Auto Insurance Coverages

What does auto insurance cover?

Auto Insurance Coverages
Understanding The Basics of Auto Insurance Coverages

Auto accidents happen without warning when we are driving on the road. Choosing the right auto insurance coverages to protect yourself and your family is an important decision. Big Pine Insurance Agency is dedicated to helping you find the right right auto insurance coverages to protect your family.

Most states have required minimum liability limits for Bodily Injury and Property Damage in order to legally drive your vehicle on the road. The vast majority of claims are usually less than $50,000 for Bodily Injury losses. However, it is important to remember that insurance is meant to cover those rare events when a major loss occurs. Some accidents exceed $100,000 or more in damages. If you are involved in a major accident it’s likely to be a devastating financial event. Because of the inherent dangers of driving, it is very important that you discuss your auto insurance coverages with your agent.

Mandatory Auto Insurance Coverages

Liability Insurance

Keep in mind that all auto insurance policies have some basic coverage for your protection while driving. Insurance companies design their own auto insurance polices. Also worth mentioning is that claims are subject to the terms and conditions of the insurance policy. Because auto insurance policies vary from company to company, it is important to review your auto insurance coverages with your independent agent.

Your auto liability insurance covers damage to others in an at-fault accident. The first part your auto insurance coverage is Bodily Injury Liability Coverage. Bodily injury coverage pays for injuries or death of the driver or passengers injured if you cause an auto accident. 

The second part of your liability protection is called Property Damage Liability Coverage. This coverage pays for damage to another person’s property (i.e. their car) if you are responsible for an accident. It also covers your legal defense if another party files a lawsuit against you. 

Most insurance companies allow you to purchase liability protection as a Split Limit coverage or a Combined Single Limit coverage. A Split Limit policy specifies how much money will cover Bodily Injury Liability and how much money will cover Property Damage. For example a limit of 100/300/100 would mean you have $100,000 dollars per person up to $300,000 dollars per accident for bodily injury liability protection. The last number of $100,000 is the dollar amount available for property damage liability coverage.

In a Combined Single Limit policy you receive coverage for both Bodily Injury and Property Damage together. For example, a policy that shows coverage of $300,000 CSL means you have up to $300,000 dollars to pay for an at-fault accident resulting in bodily injury or property damages that you cause.

Without proper liability limits, you run the risk of possibly loosing personal assets if a judgment is filed against you. This is why the auto liability limits you choose on your policy is an important decision to consider. Ask yourself, what do I stand to loose if I cause an accident while driving? Consider your personal net worth to help you determine the proper auto insurance liability limits. Let one of our license agents guide you through the coverage’s on your car insurance policy. Click here to start your quote!

Frequently Required Auto Insurance Coverages

Uninsured and Underinsured

Uninsured and Underinsured Motorist coverage is protection for you and your passengers. If you are involved in an auto accident caused by an at-fault driver who doesn’t have insurance or doesn’t have enough insurance, this insurance helps pay for damages. 

Uninsured Motorist insurance pays for damages for car repairs or bodily injury to you and your passengers. This coverage provides protection when you’re involved in an auto accident with another driver who is legally responsible but does not have insurance. This coverage is a very important consideration for your family on your personal auto insurance policy.

Underinsured Motorist coverage provides the protection to pay for medical expenses or property damage if you are involved in an accident with an at-fault driver whose liability limits are too low. This insurance will typically cover the excess amount up to the policy limits after the at-fault drivers limits are exhasted. 

Comprehensive and Collision Coverage

Comprehensive auto insurance coverage covers loss to your vehicle resulting from incidents other than collision. For example if your car is stolen,vandalized, damage by a flood, fire, animals or other natural disasters. This coverage helps pay for damages caused by random events beyond your control minus your policy deductible.

Collision coverage will help pay (minus your deductible) for accident-related damages that your vehicle sustains when it hits, or is hit by another vehicle or another object.

Personal Injury Protection (PIP)

Your PIP coverage will cover medical expenses up to the policy limit regardless of who is at fault. This coverage only applies to medical expenses of the injured driver and passengers in your car. It does not cover property damage.

Optional Auto Insurance Coverages

Rental car coverage pays for a rental car for a limited time while your vehicle is being repaired. 

Roadside auto insurance coverage pays for assistance when you are having car trouble. 

Accident Forgiveness is an optional coverage that helps you avoid a rate increase following the first at-fault accident on your policy.

Gap Insurance pays the difference between what you owe on your auto loan and your totaled car’s actual cash value.

Glass coverage pays for damage to windows in your vehicle. Some insurance companies offer no-deductible glass coverage.

The Importance of an Insurance Review

In conclusion, there are many options available when it comes to your auto insurance coverages. It is very important to understand the different liability limits available to choose from. For example, you may have significant assets to protect and state minimum liability limits would not be adequate insurance coverage for your protection. You may need higher limits like a $500,000 CSL auto insurance policy with and an umbrella insurance policy for one million dollars. Talk to one of our independent agents today to review the proper auto insurance coverages needed to protect your assets! Start by calling us at 801.607.5241 or by getting an instant online quote to compare rates from multiple companies.