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Dolly Parton’s Car Crash and the Importance of Insurance

Celebrities

Better Get to Livin'
Better Get to Livin’ (Photo credit: Wikipedia)

America’s country sweetheart, Dolly Parton, was in a car accident recently. Although she was only a passenger in this minor fender-bender, she still suffered some injuries requiring a quick hospital visit and rest. The offending driver did not stop as he was supposed to and struck Parton’s vehicle. Parton surely has auto insurance, and hopefully the offending driver has coverage as well.

Auto Insurance 101

Every month, you pay a premium toward your coverage balance. Coverage varies by state, from hospital bills to repairing damaged street items, like guard rails. People with expensive cars pay higher premiums while inexpensive cars have lower amounts. Some buyers only purchase the bare minimum of coverage, called comprehensive. This coverage does not help in the Parton crash because it typically covers vehicle damage from objects, like flying rocks, rather than a collision situation.

How Much Does That Part Cost?

Repairing a vehicle after a car crash can lead to astronomical figures. A simple dent in the bumper may warrant an entire part replacement costing thousands of dollars. The offending driver in Parton’s accident is at fault. His insurance should cover Parton’s insurance deductible and any other expenses that arise. If he is not covered, she could technically sue him for damages, although there may not be many funds to pay out.

Those Medical Bills

Coupled with a car repair, Parton and her driver also went to the hospital. The offending driver uses his auto insurance to cover their medical bills. Any bills generated from the driver or passenger’s injuries goes directly to the offending driver’s insurance. If he is not properly covered with this policy feature, he must pay for the bills out-of-pocket. With medical bills costing thousand of dollars, he probably called his insurance agent right away to see if his policy has that coverage.

Luckily, Parton’s accident was not severe, but ongoing injuries can slowly siphon funds out of the offending driver’s account. If Parton has whiplash, for example, she may need multiple visits to a chiropractor or other specialty doctor. Each visit should be covered by the offending driver’s insurance. Because she has good insurance coverage does not mean that her policy should pay out. The party at-fault always pays for both car repairs and medical bills. With treatment that takes several weeks to a few months, the offending driver’s insurance rates will typically jump next policy year.

Someone Has To Pay For It

Depending on the insurance company, an accident on your record causes your premiums to rise. You are now considered a risk to the company. It is possible that you will cause another accident incurring more cost. Insurance companies must weigh their risky customers with their good drivers. Hopefully Parton recuperates quickly so the offending driver’s rates do not remain high for several years.

You may not think of auto insurance as a top priority, but the reality of Parton’s fender-bender shows everyone that accidents happen at any time. Even celebrities must cover their vehicles with good insurance to protect their assets.

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Let’s Talk Pets and Other Unexpected Expenses

Finance

The following is a guest post by Crystal at Budgeting in the Fun Stuff. Her blog covers living expenses, saving for your future, and the fun stuff in between.  (Ed.  Thanks, Crystal!)

I’ve been complaining on and off about the cost of my poor Pug’s allergies, so I thought I’d do a little post to let all of us vent a little about unexpected expenses. 🙂

Here’s how much Mr. Pug has cost in vet bills and medicine alone since he developed major allergies to meat proteins and dairy in February 2010:

  • February 4, 2010 – Mr. Pug licked off some hair, so we visited the crappy vet I will never go to again – $185.29
  • May 11, 2010 – Mr. Pug stopped eating and his eyes looked cloudy, first visit to new vet for dry eye – $177.78
  • May 12, 2010 – Dermatology Exam, Skin Scraping, Ear Check, and 6 medicines – $254.00
  • May 18, 2010 – Check-Up on dry eye – $53.34
  • June 2, 2010 – Check-Up on Ear Infections, Skin Infection, and medicine refills – $134.00
  • July 8, 2010 – Check-Up on Skin Infection, 2 new medicines, and 2 refills – $146.80
  • July 8, 2010 – Antibiotics – $60.60

