There was a time when a simple apology for dinging someone else’s car in the tail end would suffice, along with adequate compensation to repair the damage to the other car.

Unfortunately, this is no longer the norm.

The question is, how much do I really need to buy?

The question is, how much do I really need to buy?

If your assets are limited and you are a renter, you probably don’t need more than $300,000 protection.  But if you own a house, have a generous income, and have accumulated sizeable assets, you are a big target for lawsuits.  If you fall in to the latter category, you should consider a minimum of $1,000,000 liability or more.

Here are some frequent questions we hear from our friends and clients:

Q:  If my car is in an accident and I’m not the driver, I cannot be sued, right?
A:  In New York State, yes you can. The owner of the car is 100% liable for all operations of the auto.

Q:  I know I can be sued, but not for more than my basic insurance.
A:  Wrong.  You can be sued for far more than your insurance limit, depending upon the severity of the accident and the limitations of the law.

Q:  My car was stolen and the bum got into a terrible accident. Am I still liable for damages and injuries?
A:  No.  If the car was stolen, not borrowed, the owner of the auto is not liable for subsequent damages.

Q:  I bought an “Umbrella Policy”.  Now I am covered for anything that happens to me, anywhere, anytime, any reason.
A: False.  Umbrella coverage, also known as Excess Liability protection, will provide you with an extra layer of lawsuit protection above your auto and home insurance liability protection, but it does not give other coverage.  Typical exclusions include criminal acts, business pursuits, and some non-profit activities.

Bottom Line:  Every one needs proper lawsuit protection, from the newly minted college grad to the well heeled corporate exec.  Check with us and we will guide you towards the level of insurance that you need, and then you can rest your head on that fluffy pillow at night knowing you did the right thing.

Are you overpaying for insurance?

A recent survey by insurer ACE Private Risk Services suggests that most of us shell out more than we need to for the auto, homeowner’s and other policies we buy—and might actually get better coverage for less if we purchased more wisely.

Here are a few tips to try.

1 Shop Around

But most people still prefer to buy from a local professional who knows them.

“Gather as much knowledge as you can,” advises Bill McCarthy, president of 71-year-old McCarthy Insurance in Hawthorne.

2 Bundle Your Coverage

More and more insurance companies are offering discounts if you buy home, auto and “umbrella” (supplemental liability) policies from the same carrier, says McCarthy. And if you own a condo, check what carrier your condo association uses—buying from that company may help you save.

3 Pay in Full

Insurance companies want to save on the costs of mailing out monthly invoices

4 Choose a Higher Deduction

The deductible, of course, is the amount you must pay on a claim before coverage kicks in. And you can save big-time on premiums if you’re willing to pay for small losses yourself and use your insurance as protection against a major catastrophe.

For example, homeowner’s insurance typically features a $250 deductible, but you may save up to 24% if you choose a policy that starts at $1,000 instead. “There’s a book called Don’t Sweat the Small Stuff,” says McCarthy. “Now, I wouldn’t call fixing a $500 ding on your car ‘small stuff.’ But people often worry too much about their cars, even older ones, and too little about liability. Remember: Our area is one of the most litigious parts of the country.”

5 Look Into Special Auto Discounts

You may save on your auto insurance if you’re retired (insurers figure you’ll drive less), if you’ve passed a defensive-driving test, if your car has safety features such as antilock brakes or an alarm system, or if your licensed-driver son or daughter has good grades or moves 100 miles or more away to college (companies figure they’ll drive less).

Be sure to ask about other discounts.

6 Review Homeowner’s Coverage Annually

Without realizing it, you may have made changes during the past year that qualify you for lower premiums. Did you install a backup generator? Put in a leak-detection system? Begin to store jewelry in a safe with an alarm? All these things may qualify for credits or reduced rates.

7 Keep a High Credit Rating

The culprit? Different credit scores!

“If two people in the same zip code with the same kind of car and the same driving record apply for auto insurance from the same company, their rates could be $200 to $300 apart,” says McCarthy. “The culprit? Different credit scores!”

If you know your credit rating has been excellent lately, he says, it’s a good time to check with your carrier to see if that rating entitles you to lower premiums.