Ask yourself how much you have to lose if you are sued. The amount of personal excess liability coverage you choose depends upon your individual requirements. Review your assets: your home, other personal belongings and investments. Select a limit that provides adequate financial protection and be certain that your insurance company can provide this limit. Also, because the cost of litigation can be very expensive, look for additional coverage for defense costs.
It depends on your automobile policy. Here’s why: If you damage a rental car, the rental car company may charge you for the damage to the car as well as for the rental income it loses while the car is being repaired. In order to cover these potential charges, the rental car company may try to sell you a collision damage waiver which can cost anywhere from $8-$15 per day. If your automobile policy covers rental vehicles under the liability portion of your policy, you may not need to buy the collision damage waiver if the policy provides coverage for your legal obligation to the rental agency. Additionally, you won’t be charged the deductible. If your automobile policy covers rental cars from the comprehensive and collision coverages, you may only be covered for the damage to the car, but not for the loss of rental income that the rental company could charge you. What’s more, you would be obligated to pay your deductible. In that case, you should consider purchasing the collision damage waiver.
Most people don’t realize that many homeowners’ policies offer only $1,000 in coverage for jewelry. Given that this limit is generally less than the cost of an average engagement ring, it is doubtful that most customers will have enough coverage for their jewelry. The solution is to purchase a Valuable Articles Policy so you can insure specific jewelry items. Tips on selecting a valuable articles policy: (1) look for a policy that doesn’t mandate that you replace an item to receive the full value of the settlement, and (2) select a company that makes it easy to insure your jewelry by requiring appraisals only on high value items.
Many companies will allow you to choose a repair shop. However, if you select a repair shop that charges a labor rate greater than the one allowed by your insurer, the difference may come out of your pocket. If you don’t want to pay the difference, the company will then steer you to a shop that will do the work for their allowable rate. If you prefer to do business with the repair shop of your choice, including your dealership or a specialty shop, look for a company that honors your selection and pays for it.
About one in seven drivers is currently uninsured. There’s a one-in-seven chance you could be responsible for paying for the damages to your vehicle after a collision caused by an uninsured driver, either through a collision claim or out-of-pocket. If this gives you cause for concern, consider adding uninsured coverage to your policy.