Considering the value of Jamie Lee and Ross’ automobiles, what type of automobile insurance coverage would you suggest for them? What financial strategy would you suggest to Jamie Lee and Ross to enable them to save money on their insurance premiums?
Home and Automobile Insurance
Newlyweds Jamie Lee and Ross have had several milestones in the past year. They are newlyweds, recently purchased their first home and now have twins on the way!
Jamie Lee and Ross have to seriously consider their insurance needs. A family, a home and now babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.
Current Financial Situation:
Assets (Jamie Lee and Ross combined):
Checking account: $6,300
Savings Account: $23,200
Emergency Fund savings account: $30,500
IRA balance: $36,000
Car: $10,000 (Jamie Lee) and $18,000 (Ross)
Liabilities (Jamie Lee and Ross combined):
Student loan balance: $0
Credit Card Balance: $4,000
Car Loans: $8,000
Income:
Jamie Lee: $50,000 gross income ($37,500 net income after taxes)
Ross: $75,000 gross income ($64,000 net income after taxes)
Monthly Expenses (combined):
Mortgage: $1,252
Property Taxes and Insurance: $500
Utilities: $195
Food: $600
Gas/Maintenance: $375
Credit Card Payment: $250
Car Loan Payment: $389
Entertainment: $300
Original Purchase Price of Home: $293,00
- Considering the value of Jamie Lee and Ross’ automobiles, what type of automobile insurance coverage would you suggest for them?
- What financial strategy would you suggest to Jamie Lee and Ross to enable them to save money on their insurance premiums?
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