Why Is Car Insurance So Expensive For Teens?

Driving is perhaps the most ubiquitous adult skill, yet it is learned much later on in life than most other skills. Naturally, as a child cannot be trusted to safely drive a motor vehicle. Thus, in most states, teenagers obtain a drivers permit at the age of 16. This permit allows them to drive with another legal adult in the car. In this case, a legal adult is anyone holding a driver’s license that is over the age of 21. Then, at the age of 17, the teen becomes eligible to take a driver’s road test. If they fail, they can try again. If they pass, that permit is upgraded to a license — allowing them to travel anywhere on their own. For many, this entails purchasing a car, or using a relatives vehicle to commute. Although this is an exciting time, it can come with many unforeseen difficulties. Car insurance is one such difficulty for many.

Teen Car Insurance

Although it is common knowledge that car insurance is pricier for teen drivers, many don’t realize just how much more it costs. On average, for the teen driver car insurance costs $2,267 a year. For adults, this figure is less than half, priced at just $815 per yer. There are a variety of reasons for this astronomical difference in price. To insurance companies, these reasons seem entirely justified. However, teens and their parents may feel differently on this issue.

Why So Expensive?

There are a multitude of reasons that teen car insurance is more expensive than car insurance for adults. Primarily, these have to do with safety and risk analysis. Below is a list of reasons of why car insurance is so expensive for teens:

  • Young drivers have no record
  • Young drivers have less experience
  • Young drivers are more likely to become distracted
  • Young drivers are more likely to be reckless
  • Young drivers are more likely to be involved in an accident
  • Young drivers pose a financial risk

Although most of these reasons are relatively self-explanatory, let’s take a bit more of an in-depth look at the ones that aren’t. Insurance companies use your driving record to see how safe a driver you are, and adjust your quote based on past accidents/claims. Without a record, their quote will have to be on the higher end. Furthermore, young drivers are likely to become distracted by cell phones, loud music, and other things while driving. This poses a danger to the driver and a risk to the insurance company. Lastly, according to years of statistical analysis, younger drivers are more likely to get in an accident. This may be due to inexperience, distraction, speeding, or simply poor choices. Thus, the above reasons all contribute to higher insurance costs for teen drivers. If you stay safe and responsible, in a few years these costs should drastically decrease!

 

 

What Is Liquor Liability Insurance?

Liquor Liability Insurance otherwise known as dram shop liability insurance is an insurance policy that business who sell/serve alcohol are required to obtain.

When a business decides to serve or sell alcohol there are associated risks involved:

  • selling alcohol to an already intoxicated customer
  • contributing to the over-toxication of a customer
  • serving alcohol to a minor

What is Covered Under Liquor Liability Insurance?

In the event that any of these things occur, that is not sufficient to file a liquor liability claim. However, if any accidents or injuries to the consumer, minor or an unrelated third party that caused by the aforementioned three events then the business might be held liable. This is the reason why these businesses are required to have this type of insurance to protect their business from these claims.

Claims can include bodily harm, mental harm, legal defense costs, property damage, and coverage over misdemeanors and felonies like assault and battery, and sexual assault.

What does Liquor Liability Cost?

Liquor liability insurance can be extremely expensive depending on what state the business is located.

The following factors are taken into consideration when determining the cost of your liquor liability insurance:

  • Types of alcohol sold
  • Hours of operation and closing time
  • Food versus alcohol receipts (if applicable)
  • Square footage of bar or restaurant
  • Average price of drinks
  • Happy hours and drink specials
  • Entertainment venue, live music, and karaoke
  • Bouncers and Door Keepers
  • State where business is located
  • Server training and certifications

There are reports that in some states, such as Iowa, where they are calling for reform to help lower the price of insurance because a lot of business have trouble finding carriers to take on such a liability without having to pay a high premium per month.

Each state has their liquor liability laws so it’s very important to know what they are. Here’s a directory on where you can find the laws mandated by your state: https://www.legalbeer.com/liquor-laws-by-state

Life Insurance After Suicide

Generally speaking, life insurance is rather easy to interpret as far as its name goes. A policy is meant to ensure the financial security of loved ones upon a person’s passing. However, while the literal definition is rather easy to understand, the ability to collect life insurance can actually be a tedious and exhausting process. Depending on the circumstances of a loved one’s death, investigations could tie up a beneficiary’s money for some time. We’ve all seen the news stories (or even television shows) featuring heinous murders that occurred due to a want of money through a life insurance policy. Life insurance policies surrounded by suicide cases could have similar complications, though even in matters that involve no underhanded schemes, receiving your money as a beneficiary could still prove difficult under certain circumstances.

