Trust Puts Premium on Sound Advice

By Scott Culver
Communications Specialist
WEA Trust

January 2001

If you are like most people, when it comes to auto and home insurance, you go with a company you know. You don’t feel comfortable buying from a stranger or from an organization that peddles its insurance plans on late-night television.

You want exceptional service and a competitive price for your auto and home insurance, and you want to deal with someone you trust.

However, choosing a dependable insurance company is only part of the process. You also need to understand the coverages available to you and which level of protection is right for your situation.

This can be even more confusing if you’re buying insurance for the first time. “What deductible should I select?” “How does that choice affect my premium?” “How much liability protection do I need to safeguard my family and our assets?” “What type of coverage do I need if I am renting an apartment?”

These are all important questions when you are purchasing insurance for your home, apartment, or car. The WEA Trust can help you with these decisions. We take the time to make sure you are adequately protected while getting the most out of your premium dollar. Our goal is to serve your best interests.
While there are many respectable programs in the marketplace, the Trust has the only program designed specifically for you. We’re a not-for-profit organization created solely to serve WEAC members and their families.

Here are some points to consider when it comes to buying home and auto insurance.

What is a deductible?
A deductible is the amount you must pay before your auto or home policy begins to pay. Deductibles only apply if your property (vehicle, home, and personal belongings) is damaged. They do not apply to liability claims, where you are deemed responsible for damage to another person’s property or injuries to another person.

If you can afford it, and are comfortable with a higher deductible, it can reduce premiums by 15% to 30%. You buy insurance to protect yourself from catastrophic losses. Buying protection that covers you for a $50 or $100 loss is generally not a good buy.
You need to choose the deductible amount that makes sense to you. There are trade-offs between the deductible amount and the cost of your insurance. Are you more comfortable with a lower deductible, which means you will pay a higher premium but less out of your pocket if you have a claim? Or, do you have the ability to pay a higher deductible, but prefer to pay lower premiums?

What is liability coverage?
If you injure others or damage their property, you can be held legally responsible. Liability insurance protects you against this financial liability. For example, if you are sued because your dog bit a neighbor, this is a liability claim. This is the most important part of your auto and home policy.

This protection is so important because becoming liable for an injury or damages can sometimes lead to catastrophic financial loss. Financial liability for severe injuries or death that you might cause can reach thousands, or even millions, of dollars depending upon the extent of the injuries.

Other points to consider
What kind of insurance do I need if I rent an apartment? Renters insurance is different from homeowners insurance. Renters have no need to provide insurance protection for the building but do need to protect their belongings. You can work with the Trust or your agent to determine the right protection for your belongings and whether you need extra protection for valuable items such as jewelry.

What is “replacement cost”?
Make sure your home policy includes replacement cost coverage for both your home and personal assets. On a Trust policy, replacement cost means the insured item will either be repaired to the same condition as before the accident or replaced with a new one of like kind or quality.