How can a driver figure out what type of coverage they will need on their car insurance policy. How can a driver figure out what type of coverage they will need on their auto insurance policy? No one wants to get suckered into purchasing more than what is needed, but so many people advise drivers to carry as much as possible because it’s better to be safe than sorry. These conflicting recommendations leave drivers spinning in circles as they try to figure out what they should do. Here, we won’t discuss what each individual driver must purchase because that decision should be made based on the driver’s circumstances. However, we will offer information on which types of coverage are offered and their purpose, as well as offer some tips in how to choose what is necessary for each driver.

Bodily Injury Liability: A requirement for almost every state, bodily injury liability comes in two forms. The first is coverage for each individual, or per person as it’s commonly referred to. The second type is per accident, or the total of all of the “per person” amounts. Often the per accident amount is double the per person amount. For instance, bodily injury liability, in Michigan is required in the amount of $20,000 per person and $40,000 per accident. To further describe it, this means that the insurer will cover up to $20,000 of the medical bills per person with a total payout of no more than $40,000 for all of the injuries combined. Sometimes this coverage can apply towards funeral expenses or lawyer fees. In all cases, this coverage only goes towards the other party of the accident, not the policyholder and their passengers. It is a way to pay for damages caused by the policyholder or members of the policy but in most cases, this would be far too low.

Property Damage Liability: This liability coverage enables the policyholder to pay for any damages they cause to another person’s property, be it a fixed structure, another vehicle, etc. The insurer will pay up to the amount that is purchased in the policy to fix the broken property. This is another required coverage in almost every state.

Medical Coverage: There are a few different forms of medical coverage, such as personal injury protection and medical payment. Both of these are forms of insurance that work similar to a healthcare insurance plan. Depending on which types and the amounts that are purchased, the insurer will cover the policyholder’s injuries (as well as the policy member’s injuries) in Michigan this amount is unlimited. Unlike bodily injury liability, these coverage options are gear specifically towards the policyholder, members, and sometimes also the passengers that were in the policyholder’s vehicle at the time of the accident. Also, for these coverage options, it does not matter who caused the accident. The insurer will pay the medical bills even if the policyholder was at fault. In some cases, lost wages are paid under a medical coverage on an auto insurance policy. Some states require a form of medical insurance.

Uninsured/underinsured Coverage: It’s no secret there are drivers who do not carry car insurance. When these drivers cause an accident, they have no way to pay for the damages done to the other driver and their vehicle. When uninsured or underinsured motorist coverage is purchased, the policyholder’s insurer will pay for the damages that are done by a driver who is not insured or has very little insurance. Whether or not the policyholder takes the other driver to court for damages is obsolete in this example, but policyholders know their property and medical bills will be taken care of as soon as possible because of this coverage.

Comprehensive and Collision: These are actually two different types of coverage, but they are usually paired together. Between the two of these, a policyholder’s vehicle will be covered no matter what or who caused the damage. Property damage liability only covers the other person’s vehicle, but comprehensive and collision can pay for the policyholder’s damaged vehicle even if it was stolen, vandalized, or a tree fell on it. Every insurer has their own terms, so be sure to understand exactly what is covered. These are not required by the state, but they are usually required by a bank if the vehicle is on loan. It is worthwhile to carry both coverage types if the cash value of the car is high, but if the cash value is low or nothing, comprehensive and collision coverage might not be worth the cost.

At Farm Bureau we offer Roadside Assistance standard when our client has either one of these.

Additional Options: Other types of coverage that are often offered by insurers are ones that will make life easier in the event of an accident. Rental services are available so that when a policyholder finds themselves in an accident and their vehicle needs repairs and towing, it can be arranged through the Car Insurer without cost at that time. These additional options, and others, should be thought through by the policyholder and weighed on their value to the policy.

How To Choose
When a policyholder is looking to purchase a new policy or add to their current policy, they should first look at their situation including their current savings account or extra money and how they would be able to pay for the different aspects of an accident if there should ever be one. Next, they should look at the cash value of their vehicle and decide whether or not it would be worth having full or partial coverage. Finally, they need to know the state laws and what is required of them.

When the state requirements are known, policyholders can then add to their policy according to their financial abilities. Paying for damages of a major accident is very costly and the policyholder might want to look at the costs of paying for more insurance. If more insurance doesn’t fit into your budget, we’ll look into what discounts can be applied to your insurance policy to save money and other ways to cut back on car insurance expenses. It may come down to finding a better, more insurance friendly vehicle to help save on better coverage.

