The break down on car insurance

Car insurance is one of those life expenses that is a necessity and, therefore, not many people give it much thought. You have a car, you need insurance. But there are things to consider when you’re deciding upon coverage.

The basic components of auto insurance include: liability protection (for other drivers), uninsured/underinsured protection (for you and your passengers), medical protection, comprehensive protection, collision protection (what most people are thinking about when they think about insurance), tow and road service, rental reimbursement and glass coverage.

What many don’t stop to think about is that an automobile accident with insufficient insurance protection has the potential to destroy your financial stability, lifestyle and future. If there is a legal judgement against you as a result of a car accident and the judgement is greater than the liability limits of your insurance, than you are responsible for the difference.

My recommendation is that every driver have at least the 100/300/100 limits of coverage, preferably the maximum 500/500/500 limits. If you don’t have these, please get with me to establish an insurance plan with these limits. It is not very expensive, you’ll be surprised. The other answer, umbrella insurance.

Like an umbrella, umbrella insurance is “over and above” what you already have for both homeowner and auto liability limits. It provides you with the assurance that you have enough protection to cover all the damages you may be responsible for. With umbrella insurance, you are protecting your assets from being used to settle a judgement against you.