What is the Best Business Insurance?

It depends! Finding the best business insurance for many small businesses can be a challenge. Most small business owners in Kentucky will see that they have multiple options. Generally, competition leads to lower prices for canny consumers. With that said, commercial insurance is not a commodity and finding the best value may take a little effor.

Prices paid for Kentucky business owners’ insurance may range widely. Commercial insurance rates in Georgia and South Carolina are no different. Chances are, the more unique your business is, the tougher it will be to find a great deal on commercial insurance. Ferreting through the long list of products makes it difficult. 

Insurance Options

To find the best commercial insurance for you, start by reviewing your options. Insurance companies do not write insurance in all states. It’s not uncommon to see a company provide great rates to business in one state, but for some small businesses, you will find that they don’t have a lot of options.  Auto dealerships, certain trucking classes, and roofers are good examples. Regardless, it is important to continue your search.  

Price

Commercial insurance premiums can be a cause of friction.   Would you buy a commercial auto policy if it only provided coverage on Saturday and Sunday?

If you could buy it at 10% of the competitor’s price would you do it?

Of course, you wouldn’t! This ridicules and silly example is used to get a point across. Price is significant! But only after you have determined that the policy is suitable for your business. 

Insurance is not a commodity.  TruePoint agents are using transparency and communications to help KY, IN, SC, and GA business owners.
Insurance coverages change from one policy to the next

Coverage

There are many insurance agents, broke, s and carriers that sell on price alone.  Each of them would love for you to believe that insurance is a commodity. Business owners beware. As the business owner or manager, it is your responsibility to make sure any business insurance policy being considered has the coverages that you need.  When comparing multiple policies, make sure that they are on par with each other.  It is the agent’s job to provide a quote that is comparable to your current coverages.  However, it is your business that will bear the brunt.

Great insurance agents don’t sell, they inform and advise. First, they take the steps to understand the prospective business.  And hopefully, an understanding of the risk aversion of the prospect. After generating quotes and putting together a proposal.  The question of price can now be considered.  By interacting with the insured, risk management decisions can be made incorporating both coverage and price information.

Great insurance quotes don’t use deceptive practices to alter the relative value. The following are just a few ways that we’ve seen this attempted in the past:

Commercial insurance for roof blown off, business insurance deductibles in % beware
BEWARE: If your deductible has a % sign and not a $ sign.

• Deductible Changing a deductible from $500 to $1,000 without consulting the client isn’t a smart thing to do. Watching your deductible and other factors, that make up your commercial insurance policy is wise.

By committing to review your insurance policy when quoting and at renewal time you will also avoid some more adverse outcomes. While the dollar-based deductible change is concerning, beware of any deductible expressed as a percentage. Anymore it’s not uncommon to see 1% or 2% deductibles, especially for the wind/hail deductibles. If the deductible were 1% of the loss, there would be no issue. But it’s not; a 1% deductible is based on the policy limit. So if you have an office with a $600,000 value or limit, the deductible is $6,000 at 1%/ $12,000 at 2%.

Assume you have a 2% wind/hail deductible. A windstorm hits that result in $8,000 in damages. At first blush, a 2% deductible on an $8,000 claim is $160??

WRONG!

Your deductible $12, 0000. You pay for all the repairs.

• Read your application.  There are a lot of questions, people make mistakes, and even worse sometimes they assume. By signing the application, you are attesting to the accuracy of the information that is being provided.  Down the road, supplying the insurance company with bad information may muddy things up.

• What does your General Liability say about you? Your Commercial General Liability premium is a result of what and how much you do. You should review both for accuracy. Consider the following. 

You have the opportunity to be an insurance company. Today you can write a General Liability insurance to one business only.  Regardless of your choice, you will receive a premium of $500.  

Need Tree Removal insurance in Kentucky.  TruePoint can help! We're also helping tree trees find insurance in Georgia, South Carolina and, Indiana.
Insurance starts with understanding risk

The first company you can insure is in the Tree Removal Business.  They also do lawn-care, snowplowing, and building demolition.  Their current policy indicates that they are in the lawn-care business.  The owner argues that this is correct as 50% of their revenues come from mowing lawns.

