“In 2009 There were over 10.8 million car accidents, 35.9 thousand accidents ended in death”
Source: U.S. Census Bureau: Transportation: Motor Vehicle Accidents and Fatalities
Auto insurance isn’t the simplest thing to understand, that’s why Liberty Financial Group goes the extra mile to educate their clients and help them understand exactly what their policy covers. Your premium is calculated by many different factors (i.e. zip code, driving history, age and many more) but in the most basic form, auto insurance premiums are usually a combination of six basic types of coverage.
Six Basic Types of Coverage
Bodily Injury Liability- Liability Coverage that covers other people (not your passengers) involved in an accident. In addition to this, the insurance will also cover legal fees in case the other party involved in the accident files a lawsuit against you. Claims can range from medical bills, loss of wages or income and even pain and suffering. This coverage does not include you or your vehicle.
- Property Damage Liability- Liability coverage for damage to another party’s property. Also provides you with legal defense if another party files a lawsuit against you. You would want to have enough coverage to cover the damage you caused to the vehicle or object.
- Collision- Coverage pays for damage to your car when your car is involved in an accident. To keep your premium low, select a high deductible that you feel comfortable paying out of pocket.
- Personal Injury Protection- In States with no-fault insurance laws, personal injury protection provides you with medical coverage and compensation for lost wages in the event of an accident. PIP coverage is required in most states.
- Comprehensive- Non –accident related coverage for your vehicle (hail damage, theft, flood, etc.). To keep your premium low, select a high deductible you feel comfortable paying out of pocket.
- Uninsured/Underinsured Motorist Protection- This kind of coverage protects you and your passengers if you are involved in an accident with an uninsured or underinsured motorist. This coverage is required in most states and should match the limits you have for bodily injury and property damage liability.
*Keep in mind this a summary of typical auto insurance coverages. You always want to refer back to your policy and learn what coverages are provided under your insurance policy.
Most auto insurance policies renew every 6 months, which means you probably have a pretty good idea of how much coverage you need. Liberty Financial Group can shop and compare your coverage with several different auto insurance carriers, contact us today to obtain your free quote.