There are two specific clauses that need to be taken into consideration when dealing with life insurance policies, specifically as they pertain to suicide cases. The first one aptly named the “suicide clause,” states that no insurer will pay benefits out to beneficiaries if it is proven that the insured committed suicide within two years after taking out the policy. This clause also states that should the insured individual replace an old policy with a new one – regardless of how much time has passed in the interim – the effective time frame for the suicide clause resets to zero and another two-year cycle begins for the new policy.

Obviously, this is meant to protect insurers from paying out massive insurance policies to beneficiaries of those who commit suicide in so short a time after the policy is taken out. Much like the life insurance fraud schemes that are sensationalized even more through various Hollywood films, there are very likely existing cases of desperate parents looking for an easy way to set their kids up for a better life than they may already have, among other conditions.

The other clause that ties into suicides and the life insurance policies potentially attached to them is the “contestability clause.” This clause concerns the non-disclosure of certain conditions of hopeful policyholders, predominantly the likes of smoking, drinking and other health conditions. Generally speaking, this does not exclude mental health. With depression (and mental health in general) being as serious of an issue as it is in today’s world and mental health concerns leading to several thousand cases of suicide each year, the contestability clause applies just as strongly as the suicide clause. If non-disclosure can be proven in an attempt to collect on a life insurance policy, the insurer will not likely pay benefits. Of course, being honest about your conditions is noble and preferred, but the bottom line, unfortunately, is that it will hurt your chances of being eligible for a life insurance policy as well.

As serious as the entire concept of suicide is in modern society, the bitter reality is that, despite whatever reasons may have applied to such tragedy, it could very well extend past an individual’s death. However, this is hardly the norm regarding even suicide cases involving a life insurance policy. According to a statistic from insurancequotes.org, 99% of all (yes, all) life insurance policies end with full benefits paid out.

Life Insurance As A Part Of Estate Planning

We all like to fantasize about immortality: we’re invincible in those dreams, and every once in awhile we act the part in our daily lives. Although this remains the truth for most of us, the responsible ones have still put considerable time and money into planning for the future. Who will have control over the estate when you’re not able to do so yourself? What will happen to your assets after you’re gone? In order to retain control while you have the chance, now is the time to answer these questions–even if you’re still young.

Estate planning in the event of your death is not an easy process, nor should it be one. This is about your life and everything you’ve built. While your estate planning attorney goes over the ins and outs of the documents you might consider drawing up, and explains the probate process that you’re helping prepare your family for, he or she might also suggest obtaining a life insurance policy if that’s something you haven’t done already.

Even if you haven’t procured the services of an estate planning lawyer already, you’ve probably been offered the benefit of life insurance at some point in your life. Did you take it when you were first offered? The answer is all too often a resounding “no.” If that’s the case, then a good lawyer might be able to persuade you on behalf of your family. Because you now have the proper legal advice to act upon, you’ll have the added benefit of knowing exactly how much money your family can expect to see based on specific policies, and you’ll know how it might be used in the event of your death.

Without this advice, most of us decide whether or not to buy life insurance as if we were flipping a coin. After all, why spend the money if the benefit isn’t something we’ll ever experience ourselves? Most people who’ve lost a loved one without any financial support can answer that question easily enough, and hopefully you’ll never have to do the same.

When you purchase a policy, there are only a few things to keep in mind. Your lawyer will help you with everything. Who are your beneficiaries? Where are the relevant documents and policies held? These are questions that should be asked during the estate planning phase. Be sure that your potential heirs have as much information as is appropriate. Let them know that you have a policy under which they’re listed. They might also benefit from knowing specific details about the policy, such as the number, the insurer, the value, and any possible date of expiration.

Contact information is also important in order for an insurer to get in touch with a beneficiary in the event that the beneficiary either wasn’t aware of your death, or didn’t know who to contact on their own. With access to this information, your beneficiaries will likely have access to the benefit funds sooner than they would otherwise.

There are a number of circumstances that can change in life, and these can all have an effect on estate planning. Did you get divorced? Did you get married? Did you receive an inheritance of your own? Did you win the lotto? All of these factors are important when considering how to manage your affairs. Be sure that your financial and legal advisors are kept aware and up to date of these key life events.

