How does my insurance really work?
How does Auto Insurance actually work?
Auto Insurance isn't only about protecting your car or the other driver’s car.
"I am a great driver so I only need liability."
This comment has made me realize why people are so against Auto Insurance. We know that our clients have come to respect us because we help them with insurance. They want coverage thru us because they understand and find the value in it.
“to be prepared is to control what you can control and not worry about the uncontrollable”. Your Auto insurance should protect the people in your car as long as you have the proper coverage you don’t have to worry about what the other person has. Proper coverage protects you in most situations.
Auto Insurance Basics:
Split limits Vs. Combined Single Limits
Most people have split limits , below are the basic coverages in thousands,
50/100/50; 100/300/100; 250/500/250; 500/500/500
The first number is the liability limit for each person (bodily damage) involved in the accident.
The second number is the total amount of bodily damage and the last number is the total amount of property damage.
If you have 100/300/50 you will have no more than $100,000 of coverage per person in the vehicle and $50,000 in the property (someone else's home you hit) If there are multiple people involved you will have no more than $300,000.
In Combined Single Limits you have one number,
300 CSL; 500CSL ; 1,000CSL;
This means you are covered to that amount no matter how many people are in the care or what you hit. The last number represents $1 Million in coverage.
What am I not thinking about my home insurance?
HOME INSURANCE FAQ'S
What is an example of typical/basic coverage for home insurance?
A basic home owners insurance policy will cover the value of the structure of your home, separate coverage for your personal belongings, and liability coverage we recommend minimum $300K liability limits, but its up to the customer.
There is also additional living expenses coverage included that covers your needs if you can’t live in your home for an extended amount of time.
When should a homeowner consider additional policies on top of their basic protection?
Water and Sewer back up of at least $10,000 or the value of your basement if your company offers higher limits.
Higher medical payments, $10K is good and should cover most slips and falls. And of course if you have valuables, or collectibles such as Jewelry, Comic Books, memorabilia, and or guns.
How should homeowners decide what supplemental coverage that they need?
The best way is to discuss what they have using a checklist with their agent.