What Are the Legal Requirements For Car Insurance?
In today’s economy, everyone is looking for ways to save money, and costs they can cut in order to do so. Everyone is trying to lower their monthly bills, so that they have more flexible budgets for spending or saving. There are many ways to cut costs. For people who own a vehicle, one thing to look into is changing your insurance policy or attempting to find a lower insurance rate. This is a huge deal in Michigan, where nearly everyone drives cars and where the economy has been hit even harder than it has in other states. However, you need to be sure that your car has at least the minimum coverage required by law in your state. Here are some of the requirements for Michigan car insurance:
Michigan is a no-fault insurance state. This means that when there is an accident, all expenses are covered by each driver’s own insurance company, rather than the insurance the person who is deemed responsible having to cover the other person’s expenses.
Because there are occasional exceptions to the no-fault policy, all Michigan drivers are required to be covered for liability. A liability policy will cover expenses in the event that one driver is designated as responsible for the accident and required to pay for the other person’s injuries. Liability covers up to twenty thousand dollars in medical expenses for a driver or forty thousand for the driver and passengers combined. It also covers ten thousand dollars of property damage.
Because there are not many exceptions to the no-fault rule, all drivers must carry a Personal Injury Protection policy, which can cover injuries, loss of wages due to missed work time, and funeral expenses. Depending on how good the driver’s health insurance policy is, they may need only the minimum Personal Injury Protection available.
Collision insurance is not required, but it is recommended. If the driver does not have collision insurance, they will be required to pay all repair costs out of their own pocket. However, if a collision insurance policy is in place, the insurance company will pay repair costs up to the value of the car. If repair costs exceed the value, then the driver will simply be cashed out for the amount at which the car is valued.
Another recommended policy is uninsured motorist coverage. If you have this coverage, then some medical expenses and repair costs will be covered even if an accident happens while your car is being driven by someone who is not on your insurance policy.
Knowing the requirements for your state is important. That way, you can make an informed decision about what coverage you need and what coverage is dispensable.
Liability Insurance and Asset Protection
When it comes to protecting personal wealth and business assets, the first thing that comes to many people’s minds is insurance. There is no question that insurance can play an important role in asset protection. Not only is it often required by law, by your lender or by your landlord, insurance can be an effective first line of defense against liability lawsuits. However, to fully protect your assets, it is critical to understand what insurance is and what it does and does not do for asset protection.
Included within most typical insurance policies such as automobile, homeowner, landlord and business insurance are three main general categories of coverage:
Liability coverage – this is the coverage to compensate the other party for bodily injury or property damage caused by you. For example, if you cause an automobile accident and the other car is damaged and the driver is injured, your liability coverage will pay for the injury of the other driver and the repair of the other car. Property protection coverage – this is the coverage to replace or repair your property for any sudden and accidental loss or damage caused by a covered peril. For example, if your car is also damaged in the above accident, your property protection coverage will pay to repair or replace your car after you pay your deductible. Other additional protection – this is a broad category of coverages designed to help you get by during the period when your property is being repaired like a rental car when your car is in the shop as well as other miscellaneous coverages like towing and medical expenses for you and your passengers.
Liability insurance gives you a layer of protection against lawsuit and lost of assets. However, it has a number of limitations:
There are always limits on how much the insurance policy will pay for losses for which you are liable. If the court awards the person you’ve injured a judgment of $350,000 but your liability limit is just $100,000, the most the insurance policy will pay is $100,000. Guess who will have to come up with the remaining $250,000? That’s right: you! You will have to come up with the cash or face the real possibility of losing your home and/or other assets. There are many exclusions in your insurance policies. For example, any liability from an intentional or criminal act is excluded. Sexual harassment, employment discrimination or wrongful termination is typically excluded as well. Discharge of waste and other toxic materials is generally excluded. Liabilities arising from breach of contracts or agreements are typically not covered. Professional liabilities such as malpractice, errors and omissions are usually excluded unless a separate professional liability policy is in force. In other words, for a LARGE liability claim, the insurance company will try to find ways to avoid paying. So unless it is specifically and explicitly covered by the insurance policy, you are most likely on your own. In addition, any failure to disclose material facts in your application or failure to report any material changes after the policy is in force gives the insurance company a way out of paying a claim even if it is covered. Most insurance policies do not cover many more ways you can be sued. For example, you might be sued for misappropriation of other’s funds, fraud or allegation of fraud, breach of contract, slander, libel, copyright, trademark or patent infringement, divorce, accidents from a motorized speed race, a hostile working environment, a liability arising from a willful violation of an ordinance or a statute, suits from local, state or federal government agencies, just to name a few. You can’t even buy liability insurance for these risks in most cases. And if you can find insurance for these risks, they will likely cost a great deal.
