By «better,» I mean actually adding up all of your financial obligations, comparing that to your assets, and then figuring out
the actual amount of coverage you need.
Not exact matches
When purchasing burial insurance, one
of the most important factors is coming up with the
amount of actual coverage that you will
need so that your loved ones and survivors will have enough to pay all the expenses.
You will
need to choose either «
Actual Cash Value»
coverage, which replaces damaged or stolen goods while taking depreciation into consideration, or «Replacement Cost»
coverage, which will reimburse you the
amount of replacement for stolen items at the current cost.
If your neighbor caused the loss, for example by starting a fire, his liability
coverage is likely to pay you only the
actual cash value
of your property — not the
amount you
need to replace the property.
For example, with fire insurance, the
amount you will pay depends upon whether you are buying «
actual cash value» (market value
of the home minus depreciation) or «replacement cost»
coverage, which will cover complete rebuilding if
needed.
Collision
coverage is limited to the
actual cash value
of the vehicle, and requires a deductible, which is the
amount you'll
need to pay before receiving benefits.
When deciding on the
amount of coverage you
need, be sure that you're only including the
actual value
of your home.
Still, experts at the Insurance Information Institute insist that the minimum
amount of insurance really
needed for
coverage to pay the
actual costs
of an auto accident is $ 100,000 in Personal Injury Protection (also known as PIP) and $ 300,000 in per - accident protection.
Your
actual quotes will differ based on factors such as the
amount of liability
coverage you
need, driving history and profile.