9 Ways To Save Money On Gas

save money on gas

save money on gasI think it’s safe to say, we all have been feeling the pain of high gas prices. Regardless of the price of a gallon of gas, it is always great to be able to save money on gas. Often, the small things we do can add up to big fuel savings. If you are looking to spend less money at the pump, here are some easy things you can start doing today. 

  1.  Lighten your load—Extra weight decreases gas mileage.
  2. Avoid long idles—Idling for only one minute consumes the same amount of gas that is required for starting your engine.
  3. Plan your trip ahead of time—Consolidate your trip to places that are close to one another.
  4. Open the windows—Instead of blasting the air conditioning on a hot day, open the windows or use your car vents, which circulate outside air.
  5. Get your oil changed—Stay up-to-date on oil changes. They should be done approximately every 3,000 miles for conventional motor oil.
  6. Drive slower—You can improve your gas mileage by nearly 20% by driving 55 mph instead of 65 mph.
  7. Maintain your tires—Keep your tires properly inflated and aligned and perform regular maintenance checks on your tires.
  8. Drive smart—Be sure to accelerate gradually from a dead stop, rather than stomping on the gas pedal.
  9. Verify your rating—Make sure you are selecting the right octane rating at the pump.

Prioritize Fuel Efficiency When Buying Your Next Vehicle

Considering buying a new or used vehicle? Before making a purchase, check the gas mileage ratings of similar vehicles of interest to you. Then, narrow down your options on a model that is fuel-efficient in the size category that meets your needs.

For additional fuel efficiency tips and auto insurance solutions, contact us today.

If you found these tips on how to save money on gas helpful, please share them. 

May is Motorcycle Safety Awareness Month

Motorcycle Safety Awareness Month

Motorcycle Safety Awareness MonthMotorcycle Safety Awareness Month is when drivers and riders are encouraged to take a closer look at how they share the road. According to the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), motorcyclists are overrepresented in traffic crashes each year.

Motorcycle Safety Month is about cooperation and awareness. Motorcyclists are harder to see, especially in traffic or bad weather, and they don’t have the same level of protection as someone in a car or truck. The NHTSA’s message is clear: Motorcyclists’ safety is everyone’s safety.

Two key factors contributing to car vs. motorcycle incidents are speed and alcohol impairment. These risks don’t just affect motorcyclists; they impact everyone on the road. So what can you do as a motorcycle rider or other motorists? 

MOTORCYCLE RIDERS

  • ALWAYS WEAR SAFETY GEAR. Even if it is not required by state law, it is crucial to wear a helmet to prevent head injuries if an accident occurs.
  • BE VISIBLE. Use your headlight day and night so you are easier to see.
  • GIVE YOURSELF SPACE. Drive defensively by giving yourself time and distance to account for other motorists’ driving.
  • STAY IN YOUR LANE. Make sure to remain in your lane. Do not weave in and out of lanes.
  • WATCH THE WEATHER. When riding, make sure you have a plan of action if bad weather occurs.

Other Motorists

  • ALWAYS CHECK TWICE. Before changing lanes, check to make sure you didn’t miss a motorcyclist who could have been in your blind spot.
  • USE CAUTION. When passing or changing lanes, make sure there is enough room to do so.
  • PAY ATTENTION. Pay attention while driving at night for motorcycles; they are smaller, so they may not be as easy to see as a car.
  • KEEP A SAFE DISTANCE. When driving behind motorcycles—or any other vehicle—ensure you have enough space to stop safely if an accident or problem occurs.
  • DRIVE DEFENSIVELY. Always drive defensively to avoid accidents and account for other drivers’ actions.

Whether you’re behind the handlebars or the wheel, being aware of your surroundings, slowing down and driving or riding sober are simple steps that can make a real difference.

So this month—and every month—take a moment to check your mirrors, give space and ride or drive responsibly.

