Do I need special coverage for my leased car?

It’s not out of the ordinary for leasing agents to require special coverage for leased vehicles. Such coverage is designed to protect you and your leasing company from damages and/or losses that could occur for the duration of the lease.

Without special coverage, you may find yourself on the hook for thousands of dollars if you’re involved in the accident that results in expensive repairs or a total loss of the vehicle.

If you decide to lease a car, you may be required by your leasing agreement to have the following auto insurance coverage in addition to the state-mandated liability limits:

  • Comprehensive – Covers damage and/or losses caused by fire, theft, vandalism and other incidents other than a car accident. For example, if your car is damaged in a tornado or hurricane, comprehensive insurance will cover the cost of repairing the damage or, if necessary, replacement of the vehicle. This coverage is usually paired with collision insurance.
  • Collision – Covers damage and/or losses if your car is damaged or destroyed an accident. Whereas liability coverage does not cover damage to your property, collision coverage will cover the costs of repair or replacement of your vehicle after the deductible is paid.
  • GAP Insurance – In the event of a total loss, this coverage bridges the gap between the value of the vehicle and what you owe on your loan or lease. For example, if you owe $15,000 on your loan and the value of the car is $12,000, GAP coverage will take care of the remaining $3,000.

In addition to the above coverage, you can work with your independent agency to add additional coverage to your policy that will provide you with even more protection in case the unthinkable happens. We can also help you find the best coverage for your money by comparing insurance quotes online from multiple carriers. As a responsible driver, it falls on you to purchase the right types of coverage for your specific need.

What if I Sell my Texas Property During the Insured Period?

Many times people sell their Texas home in the middle of the policy period. The insurance company simply refunds the pro rata share of the premium. Pro rata is the percentage of the year the building will not be owned. For example, if you own your home for the first three months of the policy year and then sell it, the insurance company will refund nine of twelve, or three-quarters of the premium.

Remember to secure insurance for your new place. Compare quotes online for your new home. Homeowners policies provide coverage for your property, and protect you for your liabilities. Even if you temporarily do not own property, you have liability potential.

Liability covers you if you damage someone else’s property or injure them in some way. Prudent people keep liability in force to cover unexpected events. So, before cancelling the homeowners for a three month to save money, consider all your insurance.

Consider your personal items too. Jewelry, guns, furniture, paintings and other artwork. Cancelling homeowners insurance during the policy term does not allow these items to be covered. Even locked in storage, these items have value.

So, before you cancel, consider the following:

  1. Will I need to maintain liability coverage?
  2. Do I have personal belongings that need coverage?

If your answer is yes to either question, secure these coverages first, then cancel the current coverage.

For typical home situations, go online and obtain quotes from our website for your new home. Have information available to describe the new property. Once the data is filled accurately, the computer will find a match between company and client.

For more complex property situations, consult your agent. They can guide you through various ways to cover special property. It’s always a good idea to take pictures of valuables such as jewelry, guns, furs, collectibles, or artwork. Keep these pictures offsite so you’ll have a reference in case of a loss. It’s a good idea to have any appraisals or invoices on record also. Be a wise insured individual.

Will my auto insurance pay for a stolen item out of my car?

Having an item or items stolen from your car can be extremely upsetting and frustrating — and the situation is often made far worse because of worry about whether your auto policy coverage will reimburse you for the damages. It may seem like a given that your car insurance coverage would pay you back for losses of all types, but this is simply not the case — unless you have the proper type of coverage!

The Coverage Types

There are basically three different types of car insurance coverage, and each type has different purposes. Liability insurance is the type that is legally required and is designed for the protection of other drivers on the road in case you were to be the primary cause of an accident. If you were the person who caused an accident to happen, or if you were mainly the person at fault and the other driver contributed to the accident in only a minor way, your liability coverage will reimburse the other driver for any vehicle and personal damages. This type of insurance will not cover your own damages but is purely for the protection of others.

