Hello again!
Your friendly neighborhood insurance agent here. I thought it might be time to post another entry. Let me know if this sounds familiar. You come home from a hard day's work and open your mail. You see the usual suspects: bills, mailers, and something from your insurance company. Didn't I just pay that? So you open it. It's the Declarations (Dec) Page. Whew! Seeing it isn't a bill, you take a quick glance at it, and then file it away. Sound familiar?
If this doesn't sound like you, it happens more than you know. Like most states, Indiana requires us to carry proof of financial responsibility, or better known as state minimum liability automobile insurance. So what's on that DecPage that's so important? The Dec Page tells us quite a bit. Depending on the insurance company, you will either receive the Dec page shortly before or after your auto policy renews. If they send it shortly before, the Dec will show you what your upcoming renewal premium will be. If you receive it after the renewal, you'll see how much you're paying. Not only does it show the total premium, but it also gives you a breakdown of how much each individual coverage costs. I don't know about you, but when I spend $600 per year on something...heck anything, I sure like to know what I'm getting in return!!
My goal is to explain the auto policy per section. Each blog will be dedicated to a section.
Bodily Injury Liability (BI)
This coverage is almost self-explanatory, but it is probably the single most important coverage of the entire auto policy! Hopefully this never happens, but if you are in an auto accident, and authorities determine you're at fault (liable), this coverage takes care of the bodily injury you may cause to the other party. This coverage is available in two parts: per person/per occurrence or a combined single limit. The Indiana State minimum BI limit is $25,000 per person/$50,000 per occurrence (accident). You may ask, "How much bodily injury coverage do I need?" A good rule of thumb is to choose a level that best protects your assets. The reason for this is because if the limits you choose become exhausted, the other party may come after your personal assets until the debt is settled. So, does $25,000 sound like enough to protect your assets if you harm another person or worse yet, people? Have you been to the hospital recently? Chances are, these limits are not enough. In fact, I won't write or even quote anyone for limits less than $100,000 per person/$300,000 per occurrence. I just won't.
The other option is the combined single limit. This limit is usually higher and starts around $300,000 and goes up as high as $1 Mil, or higher. I have seen one as high as $10 Mil, but that was for a commercial auto policy. These normally fall between $300K and $1 Mil.
Any agent can give you a quote for your auto. A great agent will determine your assets and make a recommendation based on your answer. Make sure you know which agent you're dealing with.
Next week: Property Damage Liability
Monday, August 25, 2008
Monday, August 11, 2008
Auto Policy
Hey there! It's your friendly, neighborhood insurance agent again. This month's blog is on the auto policy. Tell me if this sounds familiar:
You come home from a busy day at work and open your mail. You open an envelope and see the Declarations Page from your insurance company for your auto policy. Seeing that it isn't a bill, you either file it away or throw it in the trash.
Sound familiar? Hopefully this doesn't happen in your household. However, you'd be surprised how often this does happen. Since we're required by law to carry auto insurance, some of us just pay our premiums without ever knowing what we're paying for and carry on with our lives. But have you ever stopped to think for what you're paying?
Like most states, Indiana has a financially responsibility law that requires us all to carry at least the state minimum liability limits on bodily injury, property damage,medical payments to others, and uninsured/underinsured bodily injury limits. The more inclusive policies also include physical damage coverage for damage to your auto and uninsured motorist property damage. So what do all of these coverage limits mean? Each blog for August will include at least one coverage from the auto policy. We'll start today with Bodily Injury Liability.
Bodily Injury Liability
This coverage (usually) comes in two parts: per person and per occurrence/per accident. There are also combined single limits (CSL) available. More on that later on...keep reading. This coverage takes care of any bodily injury you may cause to another person for which you are deemed liable. Indiana State minimum limits are $25,000 per person/$50,000 per occurrence. This means that if you have a policy with these limits, the maximum amount the policy pays is $25,000 per any one person, and $50,000 maximum per occurrence or per accident. Does this seem like enough coverage? In most cases, it isn't. If you haven't been to the hospital recently, trust me when I say that it doesn't take much to rack up the medical bills quickly. Personally, I won't write any policy with these limits. When choosing the limits for your policy, the best 'rule of thumb' is to get what you need to cover your assets. Most insurance companies offer limits of $100K/$300K or $250K/$500K, which are the two most common limits chosen. As mentioned earlier, there is also the option of a combined single limit, which pays out a maximum amount without regards to per person or per occurrence. Normally CSL's start out higher, normally around $500K or higher.
Any licensed agent can write a policy with whatever limits you ask him to quote for you. A good agent will find out what limits are necessary to protect your assets and make his or her recommendations accordingly. Make sure you know with which agent you're doing business.
Stay tuned for the next August Auto blog: Property Damage Liability!
You come home from a busy day at work and open your mail. You open an envelope and see the Declarations Page from your insurance company for your auto policy. Seeing that it isn't a bill, you either file it away or throw it in the trash.
Sound familiar? Hopefully this doesn't happen in your household. However, you'd be surprised how often this does happen. Since we're required by law to carry auto insurance, some of us just pay our premiums without ever knowing what we're paying for and carry on with our lives. But have you ever stopped to think for what you're paying?
Like most states, Indiana has a financially responsibility law that requires us all to carry at least the state minimum liability limits on bodily injury, property damage,medical payments to others, and uninsured/underinsured bodily injury limits. The more inclusive policies also include physical damage coverage for damage to your auto and uninsured motorist property damage. So what do all of these coverage limits mean? Each blog for August will include at least one coverage from the auto policy. We'll start today with Bodily Injury Liability.
Bodily Injury Liability
This coverage (usually) comes in two parts: per person and per occurrence/per accident. There are also combined single limits (CSL) available. More on that later on...keep reading. This coverage takes care of any bodily injury you may cause to another person for which you are deemed liable. Indiana State minimum limits are $25,000 per person/$50,000 per occurrence. This means that if you have a policy with these limits, the maximum amount the policy pays is $25,000 per any one person, and $50,000 maximum per occurrence or per accident. Does this seem like enough coverage? In most cases, it isn't. If you haven't been to the hospital recently, trust me when I say that it doesn't take much to rack up the medical bills quickly. Personally, I won't write any policy with these limits. When choosing the limits for your policy, the best 'rule of thumb' is to get what you need to cover your assets. Most insurance companies offer limits of $100K/$300K or $250K/$500K, which are the two most common limits chosen. As mentioned earlier, there is also the option of a combined single limit, which pays out a maximum amount without regards to per person or per occurrence. Normally CSL's start out higher, normally around $500K or higher.
Any licensed agent can write a policy with whatever limits you ask him to quote for you. A good agent will find out what limits are necessary to protect your assets and make his or her recommendations accordingly. Make sure you know with which agent you're doing business.
Stay tuned for the next August Auto blog: Property Damage Liability!
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