Do you need insurance for lawn care business in Kentucky.  TruePoint is also working to insure lawn cares businesses in Georgia, South Carolina and Indiana.
We have great lawncare insurance options in KY, GA, SC, and IN

The second company is a Lawn Care Business? They mow lawns.  Period!

Pick one.  Remember, the premium will be the same regardless of your choice.

The point is you need to know what type of business your insurance policy says you are.  What if you’re the first business? 

Do you think he will be covered if a tree falls on a house?

How much?  How much business you do is also important.   Premiums for Commercial General Liability are primarily a function of what you do.  What you do has multiple meanings. For example, the type of work you do, how often you do it, how many people help you, how long you’ve done it and how many losses you’ve had.

What will happen If your application states that you have a payroll of $34,000 when the truth is you have a payroll of $95,000?

Houston we have a problem!

Rocket launch pad, experiencing problems similar things can happen to your commercial insurance

After your policy has been in force for a full year, your insurance company will perform an audit. At this point, they will discover that your payroll is almost three times higher.  What happens? They will send you a bill to offset the difference. Hold on. Things are about to get worse. After plugging your true payroll into their system, you will start receiving significantly higher bills.  One last carpet bomb; you know have a policy that is costing $2,000 more per year than advertised. In hindsight, you now have to question your decision. What appeared to be a $400 savings appears to have cost much more than the policy with all the bells and whistles. Wow!

But this is not the end of the process; it is ongoing.

It doesn’t matter whether you’re trying to buy Georgia commercial insurance or South Carolina. Great insurance is a two way street between the agent and the business owner. Constant communication aimed at awareness and identification of ever-changing exposures. Feedback to this should come in the manner of risk transfer options.  This should include their cost and some form of analysis.  The end result gives the business owner the ability to make an educated decision.

We are Kentucky Business Insurance Specialist.  TruePoint will soon be on of the best business insurance solutions in Georgia and South Carolina.
Business Insurance that’s on target. TruePoint Insurance!

There is an answer to what is the best business insurance. Unfortunately, it isn’t as simple as the insurance company or that insurance agent. It is a function of where you live, what you do, and what you need in regards to insurance. The formula should be extended to what insurance companies you can access.  The final factor may be the easiest place to get off track.  It is critical that you find an agent or broker that is knowledge and transparency.

In short, you are the key to determining what the best business insurance for your business is.

TruePoint Insurance Group, LLC

Our Kentucky and Indiana team can be reached at (502) 410-5089

Contact our Georgia and South Carolina commercial insurance team at (912) 330-1265

Understanding Car Insurance; Auto Liability Limits

What are Auto Liability Limits?
Auto Liability Limits are the part of your insurance that protects you for damages to others.

What happens if you or an auto you own are involved in an accident and deemed to be at fault? You will be liable for losses to the other party’s vehicle and any injuries resulting from the accident.

You can find your Auto Liability Limits on your declarations page. Auto limits are the three numbers which look like those below:


100/300/100


The first two numbers, 100/300, represent the coverage available for BI, or Bodily Injury. Your BI protects you when you are at fault, and as a result, injury has occurred to others.


The first number (100) indicates that the policy provides up to $100,000 of coverage to any one person. The (300) states that the total amount available to cover all injured individuals. The number 300 indicates that BI has a $300,000 cap.


The final number represents Physical Damage. It is also referred to as PD. Physical Damage coverage protects against property damage caused by the insured. In our example, the number (100) indicates that you have $100,000 in PD coverage.


Liability Limits represent the amount that your insurance company is legally liable for. Those limits vary and are dependent on the amounts you requested. Each state sets minimum required limits.