April Is Distracted Driving Awareness Month And We Have Prevention Tips For You

Distracted Driving Awareness

Distracted Driving AwarenessThe National Safety Council recognizes April as Distracted Driving Awareness Month. This event is intended to raise awareness about the dangers of distracted driving and encourage motorists like you to minimize potential distractions behind the wheel. Review the following article for more information on distracted driving and ways you can help prevent it.

Distracted Driving Overview

According to the Centers for Disease Control and Prevention, distracted driving refers to any activity that may divert a motorist’s attention from the road. There are three main types of distractions that can interfere with drivers’ attentiveness behind the wheel, including:

  1. Visual distractions—These distractions involve motorists taking their eyes off the road. Some examples of visual distractions include reading emails or text messages, focusing on vehicle passengers, looking at maps or navigation systems, and observing nearby activities (e.g., accidents, traffic stops or roadside attractions) while driving.
  2. Manual distractions—Such distractions entail motorists removing their hands from the steering wheel. Key examples of manual distractions include texting, adjusting the radio, programming navigation systems, eating, drinking or performing personal grooming tasks (e.g., applying makeup) while driving.
  3. Cognitive distractions—These distractions stem from motorists taking their minds off driving. Primary examples of cognitive distractions include talking on the phone, conversing with vehicle passengers or daydreaming while driving.

Regardless of distraction type, distracted driving is a serious safety hazard that contributes to a significant number of accidents on the road. In fact, the National Highway Traffic Safety Administration reported that more than 2,800 people are killed and 400,000 are injured in crashes involving a distracted driver each year—equating to approximately eight deaths and 1,095 injuries per day. Considering these findings, it’s crucial to take steps to prevent distracted driving.

Distracted Driving Prevention Tips

Whenever you get behind the wheel, keep these distracted driving prevention measures in mind:

  • Put away your phone. Silence your phone and store it in a location that is out of reach while driving to lower the temptation to check it.
  • Plan your trip before you leave. Program your navigation system prior to hitting the road to get familiar with your journey and feel confident in your route.
  • Don’t fumble with your playlist. Select a radio station or plug in a predetermined playlist before driving to limit the need for music adjustments.
  • Secure passengers. Ensure kids are properly situated in car seats (if needed) with seat belts fastened. Keep pets stationary in the back seat.
  • Avoid multitasking. Never complete additional tasks—such as eating or personal grooming—behind the wheel.
  • Stay focused. Concentrate your mind on the road by keeping distracting conversations to a minimum and looking straight ahead.

For additional driver safety tips, contact us today.

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How to Avoid Common Personal Insurance Gaps

Personal Insurance Gaps

Personal Insurance GapsInsurance plays a crucial role in your life’s financial security and stability. The various policies and coverages that make up your insurance portfolio can potentially ensure you’re able to endure accidents, natural disasters and unexpected circumstances that might otherwise incur devastating financial losses. These risks may be particularly prevalent for those who fail to identify and address common coverage gaps.

This article can help you understand how and why specific gaps in your insurance could have significant financial ramifications for you and your family. Rinehart, Walters & Danner Insurance is focused on assisting you in not only identifying and understanding these possible pitfalls but also filling them and ensuring that your personal lines insurance portfolio offers fortified financial protection.

Common Personal Insurance Gaps

Your personal lines insurance portfolio may consist of several types of policies, each covering risks and exposures that might otherwise lead to significant financial losses. Despite how you may have assembled an appropriate collection of policies, each one might still be prone to having coverage gaps that could leave you vulnerable to unexpected situations. The aftermath of an accident or other losses is the worst time to realize you’re underinsured, so it’s essential to identify and address gaps before coverage is needed.

Consider the following common personal insurance coverage gaps:

Home insurance

Also known as homeowners insurance, this type of policy can be rife with coverage gaps if you’re not careful and do not work with a qualified professional. Be particularly mindful of the following possible gaps:
o Natural disaster exclusions—Certain natural disasters are often explicitly excluded from standard home insurance policies. For example, flood insurance must typically be purchased separately. Homeowners in certain parts of the country may also need coverage for earthquakes and windstorms.
o Coming up short of the 80% rule—Insurance carriers typically enforce the 80% rule, which states that homeowners must retain enough coverage to pay for at least 80% of the estimated cost of a complete rebuild of their home. Failing to do this could lead to lesser payouts following covered losses.
o Neglecting scheduled property coverage—Home insurance typically includes some coverage for personal possessions, but limits are often insufficient for those with significant valuables, such as fine art and jewelry. Additional coverage options, such as scheduled property coverage, may be necessary to ensure policyholders can recoup losses involving treasured items.

