Almost everyone understands the basic concept of insurance and the needs it is used to fill such as protection and risk coverage on property, health and life itself. Auto insurance is probably the most familiar to everyone since most people start driving at an age before they need to understand such insurance coverage as health and homeowners. However, there are lesser known types of insurance policy provided by your local Memphis insurance agent like the umbrella policy.
Umbrella policies are utilized for a variety of reasons but most often, umbrella policies are used as a way to fill gaps in insurance coverage and extend the limits of standard policies once their maximums are reached. A small business owner is an excellent example of someone that would benefit from having this type of policy in place. Most business owners are required to have certain levels of general liability insurance in place to comply with local laws and requirements for operation a business. I fact, most municipalities will not issue a business license until general liability insurance has been purchased and in force.
In many cases, having a standard general liability policy is not enough coverage to protect the interest of the business. In order to extend coverage, business owners often purchase an umbrella policy to fill the gaps often left by general liability policies. Memphis insurance agents council clients on the benefit of owning an umbrella policy and how it can protect them in the event an unfortunate event occurs that could result in devastating effects on their business. In today’s society, litigation ties up the courts and is big business for lawyers and law firms. An umbrella policy in place over and above a general liability insurance can provide the peace of mind a small business owner needs.
Parents of teenage drivers are also excellent candidates for umbrella insurance. Teenage drives are more susceptible to car accidents and place their parents assets at risk should they become involved in an auto accident. Automobile insurance polices have per occurrence minimums which can place parents at risk should liability resulting from a car accident exceed policy maximums. An umbrella policy will takeover once basic automobile insurance ends, giving parents added protection and out of pocket losses.
As with anything financial and involving assets, evaluation of current risk and needs should be considered. A meeting with a financial advisor should be sought first as they are qualified to evaluate financial matters. Once a meeting with a financial advisor is completed, a meeting with you local Memphis insurance provider can determine how to best protect your assets. Standard homeowners, auto insurance and life insurance policies may be enough. However, in the event standard polices do provide enough protection for potential risk incurred, an umbrella policy may be needed to cover the short fall in basic coverage.
Umbrella insurance policies cover claims for accidents or damages that were caused by you or members of your family. An umbrella policy is unique in the sense that benefits will not be paid until the limits of standard liability policies such as homeowners and auto insurance policies max out. We will use an example of a homeowners policy to illustrate how a umbrella policy would be beneficial and provide needed protection. If your homeowners policy with liability provisions of $350,000 and a claim or judgment by the courts for liability exceeded $350,000, the umbrella policy would pay claims once the $350,000 general homeowners policy is exceeded. The umbrella coverage would pay claims up to the amount of the policy limits selected when the policy was purchased, for example,$1,000,000. If a claim were to be made for $750,000 against the insured, the homeowners policy would pay up it’s limits of $350,000 and the umbrella policy would payout the remaining $400,000 of the claim.
When a umbrella policy is purchased, the insured is increasing higher liability limits that they would otherwise receive from their standard coverage. Having an umbrella insurance policy in force can provide the added protection needed to fill gaps over and above your standard insurance coverage providing the security you need. By visiting your local Memphis insurance agent or broker, you can learn more about liability insurance and specifically, umbrella insurance.
Sunday
Uninsured Motorist And Auto Insurance Memphis
Driving the streets of Memphis many citizens have often found themselves wondering about whether or not other Memphians are insured. In this article we will discuss uninsured motorist and understanding how this part of your Memphis insurance policy works by answering questions such as will you be covered if the other driver doesn’t carry auto insurance Memphis.
If you currently carry uninsured motorist insurance as part of your total auto coverage, the chances are very good that you will be covered for the accident. If you were to ask any local Memphis insurance agent if you should carry uninsured motorist, the answer would be a resounding yes, especially in this city since there are so many uninsured motorist. This is especially true with the current economic situation with most people looking for ways to trim expenses and save money. Unfortunately, insurance is one area where many people look first to cut expenses.
In the state of Tennessee, as a tort state, residents are required to carry a minimum amount of insurance. However, in many states, uninsured motorist within each state have been statically proven to be as high as twenty five percent making it even more important that Memphis area drives carry uninsured motorist coverage.
What Is Uninsured Motorist Coverage?
Generally speaking, uninsured motorist is that part of your policy which will pay for medical expenses for injuries received to both you and your passengers if you are in an accident where the other driver is legally responsible for the crash and is uninsured and in some cases even if they have coverage, they could be underinsured.
A uninsured driver is defined as someone involved in an accident and is responsible for the accident who is not insured; did not meet minimum state requirements for liability insurance. Hit and run drivers, drivers that leave the scene of an accident are consider by most states as uninsured drivers which usually falls under bodily injury.
