Have you read your auto insurance policy? Do you know your coverage amounts? Are you prepared with rental car coverage or protection with underinsured motorists? If you are unsure of any of these answers, keep reading to understand your auto insurance.
Coverage is the type of insurance that is ‘covered.’ The minimum insurance requirement, in the state of Oklahoma, is liability coverage with minimum limits set at 25/50/25. This can be purchased when there is no money owed on the vehicle and the vehicle is not leased. The important thing to know about liability is it does not cover costs of your own vehicle or injuries. Liability covers other persons injured and their damaged vehicles when you are at fault in a collision and ONLY up to the limits of your liability coverage.
Collision coverage is needed to cover damage to your vehicle. (*Deductible applies) Medical coverage is needed for injuries you yourself sustain and is up to the limits you set.
But these both are for accidents/collisions. So what is needed to help protect you in the case of damage caused by storms or if the vehicle is stolen? Comprehensive is added to insure your vehicle against theft, storm damage, vandalism, and when struck by an animal. (*Deductible applies)
Other Coverage To Consider
Often, when an accident happens or an auto has suffered damage, a rental vehicle is needed while the auto is being repaired. Most insurance providers offer this option. It is wise to discuss with your agent, however. Some providers are changing what they will cover and establishing a percentage such as 80/20, with 20% being out of pocket. Rental insurance is usually not automatic, so it must be added.
Another extra coverage is uninsured motorists protection. Uninsured motorists protection pays for bodily injury damages to you, members of your family who live with you, and other other people in vehicle who are injured by an uninsured motorist, a hit-and-run motorist, or an insured motorist who does not have enough liability insurance to pay for bodily injury damages to any insured person.
Once coverage is set with amounts, a premium and deductible can be adjusted. Read last month’s blog and how these amounts are calculated.
*Deductibles-The money you agree to pay out of pocket when a claim is made against comprehensive or collision on your policy. For example…if your deductible is $500 and repairs from an accident or comprehensive loss total $1,500, you will be responsible for paying the first $500 to the repair shop. The insurance company pays the remaining $1000.
We hope this helps with the basics, but always call your provider with any questions. Insurance doesn’t have to be confusing, agents are there to help!