MetroMoms R Us

When I meet with a client to discuss insurance it’s important for me to understand their priorities and needs – since they’re not all the same. Equally diverse are the insurance companies in the market place today, and the insurance agents who represent them.

Here are a few things you need to know about insurance:

Captive agent vs Independent agent – A captive insurance agent works for one company or brand, while an independent agent works with multiple companies and can sell numerous product brands.

How does this impact you? Both agents can sell multiple lines of insurance (auto, home, life etc…) but an independent agent has the flexibility to sell insurance from different companies – without brand restriction. Imagine for a moment how you’d feel if you had to buy clothes from only one department store. As loyal as you may be to the department store, you can’t help but shop another store for a better styled blouse or better priced item. Thus, think of an independent agent as your personal insurance shopper who can mix and match to meet your needs. All the while, you deal with one agent but tap into multiple companies.

Periodically review your insurance coverage – We go through so many changes in our life. We are single, married, divorced or widowed. We have kids, buy a house, car, boat, motorcycle or RV. We make minimum wage, join the middle class or strike it rich. Just as our lives change so should our insurance coverage. Your insurance coverage needs to adequately cover any potential losses in your life at any given stage. So, if you haven’t changed your coverage limits in awhile - now may be a good time to assess how much is enough.

Don’t buy just on price – The premium you pay for insurance is definitely an important factor but don’t make it your sole reason to buy. I can sell cheap insurance to almost anyone, but I probably wouldn’t be doing them justice. You may lower your insurance coverage to pay a lower rate, but what happens if it’s too low and you’re faced with a large liability claim? When you need your insurance to work, is during these times of loss or claim. So, a quality coverage may mean paying a quality price – not necessarily the lowest. As I also previously mentioned, not all insurance companies are the same. So, review what’s covered in your policy before you decide to buy. Some companies offer extra coverage for a little more but in the long run potentially save you money. For example, I have an insurance company that will waive future violations if you sign up for their program now. Typically, violations may cause an increase in your premiums but by enrolling in the program you lock yourself into a lower rate even with future violations*. At the same time, you build a deductible savings account. These funds are then used to pay your portion of a deductible during a claim. Again, price is important but what's equally important is the quality of your coverage.

*Does not include major violations such as a DUI.

Christmas wouldn’t be the same without the traditional gift giving. Even though good intentions are behind most gifts, we still receive presents we don’t like or don’t fit our particular “style”. Should you keep it - since it was the thought that counts? Or, would you regift it?

The market research company, Harris Interactive, surveyed 1,505 American adults and found over half the participants admitted to regifting and 78 percent felt regifting was okay most of the time.

Just yesterday, I also had the chance to play the White Elephant Gift Exchange game. The premise of the game is to regift an old item you didn't want. There were an array of regift items such as a finger puppet, test tubes, cowboy hat, photo printer and jellied fish bait. The game was very fun and entertaining, but at the same time people were able to give away their “gifts” to someone else who may have wanted it or could have used it better than they had.

What do you think? Do you keep all your presents whether you like them or not? Or, selectively regift them to someone else?

It’s scary to live in the uncertain, but we do it everyday. It’s during economic times like these that we come closer to realizing we’re all susceptible and the worst can happen any day. So, what should we do? Always plan ahead and the worst won't hurt so bad.

Life has risks. It can harbor in dark alleys or be in plain site. It could happen today, next week or next year – you just never know when you’ll be affected. As a single-mom and sole bread winner, I’ve had no other option than to be frugal and cost-conscious with my finances. I’ve also had to help many families prepare for their future financial needs and protection. So, here are some helpful ways we can all prepare our homes and families. They’re a mixture of my personal financial habits, as well as tips I’ve researched.

1. Build a savings and cut down on expenses
1. Set a savings goal that’s realistic for your family, then deduct the same amount from every paycheck. Remember to pay yourself first.
2. Collect the loose change in your pocket at the end of the day. Put it in a jar. When the jar is full, take it to the automatic counter at the bank and deposit it.
3. Reduce your expenses in as many ways as you can, it all adds up: Save money on gas by carpooling or taking the bus. Eat-out less often by cooking more at home. This can be a trickle effect, since leftovers are great for brown bag lunches to school or work - you’ve just hit two birds with one stone. How smart is that?
4. Divide your expenses into two categories - the Essentials vs Luxuries. For example, electricity is an essential while cable TV is a luxury. It’s difficult but tough times call for tough measures.
5. Pay with cash! If you use your credit/debit card, you’re too tempted to buy now and pay later. Statistically using a card caused families to spend 34% more. Give cash a try and see how much more conscious you’ll be about your spending habits.
2. Shop smarter.
1. Research the local sale items at your food store and make a shopping list of the essentials. Stick to the list, to minimize impulse buying. Buy the less expensive generic brand if one is offered.
2. Always monitor the food total at the check out line. A checker is susceptible to human error, like running an item through too many times or putting in the wrong produce item code, increasing the cost per pound.  
3. Shop for the best insurance rate (ok, this one is near and dear to my heart). Combine your auto and home policies to get multi-policy discounts. If you currently have a low deductible consider bumping it to the next level saving you up to 30 percent on your policy. If you’ve put the motorcycle, watercraft, or RV away for the winter, consider lowering your coverage.
4. Shop the clearance rack for clothes and stick to a classic style for work. It never goes away and is acceptable in all business environments. It’s also easier to accessorize, mix and match when you’re working with solid colors.
5. Shop at thrift stores. You’ll be amazed at what you find at such great prices. Especially for kids who outgrow their shoes and clothes each year. Should also be your first stop for sports gear.
   

3. Get the family involved. Preparing for the worst is a collaborative effort. Family members need each other’s support to get through the tough times. So, get everyone on the same page about tightening expenses.
1. Unplug unused appliances around the house
2. Turn off the lights when a room is not in use
3. Take quick showers and don’t let the water run for long periods of time
4. Consider a family talk plan that has less minutes and is less expensive
5. Teens can also earn their own extra income by babysitting, shoveling snow, mowing lawns, having a paper route or giving private band/orchestra lessons to middle or high school students