Dave_L
01-24-2007, 10:52 AM
Here are some things to help make sure you have the right insurance. There are a lot of agents out there and not all of them are going to do whats best for you (I know its hard to believe). When it comes down to it, it's your responsibility to know what your coverages are and what they are for. The point of insurance is to get you back to where you were prior to the loss. No better, no worse. So don't get mad when you dont get 10k for your 2k civic.
Here is a list of the coverages and what they are for.
Bodily injury- It's a split number i.e. 25/50, 50/100, etc. Its on a per person/per accident scale. This coverage is to pay for the other people's medical bills if you are at-fault for the accident. So for 25/50, the insurance company would pay $25,000 per person and a total of $50,000 per accident. Anything over those limits and they can come after you for. I dont recommend anything lower than 100/300 for this coverage.
Property damage- This coverage is for anyone's property you damage in an accident. Such as the other person's car, street signs, somebody's fence, etc. This is a pretty cheap coverage so 100K is recommended. After all, if you take out 1 mercedes, that could be 50k right there. Again, you can be held personally responsible for anything over these limits.
UM/UIM bodily injury- This coverage is for you and passengers if someone uninsured/underinsured hits you. Its for your medical bills, etc. NOT FOR YOUR CAR. The coverages are the same way as regular bodily injury. This is an optional coverage in CO but I still recommend having it. Matching limits to your bodily injury are also recommended.
Uninsured Motorist Property Damage- Not too many people know about this coverage. It's really cheap and it's a good deal if you have any liability only cars. It covers YOUR CAR if someone uninsured hits it or if its a hit/run. It might run $5/month to add that on. If you have collision coverage, you don't need this. It provides the same thing.
Collision- This covers your car if it collides with something and you're at-fault for it. It also can be used for a hit/run accident. You'll still have to pay the deductible but you wont get charged with an accident.
Comprehensive- This covers the car for any loss resulting from wind, theft, fire, hail, vandalism and it covers any glass on the car. It also applies to animals. So if you hit a deer on the highway, it will be filed under comprehensive. In the state of CO, comprehensive claims dont count against you. This also would cover your windshield so keep that in mind when choosing this deductible. A $0 deduct would get you a free windshield benefit. Some companies offer a seperate windshield coverage so ask about that. Also, ask how your company deals with chip repair. Some do it for free as long as you have comp (No matter what your deduct is) and some companies still make you pay your deduct.
Medical Payments- This is an optional coverage. It pays the first part of your medical bills if you're at-fault for the accident. The coverage amounts range from company to company so ask your agent. If you have health insurance, you don't really have to worry about this coverage. But let's say you have a $1,000 deductible on your health plan, you can have $1,000 med payments so you don't have to pay your deductible if you go to the hospital bc of an accident.
Towing and labor- The insurance company will pay if you have to get your car towed, lock your keys in your car, etc. This is a cheap coverage to add on and is a nice benefit to have.
Rental reimbursement- The insurance company will pay for your rental car if your car is disabled due to an accident. If your car breaks down, don't call your agent and ask if you can use this coverage for a rental car bc you cant and it irriatates us.
Sound System- If you have any stereo stuff not mounted in a factory location, this coverage is for you. It protects your subs, amps, etc.
Loan gap- Pays off the loan if the insurance value is lower than what you owe on the car after a car is totaled.
Aftermarket mods- Each company differs in this so the best thing to do is call your agent and ask what you need to do. Receipts and pictures always help out but call your agent before a loss happens.
Next, what does it mean to have liability only? Generally speaking, it would only consist of bodily injury, property damage and UM/UIM bodily injury. Nothing else. Also, the state only requires you to have 25/50/15 which is super low coverages. So don't say "Just give me the lowest you can" bc you will end up getting screwed.
Now, what does "full coverage" mean. Generally speaking, it will only consist of bodily injury, prop damage, UM/UIM bodily injury, collision and comp. That's it. That normally doesnt include rental reimbursement or towing. So ask your agent if you dont know. I normally put it on there if there is only 1 car or 2 cars and 2 operators. That way it doesnt become an issue later on after an accident but remember, a lot of agents just try to sell you on price and will strip the policy down.
