Insurance is a broad and daunting topic. We get questions all the time from our clients that reflect that. As agents, it is our priority to answer those questions as thoroughly as possible. Let’s walk through a few FAQs that we get here at Thousand Oaks Insurance…
Why should I include medical payments coverage on my auto policy?
Great question! There a lot of benefits to having medical payments as part of your auto policy. In the event of an accident, coverage extends to all passengers in your vehicle. Let’s say you get into a car accident. If somebody gets hurt in your vehicle, your medical payments will kick in to help cover the cost of their injury. Also, it does not matter whether you are at fault or not. Yes, you read right. Regardless of fault, your medical payments will provide you coverage in the event of an accident. Also, medical payments provide excess, or additional, coverage. This means coverage for medical payments will extend above your current limits.
This sounds expensive, aren’t I paying enough for auto insurance already?
Cost is a crucial factor in choosing an insurance provider. Get this, there are no deductibles and the premiums won’t break your bank. You can expect to pay in the ballpark of an additional thirty to seventy-five dollars per vehicle on any given auto policy. We always recommend you have at least a $2500 medical payments limit on your auto policy.
What is an umbrella policy and when would I need one?
An umbrella policy adds excess liability coverage on top of all your other policies. We can’t stress enough how important this is. It is crucial to have some sort of a safety net to fall back on in the event of a serious accident or claim. A personal umbrella policy provides just that, a safety net.
So what exactly would a personal umbrella cover?
Sometimes jokes just write themselves. If the limits on your other policies are exceeded, an umbrella policy will cover bodily, personal injury, property damage, and certain lawsuits. For instance, say you are at fault for a car accident and the other driver sustains an injury. Let’s also say the other driver is out of work for 6 months. Your auto policy will cover any damage to the other drivers vehicle as well as any injuries. However, that driver can sue you for loss of income. This can be extremely damaging if they are a highly paid professional. Your auto policy will definitely exhaust it’s limits in this case. This is where a personal umbrella would kick in to provide additional coverage on top of your auto limits.
Now THIS sounds expensive, how much does it cost to have a personal umbrella policy?
Surprisingly, umbrella policies are an inexpensive and affordable way to protect your finances. We recommend you bundle your umbrella with multiple policies, like home and auto, to get the most bang for your buck. You could expect to pay around $200 a year for one million dollars in coverage on an umbrella policy if you own a home and two cars.
At Thousand Oaks Insurance, we make it our mission to provide you with the most coverage for the most affordable price.