Autos and Vehicles
From an asset protection standpoint, your autos and vehicles are an acute source of liability. Probably the most dangerous thing that you do is drive your car. Your CPA might advise you to purchase a vehicle for your business, however they would be coming from an accounting perspective and looking at the tax advantages. Sure, buy a vehicle for business use and deduct the expenses, but having the vehicle owned by your business is like opening the door for a problem.
Protect Your Assets From Driving Liability
First thing you do is buy all of the insurance your provider will sell you. Maximum coverage on you as a driver, your vehicles, everything. Why purchase all this insurance when you have an asset protection plan in place? Simple, it’s easy and inexpensive. You want to put all of the barriers between liability and your assets that you can. Insurance is easy and can cover most of your exposure for a nominal cost. You can purchase an umbrella policy for your home, autos and all of your basic insurance from the same provider which will get you a great start on mitigating the liability that exists in a very easy and inexpensive manner.
A single auto accident could result in millions of dollars of liability. Insurance in this case would your first line of defense. In the asset protection service arena, there are countless examples of a single car accident being an estate killer for an individual that wasn’t protected correctly. This has happened all too many times. Get insurance for your vehicles… and get as much as you can buy.
How Does Insurance Work?
You are buying insurance against liability. Your provider insures you from liability created by accidents and events. Each type of insurance has its limitations and you will have to have multiple policies for each type of liability. For your home, cars, recreational vehicles, business location, etc.
The first thing on an insurance company’s agenda when you file a claim is to find their way out of having to pay up. They will only honor the claim once they are forced to by the contract, but make no mistake that your insurance company is not working for you, it is working for its shareholders. There are ways to get around insurance policies and your insurance provider will be the pioneer in this when it is time to file for a claim. This is why you don’t make insurance your only asset protection initiative, you create layers to an asset protection plan from a simple insurance policy, all the way up to an offshore trust and bulletproof measures. You don’t rely on just one layer to totally protect your assets.