Do You Know What Automobile Insurance Coverages You Have?
WHAT DOES IT ALL MEAN? Understanding your automobile insurance can be mind boggling! What does "full coverage" really mean? Am I covered if a tree falls on my car? What if I hit a deer? Here is a breakdown in terms that will hopefully make some sense to you and give you an insight as to what coverage you need and the limits you should consider carrying.
Bodily Injury & Property Damage: Also known as "BI and PD" covers your legal liability, up to the limits you select, for damages caused in a covered vehicle accident.
Example: $100,000/$300,000 Bodily Injury means the policy will respond up to $100,000 for each person and a maximum of $300,000 per accident.
$100,000 PD pays for any property damage you may do to a building, vehicle, bridge, etc.
Whoa!! What if I cause severe BI to a person and I only have coverage for $10,000 each person? OR, if I run into the side of a 2008 Mercedes and only have $10,000 property damage? Can you say "lawsuit"? Personal Injury Protection: Affectionately known as PIP or No Fault Ins.
PIP covers your medical bills and often lost wages if you are injured in an automobile accident.
This coverage is mandatory in the State of Florida.
The idea was to keep lawsuits down but you can still sue someone if certain types of injuries occurred.
Uninsured/Underinsured Motorists: Or, UM/UIM.
This coverage only applies to bodily injury.
In general, this coverage provides what you would have received from the other person's auto insurance company IF that person had insurance.
It may also protect you if the person who caused the damage does not have enough insurance.
Medical Payments: This coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as a result of an auto accident.
If you fly to another state and rent a vehicle, your medical payments would apply BUT your PIP coverage would not.
Comprehensive: This is where the deer and the tree come into play! This feature covers your vehicle for damage caused by an event other than a car collision...
such as a fire, theft, vandalism, hail, flood, windstorm OR hitting an animal.
There is usually a deductible involved.
Collision: Also known as CRASH! Collision coverage pays for damages if your vehicle overturns (what?) or if it collides with another vehicle or object.
(There's that scary $10,000 property damage limit again!) There is always a deductible involved! Rental reimbursement: If you buy rental reimbursement coverage, you can be reimbursed for rental car charges incurred while your vehicle is being repaired after a covered accident.
Towing and Labor: This covers labor cost incurred at the place of the accident or disablement.
It will also pay for towing if the vehicle is not drivable.
I hope this bit of information has been helpful.
As always...
if you do not understand the coverage provided on YOUR policy, please check with your insurance agent.
Bodily Injury & Property Damage: Also known as "BI and PD" covers your legal liability, up to the limits you select, for damages caused in a covered vehicle accident.
Example: $100,000/$300,000 Bodily Injury means the policy will respond up to $100,000 for each person and a maximum of $300,000 per accident.
$100,000 PD pays for any property damage you may do to a building, vehicle, bridge, etc.
Whoa!! What if I cause severe BI to a person and I only have coverage for $10,000 each person? OR, if I run into the side of a 2008 Mercedes and only have $10,000 property damage? Can you say "lawsuit"? Personal Injury Protection: Affectionately known as PIP or No Fault Ins.
PIP covers your medical bills and often lost wages if you are injured in an automobile accident.
This coverage is mandatory in the State of Florida.
The idea was to keep lawsuits down but you can still sue someone if certain types of injuries occurred.
Uninsured/Underinsured Motorists: Or, UM/UIM.
This coverage only applies to bodily injury.
In general, this coverage provides what you would have received from the other person's auto insurance company IF that person had insurance.
It may also protect you if the person who caused the damage does not have enough insurance.
Medical Payments: This coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as a result of an auto accident.
If you fly to another state and rent a vehicle, your medical payments would apply BUT your PIP coverage would not.
Comprehensive: This is where the deer and the tree come into play! This feature covers your vehicle for damage caused by an event other than a car collision...
such as a fire, theft, vandalism, hail, flood, windstorm OR hitting an animal.
There is usually a deductible involved.
Collision: Also known as CRASH! Collision coverage pays for damages if your vehicle overturns (what?) or if it collides with another vehicle or object.
(There's that scary $10,000 property damage limit again!) There is always a deductible involved! Rental reimbursement: If you buy rental reimbursement coverage, you can be reimbursed for rental car charges incurred while your vehicle is being repaired after a covered accident.
Towing and Labor: This covers labor cost incurred at the place of the accident or disablement.
It will also pay for towing if the vehicle is not drivable.
I hope this bit of information has been helpful.
As always...
if you do not understand the coverage provided on YOUR policy, please check with your insurance agent.
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