Insurance | Allen, Flatt, Ballidis & Leslie Blog
Most of us carry various types of insurance including auto, health, life, homeowners, and some more unusual polices for GAP that covers the balance of a loan when your vehicle is declared a total loss. Or if you are Jennifer Lopez, you can actually insure your ASSets!
As we explained in the blog “Uninsured and Underinsured Automobile Insurance: Why You Need It,” if you drive in California, you are required to carry liability insurance. Liability insurance is intended to protect other drivers should you cause an accident. The blog also explained why it’s a good idea to carry uninsured and underinsured motorist coverage. But there are other types of auto insurance coverage available that you may want to consider adding to your policy. Let’s examine them:
Auto insurance is mandatory in California and most other states. But people don’t like to spend a lot of money on something they may never need or use. That type of mindset often causes drivers to opt for the minimum coverage allowed by the state, or to buy discount insurance they see advertised on TV. But as your grandmother may have said to you when you were a kid, there’s such a thing as being “penny wise and pound foolish.”
Do you have Gap Insurance for your vehicle? Many times consumers have no idea what Gap Insurance is or why they may need to purchase this important coverage when buying a vehicle.
Essentially, Gap Insurance covers the difference (the gap) between what your vehicle is worth and how much you owe on the car. Gap Insurance comes into play if your car is stolen or totaled (damaged to the point that repair would cost more than the car is worth) and the loan balance exceeds the value of the car.
Maven, a car sharing platform run by General Motors Company, is a new service to let owners of its cars rent them out and earn money, as the automaker makes an effort to move into selling rides as a service instead of just building vehicles.
The idea is to let GM customers put their cars into Maven's fleet, using its app the same way Airbnb Inc. enables people to rent out their homes. Maven rents cars out for hours or days at a time the same way as other rental car companies would. If this way to do business becomes successful, Maven will get more cars to rent out without carrying assets on its books, while GM customers have a way to earn some extra cash.
For most families it would be financially devastating to experience a lawsuit following an automobile accident. If you’d like to protect your assets, an umbrella policy could provide the extra coverage that you need. What does an umbrella policy cover?
An umbrella policy provides additional liability protection. If somebody sues you, this policy picks up where your homeowner’s or a car insurance coverage leaves off. Coverage may include everything from legal fees to the settlement amounts associated with a lawsuit.
While everyone driving in California is required by law to carry insurance, there are many drivers on the road who do not comply with the law. This is where your Uninsured Motorist Coverage comes into effect.
If you are injured in an accident caused by another driver who does not have insurance your medical expenses, loss of earnings and pain and suffering can be paid to you by your insurance company under your Uninsured Motorist coverage. This type of coverage will also apply to any passengers in your vehicle, but people often don’t purchase it and may come to regret it when they are injured by an uninsured motorist.
Many people use the Internet to purchase automobile insurance, but often they don’t really understand what they are buying and are just basically price-shopping. Others rely on their insurance agent to suggest the appropriate limits to carry but a careful and detailed review of your policy may save you dollars or–for not much more money–may give you a lot more protection.
Ride-sharing services like Uber and Lyft are examples of a “disruptive innovation” that have created a new market in transportation services and displaced an established pattern of how people move from one place to another.
Passengers hail an Uber or Lyft from their Smart Phone Apps and arrange for a car to pick them up, often at a significantly discounted price compared to taxis and limousines. Since its inception in 2012 Uber has grown tremendously and the company is currently valued at $69B and is dominating the ride-share industry.
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