How Much Liability Protection Do I Need On My Automobile Policy?
Even the most careful driver can make a mistake and cause an accident. The next time you get in your car, you could be involved in an accident which someone else is seriously injured. You do not have to be 100% at fault in the accident to face financial liabilities.
You are buying Bodily Injury coverage to protect your assets in the event of a judgement against you. Your per person Bodily limit should be at least as large if not larger than the value of the sum of the following assets:
- Equity in your home (Market Value Less Mortgage Balance)
- Cash Value of your vehicles
- Stocks
- Bonds
- Bank Accounts
Is My Friend Covered Under My Automobile Policy if I Lend Him/Her My Covered Automobile?
Whenever you give permission for a friend or associate to borrow your car, they are under your automobile insurance policy. Automobile Insurance follows the vehicle.
What is the Difference Between Collision and Comprehensive Coverage?
Comprehensive - This optional coverage pays for damage to your car that is caused by perils other than a collision. These include fire, theft, hail, vandalism, riots, damage caused by animals, and glass breakage. There are various deductible options that you can select for this coverage.
Not every non-collision related loss is covered under Comprehensive. For instance, damages are not covered if they are caused by wear and tear, freezing, mechanical breakdown or road damage to tires by potholes. Also, certain property such as cell phones (non-attached), tapes and compact disks are not covered. Finally, any customization you do to your vehicle after it is purchased is not covered unless you notify your insurance company.
Note that sound equipment like CD players, AM/FM cassettes, and TV's are generally only covered under your auto policy it they are permanently installed.
Collision -
This optional coverage pays for damage to your car no matter who causes the accident. Collision Coverage applies if your car is hit by another vehicle of if your auto hits other object that causes damage to your vehicle. There are various deductible options, which you can select for this coverage.
Should I Put My Teenager On A Separate Policy With Lower Bodily Injury Limits To Save Money?
All children that you consider as dependent should be listed either on your policy or on a policy of their own. An injured party will most likely go after the parents assets if the at fault minor child had sufficient insurance coverage. Also, bear in mind that inexperienced drivers have accidents at a much higher rate than experienced drivers do.
Who do I list on my policy?
By law, every licensed member of your household must be listed on the policy.
What Happens If I Am A Passenger in A Friends Car And I Am Injured As A Result Of An Uninsured Motorist?
If your friend has Uninsured Motorist Bodily Injury (UMBI) or Underinsured Motorist Bodily Injury protection (UIMBI), you will be covered under his/her policy (up to the policy limits that they have purchases). If your friend does not have UMBI or UIMBI, you will receive protection under your own UMBI or UIMBI coverage (up to the policy limits that you have purchased). If you do not carry UMBI or UIMBI (or not enough coverage) you will have no coverage and would have to sue your friend and/or the driver of the other vehicle to recoup some or all of the damages.
Do I Need Collision Protection On My Automobile?
Many people wonder if they should always purchase Collision protection. To make the decision, you need to know the current value of your auto and the cost of coverage. Generally speaking, vehicles decline in value as they age. Only you can decide if collision coverage is necessary after considering if the cost of insurance is more economical than the cost of repairing or replacing the car at your own expense. Nonetheless, here are some guidelines to help you make a decision that is best for you.
- If your car is leased or financed, you are probably required to maintain Collision as well as Comprehensive coverage.
- If the value of your vehicle is only slightly higher than the deductible chosen, then it makes no sense to purchase Collision or Comprehensive coverage.
- If your annual premium for the sum of these coverages (Collision and/or Comprehensive), when multiplied by 8, is greater than the value of your auto, then it is not economically feasible to purchase physical damage for that vehicle.
If I Want Comprehensive and/or Collision Coverage, Do I Need to Choose it on All My Insured Vehicles?
You can make comprehensive and / or collision coverage choices individually for each of your insured vehicles.
If Another Driver Hits My Vehicle, Do I Have To Wait For the Other Driver To Pay For Damages to My Automobile?
Not if you choose collision coverage. If you choose collision coverage, your insurance carrier will pay for damage to your car (cost of damage to your car less deductible) regardless of who is at-fault in the accident. If the other driver was at fault, we will try to recover the cost of the collision damage from the driver and reimburse you for any deductible charges you may have paid.
How Large Of A Deductible Should I Select?
Obviously, the larger the deductible the greater your savings will be. Select a deductible based on the largest amount that you are comfortable paying for repairs to your vehicle in the event of an accident.