AND we’re scheduled for another $105 check-up this coming week for his hopefully healed ear infection. So, between February 4 and this coming week, we will have paid at least $1116.81 for vet visits and medicines alone. That doesn’t even take into account the $45 bags of vegan dog food that only lasts about 6 weeks or the $500 we spent last year on 5 tooth extractions. 🙁

Thankfully we didn’t get pets until we had excess cash flow, but DANG! He’s an expensive little boy! I love him and we’d pay it again, but I wouldn’t suggest pure breeds for anybody not willing to lay out major dough for something as “simple” as allergies. We would totally let our dogs go if they needed chemotherapy or something (yes, I have my lines), but allergies…well, how do you turn down treatment that can make a pet 99% better? I’m a sucker for his big Pug eyes…I mean, look at him:

Have you had any unexpected expenses pop up? If so, what have they been and how are you dealing with it?

What is a Mechanic’s Lien?

Finance

Newspaper Ad for the Carbolic Smoke Ball Company
Image via Wikipedia

When you hire someone to work on your property or provide material to build or improve it, they are entitled to get paid.   A mechanic’s lien is the method of enforcing that payment.

Here is what you need to know about mechanic’s liens.

A contractor must usually give you written notice of intent to file a lien if the contract isn’t paid.  He needs to do this within a short time of beginning the work.   The notice will include text to the effect that subcontractors also have the right to file a lien if they are not paid.  This notice gives you two methods of defense: You can pay the subcontractors directly and withhold that amount from the payment to the contractor, or you can withhold the final payment until you have received a lien waiver from each of the subcontractors.

If the notice isn’t given correctly, the contractor forfeits his right to file a lien.  Also, in most places, if a contractor is supposed to be licensed to do the work, but isn’t, he’s not able to file a lien.

Subcontractors must also provide notice on intent within about 45 days–depending on the state–of the time they first provide services or material, or the lien is not enforceable.

Protecting Yourself

First, you only have to pay once. If you pay the contractor in full before getting the notice of intent from the subcontractors, you can’t be forced to pay again.

Next, make the contractor provide a list of all subcontractors and keep track of any notices of intent you get.  Get lien waivers from everyone involved before you make the final payment to the contractor.

Finally, you have the rights defined in the notice of intent to file a lien.  You can either pay the subcontractors directly, or you can withhold the final payment until you receive lien waivers from each subcontractor.

Resolution

The lien holder has 120 days to file the lien and 1 year to enforce it.   Enforcing simply means that it a suit has been filed.  Once that happens, you can either pay the contractor, attempt to settle with the contractor, or you can take the contractor to court to determine the “adverse claims” on your property.   There aren’t too many choices at this point.

Do yourself a favor and get lien waivers before you make the final payment on any work done on your property.

5 Ways to Make Shopping Quickly a Breeze

Finance

Shopping is a major time sink. Between the travel, the traffic, and the checkout lines, the actual shopping almost seems

English: An Entennmann's cake donut, bought fr...
English: An Entennmann’s cake donut, bought from a grocery store four-variety pack. (Photo credit: Wikipedia)

pleasant. Almost. Here’s my super-secret ninja plan to reduce the unpleasant time wasted while giving away my money in exchange for the privilege of not scooping manure straight from the source onto my crops to get both my burgers and my salads.

First, The List. I’m not going to tell you to use a list. You know that already. My secret? Organize your list by department. Divide the list into sections.  Make sure it has a produce section, a meat section, a baking section, and any other section you will be visiting. Don’t leave the department until that section of the list is complete. That will eliminate chasing back and forth for things you forgot, which is a huge timesaver.

Shop where you know. When you are in a hurry or stressed by crabby kids, don’t go check out a new store. You won’t enjoy it with the kids in tow, AND you’ll be tempted to buy more, since you will encounter more as you explore the store trying to find what you need.  Go somewhere you know.  That will eliminate any hunter/gatherer-style shopping.  If you know where you need to go, you’ll get through the shopping trip much faster.

Skip the bad aisles.  I resist temptation best by avoiding it. In the store, I avoid it by skipping entire aisles of stuff. If there’s nothing I need in an aisle, don’t go there. Why tempt myself with that many more choices? I’m sure I can find something I’d like to bring home in almost any section of almost any store.  So I avoid the unnecessary sections.

