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What does my car insurance cover?
Let’s take a look at “what does my car insurance cover?” To most people car insurance is Greek; they either know that they have full coverage or liability. Some know that they have a 500 deductible, but all in all only 5% can explain their insurance coverage. We have an example that we will explain line by line.
BODILY INJURY/PROPERTY DAMAGE 50/100/50
UNINSURED MOTIRIST BODILY INJURY 50/100
UNINSURED MOTORIST Property damage 50/200
MEDICAL COVERAGE 5,000
COMPREHENSIVE 250
COLLISION 500
TOWING YES
RENTAL CAR YES
BODILY INJURY/PROPERTY DAMAGE 50/100/50:
This is the liability you are insured for. The first number 50 stands for 50,000; this is how much is paid to bodily injuries to others that you have injured. This is per person; if their injuries exceed 50,000 then you are responsible for the rest. The 100 stands for 100,000 this is the total amount paid for all injuries total. So let’s say you hit a family of 4, each member suffers 30,000 in injuries for a total of 120,000. If you had the policy above 100,000 would be covered, but you would be responsible for the other 20,000. The last 50 also represents 50,000 but this applies to property damage. So any vehicle you damage with you car is covered up to 50,000. Let’s hope you do not hit a new Mercedes.
UNINSURED MOTIRIST BODILY INJURY 50/100:
Uninsured motorist coverage protects you in case you are hit by a driver who has no insurance, or does not have enough coverage to cover your injuries. In the example above if you were hit by a driver who’s coverage’s were 25/50/25 (state minimums) and your bodily injuries were 35,000, then their insurance would pay 25,000 and your uninsured coverage would cover the remaining 10,000. The 50/100 represents 50,000 per person and 100,000 per total accident. This coverage is vital to you being covered and it only cost a couple buck a month. Always make sure you liability limits match your uninsured limits. Some agents lower these limits and the clients get burned.
UNINSURED MOTORIST Property damage 50/200:
This coverage works the same way as the uninsured motorist bodily injury except it covers your vehicle. The 50 equals 50,000 and is the amount your insurance will pay to repair your vehicle if the at fault party has no insurance, or their limits are to low. The 200 stands for two hundred dollars, if you have to file an uninsured property claim you have to pay a 200 deductible. Once your insurance company gets your vehicle repaired they then subrogate against the at fault party. Subrogate means that your insurance company goes after the at fault party to collect the money they paid out and your deductible.
MEDICAL COVERAGE 5,000:
This coverage is design to cover you for your bodily injuries if you are at fault, but if you have major medical insurance it will over ride and you will not need this coverage. This coverage will also apply to others in your vehicle that are injured due to you being at fault. This is an optional coverage, but if you choose to keep it the cost are usually around 20 a year.
So far we have covered the liability, uninsured motorist, and medical coverage these are the basic coverage’s that make up a LIABILITY policy. A liability policy covers other property and injury due to your negligence. It does not cover your vehicle that is where your deductibles come into play. Let’s look at the comprehensive and collision.
COMPREHENSIVE 250:
The 250 is your deductible, the insurance company will pay the total cost to repair your vehicle minus your deductible. Comprehensive covers your vehicle for acts that are out of your control. Example would be falling objects, theft, deer, and any acts of god. A claim filed under comprehensive does not cause your rate to increase, it is considered no fault. Usually this coverage is very inexpensive and you can carry a lower deductible than collision.
COLISSION 500:
The 500 is your deductible, this coverage works the same way as comprehensive except this covers your vehicle due to an accident being your fault. So if you hit someone else, or run off the road and damage your vehicle the insurance company will fix your car minus your deductible. Now, filing a collision claim does count against you and can make your rate go up.
TOWING / RENTAL CAR:
These options are self explanatory these are additional options you can add or remove. They usually cost about 20 a year. Also if someone else hits you and does not have rental then their insurance will not pay for you to have it. So it is safe to carry in case someone hit you and you need a rental.
I tried to make this as brief but informative as possible, readers who like this article also read “Cheap Online Car Insurance Quote” In this article I explain how to get agents to compete for your business and how to force them to give you the lowest rate.
We strive to help people find the right coverage, at the lowest rate, from local agents.
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