Several States have recently increased the required minimums For Auto Insurance

Below are the required limits required by the states served by TruePoint Insurance:

Georgia 25/50/25

Indiana 25/50/25

Also, Indiana requires minimum limits for Uninsured and Underinsured Motorist
25/50/25

Kentucky 25/50/25

South Carolina 25/50/25


In addition, South Carolina requires minimum limits for Uninsured and Underinsured Motorist
25/50/25

What happens when the cost exceeds my coverage limits?
As insurance agents, we have thoughts and suggestions related to auto insurance. However, there isn’t a right answer to the question above. Will the injured party pursue the claim once it exceeds the limits? For those that do seek to be fully repaid, they will likely seek recourse in a courtroom. This takes us or any other insurance agent out of the picture. It also makes it impossible for an agent to answer this question.


Before purchasing car insurance:Take the time to speak with an agent; one that is willing to provide insurance decisions that are right for you.

Home Businesses (Wholesale)

Insuring your home-based business is important as most homeowners policy will refuse coverage.
Insuring your home-based business

A variety of businesses are routinely operated in homes. This article discusses aspects of particular operations. Refer to Home Businesses – Basics for background information on coverage as well as our other articles discussing different in-home businesses.

Wholesale – As a wholesaler, here are some coverage options for your consideration:

Businessowners Policy – If you are a manufacturer’s representative with limited inventory, some insurance companies will cover your business with a BOP. A BOP provides broad coverage for buildings, personal property, loss of business income, extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments.

If you have more than $1,000 of goods off-premises in transit, you will need to add additional coverage. Coverage for goods stored at other locations must be added to the policy.

Commercial Package Policy – If you cannot qualify for a BOP, your agent will probably have to build a special commercial package policy to meet your needs. You will need a competent commercial lines agent to help you. Commercial lines agents have both the expertise to design the appropriate coverage and the markets for your wholesale business.

Workers Compensation – You will need workers compensation coverage for any employee – even part-timers.

Commercial Auto Policy – You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup, or if the vehicle is owned by a corporation.


COPYRIGHT: Insurance Publishing Plus, Inc. 2016

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Life Insurance for Seniors: What are Your Options?

As you approach your golden years, you may find that your plan to provide for your dependents isn’t as solid as you’d like. In these cases, a customized life insurance strategy from TruePoint Insurance can help you create a better future for those you may leave behind. While age is an important factor, older residents in the Fisherville, KY area still have life insurance options that can build a stronger foundation for their dependents.

Be Realistic

Your age isn’t the only factor agents look at when considering life insurance coverage. Your agent will also look at your:

  • History of tobacco use
  • Gender
  • Health history
  • High-risk lifestyle activities
  • Driving record

Senior citizens with the right combination of factors can still find affordable and adequate life insurance coverage. Your insurance agent can help you understand how these factors affect your current options.

Try a Term Policy

Term life policies are contracts that provide coverage for a short period of time. The coverage period can be anywhere from a few months to several years. These contracts come with very specific coverage requirements. Your insurance agent can help you create a contract that covers your most likely scenarios to ensure your dependents receive full payment.

Bulk Up Existing Policies

Your existing life insurance coverage may not be enough to cover current circumstances. In that case, your insurance company may be willing to work with you to expand coverage.

Think About Survivorship Insurance

Survivorship life insurance is a highly flexible option for married couples with dependents. The shared risk generally decreases premiums and maximizes potential benefits. These contracts are designed to pay out when the last covered subscriber passes away.

Find the Best Strategy for Your Family’s Financial Future

TruePoint Insurance agents can help you find the life insurance coverage you need for your family’s future. We offer customized policies for residents in the Fisherville, KY area. Call us to talk about your life insurance options.

Home Businesses (Retail)

Home -Based Retail Operations

A variety of businesses are routinely operated in homes. This article discusses aspects of particular operations. Refer to Home Businesses – Basics for background information on coverage as well as our other articles discussing different in-home businesses.

Retail – Persons with in-home retail operations must look beyond an HO policy for coverage.

Running a home-based business isn't right for everyone.  But if your one of those  suited to such endeavors you should review your homeowners insurance policy for gaps in coverage.
Home-Based Retail Business owner prepare packages

The Businessowners Policy (BOP) provides broad coverages for buildings, personal property, loss of business income and extra expenses incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy, normally as an additional location.

You will need workers compensation coverage for any employee, even part-timers. You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

Note: some insurance companies can offer amendments to your homeowners policy that can cover certain, in-home businesses.


