insurance tutorial
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Insurance TLC!
InsuranceTLC.Com
WebServices@InsuranceTLC.Com
"No, we can't make insurance sexy or interesting.
We can only give you advice, based on years of experience."
George R Devendorf, Licensed NYS Insurance Agent since 1974
Go HOME
Well, here we go! This will be a short version of insurance coverage and things to think about, when you are looking for an insurance policy, or when simply changing your coverage. For instance, let's say you just bought a new car... What kind of coverage do you need for it? Hopefully, you selected a good agent and they can tell you what you need to have. BUT, you are here, right? So let's start from the beginning.
First of all, I am licensed in NYS. You will find most states have very similar requirements and definitions, but you must check them for your self. I'm not a mind reader, nor am I educated in other states requirements. I do not represent this to apply to any other state than NY. It can still be used as a guide to follow, but again, check your own state. Definitions should be very close.
Liability coverage is protection for damages YOU do to other people and property. It is expressed in either single limit or split limit terms. Single limit means that you are buying one lump sum of coverage to protect against damage to other people AND property. Split limits refer to damage to other people and then another number for property damage. Property damage is damage to the car you just rear-ended, or a telephone pole that you ran into. Bodily injury is the damage to people. Split limits, quite often will be expressed as 100,/300,/100,. This limit would mean that you have $100,000 coverage PER PERSON, with a TOTAL in any one accident of $300,000. for damage to people. Reduced further, you could theoretically run into a car containing 3 people and each of them could collect a maximum of $100,000 and a GRAND total of $300,000. for damages sustained in the accident. The last $100,000. refers to property damage. Single limit is pretty self explanatory.
If your state requires lower limits than another state, and you travel into that state, your policy automatically conforms to the other states requirements.
Now comes the $1Mil question.... "How Much Should I Carry?" Obviously, the higher the limit, the more expensive. And you have to consider the state you live in. Most, is not all have minimum limits you must carry. Consider... Even if you are a student that has no assets, just because your policy pays out it's maximum, you may still be responsible for anything OVER that! And your FUTURE earnings may be levied against until such a debt is paid. So there are reasons, beyond commission dollars that an agent may recommend higher coverages. If you don't have a pot to pee in and probably never will, then you may be all set with the state minimum. If you think that you do or will have a nice pot some day, well, now is a good time to think about that. MOST losses are less than $100,000. I have had clients involved in losses over that, as I recall, 5 times. Each had sufficient limits, thank goodness! It really is a question you must answer in good conscious when considering the premium versus the possible loss.
Insurance TLC!
InsuranceTLC.Com
WebServices@InsuranceTLC.Com
"No, we can't make insurance sexy or interesting.
We can only give you advice, based on years of experience."
George R Devendorf, Licensed NYS Insurance Agent since 1974
Go HOME
Well, here we go! This will be a short version of insurance coverage and things to think about, when you are looking for an insurance policy, or when simply changing your coverage. For instance, let's say you just bought a new car... What kind of coverage do you need for it? Hopefully, you selected a good agent and they can tell you what you need to have. BUT, you are here, right? So let's start from the beginning.
First of all, I am licensed in NYS. You will find most states have very similar requirements and definitions, but you must check them for your self. I'm not a mind reader, nor am I educated in other states requirements. I do not represent this to apply to any other state than NY. It can still be used as a guide to follow, but again, check your own state. Definitions should be very close.
Liability coverage is protection for damages YOU do to other people and property. It is expressed in either single limit or split limit terms. Single limit means that you are buying one lump sum of coverage to protect against damage to other people AND property. Split limits refer to damage to other people and then another number for property damage. Property damage is damage to the car you just rear-ended, or a telephone pole that you ran into. Bodily injury is the damage to people. Split limits, quite often will be expressed as 100,/300,/100,. This limit would mean that you have $100,000 coverage PER PERSON, with a TOTAL in any one accident of $300,000. for damage to people. Reduced further, you could theoretically run into a car containing 3 people and each of them could collect a maximum of $100,000 and a GRAND total of $300,000. for damages sustained in the accident. The last $100,000. refers to property damage. Single limit is pretty self explanatory.
If your state requires lower limits than another state, and you travel into that state, your policy automatically conforms to the other states requirements.
Now comes the $1Mil question.... "How Much Should I Carry?" Obviously, the higher the limit, the more expensive. And you have to consider the state you live in. Most, is not all have minimum limits you must carry. Consider... Even if you are a student that has no assets, just because your policy pays out it's maximum, you may still be responsible for anything OVER that! And your FUTURE earnings may be levied against until such a debt is paid. So there are reasons, beyond commission dollars that an agent may recommend higher coverages. If you don't have a pot to pee in and probably never will, then you may be all set with the state minimum. If you think that you do or will have a nice pot some day, well, now is a good time to think about that. MOST losses are less than $100,000. I have had clients involved in losses over that, as I recall, 5 times. Each had sufficient limits, thank goodness! It really is a question you must answer in good conscious when considering the premium versus the possible loss.
posted by Corky50 at 7:55 PM
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