What Is Renters’ Insurance?

Renters are often under the impression that the landlord’s insurance policy covers their belongings, which it unfortunately doesn’t. The landlord’s policy generally covers the building itself, but might not cover injuries sustained within the structure or even personal belongings. It is why renters’ insurance is so important.

Renters’ insurance covers your personal property in a rented condo, apartment, or home from unexpected circumstances like fire, theft, or sewer backup damage and actually pays for damaged or lost possessions. It can even help protect you from liability in case somebody is injured on your property.

Renters insurance has similar scope to homeowners insurance with the only exception being that it doesn’t offer coverage for the structure itself.

What Does It Cover?

Renters’ insurance provides coverage for the destruction or loss of personal belongings in case of a covered peril including: fire, vandalism, frozen plumbing system, hail, lightning, impact by a vehicle, theft, and windstorms.

Renters insurance may also provide coverage if:

You are temporarily forced to move out of your property: If your property becomes inhabitable due to damage caused by a covered peril like vandalism or fire, renters’ insurance helps cover the cost of alternative living arrangements while repairs are underway.

A person is injured in the property and is in need of medical attention: Personal liability coverage is for protecting you and other people that visit your property in case an accident occurs. It helps pay for legal fees and medical costs you might end up incurring.

Items stored inside your vehicle are lost or damaged: Depending on your specific renters’ insurance policy, you could be covered for the belongings you keep inside your vehicle. However, the coverage does not extend to system or equipment installed in the vehicle.

What Does It Not Cover?

Now that you understand the basics of what renters’ insurance covers, it is also important to understand what it does not cover so that you are adequately prepared. Whether you live in Hollywood or Macomb County, here are some basics that are not covered?:

Home Business: If you operate a small business out of your home, it does not necessarily mean that your renters’ insurance policy will cover it. You need to check with your insurance provider whether your specific policy covers your home business of whether you will require additional coverage.

Valuables: Valuables and expensive collectables like jewelry may not necessarily be covered under your basic renters’ insurance policy and might require additional coverage.

Motorized Vehicles: Ownership or use of a motor vehicle is not covered by the renters’ insurance policy even if it is parked on your property. However, personal belongings kept inside the vehicle are usually covered.

It is important to note that these are not the only things not covered by a renters’ insurance policy. So, ensure that you read through your policy thoroughly to have a better understanding of what is and isn’t covered.

The Bottom Line

It is important to understand exactly what renters’ insurance is so that you are able to decide whether it is something you want. This has been a discussion of what renters’ insurance is, what it covers, and what it does not, so that you can make an informed decision. To learn more about this type of insurance, you should get in touch with a reputable insurance provider today.

Here’s Why Dental Insurance Is Important

If you’re currently weighing up the pros and cons of investing in dental insurance, then this guide is for you. Specifically, we’re going to explore a few reasons why dental insurance is important, so you’ll soon understand why you’re making a smart decision by investing in it.

First of all, it’s safe to say that dental health care can become incredibly expensive, especially if you need to have a lot of work done on your teeth. In fact, having dental implants is one of most expensive procedures you could ever have, but the price of crowns and fillings can soon add up, particularly if you need to have several of them at one time.

Fortunately, dental insurance covers you against these incredibly large costs, so you can simply pay a monthly or annual premium that will cover you for these eventualities.

Additionally, there’s no denying the peace of mind that you will receive when you know you are protected against these big costs, because having to pay a huge dental bill can be very punishing financially if you do not have the cash available when it is needed.

Another excellent reason to invest in dental insurance will be the discounts you will often receive for routine check-ups and preventative treatments. In general, many people avoid visiting the dentist because they’re afraid of what they may find, but by having the dental insurance plan in place, you can visit your dentist knowing that you can cover any large costs that may be required for your ongoing treatment.

Ultimately, this could mean you need less work performed anyway, as your dentist will be able to keep your teeth clean and provide frequent checkups that allow your dental hygiene to be monitored.

At the end of the day, it’s clear to see that investing in a quality dental insurance plan is a very smart thing to do.

Do College Students Need Renters Insurance?

