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.
|
Accident car cases 'too expensive'
Disputes over the cost of replacement cars for not-at-fault motorists in road accidents in Northern Ireland are too expensive, a High Court judge says.
Autoline relaunch the BRAKE initiative to reduce road deaths
As the number of road deaths in Northern Ireland continues to give cause for concern, a leading insurance company has once again joined forces with road safety charity BRAKE in a bid to educate young drivers of the dangers.
Responsible Younger Twenty-Somethings Unfairly Penalised by Car Hire Firms, says the IAM
Leading road safety organisation the Institute of Advanced Motorists (IAM) has expressed concern over car hire firms putting arbitrary and strict age cap limits on users wanting to hire a vehicle. (PRWeb September 11, 2014) Read the full story at http://www.prweb.com/releases/2014/09/prweb12163271.htm
Ticket to Ride
When Texas Christian University sophomore Kirina Awamoto moved to Fort Worth two years ago, she made the tough choice to leave her car in California. With insurance, parking, maintenance, and gas, the costs would have been too much, she said. She quickly figured out, though, that she still needed wheels for things like grocery shopping. [...]
Is it time for you to switch banks?
People are more likely to switch car insurance or electricity providers but could a bank account switch save you some money?
Family of car death girl devastated
A Renfrewshire school pays tribute to a former pupil who died after a collision between two cars at an Asda petrol station in Linwood.
AA: Family car running costs have fallen
The average cost of running a family car in Ireland has decreased in the last 12 months, according to research from the AA.
Stepping out of the fast lane - relocating from city to country
Jim Connolly never wanted to start Rural Resettlement Ireland. It came to him like an inspired dream, a chance to save the rural Ireland he loved, while also offering Dublin families a slice of life on the wild Atlantic coast. The problem was that, once he started dreaming, he couldn?t stop, reports Andrew Hamilton
Morning business news - August 26
Profit before tax for the first six months of the year at insurer FBD has fallen from over ?19m last year to ?3.2m.
Accident car cases are too expensive, says judge
Litigation around the supply of replacement cars to not-at-fault motorists following accidents in Northern Ireland is cumbersome and too expensive, a High Court judge has declared.
|