Auto insurance

These policies may also be referred to as car insurance and are often legally required. Still, while one of the most commonly purchased types of insurance, auto coverage is easily misunderstood, necessitating awareness of the following possible errors:
o Fulfilling only minimum requirements—While most states require motorists to carry certain levels of coverage, such as third-party liability coverage, simply complying with such mandates may not be enough. For example, many states do not require collision coverage, but if you crash your car, this part of a policy could be critical in ensuring you can repair or replace your vehicle.
o Lacking gap coverage—Aptly named, lacking this component of an auto insurance policy could represent a significant hole in your coverage. Gap coverage can be critical in offsetting losses if you’ve financed your vehicle. If your car is totaled or stolen and you still owe more on your loan than the vehicle’s current value, this coverage can make up the difference and limit out-of-pocket losses.

Life insurance

The right life insurance policy can provide financial stability and peace of mind for you and your loved ones. However, insufficient or outdated coverage could have dire ramifications, exacerbating the already difficult circumstances of a grieving family. Avoid this hardship by considering the following potential shortcomings in your coverage:
o Relying on group coverage—Life insurance offered by an employer can be a valuable employee benefit; however, one should not depend on this as your only form of coverage. Group life insurance plans are typically tied to employment status, meaning that being let go or retiring would result in no remaining coverage.
o Insufficient limits—As a person’s circumstances change, they may need to adjust their life insurance policies. For example, having a child or gaining a dependent typically increases expected expenses. Without making adjustments to life insurance, payouts could be insufficient to provide for a deceased’s family.

Personal umbrella insurance

This type of insurance may not be as well known as others, but for many people, it can be just as important. An umbrella insurance policy casts an additional layer of financial protection over various liabilities that might exceed the coverage limits in other policies. Consider how personal umbrella insurance might help fill the following coverage gaps:
o Inadequate auto insurance—Even if you’ve fulfilled your auto insurance policy’s minimum liability coverage requirements, severe accidents could have greater costs. If several people are severely injured, many vehicles are damaged or losses otherwise amount to a sum greater than your auto coverage can handle, personal umbrella insurance can offer additional aid and limit out-of-pocket losses.
o Insufficient home insurance—Certain accidents and other incidents at your home could be exceptionally costly. For instance, if your home has attractive nuisances, such as a swimming pool, or you regularly host large gatherings, accidents affecting multiple guests or inflicting significant injuries could quickly exhaust the liability coverage limits in your home insurance policy. Without umbrella coverage, you’d be saddled with paying the remainder out of pocket.

How to Avoid Coverage Gaps

Now that you have a better understanding of common coverage gaps and the potential consequences of being underinsured, you can take steps to shore up your insurance portfolio. Consider the following steps:

  • Appraise your belongings. One of the most effective ways to ensure you’re adequately covered is by being current on the value of what you’re insuring. Save receipts and document the condition of your possessions, and consider enlisting the assistance of professionals to appraise certain items, such as fine art and jewelry.
  • Assess liability risks. Whether considering home, renters, auto or umbrella coverage, certain policyholders may need to manage greater liability risk levels. For example, if you have children or pets, you may want to retain more coverage in your home insurance policy. Similarly, additional financial security may be advisable if you have a teen driver listed on your policy.
  • Consider recent life events. When your circumstances change, you should revisit your insurance policies. Getting married, having a child, buying a home or car, or moving should all trigger this process. Neglecting to account for life events in your insurance portfolio could lead to you being underinsured and your policies’ limits being incapable of covering losses.
  • Understand endorsements and options. Familiarize yourself with all of the features and enhancements that might be available. While a standard home insurance policy may be sufficient most of the time, specific exclusions, such as for floods and hurricanes, could mean the difference between weathering a financial storm alone or being buoyed by financial aid.
  • Enlist assistance. The knowledge and experience of a qualified insurance professional can be invaluable as you seek to purchase or reassess the components of your personal lines coverage.