One of the things that we usually don’t think enough about when we shuffle our kids off to college is the atmosphere in which they’re placed. Sure, we know about all the trouble they’re going to get into and we’re certainly going to be worried about the consequences (since we know they won’t be), but how safe is their living space from those who would do it harm? Do they have any protections in place in case of fire or theft or anything else on a long list of things that could go wrong in a college environment? The answer might surprise you. The dorm itself probably isn’t going to provide your children with any protections.

First of all, know the stats: Out of 100,000 college students, about 800 will report a theft overall. That’s an average. If your student is enrolled at The University of California in San Francisco, then the rate balloons to over 13,000 for every 100,000 of its students–but that’s at the high end. If your student is enrolled at another college, the rate might be much smaller.

Most students who report a crime at college report theft. Stolen goods account for 41 percent of all claims. Another 12 percent of lost goods are taken by electrical failure, while 12 percent are destroyed by water. 6 percent of lost goods mysteriously disappear. It is college after all.

It’s also worth mentioning that these are only reported thefts. Your kids might not feel inclined to report any wrongdoing on campus for a number of reasons. Let’s say they’re smoking marijuana in the dorm–they might not feel like chancing a visit from the police. If they’re keeping fluffy the kitten in the dorm against college policy, then no one’s getting past that door without breaking in (again). Then again, if your kids don’t even know their valuables are protected by renters insurance, then they’ll be less likely to report a crime.

That’s why you might consider making sure your child is insured while in college. If you do decide to insure, however, then make sure you tell them about it. Otherwise it might not even matter.

You’ll also be happy to know that even at college your child might already be covered by your own homeowners or renters insurance policy. Your policy could cover a child living on-campus, but chances are it won’t cover a child living off-campus. If your kid gets his or her own place, then they’ll probably need a separate policy. Be sure to check. Insurance agencies are only willing to extend coverage so much, and surprise surprise: most people are less likely to consider filing for insurance if a student is living on-campus.

You should also take into consideration the worth of everything that your child brings to college. Computers, media, cash, jewelry, clothing, etc. It might not seem like much when you pack it into the car every semester, but the monetary value of those things can add up surprisingly fast. Is a renters insurance policy worth the added cost? It just might be. If you’re not sure, you can always research the statistics specific to your child’s school and make the decision for yourselves.

What Is The Connection Between Life Insurance And Genetics?

Life insurance is a product that you might consider if you have a spouse, children, or those that depend on you. This is especially true if your ability to generate income is something they very much rely on. The right life insurance policy can provide money and financial security for your family in the event of your untimely demise, letting your spouse stay in the same home and possibly providing college educations for children and offspring, or even care for disabled or infirm elders according to your estate plan.

Genetic testing is something that can happen in the medical field. It’s a growing science, but the mapping and decoding of the human genome are starting to let doctors and scientists find genes that give people a predisposition to certain conditions, ailments, illnesses, and even specific diseases. This allows them to customize treatment on an individual basis, allowing for longer lives and better quality of life.

Unfortunately, while these two things are individually beneficial to individuals, together they can actually create a conflict, ranging from a headache to even a serious problem. It’s great if you’re looking to be proactive about possible health risks, and genetic testing can certainly help with that, but you might want to not get that done until after you’ve lined up a life insurance policy that’s active and likely to remain with you for a long time.

After many years of advocacy, the Genetic Information Nondiscrimination Act was passed in 2008. It’s supposed to prevent employers and health insurance companies from doing anything discriminatory just based on any information a genetic screening might uncover. Unfortunately, GINA, as the bill is called, only protects against discrimination in the areas of employment and health insurance. It doesn’t protect against discrimination in other insurance areas such as long-term care, disability, or life insurance. Even more regrettable is that less than 1 out of 4 consumers knows this, thinking they are protected by law.

Life insurance providers price their policies based on risk calculation. Many already require physicals, and you’ll face higher rates if you’re overweight, smoke, or conduct risky activities, depending on the provider.

Their actuaries are likely to ask about genetic information, if it’s available. Anything done through your doctor or a hospital is likely going to be covered by medical privilege, but the rise of at-home and retail tests is creating databases of information that are not under privilege. As of the time of writing, there is yet to be a case of a DNA testing company to voluntarily provide such information to life insurance providers, but in an age of declining privacy and mass data, many fear it’s only a matter of time until life insurance companies require genetic testing in order to price policies. A strong fear is that some consumers might be declined policies completely based on something totally out of their control.

Did You Hear About The US And EU Working Together On Insurance Law?