Collision coverage is designed to work along with liability insurance. It fills the gap in cases where you need a vehicle repair or medical help after an accident that you caused. The liability coverage will cover others who were impacted while the collision coverage will handle the damages caused to your own property. This type of insurance isn’t legally required but it is highly advisable since your own vehicle would be largely uncovered for damages otherwise.

Finally, comprehensive coverage is the policy type you need to make sure you can get reimbursed for items stolen from your car. Not only does comprehensive coverage deal with the times that your car is stolen, it also deals with vandalism of your vehicle, as well as break-ins. If you had personal property in your vehicle and you are holding comprehensive coverage, you will normally be able to file a claim to get reimbursed for the value of the items that were taken.

How to Determine if you Need Mexican Auto Insurance Coverage

Your auto insurance policy covers you while you are driving in the United States. Not all policies provided coverage if you cross the border into Mexico. In addition, the coverage that is provided is less than you have for driving in the U.S. You also need to be aware of the requirements for insurance set by the Mexican government.

Liability coverage

While your auto policy may protect you and your vehicle while driving in Mexico, you must have additional liability coverage. If you are found to be at fault, you will be liable for any injuries or property damages. The Mexican government has strict requirements for liability insurance and failure to have adequate protection can result in legal action.

It is also important to note that some portions of the country do not require Mexican drivers to have liability coverage. This means that in the event of an accident, the other driver could be at fault but not have any liability insurance. Without your own coverage, you will not be compensated for damages or injuries.

Limited distances

Your policy may provide you with coverage for a limited amount of travel into Mexico. This protection may only apply for driving a few miles across the U.S. border. If you travel further south, even by only a few miles, you will no longer be covered. This can present a significant risk if you become lost or loose track of how far you have traveled.

Leased and rented vehicles

If you lease your vehicle, you are required to obtain a permit from the lender before traveling into Mexico. The lender will require proof of sufficient Mexican auto insurance. Rental vehicles may offer collision coverage but any liability protection does not extend into Mexico.

You should carefully review your auto insurance policy with your insurance agent before traveling across any country borders. You can face serious financial risks and legal consequences if you do not have the sufficient amount of insurance required. In addition, you should inquire about the availability of legal assistance in the event of an accident.

What Liability Limits Should I Have on my Homeowners Policy?

In addition to providing money to repair or rebuild your home if it is damaged in a covered incident, homeowners insurance also includes liability coverage. This type of insurance pays for claims made against you when someone is hurt while on your property. They may fall down the stairs, get hurt on your trampoline, or get bitten by your dog. The right amount of coverage to purchase depends on several factors.

Consider Risk Factors

You should definitely increase the standard liability limits if your home includes at least one of the major risk factors. In particular, dog bites are behind 1/3 of personal injury liability claims, so you should increase your liability limits from $100,000 to $300,000 if you have a dog, particularly if it is a breed that is known to be aggressive. You also may want to increase your limits if you frequently have people over to your home, particularly if they use a pool, hot tub, trampoline, or other feature that increases risk of personal injury.

Consider Your Net Worth

It’s wise to increase the liability limits on your homeowners policy if you have a high net worth, and therefore a significant amount of assets to protect. Add up your annual salary, equity in your home, the value of your other assets, and your investments. If these total more than $300,000, you may want to go up to the maximum liability coverage allowed on your homeowners insurance policy. This is because you have more at risk to lose, so you want the insurance company to pay out more in a claim before you are personally liable to cover the rest.

Consider Umbrella Coverage

If your assets are worth more than, say, half a million dollars, then it is probably wise for you to add umbrella coverage. This is a type of liability insurance that kicks in once the liability coverage on your homeowners or auto insurance policy has been exhausted. You can usually purchase one million dollars of coverage for just a few hundred dollars per year, and this provides additional peace of mind for you.

