Where our office is, in Muskegon, Michigan, when people ask for PL & PD they are normally asking for a lower cost policy. This is normally because either the vehicle is older and the client doesn’t feel they want to pay the extra cost for physical damage coverage or they just simply can’t afford the extra expense.

In Michigan, a “No Fault” state, the only way to get physical damage coverage is to buy it. If you are in an accident in Michigan, each car’s insurer pays to fix their client’s car if they’ve purchased the coverage.

Put another way, if you only have PL & PD (Personal Liability and Property Damage) your car will not be repaired buy either insurance company no matter who is at fault.

“So what good s that kind of coverage?” you might ask. I’m glad you asked.

First, you have  Bodily Injury coverage. This provides coverage for you if you are at fault in an accident and you injure someone to the point that they become dead, disabled, disfigured or loses in income in excess of $4000.00 per month. You can choose anywhere from $20,000 to $1,000,000 coverage on this. I wouldn’t recommend any less than $300,000.  Without the physical damage on the policy this should be affordable for most people.

A second type of coverage provided by PL & PD is Property Damage. If you run your vehicle into a building, guard rail, pole or some other property that belongs to someone else, they can file a claim with your insurance company and save you the expense of having to make restitution for the damage.

A third type of coverage is PIP. (Personal Injury Protection) In Michigan, insurance companies must pay 100% of medical expenses if you personally are injured. This can have a value of thousands of dollars.

With PL & PD you can also choose to have Uninsured/Underinsured Motorist coverage. This allows a person in your car protection in case you are not at fault in an accident but the person who hits you has either no insurance or the minimum required by law. If you or your passenger are awarded money for a settlement ( for becoming dead, disabled, disfigured or loses in income in excess of $4000.00 per month) from the “at fault” party, but they have no money or too little coverage to cover what you are awarded, this coverage can really save the day.

The reason the law makes a basic policy like PL &PD mandatory is that it helps make sure each driver can take responsibility for their actions. It makes sure people don’t have to suffer financial loss as a result of our actions. Even the hospital, if we didn’t have insurance would have to wait until a person fully recovered and gets back to work, catches up all their other bills and then paid them back at a small amount per month. With PIP coverage they can be paid in a timely manner and you don’t have a stack of medical bills waiting for you when you get home.

Hopefully, this makes you feel a little better and a little more responsible. You really are helping yourself and society at large by owning PL & PD coverage.

Please call me at (231) 744-9099 or visit our site at www.muskegonautoinsurance.net

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