Good Wednesday Morning everyone! I hope you are all enjoying this beautiful spring day! I received a lot of good questions about coverage and what exactly people have this week so below I have explained some things for you and I have attached the podcast as well in case you missed it or you would like to see it again.
Spring time is a good time to clean out your home, did you know it’s also a good time to clean up your insurance policies as well? We love to do yearly reviews with our clients where we go over their policies to explain the coverage they have to make sure it still fits their individual needs. This is also important if you are shopping for a new or cheaper rate.
I bet you were not aware that every liability policy is not the same or that when you call for a quote and ask for full coverage you may not be getting the coverage you have quoted back for you. I didn’t know these things before I became an agent and I have made it my mission to inform you and teach you how to better protect yourself by having the best possible coverage you can afford.
Below I will give you an example of “Jane Doe” and her two vehicles one is a full coverage auto and the other is liability only. If you are like “Jane Doe” and you call for a quote it is likely you only ask for full or liability coverage and don’t think twice that their could be differences between carriers and even agents offices.
Vehicle 1 has liability
BI 25/50 BI= Bodily Injury coverage pays for the costs associated with injuries to the other person or people involved when you are at fault in an accident. The 25/50 represents 25,000 per person which is the amount your policy will pay per person, and 50,000 per accident which is the max they will pay per accident overall.
PD 25 PD= Property Damage coverage pays for another person’s property that is damaged when you are at fault in an accident. Examples of property damage could be damage to a home that was hit, a utility pole, another vehicle, fence, etc. The 25 is 25,00 which is the max amount the policy will pay out for these type of damages.
Anything else that you add to a liability policy is considered elective coverage and may or may not be included in a quote so pay attention to what you have currently and what you are being quoted.
UM BI 25/50 UM BI= Uninsured Motorist Bodily Injury, while it is a law in the state of Ohio to have at least BI and PD coverage on every vehicle that is being driven, not everyone follows the law so there are uninsured drivers out there. This covers the injuries of others caused by an uninsured motorist. The 25/50 represents 25,000 per person which is the amount your policy will pay per person, and 50,000 per accident which is the max they will pay per accident overall.
UIM BI 25/50 UIM BI= Under~insured Motorist Bodily Injury, will pick up coverage when the person who has caused an accident has insurance coverage but the cost of the injuries go beyond their coverage limits. If someone only has state minimum limits they only have 25/50. When there are injuries to multiple or even if one person is hurt badly those bills can add up quickly. If just one person has bills over 25,000 or you have two or more people who’s combined injuries are over 50,000 that’s when your UIM BI will pick up coverage.
UMPD 10/250 UMPD = Uninsured Motorist Property Damage, this covers damage to property that is caused to an uninsured motorist, an example of this would be your vehicle. The 10,000 is the limit the policy will pay out per accident and the 250 is your deductible.
MED 5,000 MED= Medical Payments coverage which covers medical payments or funeral expenses of covered drivers and passengers after an accident, regardless of who is at fault. The 5,000 would be your limit per accident.
Keep in mind the numbers referenced above (25/50) are Ohio’s state minimum and your policy may have higher limits depending on your needs. (For questions regarding liability limits give me a call for a intensive review)
Vehicle 2 has Full coverage
COMP 500 COMP= Comprehensive coverage gives you coverage for damages not resulting in a collision, some people refer to this coverage as things that cannot be helped or are an “act of God”. Some examples are; collision with an animal, theft, vandalism, storm damage, etc. The 500 is your deductible. A deductible is the specified amount of money that you must pay before an insurance company will pay your claim. (The deductible you choose can be a different amount based on your individual needs)
COLL 500 COLL= Collision coverage gives you coverage for damages resulting from a collision with an object. This can be another vehicle, or a stationary object such as a tree, house, telephone pole, guard rail, etc. You are usually at fault in a Collision accident but this coverage can also be used to fix your auto if you are hit by an uninsured motorist. The 500 is your deductible.
The above are the only coverages that are included in a full coverage policy. Anything else is considered elective and may or may not be included in a quote so pay attention to what you have currently and what you are being quoted.
UM BI 25/50
UIM BI 25/50
Towing Coverage- Towing car coverage or road side assistance can cover a tow, lock out, or help you if you run out of gas depending on the company so read your tow policy to know what you have covered.
Rental Car Coverage 50/1000- Rental Car coverage pays for a rental car if your car is in the shop due to an covered accident. The 50 is the amount the company will pay per day the car is in the shop and the 1000 is the total amount per accident the company will pay. Each company has a different policy on rental coverage so be sure to check with your policy for your specific coverage.
I have only given you the basics today and it’s just the tip of the ice burg. So if you have questions please feel free to call me or message me I am more than happy to help you.
Keep those questions coming for next weeks podcast!