Auto insurance 101
Quote:
ben, lj said:
i'm not sure i yet understand the difference and benefit of a single limit liability policy. could someone please elaborate?
As an example, Connecticut requires all cars to be insured with a 20/40/5 minimum. There are variations but other states are similar. What this means is that you must carry minimum insurance of US$20K per person, $40K for all people in one incident and $5K for property damage. Note that we are only talking about your liability for negligent damage of other's property.
Many policies still follow this practice. Even if someone doesn't purchase the minimum insurance, the policies are often 200/400/50 -- i.e. some multiple.
So the problem is that even if someone doesn't just carry the minimum and even if they do carry enough to cover personal injury to others (the most likely source of large claims), this will still not come close to paying for a modern exotic.
Obviously, as the insured you do not care the source of the liability (speaking finanacially here, morally of course you do). All you want to do is to protect your assets from confiscation. Therefore, there is no sense in this sort of split limit.
Many insurance companies have responded by offering single-limit policies --- for example, $500K per incident no matter the sourse of the liability.
So when shopping for insurance look for this sort of policy. Of course, it will cost a little more but the difference is not that great.
The one exception will be when you will also purchase an umbrella policy to go with your other insurance plicies (including auto). In that case the umbrella policy is usually written to match the limits of the auto so the split limits are not an issue. A common umbrella policy will give you $1M additional coverage. This policy will then then require you to purchase auto insurance in some specific amount and that amount will be the deductable on the umbrella policy.
Stephen
I guess there are some serious teething problems with this new carbon technology, just as there were/are for the PCCB brakes on the GT2 and TT. Unfortunately, I'm sure there is no option to retrofit a conventional system like there is with the brakes. I hope there will be a software mod to the e-gas (as Mike suggested) to make things more user-friendly in the future...