COPYRIGHT: Insurance Publishing Plus, Inc. 2016

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

All- Around Safer Driving

Driving can be safer.  Traffic Roundabouts are safer all-around.  Fewer accidents means fewer auto insurance claims and that means saving on car insurance.
Traffic Roundabouts are Safer All-Around

When’s the last time you consider the impact of a street or highway intersection? For us, it was on our first trip to Savannah, Georgia.

Intersections should be designed with driver and passenger safety in mind. However, In the US, roughly 2.5 million auto accidents occur in intersections each year. That’s 10% of the 250 million vehicles in the US.

Solving the intersection dilemma in a roundabout way

The Dilemma: Intersection or Roundabout.  Ask your TruePoint agent how you can save on car insurance.
The Dilemma: Intersection or Roundabout

For decades Americans have had a fancy for cars imported from Europe. US consumers have found numerous reasons to support their purchase of imported autos. Arguments included performance, economy, style, and a plethora of other advantages. But the most frequent and compelling has been safety.

In recent decades America has been importing another vehicle for auto safety. This time, it’s not automobiles, and it is considerably less popular with American drivers. Roundabouts, an alternative to intersections, have long been popular in Europe. Also known as traffic circles, rotaries, or road circles, they replace intersections.

Turning Left is Dangerous to Your Health
Turning Left is Dangerous to Your Health

Roundabouts have been slow to catch on in America. Why? I’ve seen some reasons, none of which make sense. What does makes sense are traffic circles:

  • Speed                           Slower speeds reduce damage and fatalities
  • Eliminates Left Turn   Why does UPS give drivers routes designed to avoid turning left? Because it reduces accidents and delays.
  • Energy Efficient          Braking to a full stop waste fuel. Starting from a dead stop is even more inefficient.
  • Trigonometry              Eliminates many of the more dangerous angles in which a car can be struck.
  • Safety                          Most important, roundabouts lead to improved safety.

The Institute for Highway Safety reports that roundabouts reduce crashes involving injury by 75%. Even more amazing the study reports collisions with fatalities are reduced by 90%.

Coming full circle on street and highway intersections

Saving Lives and Lower the Cost of  Insurance.  Do you want to reduce the cost of auto insurance?  Think Round!
Saving Lives and Lower the Cost of Insurance

Why isn’t your insurance agent talking about roundabouts?

There may be a good reason, but I can’t think of a single one at the moment.

Insurance agents sell products that indemnify the insured in the event of a loss. Good insurance agents work with prospects and customers to help identify risk. They then provide input and access to effective solutions.

By raising awareness of the safety benefits of traffic roundabouts, we at TruePoint Insurance believe that we are doing our part to reduce risk. We’re arming our clients and prospects with the data that supports traffic circle safety.

Compared to the intersections commonly used in America, Roundabouts significantly reduce risk. The 37% reduction in overall collisions may pale in comparison to the 75% reduction in injury collisions. And while both fall short of a 90% reduction in fatality collisions, this is still jaw-dropping data.

The agents of TruePoint Insurance encourage each of you to take a stand. Raising awareness is the path to safer streets and roads. Saving lives by performing an action that will save money on insurance.

Roundabouts significantly reduce risk when compared to the intersections used today. The 37% reduction in overall collisions may pale in comparison to the 75% reduction in injury collisions. And while both fall short of a 90% reduction in fatality collisions, this is still jaw-dropping data.

The agents of TruePoint Insurance encourage each of you to take a stand. Raising awareness is the path to safer streets and roads. Saving lives by performing an action that will save money on insurance.     

TruePoint Insurance, Insuring Georgia
Trust TruePoint with all your insurance needs

Home Businesses (Landlords)

A variety of businesses are routinely operated in homes. This article discusses aspects of particular operations. Refer to Home Businesses – Basics for background information on coverage as well as our other articles discussing different in-home businesses.

