That is especially true when you consider that a many advertised companies where we buy our low-cost policies don't prove to be a bargain after we have a fender bender and need some other bodily work. More importantly, a financial advisor to my family told us a few months ago that we needed an umbrella liability policy that protected all of our assets, whether we had a serious car accident that injured someone else or someone injured at our house and decided to sue.
So we need to get around, and that's what I do. Here are four great things I learned from this exercise (and years of writing about cars):
Beware of minimum coverage.
The minimum state law for insurance coverage must be considered only that - the minimum. Jay Edelstein, a Philadelphia accident lawyer, highly recommends policies with much higher limits. If you are considered liable in an accident and only have the minimum coverage required by the state, you risk being considered personally responsible for paying compensation for others.
If you don't have liability, you are responsible for paying for pain, suffering, and other personal difficulties and some economic damage, such as lost wages, that you cause, said Michael Reitman, a Clark, NJ lawyer who handles negligence cases. The insurance company will not give you a lawyer or pay for you if you are sued. Your assets will be in danger, and you risk getting your reward if an assessment is made against you. And, if you don't have a range and someone hits you, you can't sue, said Reitman. I believe!
The umbrella policy makes sense.
Umbrella insurance is a policy that increases the scope of your liability - that is, what you will pay to others if you are responsible for injuring them or damaging their property. This includes more types of claims at higher limits. Trustedchoice.com, a company that represents 140,000 independent insurance agent, says this policy can benefit anyone who drives, owns or renta home and has assets that must be protected. Seeing that almost everyone who has been saving for several years is something worth seeing. Of course, like any insurance, you need to do a cost-benefit analysis to see if it's right for you. How much can you spend for each month and what do you miss if you don't fix it?
When you think about it, consider this: Nearly 15% of the awards and personal liability solutions are $ 1 million or more. About 20% of peoples with high net worth do not have this coverage, said Trusted Choice. An average fee of around $ 380 per year - or around $ 32 per month - can provide you with the protection of $ 1 to 2 million. Sold! // The scope of the collision raises questions. This may not make sense to you. Our hunk of junk 2001 SUV - the third vehicle for my two-driver household - is on its way to every charity you might want, most likely to part. We haven't paid for collision protection for a while, but I just realized (by actually looking at my policy!) That we have paid what is known as comprehensive coverage, which includes non-collision things that can happen to my car. I don't care what happens to this car, so I only save $ 20 a year. Although skipping collision coverage for a car that is worth $ 3,000 or less may seem like a smart way to save money, the actual vehicle replacement costs you need after a total loss can prove to be very large if you don't have collision coverage. (We will not replace ours until our teenagers start driving.)
Uninsured and insured driver coverage is a must.
If you suffer a life-changing injury and cannot return to work after an accident caused by the driver without sufficient insurance, your life and future can hang in the balance, said Philadelphia lawyer Dean Weitzman. The only way you can be compensated adequately and fairly after such an event is to have the highest number of MW and UIM you can afford, he said. There are even ways to do that without spending more on your existing policies: Increase your vehicle's collision.