Don’t Let Mayhem Get the Best of You
If you’re a member of Gen Z or the Millennial generation, or if you care about someone in these generations, we want to talk to you about why young people need liability insurance. There are three simple principles to consider:
– If you are a renter, you need renters insurance.
– If you are a car user, you need auto insurance.
– If you are an individual with human capital, you need umbrella insurance.
We know that many will read the foregoing and think, “I don’t own anything that valuable in my apartment,” or, “I’m a safe driver,” or, “I don’t have any assets, so I don’t need umbrella insurance.” This perspective is an understandable extension of our tendency to underestimate the value of what we own and, most especially, the value of our ability to earn an income. But even if you haven’t underestimated the value of your property or earning power, there is a significant reason why the policies above should be in your arsenal and it’s this: Mayhem.
Mayhem is defined as “damaging disorder, chaos” and insurer Allstate has personified this concept in their well known series of television ads that vividly (and often comically) demonstrate how things can go wrong. We’re not in the business of endorsing insurance companies, but we do credit Allstate with a clever and entertaining concept. And as the ad tagline declares, “Mayhem is everywhere.”
The true risk Mayhem is exposing is liability. When you or someone else may be at fault for damages, but there isn’t enough insurance to cover the costs, what do you do? You can ensure you are covered when Mayhem hits, by implementing cost-effective liability policies such as renters insurance, auto insurance for non-car owners, and umbrella insurance.
If you know you have high value assets in the place you are renting, you’ll want to protect your property by getting a renters policy and the applicable riders if needed. But if your highest value asset in your apartment is the $500 laptop you’ve had for several years, you may think a renters policy isn’t worth it. But what if this was to happen…
Allstate Mayhem Commercial: Mayhem Announcer
This might happen in your apartment or in one you are next to. If you think you may not be potentially held responsible, then you’ve let Mayhem get the best of you. Renters insurance will cover theft, fire damage, water damage, and accidental damage you may cause to your apartment, but only if you have it! Otherwise, you are on the hook. If you don’t fix an issue however, your renter’s policy may not cover damage as a result of neglect by you or your landlord.
Auto Insurance for Non-Car Owners
For the city dwellers or even the vacationers who don’t already have a car/insurance where they live/visit, renting a car is a common way for you to get around when you need wheels. The problem is that most base rental fees don’t include insurance. You’re already handing over your hard-earned money to borrow the car, so maybe the insurance policy (which can potentially DOUBLE the amount you are paying) isn’t worth it for those few hours or days you’ll have the car. No big deal, you are a safe driver. If you think this way, then you’ve let Mayhem get the best of you.
Allstate Mayhem Commercial: Parking Guy
The good news is that there are other options out there aside from the insurance rental companies offer (though that is a good option if you don’t go with this next suggestion). Auto insurance companies offer non-car owner policies for whenever you do happen to be driving a vehicle. This policy is cheaper than if you had a car owner policy because the insurance company knows you are driving less and are therefore less exposed to risk. Also, it keeps you from having to review rental car insurance policies, paying their potentially higher than normal fees, and it covers you when you are driving a friend’s car who may or may not have enough insurance (and you don’t have to go through the awkward exchange of asking)!
The last policy in your arsenal should be umbrella insurance. Umbrella insurance creates a wide net beyond your renters and auto policies, to cover you in the event of higher financial liability. A nice perk about umbrella policies is that they are usually fairly inexpensive because your auto and renter (or homeowners) policies cover more frequent insurance needs.
Allstate Mayhem Commercial: Overly Confident Dog Walker
Even if you think you don’t have enough in financial assets to be a target, remember that your human capital — your potential to earn income in the future — is something people can go after. If you are sued, you could be responsible for paying a legal judgment from your current assets and future income. An umbrella policy can help cover some or all of any judgment, while paying your legal expenses, which add up even if you win the court case. An umbrella policy is an affordable way to protect yourself from unexpected and potentially significant financial liability.
Don’t let Mayhem get the best of you. Make sure you are adequately protecting your liability exposure and Mayhem will continue to be that funny Allstate commercial guy and nothing more!