Hey everyone, I’m Derek Merkler with another Tip of the Week. In this video, I’m going to share a recent mistake I made with my auto insurance policy.
For context, I’ll provide two sets of background information. First, several months ago, I purchased a second car for myself, a BMW actually. Now before you criticize me for unnecessary displays of wealth, I’ll let you know that I paid $500 for this car. I originally needed to add this car to my auto insurance policy only so I could drive it a short distance from the delivery point to my house. Because of its low worth and the fact that it was going to sit for a few months while I did some work on it, I only needed minimal insurance coverage. So, when I spoke to the USAA agent on the phone, I declined comprehensive and collision coverages.
Separately, my wife and I recently sold one of our rental properties, which put us in a more liquid and secure financial position. So, I called up USAA to raise the deductible on some of our insurance policies to reduce our insurance costs. It was during that call that I found out that, when I had added the new car to our policy and declined collision and comprehensive coverages, the agent had accidentally declined it on my daily driver instead! So I’ve been driving around for the last 4 months without proper insurance coverage!
The takeaway, my friends, is to review your insurance policies on a regular basis…about once per year to make sure that they are all correct and to make any appropriate adjustments. And verify that changes are input correctly, too. Also, when I called about auto insurance, the USAA agent offered to review all of our other insurance coverages as well. No other major surprises, though I did tweak a couple coverages on our rental property. Of course, that can be an upsell tactic, but I haven’t run into that issue. Remember, insurance is part of the foundation of any financial plan. Don’t be underinsured!
Thanks for watching the video, if you have questions on this or any other financial topic, or if you want to work with me to develop your financial plan, send me a message using the info posted in the credits. See you next time!
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Remember, the topics discussed in this video are for informational purposes only and that past results do not guarantee future performance. If you would like to discuss your financial situation, please email me at Derek.Merkler@Parsonex.com.
Advisory services offered through Parsonex Advisory Services, Inc., 8310 S.Valley Hwy, Suite 110, Englewood, CO 80112. 303-662-8700.