Get the Right Coverage

In the wake of an accident, damage to your home or other incident involving financial losses, the last thing you want to hear is that your insurance isn’t capable of what you expected. Coverage gaps can quickly lead to unexpected expenses, potentially incurring far-reaching fiscal consequences that might upend your entire life.

At Rinehart, Walters & Danner Insurance, we’re committed to making sure that you and your family are adequately insured. Contact us today to learn more about personal lines coverage options and to ensure you’ve identified and remedied any coverage gaps.

Winter Driving Safety Tips Everyone Should To Know

winter driving

winter drivingLosing control of a car is undoubtedly one of the most frightening experiences behind the wheel. Unfortunately, it is a potential side effect when the temperatures turn frigid and the roads get slick with ice or snow. Being familiar with winter driving safety is critical to keep you and other drivers safe. 

One of the most dangerous winter driving hazards is skidding, which, at high speeds, could result in a nasty crash. To prevent an unnecessary skid, slip or accident, consider the following accident prevention techniques.

  • Slow down ahead of turns and curves, as this will allow you to prepare for potential icy spots.
  • When at a curve, apply power slightly to the gas and steer steadily. Do not change directions abruptly and refrain from braking suddenly.
  • Be prepared for lane changes. Check your rearview mirror and blind spot, and then signal your direction to alert other motorists.
  • When changing lanes, move over in a long, gradual line with minimal steering changes.
  • Look out for ice patches, piles of wet leaves and shady areas. These areas are skidding hazards.
  • Anticipate stops by slowing down gradually, well ahead of intersections. These areas are generally slicker than other parts of the road because of the excess starting and stopping traffic.
  • Drive at reduced speeds. Slow your speed and increase your following distance behind the vehicle in front of you. This will allow for a larger buffer in case you start to lose control.
  • Avoid overpowering in deep snow.
  • Use a light foot on the accelerator (rather than slamming on the gas to move forward).

If You Start to Skid

If your car starts to skid, do not panic. Steer in the direction that the vehicle is sliding until you feel the wheels regain traction. Then, slowly straighten your wheels and keep rolling.

If you need to brake before your tires regain traction, apply the brake carefully so that you do not lock your wheels.  

If you have an accident

In the unfortunate event you end up in an auto accident, we are here to help. Click here to learn what to do after an auto accident or contact us by clicking here

4 Fall Driving Safety Tips Everyone Should Know

Fall Driving Safety

Fall Driving SafetyFall can be a particularly dangerous time to drive. Fortunately, by considering the following guidance, you may be able to limit your risk of accidents:

Watch for children.
With school back in session, you should be mindful of increased foot traffic, as well as the frequent presence of school buses.

Prioritize lighting.
As the days get shorter, you may find yourself driving in the dark more often. Be sure to turn on your headlights as soon as it starts to get dark.

Consider driving conditions.
Avoid driving at excessive speeds and take your time when changing lanes or making other maneuvers, as fog, frost and fallen leaves can all affect your visibility and traction.

Be mindful of animals.
Many animals may become more active during the fall, including deer. Take particular care to watch the sides of roads at dawn and twilight, as this is when many animals are most active.

Contact us today to learn more about automobile safety.

How to Safely Secure Your Road-Trip Cargo

Secure Your Road-Trip Cargo

Secure Your Road-Trip CargoWhen faced with the dilemma of transporting oversized items that won’t fit in your vehicle’s trunk, simply strapping them to the roof may not be the best plan. Do you know how to safely secure your road-trip cargo? 

