Have you ever taken a look at your auto insurance policy, and wondered what was with all the words, titles, numbers, etc. Words and titles, and numbers…oh, my! Never fear, coverage breakdown is here! We are going to cleverly explain some of the most common coverages that are found on auto insurance policies by creating a common scenario. The parties involved are A)You and B)Sam

LIABILITY-
Visualize  a traffic light right outside of your office. Let’s say you run the light and hit Sam, Therefore the accident is your fault. Now, if Sam is injured, your Insurance company will pay up to $50,000 for his medical expenses. If his family is with him and everyone is injured,  your Insurance company  will pay up to $100,000 for medical expenses.  Your Insurance company will also pay up to $50,000 to have Sam’s vehicle repaired or replaced, as it was prior to the accident.

Limits vary from State minium 30/60/25 to 250/500/250

 

PIP- Now, if you are injured in the accident,  your Insurance company will pay up to $5,000 for your medical expenses and up to 80% of your lost wages. Of course, the maximum payout is $5,000.

Limits vary from $2500 to $10000

 

TOWING- If your car is not drivable then your Insurance company  will pay to have it towed to the body shop of your choice.

 

COLLISION- Since the accident was your fault, if your vehicle was damaged, you’re responsible for the first $500(your deductible) and your Insurance company will pay the remainder to repair or replace your vehicle as it was prior to the accident.

Deductibles vary from $50 to $1500

 

RENTAL-  While your car is in the shop being repaired, your Insurance company will supply you with a rent car for up to 30 days at $35 a day.

Rental Limits vary from $30 a day to $50 a day

 

COMPREHENSIVE (OTHER THAN COLLISION)- You also have Comprehensive Coverage on your policy. This, too, has a $500 deductible. This coverage covers anything that is not a collision. Some, examples of this are hail damage, vandalism and theft.

Deductibles vary from $50 to $1500

 

UNINSURED/ UNDERINSURED MOTORIST- Now, let’s reverse this accident. Sam runs the traffic light and hits you, and then he tells you that he doesn’t have any insurance. If you are injured,  your Insurance company will pay up to $50,000 for your medical expenses. If your family is with you and you all are injured your Insurance company will pay up to $100,000 for your medical expenses as well.  Your Insurance company will also pay up to $50,000 to repair or replace your car as it was prior to the accident… after a $250 deductible.

Limits vary from State minium 30/60/25 to 250/500/250

 

So, although your car may be a foreign one, your insurance policy does not. 

Posted 3:09 PM  View Comments

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