Your car is valuable to you. In fact, it probably represents one of your most expensive investments. To protect all you’ve put into your vehicle, you need auto insurance. Car insurance is there to protect you from financial losses because of accidents you cannot control. If you have a wreck or other accident, your insurer agrees to pay for some or all the vehicle’s damage and other losses. For the simple cost of a policy premium, you’ll have financial security in case of unfortunate mishaps.
Drivers have choices about what’s in their policies. Most can contain a variety of protections:
- Liability Insurance: Insures you against damage you cause others if you are at-fault in a wreck
- Bodily injury liability coverage pays for their medical bills (and in some cases deaths)
- Property damage liability pays for damage to the other driver's property, like their car.
- Collision Insurance: Covers damage to your own vehicle after a wreck
- Comprehensive Insurance: Pays for damage from non-accident mishaps, like weather damage.
- Medical Coverage: Pays for your medical bills and those of your passengers.
- Uninsured/underinsured Insurance: Insures you against damage caused by someone else who doesn't have appropriate liability coverage.
- Other coverage offers help for roadside assistance and rental car coverage.
You'll enjoy being out on the open road even more when you're not worried about the safety of yourself, your passengers or your investment. Many factors can play a role in determining what your insurance costs will be such as your age, your driving record, where you live and the type of motorcycle you own, or being a graduate of a rider-training course.
Here are a few things to consider:
- If you're in an accident or your motorcycle is stolen, it costs money, often a lot of money, to fix or replace it.
- If you or a passenger is injured in an accident, medical costs can be extremely expensive.
- If your motorcycle is responsible for damage or injury to others, you may be sued for much more than you're worth.
- Your motorcycle may be one of your most prized possessions. It deserves special protection.
WATERCRAFT & BOAT INSURANCE
Home and auto insurance policies may provide limited coverage for personal watercraft. Talk to your insurance representative about coverage limits. You may want to consider purchasing a personal watercraft policy to protect yourself and your water vehicle in the event of an accident.
Watercraft and boat insurance covers:
- If you're in an accident or your watercraft is stolen, it costs money, often a lot of money, to fix or replace it.
- If you or any passengers are injured in an accident, medical costs can be extremely expensive.
- If your watercraft is responsible for damage or injury to others, you may be sued for much more than you're worth.
- Your watercraft also needs protection when it's on land. Accidents can happen while towing a watercraft.
- Your policy would also include coverage for bodily injury, property damage, and theft
Homeowners insurance provides financial protection against disasters. Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. It is really all about protecting yourself financially if something unexpected happens to your home or possessions.
Homeowners insurance can cover things like:
- If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing. Renters insurance pays the reasonable additional costs of temporarily living away from your home if you can't live in it due to a fire, severe storm or other insured disaster. It covers hotel bills, temporary rentals, restaurant meals and other living expenses incurred while your home is being rebuilt. Renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
There's something you should know: Flood losses are not covered by your homeowners insurance policy. Floodwaters have the power to damage not only your home and sense of security, but also your financial future. How can you protect your most important investment in case of flooding?
- Option 1: Hope that you'll receive Federal disaster relief if a flood hits. Many people wrongly believe that the U.S. government will take care of all their financial needs if they suffer damage due to flooding. The truth is that Federal disaster assistance is only available if the President formally declares a disaster. Even if you do get disaster assistance, it's often a loan you have to repay, with interest, in addition to your mortgage loan that you still owe on the damaged property.
- Option 2: Buy flood insurance and stay protected no matter what. When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not Federally declared. Flood insurance means you'll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid. In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood.
PERSONAL UMBRELLA INSURANCE
Think of umbrella insurance as a blanket policy that adds another layer of coverage on top of your basic policies. When you’ve reached the limits on your home or auto insurance, your umbrella insurance then helps cover the remaining costs. Standard insurance policies do provide valuable protection. But, there is still a chance that you can become financially liable for a sum larger than what your policies will cover.
For instance, say you have a fire in your home, and it spreads to destroy your neighbor’s property. Does your home insurance policy include enough liability coverage to pay for the damages? Umbrella insurance can protect your assets if you are held liable for property damage or bodily injury. It can also help cover legal fees, false arrest, libel and slander. If you are sued and do not have enough coverage with your standard policies, all your assets are exposed. This can include your house, car, financial and retirement accounts, and future income.
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.
Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.
It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.
But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.