How much insurance is enough?
No doubt about it: we’re all watching how and where we spend our money these days. And with meeting insurance people left, right, and center, you may have stopped listening. “Yes, I have insurance. It’s the minimum coverage, but I don’t want to pay more than that.” That is definitely one approach to take, but the important question to ask yourself is: Will I have enough cash at the ready to pay for what insurance doesn’t cover?
We recently heard of a man who arrived home to find that he had been burglarized. Thieves had run off with his big-screen TV, new computer, and other expensive household items, and to add insult to injury, they’d driven them off in his sporty convertible, stealing it right out from his garage. Naturally, this man did the right thing and called the police and his insurance agent.
While his homeowner’s policy covered everything that was stolen from inside the premises, it didn’t cover the car in the garage. And since he had chosen a lower cost auto policy, he didn’t have full-loss coverage, meaning he was out the $8,000 the car was worth at the time of the theft. Unfortunately, he didn’t have that kind of cash available to replace the car himself, so he was left without.
Why Do I Need Insurance?
Insurance is available to cover us if and when something bad happens. No one can guarantee that something catastrophic like an accident, theft, or natural disaster will wreak havoc on your life, but no one can guarantee that it won’t either. Insurance is coverage for that yuck that could happen. In the same way you buy health insurance in case you get hit by a bus, you purchase property and casualty insurance for when it might be needed. And in many cases, the bare-minimum policy just won’t be enough to save you from the poor house if something happens.
Knowing How Much Insurance to Purchase
Look in your wallet and in your bank account. Now look at your deductible on your auto, home, and business insurance. Can you come up with $1,000 or more tomorrow if you’re in an accident, a tree falls on your home, or someone sues your business? And if you’re not carrying insurance on something, can you afford a huge bill if something happens? That’s really the way you have to look at this to determine how much insurance you need.
Now calculate the value of, say, your car. Let’s assume that you take out a minimum policy so the police don’t hassle you. Then you get into an accident and your car is totaled. Do you have cash available to buy another car? Perhaps more importantly, can you be without a car? If the answer to either of those two questions is no, it just might be time to take a second look at your insurance coverage.
Quotes — and Peace of Mind — Are Free
If you live and work in the Gilbert area and you’re curious if you have adequate insurance coverage on your home, cars, or business, this is the perfect time to reach out to your Gilbert insurance team, The Insurance Team, for a fresh look. For the poor soul whose car was stolen, he made the assumption that his insurance agent had included full loss in his policy. He probably wouldn’t have known that he didn’t have it had his car not been stolen — and by then it was too late. Don’t let it be too late for you. Insurance quotes are free, and The Insurance Team can walk you through your current policy to let you know what you have and what you might want to consider adding.
What are you waiting for? Call us at 480-626-1860 now!