Young Driver Insurance: Suggestions and Advice

When teens just graduate high school, they are looking for a sense of independence. Whether this means living away from home, going to college out-of-town, working a new job, or driving a car, it is important to stay connected with your family!

According to “Insurance Journal”, it is important to remain under your parent’s insurance policies (for most states in America) until you consider living away from homeFor financial stability and long-term insurance coverage, consistent communication with family, friends, and co-workers is everything. for at least a year. Auto insurance in particular saves much more money when insured under your parents.

On average, 18-yr olds pay 18% more for car insurance if they sign up for an individual policy as opposed to remaining under their parent’s policies. This number varies by states, so the percent change could potentially be worse. Only in Arizona, Hawaii, and Illinois it is cheaper to establish insurance policies independent from your parents after age 19.

Since teen drivers are known to be higher risk on the road (especially those just getting their licenses and learning to drive), getting individual auto policies already add to the high cost of insurance a teen driver. Insurance journal states that parents with an 18-yr old on their policy pay an average of 77% more than they would without the teen. This number is certainly high, but would be much higher if the teen was independently insured.

The bottom line for investing in insurance comes with experience. Young drivers have a very limited track record, not much credit history and therefore it is harder for the insuring auto company to establish a foundation of trust and credibleness for the driver. As a teen driver ages and develops his driving ability, his premium lowers (assuming one keeps a clean driving record), and bottoms out after age 24.

So our advice from Magnolia Insurance is to stay connected with your family! For financial stability and long-term insurance coverage, consistent communication with family, friends, and co-workers is everything. Besides, there is nothing like a weekend family getaway or game night. If you go to college out-of-state, it only takes ~5-10 minutes to call or text home.

When you are ready to move out from home, graduate from college, and/or live independently on your own finances, then it is important to look at independent insurance. We will discuss this more in the next couple blog posts!

Source: http://www.insurancejournal.com/news/national/2015/08/10/378000.htm

How do you think we are doing? Please let us know by contacting us at Magnolia Insurance Agency.

Sincerely,

Magnolia Insurance

magnoliainsurance@comcast.net | (206) 284-4886

3424 W. McGraw St.

Seattle, WA 98199

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Warning: Small businesses are more and more at risk! Importance of insurance.

Recently, the popularity of entrepreneurship has increased over the past 15 years. It is not necessarily a fad, but more of an expression. More people prefer to customize how they work, where they work, when they get to work, and what they work on. While this can seem advantageous, we must realize the current risks involved in this process.

According to “ACE Insured”, small businesses are at risk. Ironically, organizations with or fewer than 20 employees comprise 90% of all business activity in the United States! These businesses are at risk because they are not properly covered against legal expenses, cyber-crime, environmental concerns, and many other liability coverages. While insurance needs can vary by company, it is important to realize the essentials of liability coverage and personal/commercial coverage. In addition, if commercial insurance is covered by a large insurance broker, they are often not as knowledgeable about specific coverages necessary to the client involved. As a result, there are often many gaps and threats left open against commercial businesses.

Some quick facts:

  • 50% of small businesses survive their first five years of operation in the US. Of the ones who failed…
  • $100 billion = the amount businesses pay to settle legal troubles every year.
  • 166% increase in cost of commercial and auto insurance claims between 2009 and 2013.
  • 25% rise in lawsuits relating to workplace harassment since 2006
  • 300% increase in cyberattacks on small businesses since 2012
  • 57% of lawsuits are lodged against companies with revenues below $1 million
  • 40% of businesses fail to reopen after disaster.

So where do these numbers lead us? It shows that business owners, property investors (including contractors, carpenters, and landscapers), and even volunteers need property coverage, general liability, and most importantly, proof of insurance. Cyber protection and liability is particularly on the rise and become a greater risk in the near future; it is important for business owners to have this specific coverage. Volunteer/non-profit organizations cannot attract audience members if they do not have proof of insurance and comprehensive commercial coverage. This is why talking with a personalized agent helps prevent these threats and give you the required and necessary insurance policies for your protection and safety (as well as others). Even better, investing in the proper insurance with personalized agents will actually result in long-term profits and stability.

In summary, the businesses that are currently most at risk from spacey insurance coverages are:

  • Bars, restaurants and retail liquor stores (issuing of liquor/liability risks)
  • Contractors and home repair specialists (damage risks to home/liability)
  • Medical offices, law firms and private shops (health insurance spottiness/liability)
  • Homeowners associations (home insurance risks/commercial home insurance gaps)
  • Real estate investors and property developers (vacant lot coverage, lots that remain vacant during renovations)

We hope you are more convinced that sticking with a personal, specialized agent is the best way to go for your own personal (and possibly commercial) insurance coverage. We want to ensure safety, health, and economic stability!

If you have any questions of concerns, don’t hesitate to contact us at Magnolia Insurance Agency.

Sincerely,

Magnolia Insurance

magnoliainsurance@comcast.net | (206) 284-4886

3424 W. McGraw St.

Seattle, WA 98199

Transitioning: What is Insurance all about?

When the thought of insurance runs through our mind, most of us think of it as a long whirlwind to go down. Insurance to many is viewed as a maze– once you get in, you will not know how to get out. In reality, Insurance behaves in the opposite fashion– it is supposed to work with your lifestyle.

As one advances in their job opportunity and acquires more assets, they often have to expand their insurance policies. For example, when one graduates college, they are often not as economically stable, and simply cannot afford large amounts of insurance. From this conclusion, we can infer that their most important assets – car and health, are top priorities. In addition, most college grads prefer to live away from home, and need to rent an apartment or living space. From driving, to living, to basic health, one will only need auto insurance (basic coverage), health insurance (in case health concerns arise), and renters insurance (to cover assets in rented condo, apt., etc.). When one is able to afford a home, they can look into homeowner’s insurance and drop the renter’s insurance. Insurance is a process that adjusts accordingly with your life, and it is important that you stay up to date about the right insurance by talking with your insurance agent.

The problem with current insurance (in America) is that it is not depicted as a simple process. Moreover, large insurance companies do not make the insurance experience understandable to their clients; they only gain interest by their special deals and offers. In reality, clients don’t know what they are getting their hands into– they do not get proper knowledge from multiple standpoints about the coverage of their insurance policy. Many clients are so uninformed about insurance that they may be paying too much for their premiums without even knowing about it!

This problem brings us to the importance of sticking with a local, personalized agency. By talking with an agent (especially by going into the agency itself), you can obtain a much better understanding of insurance, what certain insurance policies offer, and what you are gaining and missing. Agents help you find the best quality deals that are suitable to you and your needs, whether it means finding an inexpensive policy, a large coverage policy, or something in between. Either way, insurance agents really try to get to know you, and will go out of their way to be kind, respectful, trustworthy, friendly, and knowledgeable.

At Magnolia Insurance, we warmly welcome you to come into the agency any time, just to review your policies, know what each policy covers, stay updated on the news, or just talk with us! We often supply complimentary coffee and pastries– you can stay updated on these social events by finding us on Facebook and Google Plus.

If you have any other questions or comments, you can always contact us at Magnolia Insurance Agency.

Sincerely,

Magnolia Insurance

magnoliainsurance@comcast.net | (206) 284-4886

3424 W. McGraw St.

Seattle, WA 98199