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.
|
Little-Known Report May Affect Your Car Insurance Rates
A Northern California driver thinks a mistake on his record caused his car insurance to double.
Customers Saving Over £838 On Car Insurance With comparethemarket.com, Says Independent Study
LONDON, May 3, 2012 /PRNewswire/ --comparethemarket.com customers are achieving fantastic savings, according to the latest independent research. The study by Consumer Intelligence has found that 10% of ...
How men can beat gender bias in car insurance
Men pay a lot more for auto coverage over their lifetimes than women do -- here are 6 ways for the guys to narrow the gap
First Person: Our Car Insurance Saved Us $10,000
We had been Progressive customers for 10 years. In that decade, we experienced our share of twisted fenders along the way, so we were somewhat familiar with the claims process. However, when my husband was in an accident that totaled our car, we realized how useful having the right coverage truly was.
Tips to Recognize Car Insurance Myths: The Top 5 Misconceptions
Much of the information regarding car insurance available to consumers online, and especially by word of mouth, is exaggerated or completely untrue. How can drivers separate the truth from the myths? InsuranceHotline.com outlines the top five car insurance myths, and uncovers the truth behind them. (PRWeb May 09, 2012) Read the full story at http://www.prweb.com/releases/2012/5/prweb9488640.htm
FL Car Insurance Experts at St. Johns Insurance Agency Issue Tips on How to Combat State?s Rising Gas Prices
While the FL car insurance experts may not be able to lower their clients? gas prices, they do know of some ways to balance the financial burden by helping people save money on their auto insurance policies.Ponte Vedra Beach, FL (PRWEB) May 02, 2012 Florida gas prices are becoming simply unaffordable for many families and are only expected to climb higher as summer approaches. Like many local ...
Insurance.com Launches New 'Uh-Oh! Calculator' that Shows How Common Tickets Boost Auto Insurance Rates
Insurance.com?s new interactive ?Uh-Oh! Calculator? allows you to compute the average percentage increase to your auto insurance rate for 14 common violations.Foster City, CA (PRWEB) May 15, 2012 Everyone realizes a ticket is likely to increase your car insurance rates, but few drivers know by how much. Insurance.com's new ?Uh-Oh! Calculator? tells you.Insurance.com?s new interactive ?Uh-Oh ...
UK Car Insurance Company Selects New Advertising Agency From Marketing Quotes To Handle TV Advertising Campaigns.
A UK based car insurance company has recently selected a new advertising agency from the Marketing Quotes price comparison site, to handle their TV advertising campaigns. Due to the rising costs of advertising, the decision was made to compare advertising costs and select a new agency. (PRWeb April 25, 2012) Read the full story at http://www.prweb.com/releases/2012/4/prweb9440668.htm
San Francisco Auto Insurance Agency Offers Free Membership to Good Hands Roadside Assistance from Allstate
The car insurance specialists at Sam and Associates Insurance Agency in San Francisco are offering peace of mind with free lifetime memberships to Good Hands Roadside Assistance from Allstate.San Francisco, CA (PRWEB) May 02, 2012 San Francisco auto insurance specialist Yumi Sam of Sam and Associates Insurance Agency is now offering California drivers free lifetime membership to Allstate?s Good ...
Fresno Car Accident Lawyers at the Scranton Law Firm Are Announcing Free Consultations to Fresno Car Accident Victims ...
Fresno car accident lawyers at The Scranton Law Firm have been helping Fresno car accident victims since 1973. Right now they are offering free consultations to Fresno car accident victims who are considering filing a lawsuit or attempting to collect compensation for their injuries or damage to their car.Fresno, California (PRWEB) May 16, 2012 Fresno car accident lawyers at The Scranton Law Firm ...
|
