WHY AUTO INSURANCE?
Today’s cars are much more than an engine and four wheels. They are full of electronic devices and safety features that would make Henry Ford do a double take.
You should know what coverage you have from the moment you turn the key until you reach your destination. Going online and buying a policy may seem easy but what you believe to be reasonable cost coverage may not be enough to cover you in case of an accident. If you do not know how much coverage you have, what the rules of your state are and what you are being covered for, call us today! We can help you unravel the mysteries of insurance coverage, so you don’t have to worry.
MAIN COMPONENTS OF AUTO COVERAGE
To help you understand the basics of insurance here is a short primer in insurance-speak:
• Coverage for your car (Comprehensive and Collision)
• Coverage for the people in your car (Personal Injury Protection, Uninsured Motorist)
• Coverage for the other person’s car (Property Damage)
• Coverage for people in the other person’s car (Bodily Injury)
Comprehensive and collision are two types of physical damage coverage for your auto in case of an accident. Comprehensive and collision are both subject to a deductible which is the amount the policyholder must pay before the insurance covers the rest. The deductible can vary based on the needs of the policyholder.
Collision coverage applies when you have an accident that is your fault, including those times when you back into a fence or sideswipe a parked car. Hey, mistakes happen. Collision coverage is used to repair the damage to your vehicle so you can get back on the road.
Comprehensive coverage applies in instances such as striking an animal or vandalism to your vehicle. We can help you assess which policy and deductible is right for you and your vehicle.
Uninsured Motorist Property Damage insurance is for those situations when another motorist hits you and drives away, does not have insurance or is underinsured to cover damages.
You can also buy coverage for towing and rental car. Typically, rental car coverage starts if your vehicle is disabled due to a covered loss.
Many companies offer things like new car replacement, OEM parts, and gap coverage. These are all things you should consider when obtaining coverage and your agent should be able to walk you through your specific needs.
AN AUTO INSURANCE CLAIM STORY
Auto claims are a hidden iceberg many don’t see until it sinks their boat. Who is at fault, the location of the accident and terms of specific policies will be deciding factors in how much an individual could pay in the event of a collision.
One place where the details matter is when someone goes into business for themselves.
Recently, I met with a young couple starting their own sole proprietorship. In addition to the business coverage, they asked that I review their personal policies.
I saw that they had a home valued for more than $300,000 and two vehicles that were better than average. To my astonishment, their current agent had provided the couple with state minimum limits. State minimum insurance coverage would provide them with only $25,000 per person with a total of $50,000 per accident coverage for injuries to people in the other car if they were at fault for the accident.
Keep in mind that “according to the National Association of Insurance Commissioners (NAIC) an average cost for one air ambulance flight is between $12,000 and $25,000.” (https://www.thebalance.com/does-your-insurance-cover-an-air-ambulance-2645679)
State minimum insurance limits are not enough to cover anyone with any assets and certainly not a business and a home! I was able to communicate this to the customer, and we helped protect another family by educating them on the right limits to protect themselves and their assets.
We had actually considered leaving Farmers and then they changed our agent to Lucas Cole. Now, our questions are answered quickly, changes are prompt and appropriate, and some of our coverage has changed to better levels (while some went up, others even went down). Lucas seems to really care that Farmers provides what we need, he doesn’t just try to sell to us.