Every once in a while, we're contacted by individuals and organizations who would like to provide content for our blog. I found this piece to be a good way to help people understand what they need to know when their beloved teens become drivers.  Thanks to Reviews.com and Maggie Overholt

​​1. Your Rates Will Go Up — Here’s Why (and How Much)
You may have heard (or experienced first hand) that insuring a teenage driver is expensive. Very expensive, according to a 2017 study by Quadrant Information and Insurance Quotes, which pegs the average rate increase after adding a teen driver at about 78 percent.

• Annual car insurance premiums often shoot up between 55 percent and 80 percent when you add a teen driver to your policy.

The reason it costs so much to insure teens is that they’re a riskier bet for providers. Accident rates among drivers ages 16–19 are higher than for any other age group. To insurers, that means teens are more likely to end up filing a claim and requiring an insurance payment. Charging a bigger premium for young drivers is their way of making up for those potential future payouts.
While you’re thinking about insurance for your family’s newest driver, keep in mind that your current insurer might not be your cheapest option. Every company calculates rates differently, giving various weights to things like age, location, gender, even GPA. Many offer special discounts for teens, though the savings opportunities vary by provider. Once your current policy expires, it’s worth shopping around to see if switching companies could help you save on your family’s car insurance.

Source: Quadrant Information Services/InsuranceQuotes.com

​2. You’ll Probably Want to Increase Your Liability Insurance
Teen drivers, statistically speaking, are far more likely to be involved in a collision than any other age group. That makes proper insurance for your kid(s) all the more important. If you currently carry lower liability limits (maybe even the minimum amount required in your state), we recommend reevaluating that policy when your teen gets their license.
Here’s why: Car insurance with low liability limits tends to be cheap, which makes it an attractive option for anyone on a budget. However, state minimum insurance requirements are just that — minimums. They offer bare-bones coverage that often wouldn’t go far toward paying off repairs or medical bills after a serious collision. In a worst-case scenario, inadequate insurance could even put your family’s assets in danger (if the other person involved decides to sue for damages).

• Experts recommend liability limits of at least 100/300/100 (bodily injury/total injury/property) when you have a teenage driver on your car insurance policy.

The point here is that accidents can happen, even with teens that have exemplary driving records to-date. Upping your liability limits ensures that your insurance is able to do what it’s supposed to — protect your family’s finances against the unforeseen. Check out this article to learn more about what “full coverage” looks like on car insurance and how to get it.

3. Speaking of Coverage, Ask an Agent When Your Teen Needs It
Every state has different rules about when newly-licensed drivers need to be insured. In some states, teens must be covered as soon as they get their learner’s permit. In others, you can wait to add them until they’re fully licensed. On top of that, insurance companies often have their own guidelines for new drivers: Some will cover a teen with a learner’s permit for free, others bump your rate up right away, etc. The best thing to do is call up your current insurer, who can explain exactly when your teen needs to be insured and how much it’ll cost you.

4. And Let your Insurer Know When They’re Off to College
Many insurance companies offer a “student away at college” discount, which lowers rates for teens who go to school more than 100 miles away from home and won’t be using the family car very often. Be sure to let your insurer know if your teen lives on campus — and keep them in the loop about other big changes in driving habits, too. Instances where you can prove that your teen will be using the family car far less (or not at all) might qualify you for a rate drop.

5. Finally, Remember That Driver’s Ed Doesn’t End When They Get Licensed
Developing truly responsible driving habits takes a lot of practice — far more hours than teens are able to get in their driver’s ed and behind-the-wheel courses. That’s why it’s so important for parents to continue coaching their kids and encouraging good habits. Plus, helping them drive better is ultimately in your best interest: The longer your teen drives without incident, the lower your family’s insurance rates will drop over the years.
How can I teach my teen safe driving habits? Below are a few great resources tailored to young drivers and their parents. Check these out for information on teen-specific risk factors and tips for safe driving habits.

