What About Your Income?
So you’re in a car accident, that’s bad. You were injured, that’s worse. Now you can’t work, that’s the worst. So what about your income?
When buying car insurance, people are focused on the monthly payments and the deductibles, that they rarely take note of what is covered and what is not. Many policies will cover a percentage of your net income should you be incapacitated due to an auto accident. That’s great, right?
Well, before you get too excited, keep in mind that there is a cap that varies from policy to policy. What that means is that if you make an above average income, you will only be covered up to a certain amount per week, and you would end up losing more per week than a person with average income. Let’s face it, when you are already unable to work, finding out that you don’t have enough to live is not going to help you or your family.
Though we all hate doing math, this is one of those times that it’s important. Look at your policy and see what percentage of net income the insurance will pay you, next calculate that percentage of your net income. (Remember it’s the net income, and not the gross). Then you will want to look at what the highest amount that your insurance is willing to pay. If your percentage is on or less than that amount, you are well covered, however, if your percentage is more, you might want to think about supplemental insurance.
This is why reading your policy carefully is important. There are usually ways to get more coverage, whether it’s by changing your existing policy or by getting a supplemental insurance plan that will help cover the difference. Supplemental insurance is often not as expensive to get as it will only help cover the difference in what your current insurance offers. Talking to your agent can help make shopping around for this type of insurance much easier as multiple policies with the same company can lead to added discounts.
People seem to care only about coverage after they need it, and this is where it can get them into lots of trouble. It is never to late to go over what your insurance will cover; you can easily see your agent to make changes. Knowing what you will get before you need it can make all the difference in the world.
Insurance Specialists is here to help you and your loved ones when it matters most!
Call us today at 702-307-3398
5025 S Eastern Ave #20, Las Vegas, NV 89119