Policy liability limits on a commercial auto policy will often start at 1 million dollars of coverage depending on who you are driving for or representing. Lower limits can certainly be purchased, but you will want to make sure that you are protecting your assets as well as the assets of those you represent. How much liability coverage you carry is an important decision that needs to be carefully considered and discussed with your agent.
Liability insurance is coverage for the “other guy.” Liability coverage will pay (under the conditions of the policy) for the “bodily injury” and/or “property damage” that you are responsible for in the event of an accident.
Bodily Injury Liability insures you against injuries that you may have caused to another person. Property Damage Liability insures you against the damage that you may have caused to another person’s property. If you rear-end another vehicle, your Bodily Injury Liability will pay their medical bills, and your Property Damage Liability will pay for the repairs to their vehicle. (Within the limits and conditions of the policy).
Replacement Cost (RC) coverage is designed to restore one’s property to its original state (like new). A policy deductible will usually apply. Actual Cash Value (ACV) coverage is designed to repair or replace damaged property with comparable materials and quality minus the policy deductible AND depreciation. So if you have an ACV policy, your out of pocket expense may be considerably higher in the event of a claim than if you had purchased RC coverage.
Term life insurance protects you for a certain amount (death benefit) for a specific period of time. Example: you may purchase a term policy with a $250,000 death benefit for a 20 year term. This can be a great temporary solution for some insureds. Permanent life insurance typically locks you into a price for life. As long as the premiums are paid up, the policy will pay out upon your death. Final Expense insurance is a type of permanent insurance, usually with a smaller death benefit.
First, you will want to decide if you are protecting Cash Needs, Income Needs, Retirement Needs, or some combination of the three. Then you will want to set down with a Life Insurance agent who can walk you through a Needs Analysis.
Health Insurance policies can vary widely in what they do and do not cover. Some of the basics would include doctor visits, emergency services, hospitalization, prescription drugs, lab services and maternity. Policy limits and co-pays can also vary greatly. You will want to study and compare your options closely.
Running out of coverage when you have a home loss could mean a significant amount of out-of-pocket expense. An accurate Replacement Cost Estimator (RCE) should be completed when you initially purchase your policy, as well as anytime additions, improvements, or renovations are made on your home or property. To account for discrepancies, many polices will automatically include additional coverage in the event of a total loss to make sure you have sufficient coverage.
Full coverage insures you against physical damage to your vehicle. There are two primary reasons to purchase this coverage: 1) If you have a loan on your vehicle, the company doing the financing for you will most likely require that you carry full coverage in order to protect their interest in the vehicle. 2) To protect your investment. Even if you don’t have a loan, the value of your vehicle may make the purchase of full coverage a prudent choice.
The difference in these limits has to do with how the insurance dollars are paid out in the event of a loss. For example: A $300,000 single limit policy will pay out up to $300,000 for all bodily injury AND/OR property damage losses that you are liable for in the event of an accident. On the other hand, a policy with split limits of $100,000/$300,000/$50,000 will pay out up to $100,000 if one person is injured, up to $300,000 if two or more people are injured, and up to $50,000 for property damage.