Protect
Your Assets
Does Your
Car Insurance Policy Protect
All Of Your Assets?
Do you own a home? Are you
in the process of buying a home? Do you hope to one
day own a home? Do you own any assets other than property?
Like stocks, bonds, CD's, mutual funds, or have a
savings account? Do you own any assets that can be
traced through an asset search?
If you answered yes to owning
any of the above-mentioned assets, then you need to
understand how to protect those assets in the event
you cause an automobile accident, or someone driving
your vehicle is at fault in an accident. Your bodily
injury and property damage coverages are the coverages
on your auto insurance policy that financially protect
you if you are at fault in an automobile accident.
If you are determined at fault
in an accident and do not have adequate liability
coverage, that is enough to cover the injuries and
damages to the other party, and you are sued by the
other party's insurance company, the court could order
you to pay the amount that exceeds your limit of Liability
coverage.
You would, then, have to dip
into your personal assets to cover the amount ordered
paid by the court. The court could place a lien on
your home and other assets if the other party's insurance
company requested it. Even if you don't own any assets,
but you have a career and a steady job, you could
have a judgment placed on your credit report. This
could affect your ability to borrow money for up to
seven years.
Therefore, if you own a home,
bank accounts, stocks, mutual funds or have a reasonably
well paying job and career, you should buy more Liability
coverage than the minimums required by law to protect
your assets.
Anyone in this position should
have a minimum amount of liability coverage on their
auto insurance policy to protect those assets. Most
companies recommend bodily injury liability of $100,000.00
per person, $300,000.00 per accident, and property
damage liability of $100,000.00 per accident.
Keep in mind the cost of medical
and hospital treatment today as well as the cost of
any new luxury vehicle. The minimum liability standards
for most states were selected years ago and are seriously
outdated. How many cars driving on the highways today
cost more than fifty thousand dollars? Lots!
Umbrella policies are also
available in one million dollar increments to give
you additional liability protection if you are ever
involved in an at-fault accident. These policies are
usually very cost effective. Your auto or homeowners
insurance carrier should be able to quote you on this
type of policy.
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