A century ago, landlords ruled.  The collected rent from tenants while provided conditions that would not be considered proper habitation today.
Today’s Landlords are held responsible for their actions

Landlord

The homeowners policy is designed to cover landlord-occupied residential buildings, landlord-owned personal property, and loss of rents (after a fire or other covered cause of loss), premises liability and medical payments. Note that the maximum occupancy that may be covered under an HO policy is a four-family dwelling. A dwelling policy may be used for 1-4 family structures that are not also occupied by the landlord.

For landlords with residential property containing from five to sixty units, a Businessowners policy (BOP) is usually appropriate. It insures buildings, landlord personal property, loss of rents (after a fire or other covered cause of loss), premises liability and medical payments.

Most Bed and Breakfasts do not qualify for coverage either in the homeowners or dwelling insurance program. Bed and Breakfasts will require a combination of tenants coverage for the resident owner/manager, and a BOP to cover buildings, landlord owned personal property in boarders’ rooms, loss of business income (rents and fees) and the extra expense to operate (after a fire or other covered cause of loss), premises liability and medical payments.

Modern landlords are subject to many legal requirements.  A large part of today's law revolves around renters and  landlord insurance.
Contracts often drive rental insurance policies

For landlords who have office or retail tenants, the BOP provides broad coverages for buildings, landlord personal property, loss of rents (after a fire or other covered cause of loss), premises liability and medical payments.

Worker compensation is necessary for any employee. Talk with your agent. Most states require workers compensation for resident managers even if you provide only free lodging as payment. Make sure you have certificates of insurance for any subcontractors (painters, plumbers, etc.) you hire to do work for you. If the subcontractor has no insurance, you may be responsible for the subcontractor’s work-related injuries.


COPYRIGHT: Insurance Publishing Plus, Inc. 2016

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Home Business Basics

Homeowner (HO) policies aren’t meant to insure businesses that are run out of a home. Premiums paid for homeowner’s coverage are for handling losses related to the ownership and use of a residence and related structures. Therefore no liability coverage is available for business activities such as customers who slip and fall on your premises, damage to business property (owned or in your control), injury caused by things you make (product liability), or damage due to services that you promote or provide. It is also unlikely that an insurer would provide a legal defense against business-related claims.

Generally, an HO policy does not provide workers compensation coverage for any employee. Medical expense and liability coverage may be available for workers who are ineligible for worker’s compensation, such as maids, butlers, or nannies, but such coverage only applies if an injury occurs while performing residential tasks.

Example: You send your nanny to deliver copies of your business proposal and, on the way to the client, she is seriously injured in a fall. Your policy won’t provide any medical expense coverage for your nanny because she was performing a business-related chore.

There is no coverage for detached garages, barns, or similar structures on your residence premises if they are used in whole or part for the business.

Example: You store $3,000 worth of equipment and supplies that you use in your job in your garage and the garage burns down. The fire loss to the garage becomes ineligible because of its partial business use.

A basic HO policy may protect certain property. However, the coverage may be limited to as little as a few hundred dollars. Items qualifying for limited coverage include business personal property kept in or around your home, business personal property kept at a location other than in or around your home or landlord’s furnishings. One way to improve your coverage is to add policy options that do the following:

  • increase the coverage limits for business personal property
  • cover garages and other buildings that are rented to others
  • protect electronic business equipment which is usually used in a vehicle while such equipment is located outside of a vehicle
  • provide theft coverage for the landlord’s property
  • acquire limited business personal property and liability coverage for an in-home daycare
  • cover a condo unit owners’ liability for damage caused by renters
  • provide premises liability coverage (i.e. a customer slips and falls)

A variety of businesses are routinely operated in homes. This article discusses aspects of particular operations. Refer to part one for background information on coverage basics as well as our other parts discussing different businesses.

Sales Office

Usually, an HO policy does not offer much protection for business property. In fact, available coverage may be up to only $2,500 for personal property used for business and kept on the residence premises. Further, no coverage applies to a business property such as inventory, product samples, or items being held for delivery. Finally, even optional coverage excludes property related to a business conducted on the premises. For example, you are a cosmetic sales rep who also holds make-up parties in your home. For customer convenience, you keep an inventory of cosmetics at home. The HO policy will not cover this property.

