The Complicated World of Auto Insurance Pt. 2
In our last blog post I talked about liability coverage relative to your auto insurance policy. Liability insurance includes both bodily injury and property damage coverage.
The next type of insurance that I’d like to discuss is collision. Collision insurance will reimburse you for the cost of repairs to your vehicle following an accident. You will generally choose a deductible ranging from $500 to $1000, meaning you will be responsible for that initial amount. We suggest that you only choose collision coverage if you have a car less than 5 years old. A good rule of thumb is to not pay more for collision coverage in a year than 10% of your car’s Blue Book value.
Comprehensive coverage is for incidents such as theft, fire and other damages or losses to your vehicle not resulting from a collision.
Personal Injury Protection (PIP) and medical payment coverage is for medical bills that you incur as a result of a motor vehicle crash. These coverages do not have the same restrictions associated with many health insurance policies in that you are free to go to any doctor you choose. For this reason you may want to carry extra medical payment coverage.
The final type of insurance available to you is uninsured and underinsured motorist coverage. This is the most undersold coverage. It is very important and very inexpensive, comparatively speaking. If you are hit by a driver that is uninsured or inadequately insured, this is the coverage that will protect you. The insurance companies tend not to promote this type of coverage as it is often not cost effective for them. But we consider this coverage to be absolutely essential.
I hope this brief overview has been helpful. If you or a loved one has been injured in a motor vehicle crash, one of our legal representatives at The Law Offices of Terry Bryant would be happy to talk with you about protecting your legal rights. You can call us toll free at 800-444-5000.
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