How To Insure Yourself For Summer Activities

Summer is a time for friends and family to get together, but with greater activity and travel comes an increased chance of accident and injury. If you do not have enough insurance coverage, several of these situations might cost you thousands of dollars.

Here's how to ensure you're adequately prepared for some frequent summer eventualities so you can enjoy these much-anticipated sunny months.

Journeys By Car

Traveling by automobile with friends might be a cost-effective option. However, before you drive, you should double-check your vehicle insurance.

"The chance of an accident increases significantly when traveling somewhere unknown," says Ted Olsen, vice president of Goosehead Insurance.

If you cause an accident on your vacation, your state's minimal required motor insurance may not give enough coverage. You will be liable for any crash-related charges, such as medical bills and repairs.

Olsen advises purchasing greater liability automobile insurance than is necessary by law. He claims that the additional coverage is inexpensive and can help shield you from the consequences of a personal injury lawsuit.

According to Karen Collins, associate vice president of personal lines at the American Property Casualty Insurance Association, you may also require comprehensive and collision coverage. This coverage is optional, but if your automobile is damaged, you may have to pay for repairs out of cash. Liability insurance only covers harm to people and the property that you cause.

Renting A Vehicle

When renting a car, keep in mind that your current auto coverage may have an impact on your rental car insurance.

Your motor insurance usually covers a rented automobile, but only for similar coverage, according to Olsen. If you don't have collision coverage on your personal vehicle, you may be responsible for the cost of repairs if you smash that brand-new rental automobile.

If you don't want to add collision and comprehensive coverage to your current motor policy, you can buy a loss-damage waiver at the rental car facility. This waiver eliminates the need for you to pay for damages if your rental automobile is damaged or stolen.

Your credit card may also give rental car coverage, and you may also purchase a separate rental car policy.

Check your existing auto insurance coverage and the perks of your credit card before renting a car. If your existing vehicle policy has minimal limits or is liability-only, consider purchasing extra coverage.

Swimming Party

Pools may be hazardous, particularly for small children. If someone drowns or is wounded on your property, you may be held personally accountable if your home's insurance does not provide adequate liability coverage.

For the average house, Olsen advises at least $500,000 in home liability insurance, and Mark Sherman, a Country Financial insurance representative in Missouri, believes pool owners may require more.

Pool owners should have at least $1 million in liability insurance, according to Sherman. He claims that it doesn't add much to the cost and that in the case of an accident lawsuit, "that extra few dollars a month might be the difference between taking care of a terrible problem or losing all that you've earned for your whole life."

Dirt Bikes And Atvs

Small motorized vehicles, such as ATVs or dirt bikes, may be excluded from your car, homes, or renters insurance policies. Any coverage that does extend to these cars will almost certainly terminate at your property boundary.

"There are many low-cost 'toys' that individuals choose not to insure since it is not required by law." "It's a significant danger," Olsen adds. "There are several lawsuits and injuries associated with ATVs."

He recommends purchasing separate coverage for your tiny powered vehicles.

Boating

Small boats, such as kayaks and canoes, may be covered by homeowners insurance to a limited extent, however, motorized boats with more than 25 horsepower are normally not insured.

Olsen advises purchasing a separate yacht insurance coverage. "Make sure it's insured at least for liability," he advises, "even if it's not required by law." "As with vehicle insurance, there are optional coverages." Some folks may insure a boat for liability and then add comprehensive and accident coverage when they use it in the summer."

Consider Purchasing An Umbrella Coverage.

According to Olsen, standard insurance policies often provide no more than $500,000 in liability coverage, whether for your home, vehicle, boat, ATV, or anything else. "That's normally the most you can obtain, but many individuals require more."

If you require additional liability coverage, Olsen and Collins both advocate umbrella insurance, which will kick in if you are sued for damages that exceed the limits of your ordinary insurance policy. According to Olsen, a $1 million umbrella policy normally costs around $300 per year, and Collins agrees that it might be a wise investment.

"If there's a possibility of a lawsuit," Collins adds, "that umbrella insurance is likely going to bring tremendous value."