Your PAP is designed on the principle of “one size fits all.” It consists of a collection of preprinted pages and is practically identical to the PAPs purchased by millions of Americans every year. That may be fine for the average car owner in most situations.
In your case, however, standard terms and conditions may not be sufficient because you face unusual risks or have special needs. Although an additional premium may be required, your insurance company will frequently allow you to broaden your coverage or delete certain exclusions by adding an endorsement to your PAP. Some examples of when an endorsement may be needed are:
- If you wish to add a co-owner as an additional insured who is either: (a) a relative who doesn’t live with you, or (b) a nonrelative who lives with you
- If you wish to obtain coverage for a recreational vehicle like a motorcycle, snowmobile, or golf cart
- If you wish to obtain coverage for towing and labor costs when your auto is disabled
- If you wish to insure your business use of an auto
- If you wish to protect yourself against drivers who do not carry enough insurance to insure your personal property for its full replacement cost
- If you wish to increase the coverage on particular items of personal property, as described on a schedule added to your policy
- If you own a condominium unit and wish to obtain more than $1,000 of coverage for special assessments required by the condominium association to pay for condominium losses
Deductibles
The Declarations Page of the policy will specify a deductible amount, meaning a set amount you will have to pay for each claim or accident before the insurance company kicks in any money. The premium amount is determined, in part, by the amount of deductible you select. The lower the deductible, the greater the corresponding premium amount.
That is just an overview of your PAP. As we continue this series, we will focus on the different parts of your coverage. In the meantime, if you have questions, contact the Experts at Henssler Financial: experts@henssler.com or 770-429-9166.
Disclosures
The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
