Auto

Insurance

UNDERSTANDING YOUR PERSONAL AUTO POLICY:

YOUR PERSONAL AUTO POLICY MAY INCLUDE SEVEN DIFFERENT COVERAGES. EACH COVERAGE IS UNIQUE AND PRICED DIFFERENTLY. ONLY THE DECLARATIONS PAGES OF YOUR POLICY WILL TELL YOU WHICH COVERAGES ARE INCLUDED IN YOUR CURRENT AUTOMOBILE POLICY:

BODILY INJURY LIABILITY LIMIT – This pays for bodily injury (including medical expenses) for an accident in which you are held legally liable. This is required in most states, usually with a minimum coverage of $15,000 each person and $30,000 for all the people in the accident. Purchasing the state minimum coverage can be frightening; considering the severity of a car accident; it is strictly advised that you purchase adequate limits of liability to protect your family and assets.

PROPERTY DAMAGE LIABILITY LIMIT – This covers the property damage your car causes to property of others (vehicles or objects). Typically this is the other car(s) involved in the accident, but it also covers damage you cause to any object you hit; garages, buildings, lampposts, fences, etc. This is also legally required in most states, usually with a minimum coverage of $10,000.

COLLISION –This pays for damage to your car when it collides with other vehicles or objects (your fault).

COMPREHENSIVE – This covers damage to your car resulting from something other than a collision. For example; theft, vandalism or road debris.

MEDICAL PAYMENTS – This coverage can be used to pay for medical expenses (including funeral costs) for your passengers (and even yourself) in the event of an accident, regardless of who is at fault. It can also cover you as a pedestrian if you are hit by another vehicle.

UNINSURED MOTORIST – This pays for injuries to you and/or your vehicle if you are hit by a driver who does not have any insurance. Also includes the event of “Hit & Run”. In most states, more than 10% of motorists don’t carry ANY form of insurance. In some states, it is estimated that as many as 3 out of 10 drivers don’t carry any form of auto insurance. In order to protect yourself and those you love; it is recommended this be purchased with every auto policy and is viewed as equally important to having liability coverage.

UNDERINSURED MOTORIST – This pays for injuries to you and/or your vehicle if you are hit by a driver who doesn’t have enough insurance to cover your losses or damages. In most states, more than 10% of motorists don’t carry ANY form of insurance. In some states, it is estimated that as many as 3 out of 10 drivers don’t carry any form of auto insurance. In order to protect yourself and those you love; it is recommended this be purchased with every auto policy and is viewed as equally important to having liability coverage.
* As a general rule; it is important to remember that an auto policy will only pay the ACTUAL CASH VALUE (ACV) for damaged vehicles or property; whether this is your own or someone else’s. This includes payments made under the UM/UIM coverage referenced above. Replacement Cost coverage is typically not an option.