Insurance Phoenix
BUYING A CAR: You have probably purchased several vehicles during your lifetime. When you search for the right vehicle you focus on the car's features, such as the color, the acceleration, the interior, and whether it has a CD player or such.
DID YOU THINK to consider ahead of time what kind of interest rate you would qualify for. Some savvy car buyers get pre-approved before they walk onto a car lot. This helps ensure you do not get taken for a ride when it comes to the loan the dealership offers.
NOW THE INSURANCE: When you add the vehicle to your auto policy, do you confirm with your agent what deductible to carry, whether to add full glass, and other optional coverage such as uninsured motorist, towing or car rental?
THE REAL QUESTION:Did you even ask your insurance agent about your Bodily Injury and Property Damage limits?
BODILY INJURY (BI) - protects the other party from injuries should you be at-fault in an accident.
PROPERTY DAMAGE (PD) - protects the other party's vehicle should you be at-fault in an accident.
Why do you care about how much BI and PD to carry when these items protect someone else?
YOU ARE ACTUALLY PROTECTING YOURSELF - THAT'S WHY.
AN ACCIDENT - Let's say you are at-fault in an accident. The other vehicle had three occupants and they are injured to varying degrees. Let's also assume you currently carry $25,000 per person BI coverage. You policy is designed to cover their medical costs. How fast will those costs rise if someone is hurt badly, or disabled. What if the accident results in death?
How far will $25,000 go in a accident where there are injuries? Possibly, not very far.
LOST INCOME? What about replacing the lost wages for a person who you injure in an accident. If someone makes $50,000 per year and is unable to work due to the accident for six months they may have a claim of $25,000 just for lost income alone.
PROPERTY DAMAGE - If you hit a luxury vehicle or an SUV valued at $35,000 but only carry $25,000 PD, you are responsible for the difference.
Having the right amount of BI and PD does protect the "other" party. But it also helps protect your assets and income from garnishment should you be under-insured.
Do you own a home? Do you make an income? Do you have savings or other assets?
Why risk all the assets you work so hard to accumulate when increasing your BI and PD is mere dollars per day?
http://www.buzzle.com/articles/insurance-protect-assets-income.html
