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| insurance [2024/06/03 01:43] – created qlyoung | insurance [2024/07/02 21:54] (current) – add page title qlyoung | ||
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| + | ===== insurance ===== | ||
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| In May 2024, prompted by something random, I did a complete review of all my insurance policies (except for medical) and learned a lot of things about insurance which I should have learned about 10 years ago. Here I've jotted down some of what I've learned in the hopes that maybe it will prompt someone else who was similarly uninformed to learn these things. | In May 2024, prompted by something random, I did a complete review of all my insurance policies (except for medical) and learned a lot of things about insurance which I should have learned about 10 years ago. Here I've jotted down some of what I've learned in the hopes that maybe it will prompt someone else who was similarly uninformed to learn these things. | ||
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| I am going to make some blanket statements here that none of the websites that talk about this will make, which will certainly not be true for some people, but will likely be true for most people. Please understand that these are only my opinions and you need to fully understand your own situation to make accurate judgements. Do not believe what you read here. | I am going to make some blanket statements here that none of the websites that talk about this will make, which will certainly not be true for some people, but will likely be true for most people. Please understand that these are only my opinions and you need to fully understand your own situation to make accurate judgements. Do not believe what you read here. | ||
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| - | Other thoughts: | ||
| * If your liability limits on your auto policy are at or below 100/200/50 for both BI/PD and you have no umbrella policy, you are likely underinsured | * If your liability limits on your auto policy are at or below 100/200/50 for both BI/PD and you have no umbrella policy, you are likely underinsured | ||
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| Let's see, what else... | Let's see, what else... | ||
| - | * **Low assets does not make you are safe from huge liability**. "Good luck getting blood from a stone" - wrong. Your wages can be garnished. | + | * **Low assets does not make you are safe from huge liability**. "Good luck getting blood from a stone" - wrong. Your wages can be garnished |
| ===== Auto ===== | ===== Auto ===== | ||
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| | Property damage liability | You are responsible for paying for damage to someone else's property | Expensive | | | Property damage liability | You are responsible for paying for damage to someone else's property | Expensive | | ||
| | Bodily injury liability | You are responsible for paying for someone' | | Bodily injury liability | You are responsible for paying for someone' | ||
| - | | Collision | Your vehicle is damaged by collision with something that is not someone else' | + | | Collision | Your vehicle is damaged by collision with something that is not covered by someone else' |
| | Comprehensive | Your vehicle is damaged by something other than a collision (e.g. hail) | Moderate | | | Comprehensive | Your vehicle is damaged by something other than a collision (e.g. hail) | Moderate | | ||
| | Uninsured/ | | Uninsured/ | ||
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| Prior to my grand review I did not understand umbrella insurance. Now that I understand I am of the mind that nearly everyone should have it. | Prior to my grand review I did not understand umbrella insurance. Now that I understand I am of the mind that nearly everyone should have it. | ||
| - | In short, umbrella insurance covers you for liabilities in excess of any other policy. Suppose you crash your '99 Camry into a McLaren Artura (about $300k), totaling it, and you have $150k of PD liability coverage. After that pays out you are still liable for $150k. If you do not have an umbrella policy you are screwed and must come up with that $150k out of pocket. If you do have an umbrella policy, your umbrella policy kicks in after your auto policy has hit its limit and covers the excess up to its maximum, and you pay nothing out of pocket. | + | In short, umbrella insurance covers you for liabilities in excess of any other policy. Suppose you crash your '99 Camry into a McLaren Artura (about $300k), totaling it, and you have $150k of PD liability coverage |
| You are probably thinking, wow, that sounds very nice. It must be expensive, right? Nope! When I got quotes for them recently, an average $1M umbrella policy was around $150/yr. Relative to an unexpected 5 or 6 figure out of pocket expense, that is extremely cheap. That is why I think most people should have an umbrella policy. | You are probably thinking, wow, that sounds very nice. It must be expensive, right? Nope! When I got quotes for them recently, an average $1M umbrella policy was around $150/yr. Relative to an unexpected 5 or 6 figure out of pocket expense, that is extremely cheap. That is why I think most people should have an umbrella policy. | ||
insurance.1717379036.txt.gz · Last modified: 2024/06/03 01:43 by qlyoung
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