No one really thinks about auto insurance until they need it. Maybe you were involved in a traffic accident, got a dent or scratch in a parking lot, or need to seek medical coverage due to an accident. That’s when people tend to dig out their paperwork for coverage. That’s when the question arises: “Do we have enough coverage?”
As a local, independent insurance agency, we pride ourselves on getting to know our clients, figuring out their lifestyles (including car usage) and make recommendations on how much coverage is enough based upon what we know. It is one of the benefits of working with a small insurance agency. We have the time and motivation to talk to our clients and find out what they need from their auto insurance.
We often find ourselves giving professional advice on the type and amount of car insurance coverage you should have to meet your individual needs and comply with the laws of the state. While getting into specifics for each client would be difficult in a blog, we can tell you the types of insurance you may want to consider so you have a better understanding when you talk to one of our agents.
The three main areas of coverage you need to think about include: liability, comprehensive, and collision coverage.
Liability coverage encompasses both property damage and bodily injury. The minimum coverage for bodily injury varies by state and may be as low as $10,000 per person or $20,000 per accident. Many auto policies stop at a maximum of $300,000 or $500,000 per accident for Liability coverage. If you injure someone with your car, you could be sued for a substantial amount of money. The amount of Liability coverage you carry should be high enough to protect your assets in the event of an accident.
Again, the minimum liability that you must carry varies by state, but that minimum is not likely to be enough to protect you in a serious accident. With many cars costing upwards of $50,000, you could easily be responsible for a substantial repair bill if you hit someone’s car and it is totaled.
Without liability coverage, you would be responsible for paying the other driver’s property damage and bodily injury costs out of your pocket. Not having this type of coverage can mean a huge risk financially.
In the case of an accident, your collision coverage would take care of the cost to repair or replace your own car. No matter who is at fault, you will be covered with collision coverage.
Something you should discuss with your agent is how much deductible you should have on your insurance that will determine how much you need to cover before insurance kicks in. The higher the deductible, the lower your premium will be. Deductibles generally range from $250 to $1,000.
Comprehensive coverage covers all the miscellaneous things that can happen to your car like: hail storm damage, fire, theft, water damage, a tree limb falling on your car and the list could go on and on. Comprehensive coverage is generally sold together with Collision, and the two are often referred to together as Physical Damage coverage.
As with collision coverage, you will need to decide on your amount for the deductible. Work with your agent to help you figure out what amount is right for you.
Thankfully, at Phil Richard Insurance we take the time to discuss with you what each type of coverage is and how much you may want to set as your deductible. Contact us through our website or call us directly with questions. We are happy to help explain each step of the process and what each type of coverage is. Call us at: (978) 774-4338.