Here's what you need to know about Auto Insurance:
Some form of auto insurance coverage is mandatory in most states. In many cases, the minimum liability required by the state may not protect you entirely. Competition between insurance companies may influence the prices of minimum auto insurance requirements to attract customers – this is where you have to be very careful. Spending some consultative time with our insurance agent will help you understand how to protect your family and assets in the event there is an accident. While higher coverage limits may only increase your premiums slightly, these higher limits can offer you the peace of mind that you want.
A policy is made up of four general categories
- Liability- Coverage for damage you cause. This portion of the auto insurance policy is to pay for damage that you cause to others. Their damage could be to their property such as their vehicle, a telephone pole, a guard rail and so on. The damage could also be to their body, known as “bodily injury”.
- Physical Damage- Coverage for your car. This portion contains coverage commonly known as “Collision” coverage and “Comprehensive” coverage (sometimes called “other than Collision”). You will need to select a deductible for each of these coverages. A deductible is the amount you'll pay out of pocket for a covered loss before the insurance company starts to pay. Physical Damage coverage is optional, but it is required by most financial companies when a vehicle has a lien or loan against it.
- Medical (“Med Pay” or “PIP”)-With these coverages, you typically choose a limit, or the maximum amount the insurance company will pay for each covered loss.
- Uninsured / Undersinsured Motorist (“ UM / UIM”) – This coverage protects you and your passengers in the event that you are involved in an accident with a motorist that has no insurance or not enough insurance to properly cover damages to you.