Let’s shift gears a bit in our discussion about Risk Management and talk about Auto insurance.
Many of us own or lease cars and auto insurance is a requirement by law and I would focus more on protecting yourself in case of bad accident.
Let’s look at auto insurance closely to make sure we understand what kind of coverage is appropriate.
Auto insurance just like the homeowner’s or renters is designed to provide protection to you in case of an accident.
There are two parts to liability coverage:
The limits are the maximum amount the policy will pay out; anything above that would come out of your pocket unless you have other insurance, such as umbrella.