When purchasing an auto insurance policy, you have many different choices when it comes to individual coverage
options. Each option protects you against various types of losses. It is important that you understand the
different coverages so that you can decide which ones are suitable for you to include in your personal insurance
package. The section below covers some of the basic coverages found in an auto policy:
Bodily injury (BI) liability coverage covers, up to the coverage limits, costs related to
covered injuries you may have caused to other people in an accident. This coverage also
provides for legal defense in case you are sued as a result of an accident. In case you are
at fault in an accident,
your property damage (PD) liability pays for the covered damage you cause to the other
vehicle and/or property. This coverage is required in most states. This coverage does not
cover theft, comprehensive, collisions, nor no-fault accidents.
This coverage is responsible for paying, up to the coverage limits, for doctor, hospital,
and funeral
expenses for you or any of your passengers that are injured or killed due to an accident, no
matter who is at fault. The payments are, for the most part, limited to one to three years
post-accident. Medical payments coverage is optional in most states.
Uninsured (UM)/underinsured (UIM) motorists coverage can help pay for damages and medical
costs that
result from an accident caused by someone who has either no insurance or inadequate
insurance coverage. Uninsured Motorist Property Damage (UMPD) pays for damages if your
vehicle is hit by a driver without insurance or if you are the victim of a hit-and-run. This
is
applicable in most states. If your liability coverage is at the minimum state limits,
usually
you can purchase UM coverage, but not UIM. UM/UIM coverage does not apply to hit-and-run
losses.
Responsible for paying, up to the coverage limits, for the damage that is done to your
vehicle you operate due to a collision or a rollover. If you have a vehicle loan, you are
most likely required to have collision coverage. This coverage is most applicable when the
driver is responsible for the damage due to the accident. This coverage usually assumes a
deductible out of the policyholder's pocket.
Responsible for paying, up to the coverage limits, for the damage of your vehicle or a
vehicle in your custody due to theft, fire, vandalism, flooding, hail, or other hazards (not
including collision or overturning). This happens most of the time when the car is parked
and not in motion. If you have a vehicle loan, you are most likely required to have
collision coverage.
Responsible for paying, up to a specific amount, for the costs of a rental vehicle during
the time your vehicle is being repaired for the damage that is covered under your specific
policy. If you cannot afford to be without a vehicle during the time yours is getting fixed,
you should consider getting this coverage.
Responsible for covering the incurred costs of the services required at the location of the
breakdown or the towing expenses. It also covers the delivery of gas, oil, or a battery;
however, this does not include the cost of the previously mentioned item.
The amount of auto insurance and the coverages you need depends on a number of factors, including
the type of vehicle
you drive, your driving history, and your state's minimum coverage requirements. You should also
consider your own financial situation and how much risk you are comfortable with.
Piedmont Insurance and Business Group is here to help you and answer any of your questions regarding your auto insurance options. Our agents are available to help break down your coverage options.
Piedmont Insurance and Business Group is here to help you and answer any of your questions regarding your auto insurance options. Our agents are available to help break down your coverage options.