Are You Covered?

Written By: Raphael Baker

If you are like most people, you don’t really understand car insurance. Many people just know that it is something you are required to have, and think that the amount of coverage you have is unimportant. Many others feel that they are paying too much, but getting nothing in return.

What people fail to realize is that car insurance protects you and your family. Not only can it provide money for you and your passengers in the event of an accident, but it can protect you if you cause injury or damage to someone else. For instance, let’s say you accidentally hit a school bus full of children. More than likely, the children’s parents are going to sue you. If this happens, and you are not properly insured, your personal assets can be seized and your paychecks can even be garnished.

To help you better understand car insurance, I have created a list of some of the common coverage available along with explanations:

Comprehensive Coverage
Comprehensive coverage will pay for the repair of your car due to damages caused by glass breakage, fire, theft, vandalism and falling objects. While this coverage is typically optional, it is required if you are making payments on your car. Some people choose high deductibles to offset their insurance premium, but I suggest that you choose a lower one. If you have some damage to your car, do you really want to pay $1,000 for something before the insurance company pays anything?

Collision Coverage
This coverage pays for the repair of your car due to impact with another vehicle or object. It provides coverage if your car flips over. This coverage is also optional.

Liability Coverage
This type of coverage pays money to a third party if you are found at fault. This type of coverage is required in all states. The two types of liability coverage are Bodily Injury and Property Damage.

Bodily Injury
This coverage is extremely important. It pays if your vehicle causes bodily harm to others. Some people choose the state minimums, but my advice is that you avoid doing this at all costs. While you think you may save a few dollars in the beginning, you will pay majorly if you get sued for medical bills and even wrongful death. Selecting higher limits will only increase your premium by a minimal amount.

Property Damage
This is another extremely important coverage. It pays if your car causes damage to someone else’s car or property.

Uninsured Motorist Coverage (Bodily Injury and Property Damage)
Although this coverage is optional, I recommend that you have it. This coverage will pay you if you are injured or your car is damaged by someone that does not have insurance. This is important because there are so many irresponsible, uninsured drivers on the road today.

Underinsured Motorist Coverage (Bodily Injury and Property Damage)
This is often purchased in conjunction with the Uninsured Motorist Coverage. This coverage provides payment if you are injured or your car is damaged by someone who has insurance but doesn’t have enough insurance to cover your loss.

Medical Payments
This is an optional coverage that provides payments to you or your passengers regardless of fault. This will also provide payment to you if you are injured while walking if you are struck by a vehicle.

Rental Car Reimbursement
This is completely optional, and will provide payment for a rental car in the event of a loss that is covered under your policy. Please be advised that you cannot use this coverage if your car is disabled or in the shop for maintenance issues.

Towing and Labor
This is another optional coverage that will provide reimbursement for towing expenses in the case of an accident.

You work hard to provide for yourself and your family. Everything can be gone in a flash if you are not correctly covered. Protect those you love by contacting your insurance professional today to receive an insurance checkup.

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