Secure the Load

Safety extends beyond the confines of your vehicle, and it’s crucial for drivers to help ensure the safe transport of cargo by doing the following:

  • Use sturdy rope, netting or straps to securely fasten cargo to your vehicle.
  • Cover the entire load with a durable tarp if necessary.
  • Avoid overloading a trailer or vehicle.
  • Inspect the load to confirm that it is securely fastened.
  • Periodically check the load when en route to your destination.

Safety Regulations

Most states have unsecured-load regulations designed to help protect other drivers and pedestrians. Drivers bear the responsibility for safe operation of their vehicles, including the transport of secured loads.

Prioritizing the safe and secure transport of your cargo is crucial to safe driving and could help you avoid accidents and liability claims. We hope you now feel confident on how you an safely secure your road-trip cargo. 

What Is Rental Car Insurance And Do I Need It?

Rental Car Insurance

Rental Car InsuranceWhen renting a car, the rental company will typically ask if you’d like to purchase insurance coverage for the vehicle. It’s at this point when you have to ask yourself: Do my personal insurance policies provide the coverage I need, or should I purchase insurance through the rental car company?

Although standard auto insurance policies may extend to rented vehicles, you should never assume you are protected. Examining your own auto insurance policy will show you the types of coverage you already possess and where additional coverage may be needed. Since auto policies differ, it’s a good rule of thumb to contact your broker so they can help you navigate your policy and determine if you have the appropriate amount of coverage when renting a vehicle.

Examining Your Insurance Policies

When deciding whether or not your personal insurance will cover your rental car, there are a few different coverages you should have. If you answer yes to all of the following questions, you may not need to purchase additional coverage:

  • Do you have liability, collision or comprehensive car insurance? Liability, collision and comprehensive insurance are the three main coverage options available when purchasing car insurance. Although it is not always required to purchase all three coverages, they can optimize your protection in the event of an accident.
    • Liability insurance provides coverage if you damage or injure another person or their personal property.
    • Collision insurance provides coverage if your vehicle is involved in a collision, either with another vehicle or object.
    • Comprehensive insurance provides coverage if your car is damaged by a variety of exposures such as theft, vandalism or natural disasters.
  • Does your policy cover administrative fees, loss of use or towing charges? It’s always a good idea to check see whether your insurance company pays for—or provides a rider for—additional fees associated with rental cars. This coverage can be helpful if a car you rent is lost, stolen or damaged.
  • Do you have a renters or homeowners policy that will cover your belongings if lost or damaged? Your homeowners or renters insurance policy covers your personal belongings from theft, fire or vandalism within your home. Policies often include off-premises coverage that can extend your coverage to outside your residence. Therefore, if personal belongings in your vehicle are stolen or damaged, your homeowners or renters insurance policy may be able to cover a percentage of your losses. Not all insurance carriers will extend coverage to protect personal belongings within your vehicle—always check with your broker to see what your renters or homeowners policy covers.

What Is Rental Car Insurance, and What Does It Cover?

Car rental companies provide additional coverage that is often used to supplement insurance you already possess.

Rental car agencies offer four different coverage options:

  1. Supplemental liability insurance: Most car rental companies need to have the minimum amount of liability coverage required by the state, but oftentimes it isn’t an adequate amount of coverage. If you have a personal car insurance policy with a high liability limit, you may not need additional protection.
  2. Loss damage waiver (LDW)/collision damage waiver (CDW): This is not insurance per se, but rather a document that can alleviate your financial responsibility should your rental vehicle be damaged or stolen. This also includes loss of use coverage if the rental company charges you for the amount of time the car could not be used while being repaired, as well as other administrative fees the car rental agency assesses. The LDW may become void if the incident occurred from the driver of the rented vehicle exhibiting reckless behavior, speeding or the vehicle being driven on unpaved roads.
  3. Personal accident insurance: This will cover the driver and any passengers within the rented vehicle for any medical bills caused by a car crash. This coverage is useful if you do not already have health insurance or personal injury protection insurance.
  4. Personal effects coverage: This covers any personal belongings that are stolen from the rental vehicle. If you already have renters or homeowners insurance, this may already be covered under your policy.

The coverages offered are oftentimes the same as what you already have for your personal car insurance. Again, to avoid paying for coverage you already have, review your policy before renting a vehicle.

