Chances are you're spending hundreds, maybe thousands of dollars on auto insurance every year. When you stop to consider what a sizable part of your budget is spent on auto insurance, it makes sense to spend some time learning the basics. While not a detailed explanation of your auto insurance coverages, this guide is designed to help you make informed coverage decisions. Please check your policy for details of the coverage you have.
What if, while driving your car, you caused an accident which resulted in extensive property damage and serious injuries to yourself and others: do you know for certain that your auto insurance coverage would pay for most medical expenses, repair bills, lawsuits and court costs? Having the right coverage and limits can eliminate or substantially reduce the risk of losing your life savings.
In the final analysis, you owe it to yourself and your loved ones to know enough about auto insurance to select the best company and coverage for you.
If you own your own home, then you'll want to protect not only your physical building, but all the things that are in your home too. A standard home insurance policy will ensure that if something like fire, vandalism or theft occurs, then you will be properly looked after and your valuables will be replaced.
You also need to think about protecting any other structures that exist on your property, like a detached garage. And, in the event that your home is damaged, and you need to move out for a while, you may want to consider investing in insurance that will help pay for out-of-pocket expenses like hotel rooms and food.
As a homeowner, it is possible that you may be held liable for accidents that people have while on your property. What's more, you may accidentally damage other people's belongings either in your own home, or somewhere else. A well-structured home insurance plan will make sure that you're covered for any of these unforeseeable events.
Umbrella insurance ins't just for the rich. Whether it's a serious at-fault auto accident or an incident on your property, you can quickly find yourself responsible for damages that exceed the limits on your auto, homeowners, renters or boat policy.
And an expensive judgment is the last thing you want to worry about. An umbrella policy can help protect your assets and provide additional insurance protection.
Will my primary insurance policies be enough?
Auto, Homeowners and other property insurance liability limits may not be adequate to cover a large court judgment, because most Auto Liability has a maximum limit of $500,000, which could deplete extremely fast if an accident involves major bodily injury.
Enjoy peace of mind
To make it easy for you to get the right level of coverage for your specific needs, we offer limits ranging from $1 million to $10 million for customers meeting eligibility criteria. And, when you require legal defense for a covered claim, the policy helps cover defense cost such as attorney's fees and other expenses.
If you're moving into your first apartment, you might think you don't have anything of real value. A CD player, computer and some clothes may not look as if it's worth much, but when you have to replace it with something new, it could break your budget. Say you've bought a computer on credit and it's destroyed by fire or stolen. You're still responsible for paying the balance to your creditor, even though you no longer have the item.
As a tenant or renter in someone else's building, it's a wise decision to take out a tenant insurance policy. It protects both your contents and your liability exposure. You see, as a tenant, you're responsible for harm you might cause to any part of the building you live in, or to others who live or visit there. If you forgot to turn off the water in the bathtub while you're talking to your friend, you could flood out your neighbours. You would be responsible to repair any resulting damages.
Other things to consider
Tenant's improvements coverage is also important. If you've made improvements to your rental unit -- like new broadloom, painting or sound systems -- they might not be covered in a standard tenant insurance policy. Improvements coverage would be a smart investment.
There are lots of other insurance options, too. As a tenant, your insurance policy coverage can be either All Risk or Named Perils. There's protection against Sewer Backup and Earthquake. And you may want to add extra coverage for specific contents in your home, such as jewellery, furs, cameras, and bicycles. You'll find more details on all of these options in this home insurance basics section.