Insurance Insight: New Year’s Coverage Assessment

Happy New Year! For many of us, the end of a year and start of a new one brings a feeling of excitement of what lies ahead, known and unknown. Part of an insurance agent’s duty is to help you prepare for the unknown part of it.

With all of this being said, do you know what your car insurance covers? My goal is to shed some light on some of these areas and help you determine if you’re where you need to be to protect you, your family, and your estate.

Liability

You were distracted while backing out of a parking space and hit the car behind you and crashed through a fence. Everyone in the other car seems fine, but the other driver and his passengers go to the emergency room just to make sure.

Liability Coverage pays damages due to bodily injury and damage to another’s property for which you are legally responsible. If you’re sued, it also pays your defense and court costs. Medical expenses, pain and suffering, and lost wages are some examples of what Bodily Injury Liability may cover. Property Damage Liability covers damage to property and loss of its use.

Collision Coverage

It’s only a fender-bender, but the cost of the headlight, a new bumper, and a paint job can add up quickly. Collision Coverage will pay for damage to a covered vehicle caused by collision with another vehicle, collision with an object, and vehicle rollover, subject to a deductible.

Higher deductibles lower your premium but increase the amount you’ll have to pay out of your own pocket at the time of a loss. Ask yourself how much you’re willing to pay when a loss occurs to save money on premiums.

Comprehensive Coverage

Who’d have thought that little hailstones could do so much damage? Your car is covered with dozens of dents. This comprehensive coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Typically, that’s coverage for the following, and it may be subject to a deductible: Fire, Wind, Hail, Flood, Vandalism, Theft, Hitting an animal.

As with collision coverage, higher deductibles lower your premium but increase the amount you’ll have to pay out of your own pocket in case of a loss. Ask yourself how much you’re willing to pay save on premiums.

Uninsured Motorist

It’s a sad fact: There are people who drive without any liability insurance. What if you’re injured in an accident caused by one of these drivers? Uninsured Motorist Coverage will pay for damages when you are injured in a car accident caused by another person who does not have sufficient liability insurance. Medical expenses, pain and suffering, and lost wages are some examples of bodily injury damages.

Getting this coverage lets you decide how much auto insurance coverage is potentially available to pay for your covered damages when you are in an accident caused by an uninsured motor vehicle.

Underinsured Motorist

Many drivers carry low limits of liability coverage. What if you’re injured in an accident caused by an underinsured driver? Underinsured Vehicle Coverage will pay for damages when you are injured in a car accident caused by another person who does not have sufficient liability insurance. Medical expenses, pain and suffering, and lost wages are some examples of bodily injury damages.

Take five minutes to reach out to your agent and they can easily explain your policy. Remember, taking small steps can make the most difference.