Momentum - Business to Business Online Magazine MOMENTUM August 2018 | Page 21
By: Jan Laman
[email protected]
Harbour Insurance Services, Inc.
With regards to Auto Insurance, Motorcycle Insurance, Boat
& Recreational Insurance there is a danger of buying too
little coverage.
At my agency we get calls all the time from prospects that
want the “cheapest coverage” or “minimum required
limits”. What does this mean? I’ll break it down for you.
Minimum required limits for vehicle insurance in Texas are:
$30,000 Bodily Injury Coverage for each person with a
$60,000 limit for the entire loss and $25,000 for property
damage.
This means that if you are at fault in an accident, regardless
of the extent of the injuries to the other parties or how
many people were injured you have no more than $60,000
to cover it all.
Have you been to the ER lately? Medical costs are
skyrocketing. The average injury in an accident is currently
reported to cost $26,000 and that’s just for one person.
Remember? If you buy minimum limits, you only have
$30,000 coverage for that one person. What if there are
two or more? What if the medical costs go over the limit?
None of us want to pay for insurance we may never
need, including me. The reality is that, at some point in
our future something will happen and we will need our
insurance coverage to avoid untold out of pocket
expense. We live in a very litigious society. We have to
protect ourselves from losing everything over one
incident.
The next time you call an insurance agency for a quote,
and I highly suggest you contact a local, licensed,
experienced insurance agency, ask for the highest
possible liability limits and then ask for a Personal
Liability Umbrella Policy. The Personal Liability Umbrella
policy will give you at least $1,000,000 worth of
additional liability insurance for your vehicles, home and
any other property you insure.
Make sure you are protected. The premium increase is
minimal compared to the risk you take every time you
get into your vehicle.
I have never had a client regret paying insurance
premiums after having a large loss. They are always
thankful they had the insurance in place to protect
them.
It also means that whatever property you damage with your
vehicle, whether it is another vehicle, a building or a
telephone pole, you only have $25,000 coverage for that
property. Most vehicles on the road today are worth more
than $25,000.
What does this mean for you? Once you reach your
coverage limits, all further expenses come right out of your
pocket. And, if the injuries are serious, these medical costs
can accumulate for years. If that vehicle you damaged is
worth more than your policy limit to replace, the difference
is your responsibility.
MOMENTUM / August 2018
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