Small Business
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A 10 Step Guide to Successful Small Business Management
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Table of Contents
Ten Building Blocks
to Success:
1. Starting a Business
2. Financing a business
3. Company Name
4. Office Equipment
5. Hiring
6. Business Insurance
7. Advertising
8. Efficiency
9. Pension Plans
10. Succession Plans
Checklist for Success
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Auto Insurance
One of the most popular searches on the web is for low cost auto insurance. Shopping for auto insurance is now simple. Enter your information and websites will give you a car insurance rate quote. Then the site encourages you to purchase auto insurance from them. The problem is most people have auto insurance but don't understand the terminology or the coverage!
Questions you should be asking before requesting a quote
(1) What do all the terms mean?
Auto policies have several types of COVERAGES and each has LIMITS (the maximum the company will pay) and/or DEDUCTIBLES (the amount you pay before the company pays the rest, up to the Limit. These are the coverages typically found in an auto policy:
Bodily Injury Liability - Coverage for injury or death due to an accident caused by you with your car. Claims can be for medical bills, pain and suffering and loss of income.
This coverage has two parts: (1) A limit per person and (2) A total limit per accident. A typical limit would be $250,000/$500,000. The first number, $250,000 is the limit or amount that would be paid to each person injured in an accident. The second, $500,000 is the maximum that would be paid for all injuries in one accident combined. Recommended Limits: either $250,000/$500,000 or $300,000/$300,000.
Property Damage - Damage your car does to property of others.
Coverage is typically $100,000 for all property damage, including damage to other vehicle(s). Recommended Limits: $100,000 up to $300,000. In some policies the Bodily Injury and Property damage is combined.
Uninsured/Underinsured - When you are in an accident caused by another vehicle and their coverage for Bodily Injury is insufficient, your policy pays the difference. Coverage includes bodily injury, medical bills, pain and suffering and loss of income.
Coverage is usually the same limits as the Bodily Injury Liability limits on your own policy. Recommended Limits: Same as Bodily Injury Limits.
Medical Payments - Covers medical expenses for you and your passengers injured in an accident, regardless of who is at fault.
Coverage is typically $1,000 or $5,000 per accident. Recommended Limits: $1,000 or $5,000.
Comprehensive - This is a deductible that you pay for losses for a claim that is other than collision if you cause an accident. Coverage for theft of vehicle, damages due to theft, damages due to fire or flood, or damages if you hit an animal.
Depending on the age of the vehicle the deductible can be anywhere from $100 to $2,500. Coverage for glass claims is covered under the comprehensive section. For a low premium you can have Full Glass covered with a ZERO deductible. Recommended Limits: $500 or $1,000 and Full Glass.
Collision - This is a deductible you pay for damages to your car as a result of an collision accident caused by you. This could be collision with another car, another object or piece of property.
Depending on the age of the vehicle the deductible can be anywhere from $100 to $2,500. Recommended Limits: $500 or $1,000.
Emergency Road Service - Also know as Towing. Covers part or all of the cost to have your damaged car towed to a repair shop.
Coverage could be as little as $25 or as much as full coverage. Recommended Limits: Full Coverage.
Rental Reimbursement - Should you need to rent a car while your car is being repaired this coverage has a daily limit and an overall limit for each claim.
Limits of $30 per day with overage limit of $900 are typical. Recommended Limits: $30/$900.
(2) How much is Enough?
Each person will have his or her own "comfort zone" as to how much or little coverage they want for their car. In most cases the premium will dictate the coverage amounts purchased. If you follow our recommended limits above you should arrive at a fair price with full coverage.
(3) Am I overpaying?
Good question! If you check with several online insurance carriers you will probably find the premiums are all fairly close together. But do check as some states have very high premiums and it's worth the time.
(4) Should I purchase a Homeowners Policy from the same company?
Absolutely! You should purchase your Home, Auto, Valuable Items and Umbrella policies from the same company. Usually there is a discount on either the home or auto insurance.
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