Determining How Much Auto Insurance Coverage You NeedBy Matt McWilliams
The Three Basic parts to an Auto insurance Policy
1: Other Party:
Auto Insurance Bodily Injury (BI) Liability and Property Damage (PD) coverage is Legally required in most states today. (BI & PD) Most people understand that they need BI & PD, but they have no idea how to determine how much coverage they need.
Try this simple question: What if your car was involved in an auto accident tonight where heaven forbid, someone else was injured or killed? Remember, everything you own is in the back seat of the car with you and is at risk in a lawsuit! So, what do you think their family would sue you for? $15,000? $25,000? $100,000 or even maybe a Million dollars! Where would you get the money to pay them?
Perhaps the Equity in your Home would help? How about your Savings and/or Investments? You could even have up to 25% of your wages attached to pay the award in most states! Are you prepared to sacrifice everything you own to pay an award due to this accident? If not, read on for how to choose the auto insurance coverage you need.
2: You and Your Family:
Now let’s turn the above accident around. For some unfortunate reason, you or a loved one is the one who is injured or killed in an auto accident. Where would you get the money if the person who hit you did not have auto insurance or not enough auto insurance? Medical bills can be covered if you have health insurance. But health insurance doesn’t cover loss of life, pain & suffering or permanent disability.
Maybe you have a life insurance policy through your employer or your own individual life policy. Is the benefit amount sufficient to cover your family if your loved one is killed? But even if you have life insurance, what pays for the misery, the pain & suffering, maybe the fact you or a loved one can’t walk or use their arms again?
You might have a disability insurance policy through your work if you’re lucky or had good financial advice. But disability insurance doesn’t pay for loss of life, pain & suffering, permanent loss of your legs, arm or hand.
The only coverage that pays for these things is a part of an auto insurance policy known as Un/Under-insured motorist coverage. You can only buy as much coverage here as you have in Liability coverage. Your auto insurance agent should be able to help you determine the exact amount you need.
3: Your Car
Comprehensive and Collision Coverage are the third part of an auto insurance policy and are sometimes referred to as “Full coverage.” Basically the difference is this: If you run into the tree you are covered by Collision coverage. If the tree runs into you (hypothetically of course), then you are covered by comprehensive coverage. Comprehensive also covers broken windshields, fire, theft and vandalism. The higher deductible (risk) you take here, the lower the premium. Use the savings here to purchase higher limits in the coverages that protect your assets and your family.
The bottom line to determining proper auto insurance coverage is, of course, the money available in your household budget. An excellent place to start in determining the proper auto insurance coverage for your family is to meet with your local auto insurance agent.
Most cut-rate companies concern themselves with one thing only: Price. Tell them what coverage you have and they’ll see if they can give you the same coverage for less. You become the insurance professional. If this is the only need you have then that is ok. If not, you need to seek the advice of a professional to help you determine the proper amount of coverage you need and how best to accomplish it.
Review these tips for auto insurance coverage to make sure you have enough to protect your family.
|
Health insurance or a new car?
For the first time, the annual cost of employer-sponsored health insurance for an American family of four has topped the $20,000 mark, roughly equivalent to the cost of a new midsize sedan, according to the actuarial firm Milliman.
Use Your Credit Card to Save on Car Rentals
NEW YORK (LowCards.com) -- If you plan on renting a car during an upcoming summer vacation, using a credit card to pay for it may save you money and provide increased protection. When you rent a car, the rental agencies will try to sell a collision damage waiver, commonly referred to as a CDW. This is the insurance that provides coverage for damage to the rented vehicle. This can cost about $15 ...
The AdweekMedia Plan of the Year
Branded entertainment Webisodes have been popping up on the Internet lately almost as frequently as those infuriating ?your mailbox is full? e-mail messages.
Car insurance searches soar at the expense of home and travel
The number above is according to the latest report ? Insurance Sector Report ? Issue 11 ?, by leading independent digital marketing agency, Greenlight, which profiled consumer search behaviour on Google UK for home, travel and car insurance products in January.
Women Better Drivers Than Men, Says New Study From Insurance Provider
NEW YORK, May 16, 2012 /PRNewswire-iReach/ -- In the proverbial battle of the sexes, women appear to be better drivers than men .(Photo: http://photos.prnewswire.com/prnh/20120516/CG08007 )Internet insurance ...
Reforming reform: Fixing no-fault insurance
Between 1971 and 1976, two dozen states adopted what is known as no-fault car insurance.Under no-fault laws, people injured in car accidents are compensated by their own insurance companies unless damages exceed a set amount.
Global Car Rental Industry Industry
NEW YORK, April 26, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Global Car Rental Industry Industry http://www.reportlinker.com/p097876/Global-Car-Rental-Industry-Industry.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Vehicle_R The ...
Do you get an insurance discount for a gated community?
Question: Can you get a car insurance discount if you show the insurer that you park your car inside your garage in a gated community and you have secured parking at work?Answer: If you live in a more urban area, car insurance discounts for gated or garage parking are possible.
Esurance Announces Winner For The "Road To Maker Faire Challenge"
SAN FRANCISCO, May 17, 2012 /PRNewswire/ -- Esurance , the direct-to-consumer personal car insurance company, is pleased to announce the grand prize winner of the "Road to Maker Faire Challenge."(Photo: ...
Why fewer car thefts doesn?t mean cheaper car insurance
When it comes to insurance, nearly a third of all car owners pay nothing because they have no theft coverage, and those who do, pay very little.
|
