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Auto insurance blends several types of coverage
into one policy. Typically, your policy will include
some combination of comprehensive, collision,
medical, liability and uninsured motorist coverage.
So what do you need? It depends on your specific
situation. Liability pays for the damage you cause
to others if your car is involved in an accident.
It also protects you from being wiped out financially
if you are sued following an accident. The greater
your assets, the more you stand to lose. If you
have substantial financial resources, you may
need liability coverage that exceeds the coverage
that you'll get from an auto insurance policy.
In that case, a Personal Umbrella can provide
the extra liability protection you need.
Collision covers damage to your car from an accident.
We can help you decide whether or not to carry
collision coverage by balancing the cost of collision
insurance with the value of your car. It might
not be worth paying $200 a year for collision
insurance on a car that's worth only $1,000. But
if the car is worth $10,000, you probably want
this coverage.
Comprehensive coverage pays for your car if it
is stolen, vandalized or damaged in some way other
than in a collision. Medical coverage provides
for medical expenses to you and your passengers
that are the result of an accident. The way you
use your car may make a difference in the amount
of medical coverage you need. For example, we
might suggest more coverage for a parent who regularly
takes a carload of kids to soccer practice than
for a driver who expects to drive mostly alone.
Keep in mind that many states require certain
minimum levels of coverage. We'd be happy to talk
with you about these and other factors.
Bodily Injury Liability
Bodily Injury Liability coverage typically provides
coverage for damages which a person insured under
this coverage is legally obligated to pay because
of bodily injury they cause to others in a covered
accident.* If you are responsible for injuring
someone in an accident, you may be liable for,
among other things, the costs of their medical
treatment, lost wages, and pain and suffering.
These losses can be significant (sometimes totaling
hundreds of thousands of dollars) and, if you
do not have an adequate amount of insurance coverage
to cover the losses, the person you injured may
pursue your assets and income to cover the losses
not covered by your insurance. For this reason,
one rule of thumb for Bodily Injury Liability
coverage is to purchase the highest limit you
can afford.
Property Damage Liability
Property Damage Liability coverage typically provides
coverage for damages which a person insured under
this coverage is legally obligated to pay because
of damage they cause to the property of others
in a covered accident.* Consider the potential
costs if you destroy someone else's expensive
new car, or cause structural damage to a home,
or storefront. As with Bodily Injury Liability
coverage, some believe the most prudent decision
here is to purchase the highest limit you can
comfortably afford.
Uninsured Motorist Bodily Injury
Unfortunately, not every driver on the road maintains
insurance coverage, even though the law of most
states requires drivers to carry liability insurance.
And, of those who do carry liability insurance,
many have very low coverage limits.
Personal Injury Protection
Personal Injury Protection (PIP) coverage typically
provides coverage for reasonable and necessary
medical expenses, loss of income, and loss of
services for persons who are injured as a result
of a covered accident. It also may provide protection
for passengers as well as pedestrians in covered
accidents involving the insured vehicle.
Medical Payments
Medical Payments coverage typically provides protection
for reasonable and necessary medical expenses
incurred as a result of bodily injury sustained
by you (or other persons insured under this coverage,
such as your guest passengers) in a covered accident.*
Such expenses might include, for example, ambulance,
hospital, x-ray, dental and surgical expenses.
If you were injured in an accident, could you
afford to pay the medical expenses?
Collision
This coverage helps pay for damage to an insured
auto as a result of a covered accident with another
car, or a covered collision with most anything
else (such as a tree).* If your auto were damaged
in an auto accident, could you afford to repair
it?
Comprehensive
Comprehensive coverage helps pay for damage to
an insured auto not caused by collision. This
coverage typically includes, among other things,
coverage for damage caused by falling objects,
hail, fire, theft and vandalism, explosion, and
earthquake. As with Collision coverage, a deductible
you choose will apply.
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