Choosing Better Insurance Coverage

Few things are more important than having the right insurance coverage. About ten years ago, I was involved in a near-fatal crash where I experienced traumatic physical and emotional injuries. It was really challenging for me to endure the hospital stay and subsequent physical rehabilitation, but with the help of my medical team and my insurance company, I was able to overcome the challenge and completely recover. This blog is all about the importance of choosing the right insurance plan so that you can get on with your life and enjoy those precious years with your family and your friends.

Auto Insurance Factors To Consider If You Drive A High-End Vehicle

Insurance Blog

Auto insurance companies often offer wealthy customers who drive expensive, high-end vehicles policies that provide more benefits than those usually included in standard auto insurance policies. It comes down to the more you pay for auto insurance, the better coverage you get. If you are well off financially and drive a vehicle such as a Porsche, Ferrari, Aston Martin, or Bentley, it's good to know what paying more for your auto insurance will get you.

Additional Liability Protection

If someone sues you because you cause an accident and injure someone and/or damage their property, you may need higher liability protection if you are wealthy and have more to lose financially. In that case, a policy that limits liability coverage to $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident, and $50,000 property damage liability per accident may not be enough.

Although insurance experts generally recommend that drivers purchase 100/300 bodily injury coverage, if you are at fault for a serious or fatal auto accident, the court may award a settlement in the millions. Therefore, if you have significant assets or high net worth, purchasing umbrella insurance offers coverage beyond your auto policy's liability limits should another driver sue you. An umbrella policy also covers attorney fees and court costs.

The cost of an umbrella policy ranges between $150 and $300 annually for an additional $1 million of extra coverage. However, if you have a lot of money and assets, the cost may be nominal for the added protection you get. Also, some auto insurers that deal with more affluent customers offer higher limits for bodily injury coverage without an umbrella policy, but you pay more.

Agreed Value Payoff

If you own a Rolls Royce or other luxury vehicle that is stolen or declared a total loss following a motor vehicle accident, you likely won't be happy with your auto insurance company reimbursing you the market value of the vehicle. While the payoff may be appropriate for a standard vehicle in average condition, you likely will lose out on a more expensive vehicle, especially if the market value is less than what you paid for the vehicle.

But if you take out an "agreed value" policy where you and your insurance company agree to an amount in advance, yo u will be paid that amount for your vehicle if it's stolen or totaled in an auto accident. Although you will pay higher premiums for an agreed value policy, if you drive an expensive luxury vehicle or high-end sports car, the extra cost may be worth it if you need to replace the vehicle.

Original Equipment Manufacturer (OEM) Parts

If you drive a vehicle, such as a Mercedes-Benz, you likely won't want after-market parts for your car if it needs repairs. While many insurance companies only will pay for after-market parts to keep insurance rates lower, drivers who can afford the cost of the extra coverage can request a policy that pays for original equipment manufacturer (OEM) parts. With OEM coverage, your auto insurer will pay to have parts shipped in from the automaker to repair your vehicle.

For more information, talk to a professional like Nelson Insurance Agency.


24 August 2016