Clark Howard Liability and Deductible Audit

A step by step Clark Howard liability and deductible audit to raise deductibles and protect net worth with umbrella insurance.

5 time blocks, 60 minutes in total.

Time blocks

Gather Policy Declarations: 10 min
Pull auto and home declarations pages to inspect current deductibles
Evaluate Higher Deductibles: 10 min
Check premium savings for raising deductibles to 1000 dollars
Verify Emergency Deductible Reserve: 10 min
Confirm liquid savings can cover auto and home deductibles immediately
Audit Liability Coverage Limits: 15 min
Compare total net worth against auto and home liability caps
Quote Umbrella Policy Layer: 15 min
Check cost of a 1 million dollar standalone umbrella policy

About this routine

Consumer expert Clark Howard recommends using insurance solely to cover catastrophic events rather than routine minor repairs. Performing a regular Clark Howard liability and deductible audit allows policyholders to capture premium savings while securing adequate liability protection.

The audit begins by reviewing the declarations pages for all active auto and home policies. Raising comprehensive and collision deductibles to 1,000 dollars significantly lowers recurring premium costs. That saved money stays in a dedicated high yield emergency account reserved strictly for unexpected out of pocket losses.

The second phase evaluates personal liability limits. Standard policy caps often leave financial assets exposed during a lawsuit. Howard advises increasing underlying vehicle and home liability caps to qualify for a standalone 1 million dollar umbrella liability policy. Running this calculation annually keeps household assets protected without wasting cash on low deductibles.

Why this routine works

Reduces annual auto and home policy premium costs
Ensures liquid emergency savings match out of pocket deductible risk
Protects personal assets with higher liability limits and umbrella insurance

FAQ

What is Clark Howard's advice on insurance deductibles?

Clark Howard recommends raising collision and comprehensive deductibles to 1,000 dollars to lower annual premiums, provided you hold that amount in emergency cash.

How much liability insurance does Clark Howard recommend?

Clark Howard advises carrying liability limits that cover your total net worth, usually recommending a 1 million dollar umbrella policy for extra asset protection.

How long does a Clark Howard liability and deductible audit take?

This policy review takes 60 minutes to examine declarations pages, adjust deductibles, and request umbrella quotes.