Known as a covered agreement inside the United States, the American government and the European Union have signed a bilateral agreement regarding both prudential insurance and reinsurance measures.

Both parties on opposite sides of the Atlantic consider this agreement to be a sound step moving ahead in cooperation between the United States and the European Union regarding both insurance and reinsurance. A joint statement was released on the matter where officials from both sides claimed that the agreement would benefit insurers, reinsurers, and consumers with protections and regulatory certainty across both economies.

Talks to negotiate the agreement started in 2015 during the Obama Administration, and the final deal was announced in the middle of January 2017, in the waning days of that presidential administration.

The agreement covers a trio of insurance oversight areas. They are namely first reinsurance, secondly group supervision, and thirdly the exchange of any insurance information among involved supervisors. This agreement is in alignment with the terms and conditions laid out by Article 218 of the Treaty on the Functioning of the EU. It also meets the legal definitions of a ‘covered agreement’ as established by the Dodd-Frank Act.

The agreement covers many points, but one of them in regards to reinsurance is the elimination of local presence and collateral requirements for reinsurers operating in the markets across the ocean from one another. Also, in terms of group supervision, insurers operating on the other side of the ocean will be subject to global insurance group oversight involving supervisors from their home jurisdictions. This agreement is also intended to encourage the insurance supervisory authorities of both America and Europe to keep exchanging supervisory information and data regarding both insurers and reinsurers.

A provisional application is a next step for starting to institute the document. The EU must now involve both the European Parliament and the Council in order to conclude this arrangement, per the Treaty on the Functioning of the EU. The U.S. Treasury Department is taking point on the western side of the Atlantic, releasing a fact sheet about the arrangement and providing the full finalized legal text to the legislators and staff of Congress, as dictated by language in the Dodd-Frank Act.

While Brexit seems to be shrinking the size of the EU, and many Western nations show nativist and populist tendencies in recent elections, diplomats and officials of some of the world’s largest economies are working together to keep the global economy functioning smoothly and integrated.

Trump Insurance Regulation Pact

On January 13, the United States and the European Union came to terms regarding the Insurance Regulation Pact. This pact effectively increases the market for both U.S.-based and EU-based insurance and reinsurance companies while eliminating the complications of collateral or local presence requirements when dealing within the international market. It also maintains the United States’ state-based insurance industry model and protects it by a measure within the pact that assures primacy dependent upon the company’s home policy. That is to say, US-based companies, even if operating within the EU, will still follow United States (and more specifically, the individual state’s) policies. Whereas insurers and reinsurers will adhere to EU policies even if operating within the United States.

With the opportunity for insurance and reinsurance companies to operate on an international stage, it also extends the opportunity to supervisory authorities to an exchange of information regarding those insurance and reinsurance companies. This allows a law firm practice management software respective supervisory authorities to protect the interests of the policyholders within their sovereign borders by requesting at will any and all information “which could harm policyholders’ interests or financial stability in their territory.”

Many companies, both American and European, appeared wholly supportive of the covered agreement, noting the relative simplicity of the regulatory process for those who operate in both the United States and European Union jurisdictions. The International Underwriting Association, a major representative of London-based reinsurance companies (many of whom are reinsurers of United States risks) affirmed their belief that the bilateral agreement would be a universal benefit and promote “global access to reinsurance services.”

While there are many who believe that this pact with the European Union will benefit insurance companies by expanding opportunities for becoming competitive on the international stage, there are those in the United States who believe this agreement could be a hindrance to businesses within US primacy. Representatives of the National Association of Insurance Commissioners based in the United States are skeptical after holding a minimal part in the finalization of the covered agreement between the United States and the European Union. Ted Nickel, the president of NAIC, also commented about the fear that such an agreement would inadvertently provided “…a backdoor to force foreign regulations on US companies.” Representatives of the National Association of Mutual Insurance Companies appeared to find the covered agreement convoluted with much that still required clarification lest they be forced to convene with European authorities regarding insurance regulation at a later date. Still, they instilled good faith in working with the Trump administration in determining the efficacy of this agreement on behalf of United States-based companies and citizens. Tom Considine, CEO and representative for the National Conference of Insurance Legislators, also criticized the covered agreement and suspected that it would infringe upon operating capabilities of state regulatory systems. Considine commented further, suspecting that the policy statement would attempt to reconcile the agreement with state-based regulation, but he believed more firmly that the agreement was “great for Wall Street and horrible for Main Street.”