Appropriate coverage protects you, your property, and possessions.
Spring is an excellent time for an insurance review to ensure your insurance coverage is both appropriate and relevant. It’s also a good time to take stock of life changes and update your coverage accordingly. Just like your personal health, keeping your insurance in tip-top shape can make a difference in your financial well-being. Speak with your insurance agent directly about recent changes in your auto needs coverage including what-if scenarios.
Updating your coverage can save you thousands of dollars if a loss occurs. It can also help to protect you and your family from an unexpected event.
The Auto Insurance Check-Up
Ann Kuiper, Personal Lines Department Manager for Nulty Insurance Agency, shares her top five ‘triggers’ when it comes to insuring your auto and updating your coverage.
1. You’re interested in liability limits or a personal umbrella liability policy for your auto.
At Nulty, we typically recommend liability limits, as well as uninsured/underinsured motorist coverage, of at least $500,000 to protect you in a covered lawsuit relating to an auto accident. A Personal Umbrella Liability Policy with additional liability coverage is also available.
What are the consequences if not covered? I tell our clients that you just never know when an accident is going to occur. If you are at fault and injure or kill someone, you can be sued. You need protection for your assets and future wages that could be garnisheed. Adequate liability limits on your auto policy and a personal umbrella policy can protect you. If you are injured or killed by someone who doesn’t have insurance or adequate limits, you or your family will not be able to collect compensation from that driver. With uninsured and underinsured motorist coverage, your auto policy pays you what should have been originally paid by the other driver if he had adequate coverage
2. Consider coverage if you rent a car while on vacation in the U.S. or Canada.
When you rent a car on vacation, the insurance the rental car company charges can be exorbitant – sometimes as much as the rental of the car itself! Purchasing additional coverage on your auto policy provides liability and physical damage coverage for your rental car. If you decide on this coverage, make sure you have coverage for ‘loss of rents’ that the rental car company can charge during the time the rental car is being repaired. Also, make sure you have coverage for the ‘diminished value’ of the rental car after it is in an accident. This coverage on your auto policy is usually less expensive to add for a year than one day of coverage from the rental car company. If you frequently travel and use rental cars, it’s a good strategy.
3. You use your vehicle for any business venture, sales, deliveries, or rideshare for pay.
An auto policy excludes all coverage if your vehicle is being used to make deliveries, such as pizza or prescription delivery. There is also no coverage if you’re using your car to transport other people and are paid to do so. You need a commercial auto policy if you do these activities. It will help to keep your car, and yourself protected.
4. Rental reimbursement can help if you need to rent a car to drive after an accident, and your car is being repaired.
We love this coverage. For about $25 per year per vehicle, you’re reimbursed up to $40 per day for renting a vehicle. Why is this important? Let me answer with another question – what would you do for transportation if your car is being repaired after an accident? The coverage ensures you can manage the rental payments without interruption to your schedule or working hours. It also eliminates the need to rely on others for a ride to work, school or your daily activities.
5. Understand how health insurance coverage can impact your auto insurance.
The main concern is who pays if you’re in an auto accident and hurt? The majority of health insurance policies do not cover auto accidents. Medicaid, Medicare, and Medicare supplements do not cover auto accidents either. To ensure you have adequate coverage for the cost of injuries, check with your health insurance carrier to see if they cover injuries sustained during an auto accident. If coverage is excluded, let your auto insurance agent know. Your agent can then include primary medical coverage for auto accidents directly onto your auto insurance policy.
It’s wise to be prepared. Uncovered medical expenses can result in large bills or an outlay of cash – a detriment to your financial well-being in many ways, if you do not have appropriate coverage. (For example, unexpected medical costs, loss of time at work, expensive co-pays, etc.)
About Nulty Insurance Agency
Founded in 1945 by Greg Nulty in Otsego, Mich., Nulty Insurance focuses on bringing clients the best products with the most personal service in the insurance industry. The agency has remained a family-owned business, committed to building a reputation for being ‘simply the best’ agency in Southwest Michigan. Since the agency’s beginning, it has continued to grow with the changing insurance and economic environment and, of course, the needs of its clients. All ECCU members receive up to a 10% discount on a range of insurance products. Call Nulty at 269.488.0345 or visit www.nulty.com for details.
Note: This is a summary only and for details about your specific policy; you must contact your insurance agent.