My Automobile Has Been Stolen. Will My Insurance Pay For A Rental?
If you carry comprehensive coverage on your stolen vehicle, you will be reimbursed on a rental up to a certain limit. However, if your auto is in the repair shop due to an accident, your insurance company will pay for a rental if you have purchased optional rental reimbursement coverage.
Does My Automobile Insurance Policy Extend Coverage to Rental Automobiles?
It depends on your insurance company, some don't cover rental cars automatically. However, if you don't have collision or comprehensive on your current automobile policy, you will not have them on a rental car either.
There may also be gaps in your insurance that will not cover the time a rental vehicle is absent from the rental fleet (Loss of Use/Income) while it is being repaired or replaced. Check with your insurance specialist to ensure your protection.
What Information Should I Have With Me When I Call?
For the most accurate comparison, have your current insurance policies on hand. For an auto quote, also have:
- Your Social Security number
- The Vehicle Identification Number (VIN) of each car you'd like to insure
- Dates of birth of each licensed operator/driver in your household
- The driver's license number of each driver in your household
I Live in a Condominium and I've Been Told That I Need to Buy Additions and Alterations Coverage. What is it?
Additions and alterations are permanent improvements made to condominiums and cooperatives. Many people mistakenly believe that the condominium association's policy covers interior improvements like floor coverings, cabinets, bookcases, wall coverings, kitchen appliances and light fixtures. Generally it does not. Additions and alterations coverage is protection you can purchase for interior improvements that you've made to your condominium or cooperative. Most policies automatically provide additions and alterations coverage in the amount of 10% of your contents coverage. If this is not enough coverage, you can purchase an additional amount.
Is My Jewelry Fully Covered By My Homeowner's Policy?
Most people don't realize that many homeowner's policies offer only $1,000 in coverage for jewelry. Given that this limit is generally less than the cost of an average engagement ring, it is doubtful that most customers will have enough coverage for their jewelry. The solution is to purchase a Valuable Articles Policy so you can insure specific jewelry items. Tips on selecting a valuable articles policy: (1) look for a policy that doesn't mandate that you can replace an item to receive full value of the settlement, and (2) select a company that makes it easy to insure your jewelry by requiring appraisals only on high value items.
Is My Child's Property (Including His Computer Hardware) Covered While He or She is Away at College?
As long as your child is covered under your insurance policy as a member of your household, his personal property, including a computer, would be covered. Insurance companies cover children away from school differently so check with your insurer to see if your college student is covered by your policy. If your child has a laptop computer, a separate policy can cover most partial or total losses, including those caused by theft, fire, explosion, auto accident, power surge or accidental damages such as dropping or liquid spills.
How Much Insurance Coverage Should I Buy For My House?
In selecting an appropriate amount of coverage, be sure to avoid the most common consumer mistake - insuring your home for what it will sell for (the market value) rather than what it costs to replace. Homeowner policies are designed to cover the cost of reconstructing your home should it ever be destroyed. Therefore, you should select an amount of insurance that represents the replacement value of your home.
- Did you know that floods are the most common natural disaster?
- Did you know that the most typical form of Federal Disaster Assistance is a loan. which must be paid back with interest?
- Did you know that the average individual and family grant payment is less than $2,500?
- Did you know that the average premium for a flood insurance policy is $300 per year?
Why Do I Need Flood Insurance?
Your homeowners policy does not cover flood damage to your home and your personal property. Twenty five percent of all flood losses that occur come to homes that are located in low to moderate risk flood areas.
What If Someone Gets Hurt While On My Boat?
Liability insurance protects you and your family who are members of your household if you're legally liable for injuries to other people either on or off your boat, or if you accidentally cause damage to someone else's property. Your watercraft policy will also pay the costs to defend you in a lawsuit that may be brought against you.
- Safety Course Discounts - for completing U.S. Coast Guard Auxiliary courses of U.S. Power Squadron safety programs.
- Protective Device Discounts - when your boat is equipped with a depth finder, VHF ship-to-shore radio, radar system, burglar alarm, or other protective devices.
- Diesel Engine Discount - if your bout is powered by a diesel engine.
- Coast Guard Certification Discount - for boats that have passed a Courtesy Marine Examination (CME) provided by the Coast Guard Auxillary.
How Can I Cut Costs On My Watercraft Insurance?
Through our various insurance carriers, they recognize the value of boat safety courses, protective devices, Courtesy Marine Examination (CME's), and more with many other discounts (subject to individual qualifications and state availability) on certain coverages:
