Liability Insurance — What You Don’t Know Can Cost You

Liability insurance is coverage that protects you financially against the injuries or damages that you cause to another person or that person’s property. Liability coverage is essential to protecting your personal assets against lawsuit, and with regard to auto insurance, it is mandatory. However, not all liability coverage is the same, and what you don’t know about liability insurance could ultimately cost you.

How Much Liability Coverage Do You Need?

The amount of coverage you need depends on the value of your assets and the state in which you live. Each state in the U.S. has varying minimum requirements for auto liability coverage. In order to operate a vehicle, you need a specific amount of coverage for property damage, individual bodily injury costs and total accident bodily injury coverage. Driving with less than the minimum coverage is illegal and may result in loss of your driver’s license, fines and even jail time.

If you live in a state with very low liability minimums, you will probably need to invest in more coverage than the minimum. Just because your insurance limits are reached, it does not mean that you are not legally liable for the remaining damages and injury you cause to another person. Once your insurance coverage limits are met, an accident victim may pursue you in court for seizure of your personal cash and assets to help pay for damages.

Should I drop my homeowners insurance if my home is paid off?

You’ve finally paid off your mortgage loan. That’s a significant monthly expense eliminated from your budget. But now you’re wondering if you should eliminate one more expense and drop your homeowners insurance.

The answer? Definitely not.

Homeowners insurance protects you in case your home is damaged or destroyed. This doesn’t change even if you have paid off your mortgage loan.

Consider this: What if a fire destroys your home? What if high winds sends a tree through your home’s roof? Can you afford to repair this damage even without the financial burden of a monthly mortgage payment? If the answer is no, then you can’t afford to eliminate your homeowners insurance.

This insurance, after all, will cover the damages suffered by your home. Serious home repairs can devastate your finances if you do not have the protection provided by homeowners insurance.

The good news is that you can save money on homeowners insurance by shopping with your local independent insurance broker. These brokers can instantly access live quotes from the country’s biggest insurance providers. You can then study these quotes to determine which homeowners policy best fits your current needs.

You can also tweak your homeowners insurance. You might want to lower your coverage depending upon how long you’ve owned your residence and how much of your mortgage loan you’ve paid off. Again, you can meet with your local independent insurance broker to make these arrangements.

Coastal guidelines for auto insurance

Driving on the coast in the United States can be a breathtaking experience with the ocean in the backdrop. However, the risks are high for local residence who reside near the beach. Your automobile needs to be protected with the right insurance coverage. A knowledgeable agent who knows the coastal guidelines for insurance can assist with providing the satisfaction that you are prepared in case a disaster takes place. They will know how to shop around for the best price without breaking the bank. Hurricanes, floods, earthquakes, and other natural disasters can auto insurance to be expensive.

Every state will have coastal guidelines for auto insurance. In California, earthquakes will be more prevalent. Hurricanes seem to strike more frequently between the Texas and Florida. Understand the potential hazards of your region. You never need to assume that you are covered unless it is listed in the contract. One word in the contract may determine if you are covered at all. If you park your vehicle in a garage, the cost of the premium may be reduced. Keeping your vehicle on higher ground that is a good distance away from the beach can save you money. Regardless, your vehicle will have to be inspected before a carrier will insure it. Your local insurance agent can help you make sure that you are following simple coastal guidelines. Contact us for a free quote, today!

How do I shop for the best insurance deal in Colorado?

You need to purchase auto insurance before you hit the highways in Colorado. Before you can apply for a mortgage loan to buy your dream house in the state, you need homeowners insurance. And to provide a financial safety net for your family, you need to purchase life insurance, which will protect your loved ones should you die unexpectedly.

And while you want all the protection that insurance can offer, you don’t want to pay top dollar to get it. Fortunately, you don’t have to overspend on insurance in Colorado, whether you’re buying health, life, homeowners or auto insurance. All you have to do is work with an independent insurance broker to find the lowest rates.

Independent brokers can quickly scan live quotes from the country’s biggest insurers. They can then instantly provide these quotes to you. Armed with this information, you can scan the policies available to you to determine which offer the best coverage for the fairest price.

This represents a dramatic improvement from the old way of shopping for insurance. Before, consumers had to spend a day or more on the phone with different insurance companies. Not only was this time-consuming, it was frustrating. You had to tell insurers the same information countless times to get your quotes.

By working with an independent insurance broker, you can no receive dozens of live insurance quotes with one phone call or in-person visit.

If you want to shop for the lowest rates on insurance in Colorado, don’t forget to contact your local independent insurance broker.

Questions to Ask a Colorado Insurance Agent

Searching for information online can be a great place to start when you’re looking for more information on Colorado automobile insurance and home insurance. However, your insurance agent will be able to answer more detailed questions that may not be listed as specifically on the company’s website or on general informational insurance websites. To make sure you get proper insurance coverage for your needs, make sure to ask your Colorado insurance agent the following questions at your next meeting.

  • What is the legal requirement for auto insurance in Colorado? If you’re still driving a 15-year old car from high school, it is usually a cheaper option to just pay the bare minimum for auto insurance. This is because the cost of simply replacing your vehicle after it has been in an accident may end up being cheaper than paying property insurance on it for several years.
  • How can I qualify for discounts? Everyone wants to save money on their insurance payments, and most Colorado insurance companies are willing to help you do just that by rewarding preventive behavior. For example, taking a driver’s course and installing a car alarm can knock down the price on your auto insurance, while installing a home alarm and a new roof can get you discounts on your home insurance.
  • How do I file a claim and how long does the process take? You want to be prepared when a disaster strikes, and knowing what to expect from your insurance company is one of the best ways to do this. Make specific inquiries about certain disasters– minor to major car accidents, roofing collapses, minor hail damage, etc.– to make sure you will have a plan ready for anything.

What Materials Should I Have Ready For a Meeting with My Insurance Agent?

Meeting with your insurance agent isn’t exactly a fun experience, but it’s important to undergo these recommended conferences to make sure your coverage plan is up to date and in keeping with your needs and preferences. Although your insurance agent will be able to access most of the information needed for the meeting, bringing these materials yourself will make the process go much smoother and faster, which is beneficial for both you and your insurance agent. The materials you should bring will vary depending on the type of insurance you and your agent will be discussing. The following lists detail the appropriate materials to bring for meetings regarding both home insurance and auto insurance.

Home Insurance:

  • Your property deed or mortgage documents
  • A list of all construction materials used to build your home
  • Evidence of the age of your home
  • Safety features near your home (law enforcement centers, fire departments, etc.)

Car Insurance:

  • Make and model of the vehicle(s) you wish to insure
  • Vehicle identification numbers (VINs) for each vehicle you wish to insure
  • Name, social security number, birth date, employment status, and marital status of each driver requesting insurance coverage
  • Reports of any former accidents, traffic violations and other related incidences associated with drivers requesting insurance coverage
  • Documents indicating driving school courses taken and certifications earned by drivers requesting insurance coverage
  • Drivers license number, the state in which the license was issued, and the age each driver received his or her license

How much car insurance do I need?

Most states demand citizens to purchase auto insurance if they are going to legally drive. Regardless of the minimum requirement, it may not be enough to protect them. One of the mistakes people make is to not ask the question, "How much car insurance do I need?"

Raise your deductible to get a lower monthly payment instead of purchasing cheaper auto insurance. Auto insurance offers a variety of products that perform different purposes. The best rule of thumb is to be covered against liability for the full amount of your assets.

Liability covers the other vehicle. Your passengers are covered with a Bodily Injury policy. Personal Injury covers those who are riding in your vehicle. Property Damage Liability covers the other persons car. Answer the question, "How much car insurance do I need." . Policies like the ones mentioned do not cover your personal property. You need to determine how much you are willing to cover out of pocket and the amount of insurance you will need to replace your personal property that has been damaged. Keep in mind, your health insurance should be responsible to cover your medical expenses when you are at fault in the accident. For a complete analysis of your insurance, you will want more assistance to determine how much liability insurance you need, contact us for a free quote today.

What are the Laws Concerning Auto Insurance in Colorado?

Colorado, like all other U.S. states, has auto insurance laws designed to protect drivers financially when collisions cause property damage and bodily injury. In Colorado, you must have at least $15,000 of coverage for property damage that you are responsible for causing. Additionally, you must have at least $50,000 in total accident bodily injury liability, with up to $25,000 available per person injured.

In addition to having coverage, you must carry proof of your Colorado insurance coverage with you at all times while operating a vehicle. If you are caught driving without the minimum insurance requirements, the State of Colorado can fine you $500 for a first offense or $1,000 for a second offense. You may also have your driving rights temporarily suspended.

Purchasing Colorado Auto Insurance

It is important to remember, however, that Colorado minimum coverage laws should be used as a starting point for determining how much coverage you really need. Just because you have enough insurance to legally operate a vehicle, it does not mean that you are fully financially protected in the event of an accident. You should have enough liability coverage to protect you from out-of-pocket costs that exceed your insurance coverage limits, as well as enough auto coverage to pay for repairs to your own vehicle and for your own medical expenses incurred in an accident.

Do I need comprehensive, or liability auto insurance for a car that is high mileage?

When do I need comprehensive insurance for a car that has high mileage? Vehicles with high mileage do not hold their value unless it is a classic automobile. However, there are features that you can add to your policy to cover a broken windshield, offer free towing, add hospitalization coverage, and provide a rental car to your policy. This is a good deal and will not cost as much as full comprehensive insurance.

Should I only purchase liability auto insurance for a car that has high mileage? If that is all that you can afford, it is a good deal that will keep you within the boundaries of the law. If you are still making payments on the automobile, the bank may require you to carry comprehensive insurance with a rider that protects their interest in the vehicle. However, if you own the title and do not care what happens to the vehicle. Get liability because of the high mileage! However, be willing to pay the tow bill and other services that are related to the crash. Then, you can start looking for an auto loan and get that newer vehicle. When you need advice on buying a vehicle with high mileage, contact us for a free automobile insurance quote.

Should I buy vehicle insurance because it is the cheapest?

Thousands of people drive each day on the road who are high risk drivers. No insurance carrier wants to sell someone who meets the criteria of a person who is careless behind the wheel. When should I buy vehicle insurance because it is the cheapest? Companies are popping up like mushrooms all across the nation to reach this market. Only purchase cheap automobile insurance when it is difficult to find someone to insure you. It is cheap auto insurance because it meets to the minimum requirements required by the state.

Cheap auto insurance does not cover a lot of the basic benefits of other policies. If you ever get hit by someone who has cheap insurance, they probably will not have enough coverage in their policy against your loss. Should I buy vehicle insurance because it is the cheapest? It is not a good deal for all involved. In fact, you may want to purchase a higher benefit package from another carrier in case you have more loss than what you can recover. If low rates are a concern for your budget, you do not have to sacrifice good quality coverage. Think of your family when you purchase insurance and not your budet first. We can assist you with the best automobile insurance for you at low rates, get a free quote today!