We should discuss underinsured drivers. Memphis insurance professionals know what the legal limits and requirements for the state of Tennessee so your agent will be able to answer any questions about state minimums. Underinsured drivers are those drivers that meet state requirements but do not have their limits within their policy high enough to pay for damages caused by an accident. It should be noted that most insurance companies consider uninsured motorist and underinsured motorist as two different areas of coverage.
Some states have mandated uninsured motorist as a requirement, however most states do not require uninsured motorist coverage and only require liability coverage. If you as Memphis insurance policy owner, purchase uninsured motorist coverage, your coverage must comply with state mandates but cannot exceed the policy limits outlined by your insurance company.
When purchasing auto insurance Memphis area residents should seriously consider adding uninsured motorist and underinsured motorist coverage. Memphis is a high accident and uninsured motorist city so you want to have the assurance if you were unfortunate enough to have a accident that is the fault of another driver, that you are made whole, just as you were before the accident occurred. By providing yourself with the coverage, you are being both physically and fiscally responsible in lower you risk. What’s more is both uninsured and underinsured motorist protection is realativily inexpensive for the enormous advantage of having the coverage.
If you were unfortunate enough to be in a car accident and you have uninsured coverage, your medical bills will be paid, wages that may have been lost can be replaced and compensation can be given for pain and suffering. Most importantly, if you are involved in an accident with an uninsured motorist, you are covered since many times the responsible party and uninsured motorist seldom has the money to pay out to injured parties.
Memphis area residents know the ongoing joke we hear daily on local Memphis radio stations about Memphis drivers. Unfortunately, there is an element of truth to the joke and should be considered sage advice in areas of Memphis insurance. Having the minimum liability limits if you are a driver is mandated by state law in Tennessee. However, you should give yourself added piece of mind by adding uninsured motorist and underinsured motorist to your auto insurance Memphis policy.
If you currently carry uninsured motorist insurance as part of your total auto coverage, the chances are very good that you will be covered for the accident. If you were to ask any local Memphis insurance agent if you should carry uninsured motorist, the answer would be a resounding yes, especially in this city since there are so many uninsured motorist. This is especially true with the current economic situation with most people looking for ways to trim expenses and save money. Unfortunately, insurance is one area where many people look first to cut expenses.
In the state of Tennessee, as a tort state, residents are required to carry a minimum amount of insurance. However, in many states, uninsured motorist within each state have been statically proven to be as high as twenty five percent making it even more important that Memphis area drives carry uninsured motorist coverage.
What Is Uninsured Motorist Coverage?
Generally speaking, uninsured motorist is that part of your policy which will pay for medical expenses for injuries received to both you and your passengers if you are in an accident where the other driver is legally responsible for the crash and is uninsured and in some cases even if they have coverage, they could be underinsured.
A uninsured driver is defined as someone involved in an accident and is responsible for the accident who is not insured; did not meet minimum state requirements for liability insurance. Hit and run drivers, drivers that leave the scene of an accident are consider by most states as uninsured drivers which usually falls under bodily injury.
We should discuss underinsured drivers. Memphis insurance professionals know what the legal limits and requirements for the state of Tennessee so your agent will be able to answer any questions about state minimums. Underinsured drivers are those drivers that meet state requirements but do not have their limits within their policy high enough to pay for damages caused by an accident. It should be noted that most insurance companies consider uninsured motorist and underinsured motorist as two different areas of coverage.
Some states have mandated uninsured motorist as a requirement, however most states do not require uninsured motorist coverage and only require liability coverage. If you as Memphis insurance policy owner, purchase uninsured motorist coverage, your coverage must comply with state mandates but cannot exceed the policy limits outlined by your insurance company.
When purchasing auto insurance Memphis area residents should seriously consider adding uninsured motorist and underinsured motorist coverage. Memphis is a high accident and uninsured motorist city so you want to have the assurance if you were unfortunate enough to have a accident that is the fault of another driver, that you are made whole, just as you were before the accident occurred. By providing yourself with the coverage, you are being both physically and fiscally responsible in lower you risk. What’s more is both uninsured and underinsured motorist protection is realativily inexpensive for the enormous advantage of having the coverage.
If you were unfortunate enough to be in a car accident and you have uninsured coverage, your medical bills will be paid, wages that may have been lost can be replaced and compensation can be given for pain and suffering. Most importantly, if you are involved in an accident with an uninsured motorist, you are covered since many times the responsible party and uninsured motorist seldom has the money to pay out to injured parties.
Memphis area residents know the ongoing joke we hear daily on local Memphis radio stations about Memphis drivers. Unfortunately, there is an element of truth to the joke and should be considered sage advice in areas of Memphis insurance. Having the minimum liability limits if you are a driver is mandated by state law in Tennessee. However, you should give yourself added piece of mind by adding uninsured motorist and underinsured motorist to your auto insurance Memphis policy.
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