Does Your Credit Card Provide Rental Insurance?

Many reputable credit card companies offer rental insurance to their customers. To utilize this secondary form of coverage, you must put the total amount of the car rental on your credit card. In many cases, credit card companies will also require you to deny any insurance offered by the car rental agency in order to access their coverage. In the event that your rental car is in a covered incident, the credit card company will help cover costs of damage or theft up to a certain dollar amount. Various rental car fees can be covered by your credit card, but this can vary by provider.

Before purchasing any additional coverage through the car rental facility, call your credit card company to see if your card offers car rental insurance. Since most credit card rental insurance is classified as a secondary form of coverage, you may need to rely on your personal auto insurance coverage first.

Ask About Your Policy

Deciding on your rental car coverage can be a tricky endeavor. Before purchasing any extra coverage, talk to your insurance broker about your personal auto insurance policy and whether you may need to purchase any additional insurance. No one wants to pay more for their auto insurance, and you shouldn’t have too.

If you have any questions or are unsure if rental vehicles are covered under your policy, contact Rinehart, Walters & Danner today.

 

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Why It Is Important to Have Uninsured/Underinsured Motorist Insurance Coverage

Uninsured/Underinsured








Uninsured/UnderinsuredCar insurance is a vital safeguard for drivers that is often legally required by states. Specifically, auto liability insurance (a standard component of a car insurance policy) can help pay for damages you cause to others in an accident, saving you from costly out-of-pocket expenses. For example, if you rear-end another car, your liability coverage may help pay for damages to the other party, including their vehicle repairs and medical costs, up to your policy’s limits. If you didn’t have liability coverage in this scenario, you would be personally responsible for paying those expenses.

Yet, despite its importance and potential legal requirements, some drivers still don’t have auto liability insurance. Or their liability limits are too low to pay for the damages they cause. These individuals can put you in financial jeopardy if they cause an accident. This is why uninsured/underinsured motorist insurance is essential.

What Is Uninsured/Underinsured Motorist Coverage?

Uninsured/underinsured (UM/UIM) coverage may help pay for car repairs and medical costs for you and your passenger if the driver at fault doesn’t have enough insurance or no auto liability insurance at all. Depending on location and insurer, this type of coverage may be offered jointly or separately. If you or your passengers are injured due to the negligence of an uninsured or underinsured driver, you may seek compensation for injuries and damages through the UM and UIM portions of your policy.

How Does Uninsured/Underinsured Motorist Coverage Work?

If you are in an accident with another person found to be at fault, but they do not have enough insurance to cover the damage, your UIM coverage can kick in. For example, if the medical and property damage totals $200,000, but the other driver’s insurance only covers up to $100,00, you can claim the balance against your insurance provider up to the policy’s limits.

In the case of a hit-and-run accident, you may also be able to leverage your UM coverage; however, depending on location and insurer, there may be additional requirements regarding property damage. For instance, some insurers may require hit-and-run claims for vehicle damage to go through your collision coverage rather than UM/UIM.

Critically, UM/UIM coverage won’t provide a payout until the other driver’s fault is established. This stipulation can affect when money is received for damages.

How Much Coverage Do I Need?

There are a few considerations to keep in mind when reviewing UM/UIM insurance options. Perhaps the most important aspect to understand is the liability limit amount. When choosing your coverage, you can set the limit of your UM/UIM coverage; this establishes the maximum amount the insurance company may pay for an applicable UM/UIM claim. Generally, this limit should be the same as your auto liability limit (i.e., the maximum amount your insurance would pay if you caused damage to others).

It’s important to note that the UM/UIM limit cannot exceed your auto liability limit. Thus, if you want higher limits on your UM/UIM coverage, you must first increase your auto liability limits. Alternatively, you may consider “excess UM/UIM” coverage (which would kick in after your initial UM/UIM limit is reached) as part of a personal umbrella policy, which could offer greater liability protection.

