Auto insurance » Bodily Injury

Liability Insurance and Asset Protection

admin — Fri, 11 Jun 2010 12:41:22 +0000

When it comes to protecting personal wealth and business assets, the first thing that comes to many people’s minds is insurance. There is no question that insurance can play an important role in asset protection. Not only is it often required by law, by your lender or by your landlord, insurance can be an effective first line of defense against liability lawsuits. However, to fully protect your assets, it is critical to understand what insurance is and what it does and does not do for asset protection.

Included within most typical insurance policies such as automobile, homeowner, landlord and business insurance are three main general categories of coverage:

Liability coverage – this is the coverage to compensate the other party for bodily injury or property damage caused by you. For example, if you cause an automobile accident and the other car is damaged and the driver is injured, your liability coverage will pay for the injury of the other driver and the repair of the other car. Property protection coverage – this is the coverage to replace or repair your property for any sudden and accidental loss or damage caused by a covered peril. For example, if your car is also damaged in the above accident, your property protection coverage will pay to repair or replace your car after you pay your deductible. Other additional protection – this is a broad category of coverages designed to help you get by during the period when your property is being repaired like a rental car when your car is in the shop as well as other miscellaneous coverages like towing and medical expenses for you and your passengers.

Liability insurance gives you a layer of protection against lawsuit and lost of assets. However, it has a number of limitations:
There are always limits on how much the insurance policy will pay for losses for which you are liable. If the court awards the person you’ve injured a judgment of $350,000 but your liability limit is just $100,000, the most the insurance policy will pay is $100,000. Guess who will have to come up with the remaining $250,000? That’s right: you! You will have to come up with the cash or face the real possibility of losing your home and/or other assets. There are many exclusions in your insurance policies. For example, any liability from an intentional or criminal act is excluded. Sexual harassment, employment discrimination or wrongful termination is typically excluded as well. Discharge of waste and other toxic materials is generally excluded. Liabilities arising from breach of contracts or agreements are typically not covered. Professional liabilities such as malpractice, errors and omissions are usually excluded unless a separate professional liability policy is in force. In other words, for a LARGE liability claim, the insurance company will try to find ways to avoid paying. So unless it is specifically and explicitly covered by the insurance policy, you are most likely on your own. In addition, any failure to disclose material facts in your application or failure to report any material changes after the policy is in force gives the insurance company a way out of paying a claim even if it is covered. Most insurance policies do not cover many more ways you can be sued. For example, you might be sued for misappropriation of other’s funds, fraud or allegation of fraud, breach of contract, slander, libel, copyright, trademark or patent infringement, divorce, accidents from a motorized speed race, a hostile working environment, a liability arising from a willful violation of an ordinance or a statute, suits from local, state or federal government agencies, just to name a few. You can’t even buy liability insurance for these risks in most cases. And if you can find insurance for these risks, they will likely cost a great deal.

There is no question that we should all carry the insurance required by law, the lender or landlord as the first line of defense against lawsuits and loss of assets. However, since there are limits on what insurance will pay and there are too many situations where insurance will not provide the coverage, you cannot rely solely on insurance to protect your assets.

Oftentimes, just having all your assets visible to an aggressive injury attorney invites lawsuits that might otherwise not be filed. There is no better way to stop a potential lawsuit from starting than to lead the injury attorney to think that there won’t be any money or assets for him to collect after spending all the time and money to go to trial even if he wins.

By: Carlos Lee

Auto Insurance Advice For Drivers in Missouri

admin — Thu, 18 Feb 2010 14:38:45 +0000

If you currently live in Missouri or you’re planning to move there, auto insurance is something you’ll definitely consider if you plan on owning an automobile. Auto insurance covers you in case you cause damage to any person’s property or body, and it is absolutely required in order to register and drive any vehicle.

Each state has its own laws and regulations when it comes to auto insurance, so it might be a good idea to visit Missouri’s Department of Motor Vehicles website to get full details of exactly what you need. In general though, there is a minimum liability insurance that you need to be covered for. In the State of Missouri, this is as follows: $25,000 minimum coverage for bodily injury per person, $50,000 minimum coverage for each accident, and $10,000 minimum property coverage f or each accident. It’s good to know this information when shopping around for car insurance so you’re better informed and can get the policy that’s best for you.

Liability insurance, which is manditory in Missouri, does not cover the policy holder in the event of an accident. This type of insurance only covers third party drivers and property. To insure yourself and your own car, you should consider collision and comprehensive coverage. If you want even more peace of mind, you can opt for uninsured or underinsured driver insurance, which protects you in case someone hits your car and is uninsured or underinsured.

When searching for the best car insurance rates in Missouri, the best advice is to shop around and compare at least 5 different insurance companies. You might be surprised to see how much policy rates differ between different companies, even for same or similar coverage options. That’s why it’s important to shop around and compare multiple car insurance rates.

Even if you’re currently insured, you might be able to save hundreds of dollars a year by switching auto insurance providers. You can compare multiple quotes online in a matter of minutes, so you’ve got nothing to lose, however you could end up saving a lot.

