Liberty Mutual lecture dispels insurance myths

ECU's Alumni Association sponsored a lecture by two representatives from Liberty Mutual this past Thursday in the Bate building.

The presenters discussed the importance of having different types of insurance, focusing on information regarding renters and home insurance policies.

According to Ian Brinkley and Jason Ferguson, the two sales representatives from Liberty Mutual, renters insurance is important for recent graduates because they are no longer under the direct care of their parents. Many graduates come out of school with several job offers and they need coverage on their personal property in the event of theft or water damage.

"For most people, their parents take care of everything up until they graduate from college," said Brinkley. "We are trying to show students and people in general the importance of having coverage on their personal property. Students also need to have liability coverage to prevent themselves from being sued."

Potential liability related issues include incidents such as if you leave the water running and it damages another person's apartment, if someone gets injured or if there is a fire.

"In the event of a fire, we provide a loss of use service, which means that we will provide money for you to stay in a hotel until you can move to a different location," Brinkley said.

Brinkley suggested that people who get renters insurance should also get a water backup. This endorsement is something extra, but it is only around two dollars more a month and will cover things like a sprinkler system going off or any type of water leakage.

According to the representatives, renters insurance is affordable and costs between $75 and $150 a year, depending on the amount and type of coverage desired.

"We strongly push people to consider renters insurance because it's just so inexpensive," said Ferguson. "It's ridiculous why people wouldn't want to get it because it will save them potentially thousands of dollars in the short run and in the long run."

Next, the presenters moved on to auto insurance, a subject that many students find confusing.

The presenters explained that "full coverage" covers the driver and those in the car with that driver. Liability insurance covers the other driver and insurance shoppers have the opportunity to choose how much liability they want to supply the "other" driver in the event of an accident.

Brinkley and Ferguson recommended a $100,000 per person and $300,000 per accident plan for drivers. The minimum auto insurance plan is $30,000 per person, but this typically is just the cost of an ambulance ride and is not the best alternative for drivers to take, they said.

"Drivers need to make sure they're covered the way that they need to be covered," Ferguson said. "If you have a car that is not worth much, then it is understandable that you wouldn't want full coverage or … you can't afford it. But if you have a fancy car, it is probably a good idea that you go ahead and get full coverage along with liability coverage."

Liability auto insurance also covers drivers against uninsured motorists.

"This will cover you against damages and potential injuries caused by potential uninsured motorists without the need of full coverage auto insurance," Ferguson said.

Another part of full coverage auto insurance is comprehensive auto insurance. This covers the kind of things that normally would not be considered the driver's fault, such as fallen limb damage and break-ins. A deductible is part of this, and depending on how much people are willing to pay will affect the price of their premium each month.

"A deductible is basically the money that you have to pay that is not covered by us. We won't be hunting you down for the money," Ferguson said. "What will happen is if the damages to your car are $2,000 and you have a $500 deductible, we will send you a $1,500 check in the mail and then you pay the rest at your own discretion within reason."

ECU and Liberty Mutual have a partnership in which ECU alumni can receive a 5 percent discount from the beginning of their coverage.

"People who graduate from college, when it comes to insurance-related issues, are statistically more responsible than those who haven't," Ferguson said. "This gives you a good credit rating to start out with on the insurance side and also gives you a favorable underwriting."

For more information on the ECU Alumni Association or Liberty Mutual insurance policies, visit piratealumni.com or libertymutual.com.

This writer may be contacted at news@theeastcarolinian.com.