Auto Insurance
Pays damages to the victim vehicle and passengers: Liability:
Bodily Injury: This pays for the victim vehicle passenger’s medical expenses, pain/suffering, lost wages and your legal fees. Coverage levels rage from $25,000 per person/$50,000 per incident (25/50) to $500,000 per person/$500,000 per incident.
Property Damage: This pays for property damaged by an offender vehicle. This could be a victim vehicle, a fence, a city electric box etc. Coverage levels range from $15,000-$500,000.
Pays for injuries and lost wages for the offender vehicle passengers:
Uninsured motorist: If a victim vehicle is hit by an offender vehicle without insurance, not enough insurance or runs, this coverage will cover medical expenses, pain/suffering, lost wages and legal fees. Coverage levels rage from $25,000 per person/$50,000 per incident (25/50) to $500,000 per person/$500,000 per incident.
Medical: This coverage applies regardless of fault. It is also a per person coverage, meaning if the level is $5000 and there are 4 people in the car, each person will have access to $5000. This will pay for immediate medical expenses, apply towards a health insurance deductible, funeral expenses and more. Coverage levels range from $5,000 to $25,000, higher with some companies. Customers who have leaned on this coverage choose the highest level possible.
Pays to restore or replace the vehicle:
Comprehensive (other than collision): This coverage applies to your vehicle. It becomes available for damage caused by: Hail; Vandalism; Theft, Collision with an animal and more. Coverage will begin after your chosen deductible and cap at the value of the vehicle. If you vehicle is worth $10,000 and you have a $500 deductible, you have $9500~ in coverage. If the cost to repair your vehicle is higher than the value, the vehicle will be “totaled.”
Glass coverage: If you have to repair a chip, that will be taken care of with no deductible if you have comprehensive coverage. If you have to replace a windshield, that is when this coverage will take effect. This will either reduce or waive your comprehensive deductible. Get an estimate of the cost to replace your windshield, and compare that to 3 years of this extra premium. That can help you decide if the extra cost makes sense.
Collision: This coverage applies to your vehicle. It becomes available for damage caused by: Car accidents, victim of hit/run, collision with any object. Coverage will begin after your chosen deductible and cap at the value of the vehicle. If you vehicle is worth $10,000 and you have a $500 deductible, you have $9500~ in coverage. If the cost to repair your vehicle is higher than the value, the vehicle will be “totaled.”
Uninsured Motorist Property Damage: This coverage applies to your vehicle. It becomes available for damage caused an uninsured, underinsured or at fault driver than runs. Coverage will begin after your chosen deductible and cap at the value of the vehicle. If you vehicle is worth $10,000 and you have a $500 deductible, you have $9500~ in coverage. If the cost to repair your vehicle is higher than the value, the vehicle will be “totaled.”
Additional common coverages:
Towing/Roadside: This gives access to towing, battery boost, tire changes, or other basic things needed to get you back on the road. Some towing can be limited miles. Clarify the details with your insurance company.
Rental or Loss of Use: These are the coverages that will provide a rental car for 30 days. “Rental” will pay the rental company directly. “Loss of Use” will pay the insured directly. These coverages become available if your vehicle is not drivable due to a comprehensive or collision situation.
GAP or Loan/Lease payoff: When you vehicle is totaled, the value could be less than what is owed. You may owe $10,000, but the value is $8,000. The $2,000 difference is the GAP. I suggest purchasing this with the loan, but some insurance companies do offer it. The issue is: Not all companies offer it, and some companies that do offer it have limitations.
| Coverage | Suggested minimum |
| Bodily Injury | 100/300 |
| Property Damage | 100 |
| Uninsured Motorist Bodily Injury | 100/300 |
| Medical | 10,000 |
| Comprehensive | 500-1000 Deductible |
| Glass coverage | compare premium to the cost of replacement |
| Collision | 500-1000 Deductible |
| Uninsured Motorist Property Damage | Consider this if you do not have comp/coll |
| Towing/Roadside | Include |
| Rental or Loss of Use | 50/1500 |
| Gap or Loan/Lease Payoff | Purchase with the car loan |
