Car Insurance Basics

Car insurance is basically insurance that drivers can purchase for any kind of vehicle in order to protect against losses sustained in traffic accidents.  Auto insurance policies are, in reality, a bundle of different coverages.  This insurance will usually cover the insured party, the insured motor vehicle, and any third parties involved.  Different policies will identify the situations in which each of these entities is covered.

Below are the specific coverages involved when you purchase car insurance.

- Liability Insurance: Liability coverage is the most basic and foundational coverage in car insurance policies and is required in most states.  This coverage ensures that if you are the one at fault in an accident, your liability insurance will pay for the physical injury and property damage expenses of any third parties involved.  This coverage includes legal bills.  Remember that third parties can sue you for “pain and suffering” damages.  Minimum insurance may not sufficiently cover you in more extreme cases, which is why many people recommend that drivers purchase more than the state minimum required.  Liability coverage limits are usually conveyed with three numbers.  For example, liability limits of 20/50/10 indicate that there is coverage of $20,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident.

- Collision Coverage:  In the case that you are in an accident, collision insurance will pay for the repairs that your vehicle requires.  Collision coverage is usually the most expensive coverage that you will have to pay for.  Insurance companies will declare a vehicle “totaled” or a “write-off” if the replacement would be cheaper than the repairs needed.

- Comprehensive Coverage:  This coverage will pay for any damages to an automobile that were not caused by an accident.  Qualifying damages include damages arising from carjackings, vandalism, natural disasters, and hitting an animal.

- MedPay, PIP, and No-Fault Coverages:  MedPay will pay for the medical expenses of you and anyone else in your car after an accident, regardless of whose fault the accident was.  PIP (Personal Injury Protection) and “no-fault” coverages are other forms of medical payment protection.  They are broader than MedPay and may be required in certain states.  These expanded coverages cover child care and lost wages.

- Uninsured and Underinsured Motorists Coverages:  UM (Uninsured Motorists) coverage will pay for injuries you have sustained if you are involved in a hit-and-run by a driver who does not have auto insurance, and is mandatory in many states.  UIM (Underinsured Motorists) coverage will pay for you if the driver who hit you creates more damage than their liability insurance can cover.

- Supplemental Coverages:  Rental reimbursement is an add-on that will cover rented vehicles in case of damage or theft.  Auto replacement coverage ensures that your automobile will be fully repaired for replaced even if the costs are more than its depreciated value.  Coverage for towing and labor covers you in case of an auto failure on the road where towing is necessary.  These supplemental coverages are usually offered as separate items or included in larger policies.

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What Are The Different Types Of Boat Insurance Available?

What Are The Different Types Of Boat Insurance Available?

When shopping for boat insurance, you may be surprised to find that there are different types of boat insurance policies available. Many insurance companies will only offer one standard watercraft liability coverage policy, while others will offer optional coverage that you can purchase. In fact, if you have financed your boat, your lender may require you to carry specific optional coverage. There are several different types of coverage that you can add to your policy.

The standard insurance is the watercraft liability insurance coverage which is required by many states. This insurance will cover you in the event that damage is caused to another person or another person's property by actions taken with your boat – whether it is during transport or on the water. Again, many states now require this liability coverage, and each state has its own requirements as to how much liability coverage you need to have. Check with your insurance agent to find out what you are required to have.

Watercraft medical payments coverage may also be required in your state. This coverage pays the medical expenses, up to a specific amount, for you and any occupant of your boat which results from a covered accident. Even if this insurance is not required, you should definitely consider it. Medical expenses are quite high. If you think that you cannot afford this coverage, think about whether or not you could afford the medical bills you will have in the event of an accident without the coverage.

Wreck removal and pollution coverage should also be strongly considered. By law, if your vessel is wrecked or sinks, you will be required to remove it. If oil or gas leaks into the lake, river, or ocean, you will be fined – just like the big oil companies are fined when they have spills in the ocean! These fines, as well as the wreckage removal and spill cleanup can be quite expensive without this coverage. Don't make the mistake of thinking that something like this won't happen to you!

You should insure yourself against uninsured watercrafts as well. This works just like uninsured motorist insurance when you purchase coverage for your automobiles. If someone who does not have insurance – or adequate coverage – collides with your boat on the water, your insurance will pay for the replacement of your boat, or for the needed repairs.

Towing and assistance coverage should also be strongly considered. Getting towed back to shore often costs more than having a car towed to a garage! Especially if you are out in the middle of the ocean! You should also ask about coverage to recover your boat and protect it from further damage after a mechanical failure or an accident. These costs do indeed add up. Again, don't make the mistake of thinking that nothing bad will happen, and don't make the mistake of thinking that you cannot afford the coverage. If you can't afford the coverage, you certainly won't be able to afford these expenses!

Most insurance policies should cover your boat, the motor, and the trailer used to transport the boat. Liability coverage isn't the only type of coverage that you need in most cases. You should make sure that you protect your boat, just as you protect your automobiles with coverage that includes theft and vandalism, as well as losses caused by storms, fire, sinking, capsizing, stranding, collision, and even explosions. Talk with your insurance agent to find out what type of insurance is required by your state and what type of coverage they offer. Also talk with your boat dealer and lender to find out what type of coverage you are required to have as well.

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Small Business Insurance: Do You and Your Subcontractors Need It?

Of course, you need to check with an accountant or lawyer for specific information, but in this article, you'll learn what small business insurance has worked for our computer consultants and customers in the past.

What Type of Small Business Insurance Do You Need?

You should definitely have both a general liability as well as a professional liability policy for your services. That professional liability should have the errors and omissions insurance rider folded into it as part of your small business insurance coverage.

How Much Will It Cost You?

This insurance will range in cost, but $3500 is about average. Typically, small business insurance companies will base your price on your size, in terms of employees, the sales volume you’re doing, and how they characterize you by risks.

Take time to carefully explain and look at the categories with your agent before they lump you into something that you’re not. A lot of times they might classify you into software developers which could be a very different risk category than network installers or resellers.

Do Your Subcontractors Need Small Business Insurance?

Yes, each of your subcontractors should definitely have general and professional liability and errors and omissions insurance. You should not be covering them.  Otherwise what you’re doing is probably providing benefits that are more like what you would do for an employee as opposed to a contractor.

What's The Next Step With Your Small Business Insurance?

Talk to your attorney and talk to your insurance agent. If you have an insurance agent that takes care of your property and contents insurance needs, you should definitely sit down and talk with them.  You might want to ask this question of your accountant also because they have a relatively similar business model in your same area.

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