What You Need to Know about Property Damage Coverage

Property damage coverage is a requirement in the United States. All drivers must have at least $5,000 worth of property damage coverage per accident, if not significantly more. This type of coverage provides protection for repair expenses to damage done to another person’s property, but not to your own. Most states actually require significantly more than the federal level of required coverage.

Why You Need More

It is important to know that this type of protection is often necessary at a higher rate beyond these state and federal requirements. It benefits you to have more protection. If the vehicle or other property damaged is at a significantly higher value than the amount of insurance protection you have, you, as the driver, are financially responsible for covering the remaining difference. More so, this could leave you in a poor financial situation if you do not have the funds to cover a large accident.

How to Buy It

To buy property damage coverage, consider what your needs are specifically. The amount of coverage you get depends on your state’s requirements and your desired level of protection. To reduce costs, consider the following:

  • Packages that bundle property damage insurance with liability coverage may save you money compared to buying them separately.
  • Ask your agent for recommendations on how much to purchase based on previous claims for vehicles like your own.
  • Know that this insurance does not cover your vehicle in any way. It covers the other person’s property. This means that having comprehensive coverage, or another form of insurance, is a good idea if you want to protect your investment.

Do take the time to compare your options. The costs of property damage insurance range significantly from one company to the next. However, when comparing policies, make sure to compare the same type of policies to each other. Look at the difference in coverage options, discounts, and deductibles you may need to pay.

Ultimately, you need to have property damage coverage if you are a driver or a vehicle owner. Not doing so could put your financial future on the line and even jeopardize your driving privileges. To avoid this, purchase a policy that provides adequate coverage for potential accidents and damage to property. Whether it is another car or someone’s other property, the costs can rise sharply beyond a basic policy or state-limit policy. Look for the policy right for you instead.

Do I Need More Liability Coverage?

Do I Need More Liability Coverage?Contrary to popular belief, you actually can purchase too much insurance. However, the amount of liability coverage that you need depends on several different factors that vary from driver to driver. All states have a minimum legal requirement that designates a limit for coverage per person and per accident. For example, a bodily injury coverage plan that is worth $150,000/ $450,000 means that each person involved in the accident could be compensated up to $150,000, but only $450,000 could be provided for just the one accident.

Although the standard liability coverage plans offered are usually pretty substantial, your own coverage amount should depend partially on the amount of assets you have to protect. For example, if you make $30,000 per year, rent an apartment, and have little savings in the bank, you will probably be best suited with a $50,000/ $100,000 plan. Alternatively, if you make $100,000 per year, are the owner of a house worth $200,000, and have $50,000 in savings, you should consider getting substantial coverage to protect your assets. It is recommended that you purchase at least $100,000/ $300,000 to ensure this protection.

One good tip when purchasing liability insurance is to forego personal injury protection, since these costs will usually be covered by your health, life, and disability insurance. In terms of property damage, some states require minimums as low as $5,000. Although this may appeal to your budget now, it likely won’t cover the full cost of getting into a car accident with a BMW. As a general rule, you should shoot for a minimum of $50,000 worth of coverage for each vehicle you own.

Collision coverage will pay for the full cost of repairs or replacement if your car is involved in an auto accident. Comprehensive coverage will cover damages caused by natural disasters, vandalism, or theft. In both cases, you will want to shoot for the highest deductible your can afford– preferably $1,000– to reduce your policy costs. Although this coverage option is important for newer, more expensive vehicles, you may be able to opt out of it completely if you have an older car that would be cheaper just to replace in the event of an accident.

Liability Insurance of Pennsylvania – Bodily Injury and Property Damage

Liability Insurance of Pennsylvania – Bodily Injury and Property DamageLiability provides protection to you or anyone driving your car with your concern. When any claim is made against you by a third person labeling you to be responsible for the accident caused, this coverage will make payments to him on your behalf, if found that your vehicle is involved and resulted in injury or damaged any of the property of the third person. In addition, it will also provide legal support and will defend you when a law suit is filed. Hence do not reduce limits on your liability coverage.