• The Insurance Information Institute’s safety tips for teen drivers
• The CDC’s teen driver fact sheets
• The USDOT packet on teen risk and safe driving
• The National Safety Council’s resources for parents of teen drivers
• An online safety course from the NSC designed specifically for parents

https://bit.ly/2RT9Jc8

Many people today have their own “Side Hustle”. A side hustle can be working a multi-level marketing business, party sales, freelancing, or starting a micro-business. They take many forms depending on a person’s goals and time available to spend on a side hustle. A person’s goals and objectives can be just as varied as the form of business a side hustle takes. Reasons range from wanting to pay down bills, starting a new business empire, living independently wealthy, and everything in between.

• A 2017 Bankrate study shows that upwards of 44 million Americans have a side hustle.
• The Hustle found that the average side-hustler spends 11 hours per week on their secondary work, and earns $12,609 per year — an average of about $25 per hour.

One of the first things someone has to consider when starting a side hustle is protecting what you have now, and what you will have in the future. That usually takes the form of some sort of liability insurance. While it is VITALLY important to be sure you are properly covered for your liability exposures, it may not be the MOST important thing.

I need liability insurance . . . what else?

As with ANY business, you need to have some form of liability insurance in place to protect yourself against anything you can be held liable for, no matter how frivolous. It is important because you never want to be in the situation of paying tons of money in legal fees for something you may, or may not have realized they you can be sued for, and held accountable.

At C. Pina Insurance Agency, we can discuss your side hustle with you and determine the proper coverage at the best possible rates . . . many start-up micro businesses can be covered for as little as $50 a month!

• Bankrate also found that Nearly 1 in 3 side hustlers needs the income to stay afloat

So, if you still have your regular 9 to 5 and you’re starting your side hustle, NOTHING is more important than disability insurance.

I’ve been in the insurance business for more than a couple of decades, we’ve always appropriately called it insuring your paycheck because that’s exactly what it does! Most people try to skimp on this one, many think workers comp will cover them if they can make it to work. Committing insurance fraud aside, this is NOT a good plan, or a way to cover this risk, why? The truth is MOST disabilities are caused by illness, not an injury at the weekend softball game, or Tuesday night Stomp class. If you’re working your 9 to 5 AND your side hustle and “SURPRISE!”, illness hits you and you can’t work for 6 months, how do you pay your bills? Any benefits you had from your full-time job have dried up and you have no income!
I hate to sound like the duck in the national ad campaigns, but you need disability insurance for your day to day expenses!

Ok, I have liability, and disability insurance, what else?

We’re almost there . . . we’ve protected your side hustle and “stuff” you’ve accumulated with liability insurance. We’ve protected your paycheck with disability insurance, what else do you need? It’s simple, if you want to parlay your side hustle into a life of full-time self-employment, or you want to put any portion aside, permanent life insurance is a fantastic option. While life insurance does protect your family and loved ones from the financial hardship of premature death, permanent life insurance, especially with a blue chip mutual company can help you set aside money in addition to your qualified plans that you can use in retirement, even BEFORE you reach the age of 59 ½, which is when you can take money from your 401(k) or IRA without any penalties.

This is an important piece that most people don’t give enough respect to. Purchasing a cheap term insurance policy will not accomplish anything other than providing a death benefit, provided you die within a certain time period . . . you’re really gambling with an insurance company that you WILL die, otherwise you’re just giving them money. A permanent policy, like a whole life policy with a blue chip mutual company, can provide you substantial benefits for YOU to enjoy, AND still protect your family and loved ones.

There you have it!!

What is best for you? We’ll need to discuss your goals, and your side hustle to determine what can work best for you regardless of your budget. There is always a plan of action that we can take to set you on the right path. Don’t let the fear of big expenses scare you away from protecting what you are working for!

​#SideHustle #SideHustleInsurance #CPinaInsurance

Craig Pina, CPIA is the owner/agent of C. Pina Insurance Agency, a full service, independent insurance agency located in Brockton, MA for more information please contact him at (508) 557-8224, craig@cpinainsure.com