The Missouri Insurance Information Service says more than 20,000 vehicles were reported stolen in 2008, nearly half of them in St. Louis and Kansas City. This would make sense considering these are two of the largest cities in the state, however this is bad news for residents of St. Louis and Kansas City as this means that they will probably be paying higher insurance rates due to the high auto crime rate. The five most commonly stolen vehicles in Missouri are the Dodge Intrepid, Ford Taurus, Pontiac Grand Prix, Dodge Stratus and Oldsmobile Cutlass, so you might want to avoid these cars to keep your car insurance rates as low as possible.

By: Samantha S

California Auto Insurance Laws – CA Car Insurance Laws That You Need to Know

admin — Sun, 24 Jan 2010 06:51:46 +0000

What are some of the California auto insurance laws that CA residents need to know? California is a tort law state for auto insurance, which basically means you can sue the other party if you are injured in a car accident. There are several other car insurance laws that consumers in the Golden State should be aware of before looking for car insurance.

In California, the law requires you to carry at least liability coverage in the limits of 15/30/5, which means:

$15,000 bodily injury coverage per person hurt in a car accident

$30,000 bodily injury coverage per accident in total

$5,000 coverage for property damage liability

This coverage is to protect others in case of an accident where you are deemed to be at fault. However, the minimum limits are very low and are unlikely to be sufficient to cover the expenses of a serious car accident. In this case you could be personally sued for the excess. For this reason it makes sense to carry higher limits of liability coverage.

There is a California which law requires insurers to give the lowest price to the consumer that he or she is eligible for. All companies operating in the state must have a toll-free number and/or a web site with quote capabilities available to consumers in order to meet the requirements of this law.

CA car insurance laws state that when you purchase liability coverage the insurer must offer you uninsured motorist coverage. If you decide against it, you must actually sign a form stating that you have declined this coverage.

Now that you are fully aware of the California auto insurance laws that you need to know, you are ready to start shopping for California car insurance. You can get started quickly and easily by using an online quote tool. In no time, you’ll be comparing a variety of quotes from top CA insurers.

By: James J. Robinson

Common Auto Insurance Terms – Car Insurance Terms That You Need to Know

admin — Sat, 28 Nov 2009 17:32:03 +0000

Before you start shopping around for auto insurance, you should get a handle on some of the common car insurance terms. In all reality, the more you know about car insurance, the better chance you’ll have at finding the perfect coverage for your vehicle. Sure, you’d love to think that all companies would be upfront and honest with you about what you need and what you don’t need. But come on, what company doesn’t want to make some profit? This is why having the basic knowledge when it comes to car insurance can make all the difference when it comes to your auto coverage. Read on to learn some common auto insurance terms and then see how much money you can save!

Absolute Liability

This is liability without fault, also known as liability without regard to fault or strict liability. You may see this pop up when something considered contrary to public policy happens, even though the event wasn’t intentional.

Liability Insurance

In a nutshell, liability insurance is risk transference. Not only does give you protection against loss that arise from third parties, it covers your legal liability from injures to other people or their property.

Collision Insurance

This type of insurance is optional. Collision insurance provides coverage for the insured’s vehicle, subject to a deductible, that is involved in an accident. Basically, this covers you whether the accident was your fault or not.

Deductible

Also known as excess, this is the amount you agree to pay toward the total amount of an insured loss, whether it is per claim or per accident. Usually a fixed rate, the deductible must be paid before the policy benefits can be applied to a claim.

Uninsured and/or Underinsured Coverage

This type of insurance is great protection for you and your family if you happen to be hit by someone without insurance coverage. Having uninsured or underinsured coverage allows you and your family’s bodily injury to be paid for.

Comprehensive Coverage

Comprehensive insurance covers your vehicle in case of non-collision related incidents such as fire, theft, weather, impact with animals and vandalism.

Gap Insurance

This insurance is good for people who have just purchased a new vehicle. In a nutshell, new cars depreciate right after leaving the dealership lot. Gap insurance covers the difference between what an insurance company says your car’s worth and what you would actually owe on the vehicle.

Gap insurance usually only covers theft and accidents, but that can vary depending on the insurance policy. You can also purchase gap insurance from the dealership. However, you can expect to pay even higher premiums.

Property Damage Coverage

This covers any damage you may cause to another’s vehicle. Basically, if you cause it, you’re covered.

Claim

This is your request for reimbursement concerning a loss covered by your auto insurance policy.

Full Coverage

Actually, full coverage isn’t really what it sounds like. Technically, full coverage is a combination of collision and comprehensive coverage, meaning that your car’s physical damage is covered.

Secondary Driver

Also known as an occasional driver, this person is covered for driving the insured vehicle. However, this coverage does not mean that they’re the primary driver.

Shop Around To Find Cheap Auto Insurance

Familiarizing yourself with the above common car insurance terms will result in you making a wise decision when it comes to your auto coverage. Take your time and shop around before committing to a provider and you will be find the cheapest auto insurance company that will still meet your coverage needs.

The above terms are just the ones most frequently talked about or that affect the majority of drivers on the road. There are more common car insurance terms, but they are mainly state specific. The best way to find out what’s required in your state is by visiting your local DMV’s website.

By: James J. Robinson