In my last blog I covered the most important part of Automobile Insurance Coverage – Liability Insurance. This blog I will tackle the other items in what can be described as “Full Coverage”.
Uninsured Motorist Personal Injury Protection (UMPI)
To start off, let’s look at Uninsured Motorist Personal Injury Protection (UMPI). This coverage is similar to the Personal Liability Coverage except instead of protecting the other driver and their passengers it protects you and your passengers if the other driver doesn’t have any insurance. You would obviously want the same level of coverage for yourself that you are affording other people (i.e. if you have 100/300 for your personal liability you should have 100/300 for UMPI).
Underinsured Motorist Personal Injury Protection (UIMPI)
Underinsured Motorist Personal Injury Protection (UIMPI) is similar to the above but it addresses those drivers who do not have enough insurance coverage. Say you are hit by someone carrying the State minimum insurance 25/65/15. If your personal damages exceed the $25,000 allowance, then this coverage would step and fill the gap for up to the stated limit. Again, you would want this to match your Personal Liability limits (i.e. 100/300).
Now let’s get into the area where people most commonly refer to FULL COVERAGE.
If you have a loan or lease on your vehicle, these first two are required by the lending/leasing company to protect their investment in your vehicle.
Collision
Collision – Covers your vehicle if it has been in a collision with either another vehicle or stationary object. Normally there is a deductible which can range from $0.00 up to $1,000. The higher the deductible the lower the premium. That means if you’re in an accident you get reimbursed the amount to repair or replace the vehicle as determined by the insurance adjustor, less the amount of the deductible.
Comprehensive/Other Than Collision
Comprehensive/Other Than Collision – This covers everything else that may happen to your vehicle that may be out of your control: theft, floods, hail, fire, spooked animals (acts of God or nature). Again, there is normally a deductible which can range from $0.00 to $1,000.
Glass Coverage
Glass coverage – With all the new sensors and cameras that are in the newer vehicles this coverage almost becomes imperative as the cost of replacing the front or rear windshields has become very high. Most companies offer this with either no deductible or a small deductible.
Uninsured Motorist Property Damage
Uninsured Motorist Property Damage – This is only necessary if you do not carry Collision and Comprehensive coverage on your vehicle. The coverage is up to $3,500 depending on the value of your vehicle and the damage that has occurred less a $250 deductible. It is very inexpensive coverage because it only covers your vehicle if it is damaged by another vehicle and the other driver has no insurance.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) – This covers medical claims for you and your passengers even if there is no collision involved. This is a “no fault” coverage insurance. The State of Utah requires that each policy carry at least $3,000. Higher amounts are available up to $25,000 with an additional $10,000 available. Along with this you need to select if you wish to accept or reject Work Loss Coverage with PIP to cover wages due to work loss and rehabilitation services.
Medical Payments
Medical Payments – provides additional medical assistance for emergency room visits, surgery and follow-up visits. This is usually an optional coverage. In some states that do not have PIP it may be required.
Roadside Assistance/Towing
Roadside Assistance/Towing – The coverage amount on this varies by company with some having unlimited or “reasonable” coverages, but most generally offer amounts of $25 to $100 coverage.
Loss of Use/Rental Reimbursement
Loss of Use/Rental Reimbursement – This covers your transportation while your vehicle is being repaired. It usually allows a per diem (certain amount per day) for a maximum number of days. For example, your coverage may provide $30 dollars per day with a maximum claim limit of $900 dollars.
Loan/Lease Coverage
Loan/Lease Coverage – If you have a new vehicle that you are either leasing or have a loan, this covers the difference between what you may owe and what the vehicle is worth should the car be damaged beyond repair costs. Auto dealers offer this as “GAP insurance,” but it is usually much less expensive if added to your auto insurance. The vehicle has to be less than two years old to qualify for this coverage.
While not an “all inclusive” list, these are the common coverage options offered by most companies. As you can see there are a lot of decisions that have to be made when purchasing insurance and I would encourage you to speak to your agent to make sure you are getting the right coverage for your situation.
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Contact us today for a free no obligation review on your auto insurance. Big Pine Insurance provides auto insurance services in Utah, Arizona and Idaho.
Douglas Boyer - Agent
I began my career in the insurance business in January of 2011 focusing on auto, home and life insurance. I can help you design the right insurance plan to protect your family or business.
