Liability Insurance for Your Auto

Often when purchasing an auto policy people are looking for ways to save money in the wrong places, such as the liability section in your auto policy. The state of Michigan only requires you to carry 20/40/10 limits, which are $20,000 per person/$40,000 per occurrence/$10,000 property damage. However, this could end up costing you everything you own plus more. For example, if you are deemed at fault in an auto collision and have caused bodily injury to others in the other vehicle they can come back and sue you. And in these days and times, $20,000 is not going to cover it.

What is likely to happen is your insurance company will just cut the check for the policy limit and walk away, leaving you with no defense. So after that, where do you think the rest of the settlement money will be coming from? Your bank accounts and assets. As a general rule of thumb 100/300/100 is as low on your auto liability limits as you would ever want to go. Also, you can increase your automobile liability limits to 500/500/500 and home liability to $500,000 and once you do that, often you can purchase a $1 Million Umbrella Policy which is an additional $1 Million of liability coverage on top of you home and auto coverage, often with no extra cost because of the Umbrella Multi-Policy Discount.

Homeowner A-D Coverages

Coverage A : As discussed in the Replacement Cost post, coverage A determines what your house is covered for covered damages to it.

Coverage B : is for Other Structures. So it could be a pole barn, shed, detached garage, etc. Coverage B is created by taking 10% of Coverage A. So if Coverage A is $100,000 then Coverage B would automatically be $10,000.

Coverage C : is for Personal Property. This would be your contents. Coverage C is created by taking 50% of Coverage A. So if Coverage A is $100,000 then Coverage C would be $50,000.

Coverage D : is for Loss of Use. Loss of Use is if you have a loss caused by a covered peril to where you cannot reside in your house until the repairs are finished, your insurance will pay for you to live elsewhere for the time being up to Coverage D’s limit. Coverage D is created by taking 25% of Coverage A. So if Coverage A is $100,000 then Coverage D would be $25,000

* All of the above are subject to your deductible.

If you have any questions please feel to comment and ask away.

3 Keys to Recieving ‘Peace-of-Mind’ Auto Coverage

Do you want the type of auto coverage that gives you peace of mind so that when you’re driving around you’re not worrying whether you’re fully covered or not? Well here are three keys to insure that you can have that:

1. Be Honest With Your Agent – always tell your insurance agent the truth. You may think by “fibbing” or telling a “white lie” to save a little bit in premium dollars won’t hurt, but that’s where you’d be wrong. This could cause you to have possible gaps in your auto coverage. Always have full disclosure with your agent. You wouldn’t go to the doctor and not tell him all your symptoms would you? Of course not, because he might misdiagnose you! It’s the same way with your insurance, ALWAYS BE HONEST.

2. Ask Questions – if you’re ever unsure of anything ask you agent. All through out high school so many of my teachers said, “There’s no such thing as a stupid question” and you know what? They were right! Never feel embarrassed to ask a question, please ask away!

3. Pay Your Bill When It’s Due – rather than waiting until last minute to pay your bill and hope it gets to the company on time, just pay it when it’s due and you’ll know your covered. Simple.

So there you have 3 Keys to Have great peace of mind when it comes to your auto coverage!

3 Keys to Having ‘Peace-of-Mind’ Homeowners Coverage

Do you want the type of homeowners coverage that gives you peace of mind so that when you lie your head down to go to bed you’re not worrying whether you’re fully covered or not? Well here are three keys to insure that you can have that:

1. Be Honest With Your Agent – always tell your insurance agent the truth. You may think by “fibbing” or telling a “white lie” to save a little bit in premium dollars won’t hurt, but that’s where you’d be wrong. This could cause you to have possible gaps in your homeowners coverage. Always have full disclosure with your agent. You wouldn’t go to the doctor and not tell him all your symptoms would you? Of course not, because he might misdiagnose you! It’s the same way with your insurance, ALWAYS BE HONEST.

2. Ask Questions – if you’re ever unsure of anything ask you agent. All through out high school so many of my teachers said, “There’s no such thing as a stupid question” and you know what? They were right! Never feel embarrassed to ask a question, please ask away!

3. Pay Your Bill When It’s Due – rather than waiting until last minute to pay your bill and hope it gets to the company on time, just pay it when it’s due and you’ll know your covered. Simple.

So there you have 3 Keys to Have great peace of mind when it comes to your homeowners coverage!