Car Insurance
Auto Insurance
Insurance News
About Us
Glossary
Articles
Short Term Health Insurance
Temporary Health Insurance
Encuentre Un Seguro para su Automovil
Asegure su Automovil sin Problemas
Un Seguro Confiable para tu Carro
Cambie el Seguro de su Carro por uno Mejor
Si Aprecias Tu Carro, Aseguralo
Si Tiene Auto, Necesita Seguro
La Seguridad de Viajar Asegurado
La Seguridad de Viajar Asegurado
Seguros Vehiculares Muy Accesibles
Seguros Automovilisticos Costeables
Health Insurance
Life Insurance
Motorcycle Insurance
Home Insurance
Renters Insurance
Dental Insurance
Medicare Supplements
Small Business
Oklahoma Auto Insurance –How much Liability coverage do you need?
How much liability coverage do you need? This is one of the questions you have to answer before purchasing Automobile Insurance in Oklahoma.
*What does liability coverage do for you?
According to the American Bar Association:
The liability portion of your automobile policy is designed to cover unintentional injuries and unintentional damage to other people's property. In other words, injuries caused by your negligence are covered; those you inflict on purpose are not covered.
Remember, it takes only one person who is seriously injured by your negligence to generate a huge liability award and deplete your financial nest egg, not to mention your psychological well being.
Therefore, liability coverage protects the insured. If someone is injured by your automobile or by your negligence; your liability coverage inside your Oklahoma Automobile policy protects you. The liability coverage is paid out first – before the claimant comes after your savings, retirement, assets, etc.
*How do you know what liability limits to choose? $100,000, $200,000, $300,000. $500,000 or $1 million.
For some people, the cost associated with the higher liability limits determines their coverage. However, you should always ask questions and get a quote for different levels of liability limits to compare. Usually a little more liability coverage will not raise your premium very much; for example, it could cost as little as $30 per year to change from $100,000 to $300,000 of liability coverage on your Oklahoma Automobile policy.
For those individuals not driven totally by price, I have attached a questionnaire to help guide your decision. Please complete the worksheet, it will help you determine your Net Worth; what you are trying to protect with your liability coverage.
Example: use the following information to calculate the Liability Coverage Joe needs to have on his Oklahoma Automobile policy.
Value of Joe’s home: $200,000
Automobiles valued at $ 50,000
Checking Account Balance: $ 3,000
Savings Account Balance: $ 5,000
Retirement account Balance: $100,000
Cash Value of Life Insurance Policy: $ 25,000
Wages $100,000
With this information Joe needs $483,000 of liability to protect his assets. How much liability coverage do you need on your Oklahoma Automobile policy?
|
|