Minimum limits mandated on bodily injury liability coverage for third-party by Pennsylvania’s Vehicle and Traffic Law are:

  • bodily injury of $15,000 for each person or $30,000 for causing death due to any injuries, sustained in an accident by one person
  • bodily injury of $30,000 for two or more in one accident or $60,000 resulting in death of two or more persons due to injuries from one accident.

State law also requires a minimum of $5,000 for any damage caused to vehicle or it’s parts or any damage to the property during an accident. Thus the minimum liability limits in Pennsylvania is referred to “15/30/5” or “$15,000/$30,000/$5,000”.

For any bodily injury or property damage caused during an accident, if it is due to other driver’s negligence then you can claim under the other driver’s car insurance policy, where the automobile insurance policy provides coverage for each person involved in the accident and hence a liability coverage. However, when an injured person in your vehicle is your spouse unlike the purchase made, you need to opt for Supplemental Spousal Liability Insurance. Remember, your wife is still eligible for No-Fault as discussed above. Hence, it becomes necessary to check with your insurer or the insurance agent much before buying a car insurance policy.

Home Insurance Policy Review

Home  Insurance Policy reviewOne of the basic necessity required for everyone who stays in Arizona is getting their home insured. If you want to get best deals from your home insurance company, selecting the best policy and home insurance company is very important. To protect your personal property which includes valuables, furniture or theft no matter whether you are the tenant or the owner, you need to insure your home. Though your house is mortagaged, your lender expects your home to be insured.

If you have any confusion in reviewing your insurance, follow the points below to help yourself.

  • If you make any changes to the structure of the house, it would be better if you make changes in the dwelling coverge also.
  • To cover your assets like trampoline or swimming pool, increase your liability coverage.
  • Better opt for an additional endorsement coverage if you own precious items like furnitures, paintings and jewels.
  • You can be eligible for discounts if you have replaced old pipes to new ones and updated your old electrical system.
  • Take the help of your agents and check all the coverages, even if there are no changes in your personal belongings or home.

Points To Reduce Home Insurance Premium

  1. Getting your car and home insured with the same insurance company.
  2. By installing extinguishers and smoke detectors.
  3. By installing safety devices like alarms, sensor, dead-locks.
  4. See to that no one will smoke in your house.
  5. If the house is newly constructed, discounts will be available.
  6. Increase the deductible.
  7. To prevent any damage from ground water, install a sump and pump system.
  8. It is good to have a fence if you have swimming pool.
  9. If you do your payment in prior you can get discounts.

Home Insurance for Every Home Type

Home Insurance for Home TypesAny financial loss occuring due to theft, fire, windstorms and other such perils listed under your policy needs home insurance to protect your home. In order to cover your home, it’s belongings and personal property, be a tenant, land lord or home owner needs a home insurance. Every person needs protection against liability, if any accidents occur, some one is injured or any property damage.

  • Homeowners: Shielding both home and personal property
  • Tenants: Protecting only your personal belongings and not the building.
  • Other parties: Protection against liability for injuries caused to people or accidents occurring within the property premises

The better the policy is designed with required coverages, less you will be paying out of your own pocket to cover the disasters. When your house is under mortgage then your lender might ask you to have more coverages than required. It is always better to check with your agent or the insurance company and then decide on coverages and amount required to cover your home, content and personal belongings.

How Much Coverage Do You Need?

  • Covering your property and belongings: To cover personal property, valuables and other belongings with better coverages without burning a hole in your pocket.
  • Self protection: Gives enough liability coverage to protect against legal actions resulting due to your negligence or other hazards that might occur on your property.
  • Lender requirements: Your mortgage lender will ask you to cover the house for replacement cost of dwelling or mortgage amount.
  • Policy requirements: The insurance company might impose coverage requirements for replacement cost of your house. Most of the plans will actually limit at 100% of replacement cost. However, few standard plans limit to 80% of it.