If you are a salesperson operating out of your home and have limited inventory, some companies will cover you with a Businessowners Policy (BOP). A BOP provides broad coverages for buildings, personal property, loss of business income and extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods off-premises in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy.

If you cannot qualify for a BOP and a home business endorsement or separate policy fails to meet your needs, your agent will probably have to build a special commercial package policy to handle your business. Commercial lines agents have both the expertise to design the appropriate coverage and access to the markets that offer policies for your sales business.

In part one of this article, we discussed what coverage issues must be considered when running a sales office out of a home. Besides the protection previously mentioned, you will need workers compensation coverage for any employees, even part-timers, and, if you deliver anything or if your vehicle is larger than a car, van or small pickup, you may need commercial automobile insurance. Another reason for buying a commercial auto policy is if any auto is corporately owned.

Professional Offices

Regarding doctors, attorneys, architects or similar occupations, whether your home office is your only office or simply a satellite office, you will need to work with an insurance agent who is familiar with the coverages that are appropriate for professionals.

BOPs are suitable for most professional offices and can cover buildings, personal property, loss of business income, extra expenses incurred to operate the business (after a fire or other covered cause of loss), premises liability and medical payments.

Consult with your agent or your professional association(s) for professional liability and errors and omissions coverage.


COPYRIGHT: Insurance Publishing Plus, Inc. 2016

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

3 Tips to Stay Safe on the Water

Boating season can bring out the best in Kentucky residents, especially those residing around Fisherville, KY. At TruePoint Insurance, we understand the water life and enjoy it with our clients. While we all enjoy days and afternoons out on the water, we also want you to remember three tips to stay safe while out on the water. 

Keep Your Life Jacket On

It is not uncommon to travel the Kentucky waters and catch boaters riding without their life jackets. In the event of an accident, the riders could potentially be thrown from the boat. With a life jacket, they will surface to the water and be able to breathe while getting to safety. 

Keep the Crowding Minimal

Each boat comes with a weight limit and a capacity amount based upon its size. A common issue that happens with boaters in Kentucky is overloading the boat with either people, supplies, or both, causing it to flip from the stress it is under. If you are planning to use your boat for fishing and hauling equipment, make sure sure that you do not carry too many people out with you. 

Leave the Alcohol Onshore

While you are operating your boat, you should not be drinking. The pressure and influence to drink while operating the boat are limited if it never comes onto the boat with your passengers. Leave the alcohol onshore and stock your boat instead with fresh bottled water and sports drinks to keep everyone hydrated while enjoying the water. 

Top it Off with Boat Insurance

One of the best ways to secure your boat, however, is to have boat insurance should you find yourself in an accident while out on the water. If you live in the vicinity of Fisherville, KY, call our agents at TruePoint Insurance for more information on our policy offerings. 

 

Exchange Students – Automobile Coverage

This article briefly discusses how a personal auto policy responds to exchange students. Please be sure to read its companion article, “Exchange Students – Homeowners Coverage.”

First, make sure that the exchange student is permitted to drive under the rules of the exchange student program. If program rules allow driving, contact your motor vehicle department to make sure that your student has a valid driver’s license.

Will the exchange student drive your car?

The typical auto policy extends its coverage to any person having your permission to drive a covered vehicle. Your liability coverage will protect the exchange student against damage or injury that he or she causes to others. Coverage to the damage done to your vehicle is also available when you have the appropriate physical damage insurance. Of course, the coverage is subject to your policy’s insurance limits, deductibles, and other provisions.

Medical payments coverage will apply to the exchange student who is injured in an accident while occupying or driving your car with your permission. If you expressly forbid the exchange student to drive your vehicle and the student disregards your wishes, you may not have insurance coverage if an accident occurs. Any questions regarding an exchange student’s vehicle use need to be carefully considered; especially since you will want to avoid having to deal with uncovered auto losses.

