Auto Insurance Coverage
When it comes to car insurance, it’s important to understand what your coverage options are. This doesn’t just include coverage for your car, but also for you and the people who may be injured because of an accident.
There are many factors that can influence the cost of your auto insurance premium, including:
- Geographic location
- Marital status
- Years of driving experience
- Driving record
- Claims history
- Credit history
- Previous insurance coverage
- Vehicle type
- Vehicle use
- Miles driven annually
No two insurance contracts are the same. As independent agents, we work for our clients to make sure they have proper coverage for their exposures. Primary auto insurance coverages typically include:
- Property Damage Liability (PD) Coverage: This covers you when you damage someone else’s property. Usually this includes someone else’s car, but it could also apply to buildings, utility poles, garage doors, and other physical property.
- Bodily Injury Liability (BI) Coverage: This covers you if you cause and accident in which someone else is hurt or killed. We recommend carrying (at a minimum) limits of $250,000 / $500,000 per occurrence. Higher limits are available and recommended depending on your financial situation.
- Collision Coverage: This covers damage to your car if you hit another car or object. This coverage is not required by law, but your bank may require it if you have an auto loan. You may choose a deductible on this coverage that will be your out-of-pocket expense for a claim before the insurance kicks in.
- Comprehensive Coverage: This covers you in case your car is stolen or damaged in ways that don’t involve a collision. Covered risks include hail, fire, theft, flood, earthquake, falling objects, etc. This is optional coverage, but your bank may require it if you have an auto loan. You may choose a deductible on this coverage that will be your out-of-pocket expense for a claim before the insurance kicks in.
- Uninsured Motorist Coverage (UM/UMI): This covers medical and other expenses when you are hit by a driver who does not carry adequate auto insurance.
- Medical Payments Coverage (Med Pay or MPC): This is primary coverage for medical expenses that you and your passengers may incur if injured in a motor vehicle accident, regardless of fault.
Other coverage options include Full Glass Coverage, Rental Car Reimbursement, Agreed Value, or Actual Cash Value.