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| Angelika/Mike Schilli |
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Angelika We have just switched our car and household insurance, and since this topic is of interest to many expatriates, I have compiled the most important facts. Changing insurance is always quite annoying, but Michael had been insisting for years that our insurance was ripping us off, because even though we never reported a claim or received a fine, the premiums kept cheerfully increasing every year.
Guess who called the various insurance companies and requested quotes? That's right, I was on the phone until my fingers were sore. When dealing with such offers, you have to be careful not to compare apples to oranges. A car insurance policy is made up of standard components that can be purchased individually. By the way, they are quite similar to those offered by car rental companies for additional protection, as Michael has already described. Rundbrief 02/2002 First, there is the so-called "Collision" (full coverage). It covers damage to your own car caused by traffic accidents, regardless of fault. Another package, the "Comprehensive" (partial coverage), includes theft, as well as damage from fire and storm. Typically, both have a deductible. Since our car, the Perlman, is quite old and unfortunately not worth much on paper anymore, we don't need either "Collision" or "Comprehensive." However, you absolutely need liability insurance ("Liability"). It is divided into bodily injury and property damage. Except for a few quirky American states, almost all require auto liability insurance by law. However, the mandated coverage amounts are extremely low: In California, for example, $15,000 per injured person, $30,000 for all personal injuries per accident, and $5,000 for property damage. An absolute joke.
When registering a car in California, the car owner must provide proof of liability insurance. And every year, when the vehicle taxes are due, one must again present or mail in a certificate. Recently, insurance companies often report the status of the contract electronically to the Department of Motor Vehicles. Since October 2006, it has also been the case that the registration will be revoked if the liability insurance is no longer in place for any reason. Other states are significantly more lenient in this regard.
Anyone who is smart naturally buys liability insurance with higher coverage amounts; $500,000 is appropriate. Additionally, I have now realized that everyone in this crazy country should also purchase another package: the "Uninsured and Underinsured Motorist Coverage." This insurance kicks in when the other driver who caused the accident has no liability insurance, commits a hit-and-run, or is underinsured. This happens frequently due to the low minimum coverage amounts.
In the end, you essentially buy insurance for the other, irresponsible driver so that you can cover damages like long-term disability even if they cannot pay. In California, it's important to consider that many illegal immigrants often drive without a license and are usually uninsured. There always seems to be a way to circumvent legal requirements. Most people recommend having the same coverage amount for "Uninsured Motorist" insurance as for regular liability insurance, which is $500,000. You can also purchase something like auto medical insurance ("Medical Payments"), which covers all medical expenses in the event of a car accident for yourself and the passengers, regardless of who is at fault. This is especially useful if, like many Americans, you live without health insurance. The American household insurance is called "Homeowners" or "Renters Insurance," depending on whether you are a homeowner or a renter. At first glance, it looks similar to the German one. The household contents are replaced in the event of burglary, theft, fire, or water damage after a deductible. Earthquakes are excluded from household insurance in California, as it would be too risky for insurance companies! There are separate earthquake insurances for that.
It is interesting to note that in household insurance, liability coverage is included. If a visitor breaks a bone in an apartment because they trip over something, the household insurance pays for it. This is due to the peculiar fact that America does not have standalone personal liability insurance. In Germany, these are quite affordable and come with high coverage amounts.
The equivalent of personal liability insurance with a high coverage amount can only be obtained in America through a trick: In addition to home and auto insurance, one takes out a so-called "Personal Liability Umbrella Insurance.
Umbrella" (Schirm) is the name of the insurance because it provides the individual with a certain all-around protection and is spread over the other insurances like an umbrella. If a catastrophic event occurs and, for example, the car insurance reaches its liability coverage limit, the "umbrella" insurance steps in.
However, you will only get the umbrella if you have both car insurance and home insurance. However, I have no idea what someone does if they don't own a car. Additionally, the insurance companies usually require certain minimum liability limits for car and home insurance before they sell an "umbrella" insurance policy.
A translation of the text to English is:
"An example: If you take out household liability insurance for $300,000 and auto liability insurance for $500,000, you can purchase an 'umbrella' policy of 1 million dollars or more. We urgently need the umbrella policy, after all, Michael rides his bike like a madman every day and was known for his daring maneuvers even as a child.
The translation of "Wir leben gefährlich" to English is "We live dangerously.
The translation of "Michael und Angelika" to English is "Michael and Angelika.
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