I'll add on more as I think of more stuff but this is a good starting point. Dont forget, if you dont know what something is or what you have, CALL YOUR AGENT. Make an appointment and sit down with him/her and review your policy.
Here is a list of the coverages and what they are for.
Bodily injury- It's a split number i.e. 25/50, 50/100, etc. Its on a per person/per accident scale. This coverage is to pay for the other people's medical bills if you are at-fault for the accident. So for 25/50, the insurance company would pay $25,000 per person and a total of $50,000 per accident. Anything over those limits and they can come after you for. I dont recommend anything lower than 100/300 for this coverage.
Property damage- This coverage is for anyone's property you damage in an accident. Such as the other person's car, street signs, somebody's fence, etc. This is a pretty cheap coverage so 100K is recommended. After all, if you take out 1 mercedes, that could be 50k right there. Again, you can be held personally responsible for anything over these limits.
UM/UIM bodily injury- This coverage is for you and passengers if someone uninsured/underinsured hits you. Its for your medical bills, etc. NOT FOR YOUR CAR. The coverages are the same way as regular bodily injury. This is an optional coverage in CO but I still recommend having it. Matching limits to your bodily injury are also recommended.
Uninsured Motorist Property Damage- Not too many people know about this coverage. It's really cheap and it's a good deal if you have any liability only cars. It covers YOUR CAR if someone uninsured hits it or if its a hit/run. It might run $5/month to add that on. If you have collision coverage, you don't need this. It provides the same thing.
Collision- This covers your car if it collides with something and you're at-fault for it. It also can be used for a hit/run accident. You'll still have to pay the deductible but you wont get charged with an accident.
Comprehensive- This covers the car for any loss resulting from wind, theft, fire, hail, vandalism and it covers any glass on the car. It also applies to animals. So if you hit a deer on the highway, it will be filed under comprehensive. In the state of CO, comprehensive claims dont count against you. This also would cover your windshield so keep that in mind when choosing this deductible. A $0 deduct would get you a free windshield benefit. Some companies offer a seperate windshield coverage so ask about that. Also, ask how your company deals with chip repair. Some do it for free as long as you have comp (No matter what your deduct is) and some companies still make you pay your deduct.
Medical Payments- This is an optional coverage. It pays the first part of your medical bills if you're at-fault for the accident. The coverage amounts range from company to company so ask your agent. If you have health insurance, you don't really have to worry about this coverage. But let's say you have a $1,000 deductible on your health plan, you can have $1,000 med payments so you don't have to pay your deductible if you go to the hospital bc of an accident.
Towing and labor- The insurance company will pay if you have to get your car towed, lock your keys in your car, etc. This is a cheap coverage to add on and is a nice benefit to have.
Rental reimbursement- The insurance company will pay for your rental car if your car is disabled due to an accident. If your car breaks down, don't call your agent and ask if you can use this coverage for a rental car bc you cant and it irriatates us.
Sound System- If you have any stereo stuff not mounted in a factory location, this coverage is for you. It protects your subs, amps, etc.
Loan gap- Pays off the loan if the insurance value is lower than what you owe on the car after a car is totaled.
Aftermarket mods- Each company differs in this so the best thing to do is call your agent and ask what you need to do. Receipts and pictures always help out but call your agent before a loss happens.
Next, what does it mean to have liability only? Generally speaking, it would only consist of bodily injury, property damage and UM/UIM bodily injury. Nothing else. Also, the state only requires you to have 25/50/15 which is super low coverages. So don't say "Just give me the lowest you can" bc you will end up getting screwed.
Now, what does "full coverage" mean. Generally speaking, it will only consist of bodily injury, prop damage, UM/UIM bodily injury, collision and comp. That's it. That normally doesnt include rental reimbursement or towing. So ask your agent if you dont know. I normally put it on there if there is only 1 car or 2 cars and 2 operators. That way it doesnt become an issue later on after an accident but remember, a lot of agents just try to sell you on price and will strip the policy down.
I'll add on more as I think of more stuff but this is a good starting point. Dont forget, if you dont know what something is or what you have, CALL YOUR AGENT. Make an appointment and sit down with him/her and review your policy.