At the Steve Bedgood Agency we are happy to offer our ideas of recommended auto insurance to every driver, and we understand the importance of finding the right policy for each driver. Feel free to call to get a feel for what different coverage options on your policy will cost. No one wants to get suckered into purchasing more than what is needed, but so many people advise drivers to carry as much as possible because it’s better to be safe than sorry. These conflicting recommendations leave drivers spinning in circles as they try to figure out what they should do. At our office, we won’t discuss what each individual driver must purchase because that decision should be made based on the driver’s circumstances. However, we will offer information on which types of coverage we offer and their purpose, as well as offer some recommendations on how to choose what is necessary for each driver.

Bodily Injury Liability: A requirement for almost every state, bodily injury liability comes in two forms. The first is coverage for each individual, or per person as it’s commonly referred to. The second type is per accident, or the total of all of the “per person” amounts. Often the per accident amount is double the per person amount. For instance, bodily injury liability in Michigan is required in the amount of $20,000 per person and $40,000 per accident. To further describe it, this means that the insurer will cover up to $20,000 of the medical bills per person with a total payout of no more than $40,000 for all of the injuries combined. Sometimes this coverage can apply towards funeral expenses or lawyer fees. In all cases, this coverage only goes towards the other party of the accident, not the policyholder and their passengers. It is a way to pay for damages caused by the policyholder or members of the policy.

However, you will want to be covered with enough to protect your other assets in case of a law suit.
Property Damage Liability: This liability coverage enables the policyholder to pay for any damages they cause to another person’s property, be it a fixed structure, another vehicle, etc. The insurer will pay up to the amount that is purchased in the policy to fix the broken property. This is another required coverage in almost every state.

Medical Coverage: There are a few different forms of medical coverage, such as personal injury protection and medical payment. Both of these are forms of insurance that work similar to a healthcare insurance plan. The auto insurer will cover the policyholder’s injuries (as well as the policy member’s injuries). Unlike bodily injury liability, these coverage options are gear specifically towards the policyholder, members, and sometimes also the passengers that were in the policyholder’s vehicle at the time of the accident. Also, for these coverage options, it does not matter who caused the accident. The insurer will pay the medical bills even if the policyholder was at fault. In some cases, lost wages are paid under a medical coverage on an auto insurance policy.

Uninsured/Underinsured Coverage: It’s no secret there are drivers who do not carry car insurance. When these drivers cause an accident, they have no way to pay for the damages done to the other driver and their vehicle. When uninsured or underinsured motorist coverage is purchased, the policyholder’s insurer will pay for the damages that are done by a driver who is not insured or has very little insurance. Whether or not the policyholder takes the other driver to court for damages is obsolete in this example, but policyholders know their property and medical bills will be taken care of as soon as possible because of this coverage.

Comprehensive and Collision: These are actually two different types of coverage, but they are usually paired together. Between the two of these, a policyholder’s vehicle will be covered no matter what or who caused the damage. Property damage liability only covers the other person’s vehicle, but comprehensive and collision can pay for the policyholder’s damaged vehicle even if it was stolen, vandalized, or a tree fell on it. Every insurer has their own fine print in the terms, so be sure to understand exactly what is covered. These are not required by the state, but they are usually required by a bank if the vehicle is on loan. It is worthwhile to carry both coverage types if the cash value of the car is high, but if the cash value is low or nothing, comprehensive and collision coverage might not be worth the cost.

Additional Options: Other types of coverage that are often offered by insurers are ones that will make life easier in the event of an accident. Car rental services are available so that when a policyholder finds themselves in an accident and their vehicle needs repairs and towing, it can be arranged through the insurer without cost at that time. These additional options, and others, should be thought through by the policyholder and weighed on their value to the policy.

How To Choose

When a policyholder is looking to purchase a new policy or add to their current policy, they should first look at their situation including their current savings account or extra money and how they would be able to pay for the different aspects of an accident if there should ever be one. Next, they should look at the cash value of their vehicle and decide whether or not it would be worth having full or partial coverage. Finally, they need to know the state laws and what is required of them.

When the state requirements are known, policyholders can then add to their policy according to their financial abilities. Paying for damages of a major accident is very costly and the policyholder might want to look at the costs of paying for more insurance. If more insurance doesn’t fit into your budget, look into what discounts can be applied to the policy to save money and other ways to cut back on auto insurance expenses. It may come down to finding a better, more insurance friendly vehicle to help save on better coverage.

