Nobody wants to buy more car insurance than necessary. Especially when it comes to automobile and general liability coverage, nor is it cheap. I am often asked How much coverage should I buy? or What is enough coverage? I can not answer that question, but I can make suggestions and ask some questions that can help make a final decision.
A brief and simplified explanation of how the claims process works car insurance could be useful. A common occurrence is a car accident. The following is an example of what commonly occurs. As a contractor, you have purchased a commercial auto policy with a limit of $ 500,000 liability for property damage and personal injury. Your driver collides with another vehicle, make up the other car and injuring the driver. Its clear that the driver responsible for the accident. The policy limit $ 500,000 is the maximum that your insurance company will pay for any and all damages and injuries. The incident was reported to the insurance company, adjusting evaluate what has happened, and on the basis of the potential liability establishes a reserve; the maximum amount you think the insurance company will pay on your behalf.
Whether you are responsible for any damages or not, is an insurance required to defend you until a judgment or the applicant has been released from future liability is reached. At this point, several scenarios play out. First, youve got enough coverage, the damage is within the framework of the policy to an agreement and you and your company is released from any future liability. Secondly, the damage is beyond the limits of the policy, the insurance company gives political boundaries, has no other assets of the applicants claim. The applicant assesses the situation and determines that it is in their best interest to accept the offer and free.
Thirdly, the damage is beyond the boundaries of politics and the plaintiff did not accept the offer of political boundaries, as the insurance company. At this point we must reach agreement through the court system. If the judgment is made, and is within the framework of the policy, the insurance company would pay on their behalf and would not stand any future liability. If a judgment beyond the limit of the policy, the insurance company would pay the political borders and would stick to defend and possibly pay a sum of money that is left beyond what the insurance paid.
It is obviously important to avoid a resolution that allows more of its political boundaries. So how much insurance is enough? To help answer this question it is necessary to consider the following:
What kind of legal person who protects the individual property or any kind of business, considering that the corporate veil remains eroded? What kind of work do you do? Is there a risk of property damage his client? What is the value of the properties is working? They are $ 100,000 or $ 1 million residential home? What types of interruptions can cause their employees and what is the cost of lost business to your customers? Could it be responsible for the lost business? How many employees do you have? How many cars are on the road at any given time? Several workers and vehicles on the roads result in a greater potential for accidents. What their contracts required in terms of the limits of liability? As a person, what you net worth? What is the value of the company. enough coverage to ensure that a large judgment against you is not going to wipe out all of your hard earned assets is necessary.
Use these questions as a starting point. So buy what you can reasonably afford. sufficient coverage can be as sensible as several hundred dollars to twice their current coverage or even millions of dollars and additional coverage through an umbrella. If you find yourself asking How much extra cover that cost? my answer in most cases will be You do not want to know.
Michael J. McCartin is president of JW McCartin Insurance, Maryland car insurance, Life Homeowners, business and enterprise. Mike is very active in professional associations in the insurance industry, serving as past president and board member of the Independent Insurance Agents of Maryland. It has also been played in the Agent Advisory Council for Erie Insurance Group. As a result of its extensive experience in the industry, often sought as a spokesman for radio, television and news on insurance. Visit JW McCartin Insurance website.