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Published on November 10th, 2012 | by Buddy Davenport

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Is your Insurance Agent your “Buddy”

Wondering what covers you and your vehicle in case of an accident? Wonder no more.

Liability Coverage

How are you covered in case of an accident?

You were distracted while backing out of a parking space and didn’t see the car behind you until it was too late. You hit the car and you crashed through a fence too. Everyone in the other car seems fine, but the other driver and his passengers go to the emergency room just to make sure.

Liability Coverage pays damages due to bodily injury and property damages to others for which you are responsible. If you’re sued, it also pays your defense and court costs. Medical expenses, pain and suffering and lost wages are some examples of what Liability Bodily Injury may cover. Liability Property Damage covers damage to property and loss of its use.

How much coverage do you need?

Every state sets a minimum coverage level. Selecting more than the minimum coverage would increase your cost now but potentially give you more protection in case of an accident. Since it’s impossible to know the most you’d have to pay if you were to cause an accident that resulted in bodily injury or property damage, be sure to take some time and consider whether you would be able to afford any damages that exceed your insurance coverage. The higher your limits, the more likely it is that we’ll be able to pay all of the damages for you. Limits higher than the state minimum might be the best choice for you.

Medical Payments Coverage

How are you covered in case of an accident?

You were stopped at a red light when another car hit yours. You were injured. Medical Payments Coverage will pay reasonable and necessary medical and funeral expenses for covered persons.

How much coverage do you need?

The coverage is not required by most states, but it provides great coverage at an affordable price. The cost will correspond to the limits you select. There are no deductibles or copays, so this coverage can pay from the first dollar of incurred, covered expenses.

Collision Coverage

How are you covered in case of an accident?

It’s only a fender-bender, but the cost of the headlight, a new bumper and a paint job can add up quickly. Collision Coverage will pay for damage to a covered vehicle caused by the following, subject to a deductible:

  • Collision with another vehicle
  • Collision with an object
  • A vehicle rollover

How high should your deductible be?

Higher deductibles lower your premium but increase the amount you’ll have to pay out of your own pocket at the time of a loss. Ask yourself how much you’re willing to pay when a loss occurs to save money on premiums.

Comprehensive Coverage

How are you covered in case of an accident?

Who would have thought little hailstones could do so much damage? Your car is covered with dozens of dents. This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Typically, that’s coverage for the following, and it may be subject to a deductible.

  • Fire
  • Wind
  • Hail
  • Flood
  • Vandalism
  • Theft
  • Hitting an animal

How high should your deductible be?

Higher deductibles lower your premium but increase the amount you’ll have to pay out of your own pocket in case of a loss. Ask yourself how much you’re willing to pay when a loss occurs to save money on premiums.

Uninsured Motor Vehicle Coverage

How are you covered in case of an accident?

It’s a sad fact: There are people who drive without any liability insurance. What if you’re injured in an accident caused by one of these drivers? Uninsured Motorist Coverage will pay for damages when you are injured in a car accident caused by another person who does not have sufficient liability insurance. Medical expenses, pain and suffering and lost wages are some examples of bodily injury damages.

Should you get this coverage?

Doing so lets you decide how much coverage is potentially available to pay for your covered damages when you are in an accident caused by an uninsured motor vehicle.

Underinsured Motor Vehicle Coverage

How are you covered in case of an accident?

Many drivers carry low limits of liability coverage. What if you’re injured in an accident caused by an underinsured driver? Underinsured Vehicle Coverage will pay for damages when you are injured in a car accident caused by another person who does not have sufficient liability insurance. Medical expenses, pain and suffering and lost wages are some examples of bodily injury damages.

Should you get this coverage?

Doing so lets you decide how much coverage is available for your covered damages when are you in an accident caused by an underinsured motor vehicle.

Car Rental and Travel Expenses Coverage

How are you covered in case of an accident?

Your car is in the shop after a collision. Rental Reimbursement pays the cost of renting a replacement vehicle so you don’t have to interrupt your daily routine. Daily allowances or limits vary by state.

Should you get this coverage?

Consider how you’d get to work, school, or the store if your car were out of commission. If you depend on having a car available, could you afford to pay for a rental car yourself?

Emergency Road Service

How are you covered?

You’re in the middle of nowhere. The last gas station was miles ago. Suddenly, all of your power goes. The car coasts to a stop. Emergency Road Service will reimburse you for fair costs associated with towing, a jump start, or other things you need to get on your way. Examples of other items typically covered includes repair of a flat tire or locksmith services to get into a covered vehicle if you’re locked out. Coverage limits vary by state.

Should you get this coverage?

Consider how much you could afford to pay out of your own pocket if you were stranded.

Please remember that the following descriptions contain only a general description of available coverages and are not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements.

 


About the Author

Buddy Davenport



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