We are happy to offer our ideas of recommended auto insurance to every driver, and we understand the importance of finding the right policy for each driver. Feel free call me at (231) 744-9099 for what different coverage options on your policy will cost.

www.muskegoninsuranceagent.com

Insurance. The word might make you cringe. To say the least, you may not be a big fan, but I would never live without it. Auto insurance is one of the most important types since most of us own a vehicle. However, there are risks to owning that vehicle: accidents, theft, vandalism and natural disasters.

Another thing to consider is that without auto insurance you are putting your assets and future earnings at risk. Therefore, auto insurance provides protection against those risks. Also, many states require a minimum car insurance coverage such as my home state, Michigan.

A Personal Auto Policy, is a contract between you and the insurance company. It contains the following: declarations page, part A – liability coverage, part B – medical payments coverage, part C – uninsured/underinsured motorist coverage, part D – auto damage coverage, part E – duties after accident/loss and part F – general provisions.

Part A covers any wrongdoing (claims here can be limitless).

Part B pays medical expenses for the driver and any passengers.

Part C is self-explanatory.

Part D includes collision (accident damage) and comprehensive (physical damage by other means). You can purchase either or both with or without a deductible (typically $100-$1000).

Part E explains the procedure after an accident or loss.

Part F deals with insurance fraud, bankruptcy of the insured (you) and policy cancellation.

With your car insurance there are several options: policy period and cancellations, premium payments, towing & labor coverage and transportation expense (rental) coverage. Auto insurance policies are typically for six months in Michigan although they may run twelve months. There are a variety of payments methods: entire amount, down payment followed by monthly installments, equal monthly amount for one year or quarterly. I personally pay monthly, with EFT Farm Bureau Insurance waives any monthly fees. Watch out for the service fees, which usually come with any payment method other than the entire amount.

The towing & labor coverage is for emergency roadside service at any time. Labor must be performed wherever the vehicle is disabled. This coverage extends to non-covered autos in the event the covered auto is disabled. Covered autos include recent auto purchases as long as you have notified your insurance company within 30 days of the purchase. The rental coverage is a set amount per day for alternate means of transport when the covered auto is disabled due to an accident. It is only valid if the covered auto is disabled for more than 24 hours. Sometimes, this coverage is available for stolen vehicles, but not always.

When it comes to calculating the correct coverage amounts, you should consider such personal factors as where you live, your financial circumstances, how often you drive, the way you drive and the size of your assets. Aside from those personal factors, the different coverage types must be examined. The liability coverage falls into two categories: bodily injury and property damage (people and property).

Bodily Injury Liability is crucial due to the fact that it includes payment of medical bills, lost income and pain and suffering. This isn’t the place to underinsure. Our typical liability coverage is 300/300/1000, meaning $300,000 per accident and $300,000 per person limit for bodily injury and $1,000,000 for property damage.

 For medical payments coverage (PIP – Personal Injury Protection), which covers medical expenses for up to three years after an accident, In Michigan, PIP coverage is unlimited as of this posting.  An important note: health insurance doesn’t cover passengers that aren’t on your health insurance policy.

 The uninsured/underinsured coverage should be $300,000 per person and $500,000 per accident. This sounds expensive, but in reality it’s quite inexpensive in relation to the whole policy premium.

With collision and comprehensive coverage, the actual cash value of the vehicle is the key. If your vehicle is older, this coverage is not necessarily cost effective. Also as previously mentioned, this usually has a deductible of $100 to $1000. Keep in mind: the higher the deductible, the lower the premium and vice versa. This endorsements include towing & labor,

And finally, a few words on filing a claim. Most importantly, report it immediately to the police and your insurance company. Verify how to proceed with your insurer. Make sure to keep excellent records in order to provide proof of loss with the police reports, medical expense and vehicle repair bills. Before an accident or loss is the perfect time to read over your policy to clarify any questions. Of course, you may not understand the “legalese”, but perhaps you’ll uncover some important information. And check your other insurance policies (health, homeowner’s, etc.) to see if they might cover anything involved with your loss.

The best way to do this, in my opinion is to come see me for a review. Wether it’s your Farm Bureau Insurance policy or another auto insurance policy, I’ll help you make sure you’re getting the best policy for your money.

So now that your mind is spinning with all these facts, take a break. Find your auto insurance policy and go through it with this article handy. Then give me a call. I’m sure you’ll come away with a greater understanding of your policy. Information is power, use it! Also check out www.muskegonautoinsurance.net to learn about our agency.

See if you are getting the best price on auto insurance  in Muskegon call me at (231) 744-9099 or www.SteveBedgoodAgency.com