If your insurer offers personal injury protection (PIP) or medical payments (MedPay) coverage, you may be able to leverage that insurance after an accident, regardless of fault. However, these coverages—which may not be available in all locations—have their own rules and may not offer sufficient protection involving an uninsured or underinsured driver.

Speak with your Rinehart, Walters & Danner Insurance agent to discuss your circumstances. They can help recommend coverages and walk you through key policy details.

Final Considerations

Driving comes with many inherent risks, and accidents happen every day. As inflation and other factors cause prices to rise, more people may be skimping on their insurance. Without UM/UIM insurance, you could be left on the hook for damages you didn’t cause if an uninsured driver hits you.

Don’t let irresponsible drivers risk your financial security. Contact us today to learn more about UM/UIM coverage and other insurance solutions that can help protect you after an accident.








Why It Is Important That You Understand Auto Liability Coverage

auto liability








auto liabilityAuto insurance is one of the most frequently purchased types of coverage in the United States. However, while these policies may be common, they can still be complex and nuanced. Policyholders must be diligent and meticulous to ensure they fully understand their auto coverage and have ample financial protection.

One of the most common and crucial components of an auto insurance policy is adequate auto liability coverage. Any time a driver gets behind the wheel, they risk being involved in accidents that could harm others and incur devastating financial consequences. This article provides an overview of auto liability coverage and its importance.

What Is Auto Liability Coverage?

The liability portion of auto insurance is strongly advisable and is usually required by law. Although minimum requirements may vary among states, all drivers are generally mandated to carry certain liability coverage to ensure they can pay for losses for which they are at fault.

Liability coverage can insulate drivers from significant losses affecting third parties, including the following:

  • Bodily injury—If a policyholder is responsible for an accident that injures another party, such as a pedestrian or occupants of another vehicle, this coverage can help pay resulting expenses, such as:
    • Medical bills
    • Lost wages
    • Legal expenses
  • Property damage—If a policyholder is at fault for damaging someone else’s property, such as by colliding with another vehicle or crashing into a building, this coverage can provide financial assistance to compensate affected parties and pay for costs arising from resulting lawsuits.

Most auto insurance includes three separate liability limits within a policy. These clauses establish the maximum amount of financial aid capable of being covered and generally are listed as the following:

  • Bodily injury liability limit per person
  • Bodily injury liability limit per accident
  • Property damage liability limit

Another type of coverage that could help you financially protect yourself in an accident is uninsured/underinsured motorist coverage. This coverage, which is sometimes sold separately as uninsured motorist coverage and underinsured motorist coverage, can often be added to your personal auto insurance policy to help you avoid high out-of-pocket costs if you’re involved in an accident with a driver who doesn’t have any liability coverage (uninsured motorist coverage) or doesn’t have enough liability coverage (underinsured motorist coverage).

Ensuring Adequate Coverage

Motorists should consult with a qualified insurance professional to understand applicable auto insurance requirements. Failing to comply with relevant laws could lead to significant fines and legal penalties. Their lender may also require those who purchased their vehicles with the help of an auto loan to adhere to additional requirements.

Even if not mandated to do so, carrying sufficient auto liability coverage is strongly advisable. Without suitable insurance, an accident could lead to devastating out-of-pocket costs that jeopardize a driver’s financial situation.

It’s also essential to understand the limitations of auto liability coverage, which should not be relied upon to cover a policyholder’s own losses. Such financial assistance generally must be acquired through including additional coverages in an auto insurance policy, such as the following:

  • Collision coverage—This may help pay for damage sustained by a policyholder’s vehicle resulting from striking another car or stationary object (e.g., building, fence, tree)
  • Comprehensive coverage—This may provide coverage for incidents not included in collision coverage, such as fires, crime and severe weather.
  • Medical payments coverage—This may provide financial assistance for a policyholder and their passengers if they are injured in an accident, regardless of who was at fault.

Making Sure You’re Covered

Auto liability coverage is an essential form of financial protection for any person who owns or operates a motor vehicle. For more information or guidance regarding optimal auto insurance solutions, contact Rinehart, Walters & Danner today.