What It Is And What It Isn’t

First, what it is.  It is a liability only policy that adds a high amount of additional liability coverage to the personal auto and home policies.  In most cases it adds $1,000,000 or more of additional liability protection over the personal auto and personal liability (home) policies.  These catastrophe liability policies are very economically priced, yet offer tremendously high limits of coverage.  A person who owns one house and two autos can purchase a one million umbrella policy for as little as $120 per year.  That means for $120 per year a person has added an extra $1,000,000 of liability protection over their personal liability and auto liability coverage.  There are a few important items to note.  Some companies require that they also insure the home and autos that go “underneath” the umbrella.  Some companies require customers to increase their current liability limits before they can add the umbrella policy.

Most companies do not include un-insured motorists bodily injury with the umbrella coverage and charge extra to add this coverage.

Check with your agent about these things.

What an umbrella policy isn’t.  It does not cover property at all.  It isn’t what it sounds like; it doesn’t cover “everything else” that the other insurance policies don’t cover.  For example, if your home has a fire and you own a boat that is in the garage and it burns up, and the boat is worth $3,000 and the home policy doesn’t cover it, the umbrella policy won’t cover the boat either.  The umbrella policy does not cover any property, it is a liability policy only.

Personal umbrella or catastrophe liability policies are a crucial part of insurance protection.  Folks who own their own business are encouraged to purchase an umbrella policy.  People who have young drivers, or families who’s homes and or assets exceed their auto liability limits should consider owning an umbrella policy.  They are easy to get and very inexpensive.

What are the factors that can affect the costs of my car insurance?

• Gender, age and even marital status.
• Driving history. The “cleaner” driving record you have, the lower your insurance costs will be.
• The area of driving. The insurance company will quote a higher rate in a big city.
• The condition of your car.
• The amount of insurance.
• Credit history will also influence the amount of your premium.

How can I my auto insurance rates be lowered?

• Drive legally in order to maintain a good driving record.
• Comparison shop for insurance.
• Obtain higher insurance deductibles.
• Get discounts whenever they apply to you.
• Protect your credit rating.

Every Insurance company uses their own rates and they are based on their own experience.  A major factor in auto rates in recent years is a persons credit history.  Insurance companies will rate based on a number of factors relating to that persons credit history, such as the number of loans they have , the number of credit cards they have, and what the credit limits are, their pay history and other factors are used.

The best thing to do is develop a good working relationship with your agent so you can have conversations about these things in order to maximize your coverages and minimize your premiums.  Our agency prides itself on people who genuinely care about our clients and strive to do our best to return calls, provide value and most of all deal honestly with our customers.

In the face of financial insecurity in the market place, workers and retirees need to have assurances that their money is safe, sound, secure.  We would like to help.  One of the issues facing workers today is the management of their 401K retirement accounts upon separation from service with an employer.  In todays uncertain economic times safety and security seem to be un-attainable.

We suggest these folks consider insurance annuities.  Annuities are safe, secure and can be used in individual IRAs, Roth IRAs, 401K retirement roll overs, or as a replacement for traditional bank CD’s.  Annuities generally pay a higher interest rate than the bank CD’s and are guaranteed contracts.  This means that the investor will be guaranteed a positive investment result.  We only recommend annuities from the highest rated companies who practice the best, most conservative, financial management and have a history of solid financial ratings.

Contact Brian Lampton today and ask how an annuity could provide peace of mind, and an excellent addition to any one’s retirement portfolio.