Auto Insurance

With the new school year just around the corner, many families are trying to fit in one last vacation. For many that means…ROAD TRIP! Before you hit the road in the family car, there are a few things to check. Most of us know to check the oil, tire pressure, and things like that. But there’s one last thing to check. Your auto insurance. Before you leave your driveway, you should be sure that you have the proper auto insurance.

Understand the basics.

Most auto insurance plans are going to have the same basic coverage. Making sure you understand how they work and the expenses you could be responsible for is critical. In the event of an accident you don’t want to be surprised with additional costs or find out your deductibles are higher than you thought. Below are some of the most common auto insurance coverage.

  • Property coverage pays for damage to or theft of your car
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance. (However, you should always purchase more than the minimum required).
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Collision and Comprehensive coverage

These coverage’s are separate from each other and will each have their own deductible.

  • Collision coverage – Collision coverage pays for the cost to repair damages to a vehicle due to an accident either with another vehicle or an object.
  • Comprehensive coverage – Comprehensive coverage pays for damage to your vehicle that is caused by theft, vandalism, fire, natural disasters or hitting an animal.

Click here to learn more about Collision vs Comprehensive coverage

Types of Liability coverage

Bodily Injury Liability (BI): This covers injuries that you, the designated driver or policyholder cause to someone else. It does NOT cover the cost of damages to your vehicle, or to you or other people on your property.

Property Damage Liability (PD): Covers you or someone driving the car with your permission if the car damages someone else’s property. It also provides you with legal defense if another party files a lawsuit against you.

Medical Payments (MP) or Personal Injury Protection (PIP): This is no-fault coverage provides medical expenses to you and your passengers injured in an accident.

Uninsured and Underinsured Motorists Coverage (UM or UIM): This coverage will reimburse you if you are hit by an uninsured or hit-and-run drive or when an at-fault driver has insufficient insurance to pay for your total loss.

Optional coverage options

Some of the most common optional coverage options include rental car reimbursement and towing and road side service coverage. One of the last things you want to worry about after an accident is how you’re going to get around and pay for additional transportation. With rental car reimbursement you will be able to rent a replacement car. The insurance will pay for the rental of that car until your car is fixed or until your coverage limits run out.

With Towing and road side service coverage, you can call towing or emergency roadside service to help when you run into unfortunate mishaps. Flat tire, locking keys in the car, running out of gas, those are just a few examples of where this coverage can help.

Don’t wait to review your auto insurance coverage until it’s time to use it. Contact your agent today to review your policy today. Have you purchased additional options or do you have a standard plan? Now’s the time to review it and add anything you may have a need for in the future.

Please share this information with others. Make sure they are aware of what they need to know about auto insurance and road trips. 

Click here to contact your agent today.