Shop at the right time.  Don’t go on Saturday afternoon when every other 9-to-5er is free to run errands.  If you absolutely must shop on the weekend, either go late–I prefer 3am–or go right at lunchtime when everyone  is stopping to feed the hungry children. Me? I’ll either feed them first or fill them up on samples at the grocery store.

Use less, eat less.  You’ll need to buy less that way. If you eat smaller portions, or learn how to cook with a versatile mix of staples, you’ll need to buy less, either through lower consumption or lower variety. I’m not saying eat boring, just get creative with the basics.  I know a couple of different ways to cooks rice and beans, without getting bored.  When you add the perfect-food-makers, like bacon, it’s easy to keep meals interesting.

How do you reduce wasted time shopping?

5 Ways to Reduce Temptation and Have a Peaceful dinner

Finance, Life

It never fails: you send the kids off to the salt mine babysitter for the evening, cook a nice dinner and light some candles. Then, just as you sit down, the phone rings.

Now you have 2 choices, you can do like me and ignore the phone if it’s inconvenient to answer or you can ruin a romantic dinner.   The telemarketers know that, statistically, you are home at dinner time.  They don’t care if you are celebrating an anniversary or just trying to connect with your loved one.

Why not preemptively stop the irritation? While you’re at it, stop the junk mail, too. It’s not as hard as you’d think.  It’s a simple, almost free process that will not only eliminate the frustration of pointless calls and sorted junk mail, but will also cut down on the temptation of seeing something shiny to buy.

Here are the four steps to a leaner, greener and romantic dinner-making you:

1. Get on all of the Do Not Call lists.

  • You can get on the federal list by visiting www.donotcall.gov or calling (888) 382-1222.  The tele-sales weasels will have have a month to clear you out of their systems.
  • If you still get calls–some calls are still allowed, including political calls, non-profit fundraisers, and surveys–they are still required to maintain an in-house do not call list.  Tell them to put you on that list.
  • Many states have a Do Not Call list that is entirely independent of the the federal list. This is redundant, but the more roadblocks you put up, the better you will be.

If you are still getting calls, report them to the FTC at:

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, D.C. 20580
1-877-FTC-HELP
www.ftc.gov

2.  Opt out of junk mail. The Direct Marketing Association manages a list of people who do not want junk mail.  This list only applies to members of the association, but most mass-mailers participate.  Go to www.dmachoice.org to enroll.  It costs $1 to get on the list and will stop most junk mail for 3 years.

3. Opt out of pre-approved credit card offers. Go to  www.optoutprescreen.com to remove your name from the lists generated by the major credit bureaus to sell to marketing firms.  You can put a halt to this breed of junk for 5 years or forever.

4. Ask them to stop. If you are getting catalogs from a company with which you have an existing relationship, ask them to knock it off.   Virtually every one will stop sending you garbage to ensure a continuing business relationship with you.

5.  Guerrilla Warfare. If none of this works, there are still a couple of options.

  • Keep an airhorn by the phone.   They won’t call twice.
  • Take everything you receive from a company, stuff it all in the prepaid return envelope they helpfully included, and drop it back in the mail.   They only get charged for the prepaid envelopes when they are used, so use them up.  It’s illegal to alter them to send mail to other people, but it’s not illegal to mail them all of their own garbage.  If you cost them enough money, they will eventually back down.

Twitter Weekly Updates for 2010-04-10

Misc

  • "The best way to spend your money is to spend it on time, not on stuff." http://su.pr/2tr5iP #
  • First bonus by stock options today. Not sure I'm impressed. #
  • RT @chrisguillebeau: US border control just walked the train asking "Are you a US citizen?" Native American guy says: "One of the originals" #
  • @FARNOOSH My credit score is A measure of my integrity not THE measure. in reply to FARNOOSH #
  • I'm listening to a grunge/metal cover of "You are my sunshine" #
  • There's something funny about a guy on reality TV whining about how private he is. #LAInk #