We are living in a very litigious society. These days, people are bringing lawsuits for just about anything. All of your policies, home, auto and watercraft have specific limits of liability. What happens if an accident occurs for which you do not have sufficient liability insurance?Umbrella insurance used to be closely associated with wealthier people. These days it is very important for everyone to have an umbrella policy. Wikipedia defines an umbrella policy as, ” insuring more than one property as opposed to only one…Typically, an umbrella policy  is pure liability coverage over and above the coverage afforded by the regular policy, and is sold in increments of one million dollars. The term umbrella is used because it covers claims of liability from all policies underneath it.” For example, let’s say you have an auto policy with $250,000 in liability limits and a homeowner’s policy with liability limits of $500,000. Those limits are called “the retained limits”.  If you purchased a $1 million umbrella policy, then the umbrella policy would cover the difference between the auto or homeowners policy limit and $1 million.

Historically, umbrella policies have been used by people who have a large amount of assets. However, these days, more and more ordinary people are purchasing umbrella policies as an extra level of protection. Umbrella policies are secondary to your primary auto and homeowner’s policies. What this means is that your umbrella coverage only kicks in when your auto or homeowner’s policy’s limits have been exhausted.

Umbrella policies are generally inexpensive in comparison to the coverage you receive.

Here is some information you will need to take out an Umbrella Policy:

1. Personal Info (name, address, DOB, sex, marital status, years licensed, state  licensed, and occupations of all household drivers).

2. Five year history of violations and accidents for all household drivers.

3. Complete list of all property owned.

4. Current Insurance policy information.

5. Limits of liability you are requesting.

If you’re 25, male, and drive a red, 2-door sports car you’re going to pay the highest insurance rates, right? Maybe not. Auto insurance can be very confusing if you are not familiar with the industry. Today we’ll go over some of the most common myths about auto insurance.  

•  “I pay higher rates because I have a red car.” Not true. The color of your car has NO affect on your auto insurance rates. However, the vehicle make, model, year, body type, and engine size will have an impact.
• “My friend was driving; his insurance will cover the damages.” Nope. You’re on the hook. It’s your car and it’s your responsibility. Insurance follows the the car, not the driver. If your coverage is not enough, then, your friends insurance will cover the rest.
• “My personal policy will cover all uses of my vehicle.” False again. A personal auto policy will cover your personal driving needs, but nothing related to work. If you’re a realtor or you deliver pizzas, you will need to purchase a commercial policy.
•  “My rates won’t go up if I don’t report the accident to my insurance company.” Maybe.  Although you may have not reported the accident to your carrier, the other person involved may have reported it to theirs. As a result their company may inform yours about the accident, leading to an increase in premium. Additionally, the accident may appear on your motor vehicle record and follow you for at least three years.  You are required by the terms of your policy to report all accidents to your insurance carrier, and all accidents with damages totaling $750 or greater and all injury accidents to the Department of Motor Vehicles.
• “The police said it wasn’t my fault.” Just because the police said you were not at fault, doesn’t mean the insurance companies will agree, at least in whole. Insurance companies use comparative negligence to assign partial risk to both drivers in an accident where they believe no one is solely at fault.
• “I just got my first speeding ticket and now my rates are going to skyrocket.” Not necessarily. Many auto insurance companies will not raise your rates from your first speeding ticket. However, if you rack up 2 or 3, you can bet you’ll see an increase.
• “Are my parking tickets going to affect my rates?” No. Parking tickets do not count against your driving record; but unpaid parking tickets can affect your ability to renew your driver’s license.

To find out more answers to common question about auto insurance, click here.

 This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

Buying auto insurance for the first time can be a daunting task. There are many companies out there airing ads that claim their company will save you the most money or that they have the best service. But how do you know which company will provide the best possible rates and service for you? There are many things to look out for when buying insurance for the first time that can help you get the best combination of price and coverage for your vehicle.

1. Shop around. Thanks to the internet, we have unlimited access to resources these days. With AIS you can get quotes in seconds from dozens of highly rated insurance carriers.

2. Get the right type of coverage. With the abundance of different auto insurance policies out there, it is very easy to get confused about which type of coverage to purchase. Make sure you know all of your options and if possible speak with a knowledgeable agency to make sure you fully understand the coverage.

3. Discounts. As a first time purchaser of auto insurance, it is likely you may be eligible for various discounts. These discounts will vary, depending upon the insurance carrier. Most auto insurance companies offer many discounts ranging from your occupation, your driving record, completed driver’s education courses, etc.

4. Service. If you’ve ever been in a car accident before, you know the importance of service. You want to make sure that your auto insurance carrier has quality customer service that is quick and reliable. You want an auto insurance company that is going to investigate the accident and start the claims process immediately. Accidents are bad enough; you don’t want to be stuck without a car for a week or two waiting for your claims rep to come inspect the damage.

Even if it is not your first time buying auto insurance; these are some good guidelines to follow.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.