Preparing for the Unexpected

By Sandra Bolan and Angela Dailey

Most of us don't like to pay for insurance, and we certainly don't want to pay for extra coverage such as disability or longterm care insurance. The common consensus is that we spend our whole lives paying premiums for insurance that we most likely will never use, unless it's for life insurance, of course.

You may feel that having more insurance coverage than what the law requires is a waste of money. Then, something horrific occurs – perhaps a weather event destroys your home, you suffer a serious medical emergency or worse – you die and leave your family to pay for your funeral and debt.

You hope to never make a claim, but when the unexpected happens, because you have insurance, you, or your loved ones, will have the financial ability to rebuild your lives.

There are two components to every policy – the premium and the deductible.

The premium is your monthly or annual payment to the insurance company. The more comprehensive the coverage, the more expensive the premium. Where you live, your lifestyle and previous claims may also affect the premium.

If you have to make a claim – before you can be reimbursed by the insurance company – you have to pay the deductible. Depending on what type of insurance you're buying, the deductible is typically anywhere from $250 to $2,000. This is the amount you will have to pay before any insurance proceeds are paid to you. The higher the deductible, the lower your premium.

To help reduce your premium, you can opt to have a higher deductible. Most people typically choose a deductible somewhere in the middle. Remember, if you make an insurance claim, you have to be able to pay the deductible, so don’t choose the highest one if you can't afford to pay it if you have to make a claim in the future.

Insuring your vehicle in Georgia is a legal requirement. It also protects you from having to pay the full cost of repairs and medical expenses as a result of a collision. Some policies will also provide coverage if you damage another person’s property, as well as expenses incurred when hit by an uninsured driver. Legal costs may also be covered.

Note that car insurance doesn’t cover nonaccident repairs such as oil changes, flat tires or a dead engine. But most insurance companies typically offer some type of roadside assistance with your policy. You can also ask to add towing and rental insurance to your auto policy, for an extra fee, so you will be covered if you break down or have an accident and lose the use of your vehicle while it's