Military Officer - November 2006 - (Page 63)

remember to list the roasting pan I only use at Thanksgiving? Take photos or videotape the entire house and its contents — open up closet doors and cupboards so the insurance company can see you really did have Le Creuset cookware. Keep receipts of all major purchases. All this belongs in your safe deposit box or ofﬁce, as long as they’re away from the house. Your car According to Hungelmann, your personal automobile represents the single largest possible source of catastrophic lawsuits and legal judgments against you for major injuries, death, and property damage. State minimums for liability insurance for cars are not nearly enough to pay for a serious injury to another person, not to mention lost wages, pain and suffering, and legal fees. Buy as much liability coverage as you can comfortably afford. “Liability insurance is the way you provide adequate protection against injury you may cause to others and their property, so your ﬁnancial well-being is not at stake,” says Beth Sprinkel, senior vice president of the Insurance Research Council, a nonproﬁt organization that provides research about insurance-related public policy issues. Beware of policies that have generous per-accident injury limits but lower per-person injury limits. Since most accidents involve cars with only one person, it’s advisable to opt for higher per-person limits or ask for single limit coverage that doesn’t specify a per-person limit. Also, increase your uninsured/underinsured motorist’s coverage. The Insurance Research Council estimates that at least one out of every seven drivers falls into this category. Auto insurance also provides coverage for your medical payments, but you might be overinsured in this area. It’s likely you’ll turn to your health insurance for your medical bills, not your car insurance, so consider mini- mizing this coverage to save money. Also, if you own an older car, reducing or dropping your vehicle damage coverage — known as collision and comprehensive coverage — could be a smart move because the value of your car might be less than the deductible. Before you start cruising around town in that new car, beware! Many people falsely think there’s a grace period for a newly purchased vehicle. Insure your new car immediately — it’s your responsibility, not the dealer’s. And don’t neglect loss-of-use coverage. How many of us could function more than a day without our cars? With their endorsements, exclusions, and coverage options, insurance policies have gotten so complex that some universities now offer a degree in insurance. That’s why it’s so important to ﬁnd an agent who is willing to take the time to discuss your policy and options in detail. Read your policy carefully and ask for any clariﬁcation. Ask lots of questions — make up some “what if” scenarios to see whether you’re covered, such as “Is my camera covered when it’s not at the house?” or “What happens if little Jimmy next door throws up on my silk Oriental rug?” Meet with your insurance agent at least once a year to discuss your coverage and any necessary changes. Ask him or her to contact you personally when the company announces any major changes to your policy so you can discuss the effect on your coverage. Relying on the mail could leave you unprotected when you need protection the most. Your agent should be a trusted advisor who has your best interests at heart long after the policy is sold. MO RESOURCES ■ Insurance for Dummies by Jack Hungelmann ■ Kiplingers.com, Smart Shoppers Guide to Auto Insurance, www.kiplingers.com ■ Uninsured Motorists, 2006 Edition, published by the Insurance Research Council, www.ircweb.com MILITARY OFFICER NOVEMBER 2006 63 http://www.kiplingers.com http://www.ircweb.com

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From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: Financial Guidebook Got (the right) Insurance? A Penny Saved, a Degree Earned The “Y” MOAA Scholarship Recipients Pages of History Information Exchange Member Books MOAA Scholarship Donors MOAA Member Services Advertising Index MOAA Calendar Sounding Taps Encore

Military Officer - November 2006

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