Be very careful regarding any minor-aged exchange student who is considering buying a car, truck, motorcycle, RV, boat, moped, scooter or any other vehicle. An exchange student’s temporary residence status makes it very difficult to get proper coverage. Student vehicle owners who cause an accident could experience some complex legal problems. If faced with an exchange student who owns a vehicle, it is important to get any available assistance from the exchange student program, including their legal counsel. You should seek your own qualified legal help to make sure that your interests are protected. The safest course would be to avoid an exchange student situation that includes an owned vehicle.

Please check with a qualified insurance professional to thoroughly discuss your coverage needs.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Georgia Auto Liability Limits

Georgia Minimum Car Insurance Limits   

Closing insurance gaps
How much car insurance?

If you own a car in Georgia, the state requires that you meet certain financial standards. For most of us, that means that our vehicles be covered by an auto liability insurance policy.  Furthermore, the auto liability insurance limits must meet State mandated requirements.  

For most of us, the first thought when our car is involved in an accident is getting it back on the road.  How will we replace or repair our own vehicle?  For that, you need to have a collision and/or comprehensive insurance coverage. While this coverage is important, it is not the insurance coverage mandated by the State.

Georgia Auto Liability Insurance 

If you are involved in an accident and found to be at fault, you can legally be held financially responsible. This is why you buy personal auto insurance!   The Georgia minimum insurance requirements are aimed at protecting other drivers and passengers using the States roads and highways..Your auto liability policy protects other drivers. Specifically, it provides coverage for bodily injury and/or property damage that results from your actions.

As mentioned, you may be held responsible for the full cost of damages, With a personal auto liability insurance policy in place, your insurance company, subject to the specifics of the policy, will be on the hook.  However, their requirement ends once the policy limits have been paid.

What does that mean?

It means that the prudent thing is to develop a better understanding of what will happen if the cost of damages exceeds our auto liability policy limits.   As a mere insurance agent, I am not qualified to directly answer that.  But, commonsense would suggest that at a minimum, inadequately insured auto owners are leaving Pandora’s Box wide open. 

The Georgia minimum auto liability insurance requirements are:

• Georgia motor vehicle liability coverage minimum for bodily injury:

     o $25,000 for bodily injury liability coverage per person

     o $50,000 for bodily injury liability coverage per accident

•Georgia motor vehicle liability coverage minimum for property damages:

     o Georgia auto owners are at least $25,000 for claims made against       them as result of damaging the property of others

Georgia’s Car Insurance state-mandated minimums are most commonly stated as:

25/50/25

…or…

$25,000 (BI) per person / $50,000 BI per accident / $25,000 (PD)

Cheap is used to refer to things of value or good deals.  It is also used to refer to a rip-off or a bad deal.  Deciding which is the true Challenge.
Does cheap refer to a Good Deal or a Bad Deal?

Before asking an insurance agent for the “Cheapest Car Insurance, you got,” consider the following:

• Cheap car insurance more than likely means you are getting the state-mandated minimums.

• How far will those dollars go if you are the cause of a severe auto accident?

• Settlement cost seldom equal medical costs. Why? For one, pain and suffering. If you want an estimate for total settlement cost, a good rule of thumb is to multiple medical bills by 3. If your negligence was the cause of a car crash and the other party sustained $10,000 in medical expenses you are looking at $30,000 to settle the claim. $5,000 higher than the state minimum!

• How far will $10,000 go in an emergency room today?

• How far will the $50,000 per accident limit go if you hit a car with multiple passengers? What if you are the cause of a multiple car collision or if the other vehicle isn’t a car but rather a bus?

Cheap car insurance can cost you in more ways than you realize. Ever wonder how insurance companies come up with an auto insurance premium for you and your car?

Your premium is the result of a number of factors. Every car insurance companies have their own unique formula. Each aimed at helping them attract clients and make a buck too. What you may find surprising is that many companies will penalize you if your current insurance limits are the state minimums. Never buy the state-mandated minimum without first considering the cost of better coverage. It’s likely to be less than you think and it will save you in the long run.

In the end, cheap auto insurance may wind up costing you more than you bargained for. Even if you never have an accident! Consider your options, prepare for the worst and be sure that you find an insurance agent the is willing to spend the time to help you through the process.

TruePoint Insurance, Insuring Georgia
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