earn a paycheck due to a disabling injury or illness. However, the possibility does exist.

One-third of all Americans will suffer a serious disability between ages 35 and 65. In the United States, a disabling injury occurs every 1.6 seconds.

It’s important to take the steps necessary to protect you, your loved ones and your possessions if a disabling injury or illness occurs. Among the best protection is disability income insurance.

Disability income insurance is designed to provide money to you if you ever become disabled. That means money will be there when you need it most. It will help pay bills and meet other expenses associated with the disability.

A disability is usually defined as the continuous inability, because of injury or illness, to perform the material and substantial duties of your regular occupation or profession for a stated period of time, or any occupation or profession after that.

Most disabilities last longer than three months. If a person is disabled for three months or longer, it is likely the disability will last, on average, for three years.

Millions of workers have some disability income insurance through their employers. However, this is usually short-term coverage and may only provide benefits for 24 weeks. Disabilities lasting longer are not usually covered.

If you don’t have disability income insurance, don’t count on Social Security disability payments either. More than half of all disability claims submitted to the Social Security Administration are regularly turned down. If Social Security should pay your claim, benefits normally will not be paid until at least five months after your disability began.

Should your disabling injury or illness be work-related, you likely are protected by workers’ compensation insurance. However, disabling injuries or illnesses that occur away from work activities are not covered under workers’ compensation.

Disability income insurance protects you both on and off the job.

Most disability income insurance policies can be designed to meet your particular needs. You usually choose among several benefit and deductible periods, and policy options.

For instance, COUNTRY Financial offers three benefit period options and five waiting period options. COUNTRY also offers a waiver of premium payment. In addition, there are policy options for accidental dismemberment, cash value, cost-of-living adjustments, hospital confinement income, monthly benefit increase and removal of the benefit adjustment provision.

Disability income insurance is frequently overlooked but is very important regardless of your marital status or family situation. In fact, this insurance can replace a good part of the income you’d lose if you were unable to work because of an accident or illness.

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