If there’s one thing that we as humans hate, it being told we have to do something. Yet as any of us with drivers licenses know, Car insurance is something that we are forced to deal with for the rest of our driving lives. It is known for a fact that no respectable car dealer will allow you to drive off their lot without insurance. We know this is true for Reedman Toll Subaru. One of the first questions they ask is, “Who is your car insurance provider?” We pay each month for different levels of coverage, and many of us will never have to use the protection we’re paying for, that’s not really the point of insurance though. Insurance is meant to be a protection against the unexpected, a safety net in case the worst happens. The fact that most of us will never have to use our car insurance, and yet we still have to pay it every month is a sore spot for many, but let me break down the 4 basic types of coverage most policies offer and I’m sure you’ll understand why Insurance is important.
This is the single most important coverage offered by Insurance policies. Liability insurance is what covers you financially if you damage someone or their personal property. Liability insurance limits are generally listed on policies like this $25,000/$50,000/$25000. Looks odd I know but its very simple to read. These number basically mean that the policy will pay $25,000 per person injured in one accident up to a maximum of $50,000 for multiple people injured, and the policy will pay for up to $25,000 of other people’s property that you damage. This is basically what keeps you from getting sued in the event that you are at fault for the accident.
Comprehensive coverage covers your vehicle for anything not related to a collision. This can cover things like Deer, Storms, Falling Trees, and basically anything that’s not a car accident. Collision is what protects your car in the event that you are at fault during the accident.
Short for personal Injury Protection. This is like the medical coverage on your liability policy, but meant for you
Uninsured/Under Insured Motorist
Generally when you’re in a car accident, one part is declared to be at fault and their insurance is required to pay the damages up to the limits of the policy. But what happens when the person who hits your car has no insurance, or has insurance that wont even come close to covering your property or medical damages? Uninsured and Underinsured Motorist coverage fills in the gaps.