Financial Advisors and Car Insurance Brokers, Two Various Views About Car Insurance

Published: 02nd May 2012
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Financial consultants are not in agreement with insurance agents about the stress that needs to be kept on limits of liability in motor vehicle insurance. Marketers like to outline the issues of price and insurance company rating, while financial consultants like to stress the weight of of liability limits first, then company rating in the 2nd place, and potentially price at a final stage.

Despite the fact that financial consultants and car insurance marketers have the common pursuits of making the most of their earnings while offering their services, the scope of their action is not the same. Auto insurance marketers make their money by selling as many car insurance polices as they can. The marketer does her/ his best to make as many sales as it could be, hence making small amount of money on too many policies sold. Financial consultants work differently as they aim to make big commission from each of the few number of customers they have. Promoting an automobile policy is not the principal concern of a financial advisor, but for him or her car insurance is one of the standard matters of the financial consulting process.

Auto insurance representatives look at auto insurance as a scheme to deliver protection in case of a loss to the automobile itself such as theft, fire or another loss; along with the simple fact that insurance is the law. Financial planners look at auto insurance as an integral part of their clients risk management process. To the financial planner an motor vehicle insurance policy is not to repair the automobile in the event of loss, but is primarily about protecting the assets and capital of the insured, mainly against likely legal proceeding.

Many automobile insurance marketers would even propose to lower liability insurance to state limits as a approach to save money. No sound financial planner will ever make such an advice. No way!

When does liability height matter?

How high your liability limits need to be? This is the main challenge that should prevail on the top of list of your assessment standards when you buy car insurance. You, in some cases, need only the minimum liability limits needed by the state if /when(1) you looked for higher limits and could not afford to pay for it, (2) your present assets or capital is not big enough to expose you to further litigation in the event of at fault car accident. (3) you are a high risk driver where no no other insurer wants to approve a policy for you except at the state's minimum limits. But, if you have certain amounts of belongings and wealth, or is anticipated to have sizable assets or wealth in the future, then you need to be concerned about the coverage of your liability coverage.

What about if you are not rich? Even for people with little or no income, the extent of liability limits should be much of a problem to them. This is due to the fact that liability insurance incorporates certain coverages to pay for your bodily injuries in the event that you get hit by a vehicle that is officially uninsured, or is insured but the insurance on that vehicle was minimal to cover your bodily injuries. According to the Insurance Research Council, about 15% to 17% all drivers in the United States are uninsured. Coverages for Uninsured Motorist (UM) and Underinsured Motorist (UIM) fluctuate from state to state in regard to their mandatory status and limit minimum mandatory amounts. In Illinois Uninsured Motorists insurance is mandatory at the minimum amounts of $20,000 for bodily injury per person and $40,000 for bodily injury per accident. Underinsured motorists coverage is not mandatory in the State of Illinois but insurance providers must make available of it to clients for auto policies issued with liability over the state mandated limits.

Buyers can still reject to have higher uninsured/ underinsured motorists but it must be in writing. In essence, your liability only automobile insurance policy provides coverage for your bodily injuries as well, and making sure that you have high limits on both liability, UM and UIM can have enormous effect on your life.

Author is member of Insurance Navy, a Chicago leader of business and auto insurance quotes. You can get information about Harvey inexpensive car insurance by visiting company's website.

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