| Umbrella Policy -- A Good Way For Paying Far Less For More Coverage |
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| Written by Chimezirim Odimba |
| Sunday, 04 April 2010 16:28 |
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Did you know that there is a smart way of reducing your cost while you increase your coverage at the same time? Do you know what an umbrella policy is for? Those who are in the know have always made big savings by using the strong points of this policy. If you want to reduce your auto and home insurance rates while you also enjoy a more extensive coverage, then you've come to the right article...
Did you know that there is a smart way of reducing your cost while you increase your coverage at the same time? That's where an umbrella policy comes in. This policy is really a life saver for those who know how to take advantage of it. This article is all about learning to take advantage of this policy to both improve the quality of coverage you enjoy and lower the premiums you pay for your auto and home insurance policies. Every auto and home insurance policy has a liability part. But for the purpose of this discourse, we'll focus on doing it on an auto policy. The important thing is understanding how it works. Thereafter, you can use the principle for any other policy that has liability coverage included... Buy an umbrella policy and reduce your bodily injury liability coverage to the barest minimum stipulated by law. This is particularly true if you have considerable assets that could be lost to a lawsuit. For those who don't know what bodily injury liability coverage is, it is the part of an auto insurance policy that compensates passengers in your car along with the driver and passengers in the other car if an accident occurs. Those who don't have this coverage type could lose some or all of their assets as they could be seized to take care of victims in an accident where they are at fault. You may be wondering why an umbrella policy is being touted as the smarter option. It's simple: No matter how much the liability part of your auto policy is, it won't be enough in very many cases if you are at fault in a serious accident. And, although many won't like to hear this, it's a fact that the law can go after your assets if your insurance policy can cover the bills you so incur in such an accident. But if you have an umbrella policy, you're almost certain that it can handle the most extreme case. Furthermore, you not only save on auto insurance but you also have coverage that takes care of every other kind of liability issue that may arise in your life. If you check the coverage you get per premium dollar paid, you get the most bang for your bucks (as far as liability coverage is concerned) from an umbrella policy. As an example: A 35 year old man living in New York who decides to raise the bodily injury liability part of his auto policy $25,000/$50,000 to $100,000/$300,000 will have to add as much as an extra $300 to his premium. However, with an umbrella policy, he'll spend less than that to get $1 million worth of coverage. Furthermore, he could make it $2 million by just paying only about $75 more. If you intend to buy more coverage it will cost you only $50 per million thereafter (This is based on a report by the Insurance Information Institute). Do the maths in your own case and see if it doesn't pay you a lot more! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Do you have just eight minutes? Then you can save a few hundred dollars while maintaining adequate coverage at these sites: car insurance quotes comparison and affordable car insurance. Chimezirim Odimba is the go-to guy for insurance savings tips. |