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.
Are you a safe driver? IMS' car can tell you
Intelligent Mechatronic Systems (IMS) has built a connected car experience focused on safer, smarter and greener driving. CHICAGO, Sept. 2, 2014 /PRNewswire/ - Intelligent Mechatronic Systems (IMS) is ...
Comparenow.com Explains Why Switching Auto Insurance Companies Can Be a Lucrative Consumer Choice
The longer a customer is with an auto insurance company, the more they may be paying for their policy. Comparenow.com explains why and offers an easy way to save money on car insurance. (PRWeb August 19, 2014) Read the full story at http://www.prweb.com/releases/2014/08/prweb12103651.htm
Doctor running for lieutenant governor swears by 'direct primary care' model
TOPEKA ? Wichita physician Josh Umbehr has never understood the traditional model of health care reimbursement ? the one in which doctors and hospitals fill out pages of forms to bill a patient's insurance company for everything from a $3 test to a $30,000 surgery.
41% spend 15 minutes picking health plans
Forty-one percent of those surveyed said the spent 15 minutes or less researching their health insurance plan in 2013, USA Today reports.
Auto Owners Insurance Prices by Zip Code Added to National Database at Insurer Portal
Auto owners insurance prices are now found by zip code through the Quotes Pros database at http://quotespros.com/auto-insurance.html . (PRWeb September 05, 2014) Read the full story at http://www.prweb.com/releases/auto-owners-insurance/car-insurance-comparison/prweb12148996.htm
New Program from Liberty Mutual Insurance Play Positive? Renews Spirit of Sportsmanship in Youth Sports
BOSTON, Sept. 8, 2014 /PRNewswire/ -- With schools back in session and fall sports practices across the country underway, Liberty Mutual Insurance looks to shine a new light on the importance of sportsmanship in youth sports. Liberty Mutual today introduces the Play Positive? Pledge, an opportunity for youth sports teams and organizations to earn $2,500 for pledging their commitment to ...
Car Insurance Quotes for California Motorists Now Delivered Online at Auto Insurer Website
Car insurance quotes are now obtained online by California drivers using the system at the Quotes Pros website. State agencies can be sorted by price at http://quotespros.com/auto-insurance.html . (PRWeb August 20, 2014) Read the full story at http://www.prweb.com/releases/car-insurance-quotes/auto-insurance-california/prweb12109490.htm
Kasey Kahne wins in wild finish at Atlanta after Tony Stewart struggles
HAMPTON, Ga. ? Kasey Kahne is no longer chasing a spot in NASCAR's 10-race championship playoff.
L?olivier Assurances Selects Guidewire Products for Underwriting, Policy Administration, Claims Management, and Billing
Guidewire Software, Inc. , a provider of software products to Property/Casualty insurers, today announced that L?olivier Assurances, the French subsidiary of Admi
800+ Global Insurance Telematics Leaders Unite in Chicago Today to Rewrite the UBI Rule Book as Insurers Re-brand to ...
Telematics Update: Today, 800+ automakers, insurers, auto agents and telematics execs including Allstate, Progressive, Liberty Mutual, Farmers Insurance and Ford have united at Insurance Telematics USA 2014 to discuss how to position UBI as a mainstream product by delivering undisputable value to consumers. (PRWeb September 03, 2014) Read the full story at http://www.prweb.com/releases/2014/09 ...