Ask most personal finance educators about teaching insurance and they will tell you how difficult it is to make it “interesting” to their students. The good news is that we have Sheri Jamme on the podcast today who has some great ideas on how to make that happen. Yes, it took 100 podcasts, but finally we have an insurance subject expert that will entertain and educate you. We discuss how credit scores affect insurance premiums (more than you might think!), how autonomous vehicles will upend the market and how a few good “hooks” can help students understand how insurance works. Enjoy!

Details:

• 0:00~0:46 – Introduction
• 0:46~-1:26 – Sheri’s job
• 1:26~1:56 – Background prior to joining insurance business
• 1:56~3:21 – How she learned personal finance
• 3:21~5:06 – Life of a realtor in Silicon Valley
• 5:06~7:17 – Importance of a credit report/credit score
• 7:17~8:09 – Credit scores and insurance premiums
• 8:09~10:47 – Why credit scores are the best indicator
• 10:47~12:08 – How do credit scores affect your premiums?
• 12:08~13:40 – Surprising fact about auto insurance
• 13:40~16:40 – Basic types of auto insurance
• 16:40~18:29 – How is fault determined?
• 18:29~19:58 – Advice to a teen who has just been in an accident
• 19:58~21:14 – Things not to do when in an accident
• 21:14~22:28 – Premium increase with a teenage driver
• 22:28~23:54 – Teens and distracted driving
• 23:54~26:18 – Innovative solutions for distracted driving
• 26:18~28:27 – Insurance and autonomous vehicles
• 28:27~28:45 – A word from our sponsor, Next Gen Personal Finance
• 28:45~31:10 – Bringing insurance to life
• 31:10~32:44 – High value and interesting items that she has insured
• 32:44~36:20 – Thinking about insurance as a college student
• 36:20~38:24 – Average cost for renter’s insurance
• 38:24~39:52 – Types of traveler’s insurance
• 39:52~40:30 – Best thing purchased under $10
• 40:30~40:50 – Online resources
• 40:50~41:29 – Favorite book
• 41:29~42:33 – Insurance mistake that Sheri has made
• 42:33~43:55 – Texts to students
• 43:55~45:09 – Conclusion

Notable Quotes:

• “Every insurance is really credit score driven. Credit scores are actually the biggest indicators of claims predictability right now”

Resources:

• Insurance Information Institute
• Insurance Journal 
• Book: If an Elephant Sits on you, Are You Covered?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.