There is no question that we should all carry the insurance required by law, the lender or landlord as the first line of defense against lawsuits and loss of assets. However, since there are limits on what insurance will pay and there are too many situations where insurance will not provide the coverage, you cannot rely solely on insurance to protect your assets.
Oftentimes, just having all your assets visible to an aggressive injury attorney invites lawsuits that might otherwise not be filed. There is no better way to stop a potential lawsuit from starting than to lead the injury attorney to think that there won’t be any money or assets for him to collect after spending all the time and money to go to trial even if he wins.
Know About Cheap General Liability Insurance
When buying an adequate insurance cover for your organisation one also wants a cheap general liability policy. Before negotiating on the price it is very important to know what all is your cheap general liability insurance policy about. General liability insurance is a kind of commercial insurance which covers the company from any kind of financial losses which might arise from damage to the property or a physical injury which is caused by the employees of the company or the insured himself to any third party. This insurance provides coverage against all the accidents that can happen at the premises of the insured or that of the customer by the employees of the insured. However, there is no coverage provided in the policy for any errors that may happen when the insured or the employees deliver any services to their clients or customers.
Cheap general liability insurance can also provide coverage against any damage to software or hardware of the company or also against any theft. The policy will also cover and destruction of office furniture and equipments and also destruction of any property. The premium that will be charged for general liability insurance will depend on the size of the company and also what kind of risks is it exposed too. There are certain options which are available to the insured when they are buying cheap general liability insurance. One option available is for advertising and personal injury where the coverage will be provided for any offensive activity done by the employees of the insured or the insured himself. Another option is employment practises liability where the cost of a law suit will be covered in which the company will be involved. The third option is to cover medical expenses where all the medical expenses will be covered by the insurance company for any injury caused to a thirds party on the premises of the insured. Another option available is that of tenant’s liability.
Cheap general liability insurance is not a difficult task in today’s time but one has to ensure that they get adequate coverage in the premium that they pay to the insurance company.
The Alternative Savings Accounts
Because of the typically low interest rates that come with passbook accounts, some people just consider them a safe place to store money, and not really money earning investments. There are actually many types of savings accounts to choose from, each with different pros and cons. While all saving accounts are considered conservative investments, you can earn quite a bit if play it smart:
Passbook Accounts – These are “plain vanilla” saving accounts. You are given a ledger called a passbook, and in it, all your deposits, withdrawals and interest are recorded. There is typically no minimum balance, no fees, and you can withdraw and deposit as often as you want. Passbook accounts are FDIC insured for up to $100,000.
Money Market Accounts – Compared to passbook accounts, money market accounts require a minimum balance, earn better interest, and can usually come with a limited number of withdrawals in a month.
Health Saving Accounts (HSAs) – Intended for use during medical emergencies, the main feature of the HSA is that the money you put into it is up to $5,000 a year is tax deductible. The money will only remain tax deductible if it is withdrawn for medical expenses. HSAs are offered to compliment High Deductible Health Plans.
High-Yield Saving Accounts – These are accounts that are sort of a marriage between passbook accounts and certified deposits (CDs). A large minimum balance is required, interest is high, but withdrawals are allowed with restrictions in amount and frequency, no fees are charged provided withdrawals are kept within agreed limits.
Retirement Saving Accounts – Accounts specifically designed for retirement, there are IRAs, 401(k) plans, and Roth IRAs. All accounts come with some form of tax break, but on condition that withdrawals can’t be made before a certain age.
Foreign Currency Savings Accounts – In these uncertain times, the strength of the Dollar is not what is used to be. If you’re looking not just to save money, but to protect your money from currency fluctuations, it might be best to keep it in a foreign currency that is more stable. These are typically available from multi-national banks.
These are actually just a few of the available options. There are a lot of saving accounts out there we haven’t mentioned, banks do try to mix it up to cater to different needs. If you shop around, you’ll find one that suits your needs best.