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Why isn't the cost of liability insurance proportional to the amounts of protection for instance why doesn't a 100000 limit of liability cost two and one-half times as much as a 40000 limit?
Wiki User
∙ 14y ago
The cost of liability insurance is not proportional to the amount of protection of insurance because it is based on cost of overhead and payout. The office costs for one policy are the same as for another policy regardless of amount. The other reason has to do with payout. An accident occurred. A driver ran a stop sign and hit another car. The driver that ran the stop sign was At Fault. He did $ 5,000 worth of damage to the other car. His insurance covered it. It did not matter if he had $ 10,000 worth of insurance or $ 100,000 worth of insurance. The insurance company still paid $ 5,000. Since most accidents are in that range, most of the costs go to cover that type of accident. Very few accidents occur that would cost $90,000 to fix. The cost of insurance that is against rare events is quite low.
Wiki User
∙ 14y ago
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What exactly is an insurance company?
An insurance company offers insurance or protection to the public. For instance, if you want to protect your home from theft, fire and other types of damage you would purchase insurance.
If you only have liability insurance and someone hits your car and leaves should your insurance cover the damages done to your car?
No. Physical Damage coverage to your own vehicle would be covered in this instance if you purchased the coverage, but liability only would not repair the damages.
Is my restaurant covered under my landlord's insurance if it burns down?
The structure is covered but the contents of the restaurant are not. For instance, your ovens, sinks, dishes fixtures, tables,etc would not be covered. You must have liability insurance for the CONTENTS of the restaurant. I don't know everything about insurance, but I do know that liability insurance won't replace your furnishings. You will need the commercial equivalent of the comprehensive part of Homeowners Insurance.
Actually what means cross liability?
Cross liability, sometimes referred to as "Joint Liability"is an instance where more than one person or entity is considered liable for a loss or injury.
How much is the insurance on a 1991 Mustang?
If an individual is wanting insurance on a 1991 Ford Mustang, he or she must be aware that the cost of insurance is variable. For instance, the cost of the insurance will be determined on the driver's age, the driver's record, and other factors. Some drivers will qualify for insurance which is significantly less than others. Additionally, a person must decide if they want the 1991 Mustang to be fully coverd or only covered by liability. Full coverage will cost more.
What is the average cost of liabilty insurance?
Business Liability Insurance costs vary from State to State. Your costs will depend on what type of business your in and the size of your business and a number of other factors. Contact a local independent insurance agent for a quote. If in NJ contact William J Zester, VP - MPPI, Inc. bzester@mppi.com
Is data protection national law?
Yes, for instance the Data protection act in the US. It was put into force in 1998
Will your homeowners insurance cover damage to your neighbors property caused by fire damage?
Generally no. The only time that your homeowners policy will cover property of anyone else is if you are legally liable for the damages. For instance if you started a fire on purpose for some reasonable need that got away from you and they neighbor demanded payment. In this case you turn it over to your insurance company which will decide how to proceed. You liability section provides coverage for damages and they will provide legal defense in addition to the liability coverage if necessary. I will caution you that liaiblity claims will make you typhoid Mary to insurance companies and you will not have luck getting or keeping homeowners insurance.
I keep hearing commercials for Identity Theft protection, what does this insurance actually pay for - for instance the bills a thief runs up in your name?
They can cover some of your expenses occured if they fail to protect you. It is usually up to a certain amount though.
Why are there so many different insurance agents?
There are a number of various insurance agents because there is a number of various kinds of insurance. For instance, there are insurance agents for life insurance while there are also insurance agents for automobile insurance.
Do you need liability insurance for a vacant lot you own?
It is not required by law, but yes, I would recommend it. Say for instance there are some dead trees on the lot that you probably should have maintained, and these trees fall onto a neighbor's property or a person. You may be held legally liable for these damages. You can contact your agent to add an endorsement onto your main homeowner's policy to cover liability for another premises.
Can WV impound an out of state car for no insurance?
When you have no insurance on your vehicle, you void your registration - insurance is required by law. Yes, they can impound a car from out-of-state in that instance.
