As we approach Valentine’s Day and the pull on our hearts for that “special person,” it’s a good time to take a look at your personal insurance. So often we meet CFOs and Business Owners who do a tremendous job with their company’s insurance program, but they don’t give their personal insurance the same level of attention.
Please don’t misunderstand me here…”Honey I bought us a Personal Umbrella’’ is no substitute for a candlelight dinner. And, the roses are still a MUST! But, so is protecting your family and your assets.
One of the most dangerous things we do today is drive our automobiles. With the whole world texting and talking on their cell phones, a simple trip to the market has become a motorized thrill park experience. In Florida, being a comparative negligence state, we are certain to rely on our insurance company when that fender bender occurs.
So, how much insurance is enough? Further, with teenagers in the home, how in the world can we afford high limits?
The first answer is that you never know how much is enough until the jury comes back in. And, the old adage of “I’ve never had an accident’’ simply means you are “due.’’ My suggestion is to insure yourself with limits high enough to secure a Personal Umbrella, and take that $ 1 million to $ 5 million (depending on your assets). It’s not as expensive as you may think.
The answer to the question about your teenager(s) is to “bite the bullet” and increase your coverage – BECAUSE you have teenagers. Seriously, so many kids today think they drive bumper cars. Teens are inexperienced and careless; it’s just a fact. Put a couple of their friends in the vehicle and your risk increases proportionately.
Having experienced 2 teenage drivers at home on our personal auto policy, I fully understand the cost. However, it is NOT the time to endanger your 401K and personal assets. They will grow up, they will eventually move out, and, God willing, they will one day have teens of their own. Justice will be done.
My advice is to increase the Comp and Collision deductibles to “lessen the pain,’’ but keep the limits high. Use the same strategy for your Home, Boat, and other personal insurance.
Food for thought this February 14th…over your romantic Italian fare and bottle of vino. Happy Valentine’s Day!