|
|
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.
|
Detroit Has Most Expensive Car Insurance, Charlotte Has Cheapest
SAN FRANCISCO, Sept. 11, 2014 /PRNewswire/ -- Detroit has the most expensive car insurance and Charlotte has the cheapest, according to a new insuranceQuotes.com examination of average premiums in the ...
Car Insurance Mistakes to Avoid
No one?s a pro in making decisions the first time especially when money is involved. Choosing car insurance could be tricky as the providers? rates change every now and then because of several factors. Here are common mistakes when choosing car insurance: #1 Choosing Price over Coverage The cheapest is not always the best. Even [?] The post Car Insurance Mistakes to Avoid appeared first on ...
How Car Theft Affects Your Insurance Rates
See whether your car is on the latest list of most-stolen vehicles and how that might affect your premiums.
Action 9 helps woman after valet totals her car
If a valet service wrecks your car, who pays? A Casselberry woman can't believe a parking attendant totaled her car and then his company refused to even share insurance information. When Kristina Serrano headed to a club near Lake Eola, she left her car with a valet service. Just a minute after an attendant drove off with her Ford Mustang she heard, ?just like two cracks and you just heard the ...
Car Insurance Santa Ana CA: Target Up Insurance Is Expanding
SANTA ANA, Calif., Sept. 10, 2014 /PRNewswire-iReach/ -- Car Insurance Santa Ana CA - After 30 plus years in the insurance business providing excellent coverage at reasonable prices to their customers, Target Up Insurance is pleased to announce their expansion into the Santa Ana area. There are plenty of national chains and insurance companies already in the Santa Ana region, but Target Up is ...
Rental Car Crashes: 5 First Steps to Consider
Crashing a rental car can be a real nightmare, but you can try to prepare for the worst . Not only are there practical tips you can follow, but you should also consider the legal ramifications.
Car Insurance Yorba Linda CA: Target Up Insurance is Expanding
YORBA LINDA, Calif., Sept. 10, 2014 /PRNewswire-iReach/ -- Car Insurance Yorba Linda CA - Car insurance is not something many consider on a regular basis, and when it is time to start thinking, many just go with the first major company they find on the television or online. This is a shame, particularly because Target Up Insurance, a company with over 30 years of service in the Southern ...
Car Insurance Anaheim CA: Target Up Insurance is Expanding
ANAHEIM, Calif., Sept. 9, 2014 /PRNewswire-iReach/ -- Car Insurance Anaheim CA - Target Up Insurance Services, a leader in Southern California insurance for the best rates and premiums is pleased to announce they are expanding their services to include the Anaheim, Calif., area. Providing the best in car, home and life insurance, Target Up has a solid reputation of working with anyone to get the ...
Questions To Ask Before Buying Car Insurance
Here is the Philippines, where calamities are out of control and where traffic is terrible especially in Metro Manila. Or it could also be a combination of both. Getting your car insured has always been an essential for car owners? protection on time, effort and money. But since no one?s a pro on the first [?] The post Questions To Ask Before Buying Car Insurance appeared first on MoneyMax.ph ...
How Credit Scores Can Boost Home Insurance Premiums
Got so-so credit? You are likely paying more in premiums than people with excellent credit.
|
|
Best Sellers from
|
