- Pay attention to the your Liability coverage: Most policies specify the company will pay up to $300,00 in total liability coverage for an accident however only $100,000 for each person injured. This would mean, if you are at fault in an accident this would leave you with a $200,000 lawsuit.
- Consider buying an Umbrella policy: If you have assets or likely to have them in the future, adding to your liability protection of $1,000,000 or more is recommended and fairly cheap.
- Have coverage for a rental after an accident: Make sure your policy covers the cost for rental in the event of an accident or covered loss. This coverage will provide a set amount for you to rent a car while yours is in the body shop being repaired. This is an added coverage and you must ask to have it included.
- Your Medical Bills: If you do not have medical coverage on your auto policy the insurance company will not pay the medical bills for you or anyone in your car during an accident. If someone else was at fault their insurance would cover you, that is, providing they have enough coverage. Make sure you have uninsured/underinsured motorist coverage or a separate health insurance policy.
- When you are on Business: Your auto insurance policy provides coverage during your regular commute to and from your job. If you use your car for work in any other way you may not be covered unless you have “business use” coverage.
- If you have a claim: Start a diary. Put everything in writing, makes, dates, what was said. Save receipts and get a copy of the accident report. Know the claims process: How will the insurance company pay out? Brand name or generic parts to fix the car? Will you have to go to an approved body shop or mechanic?
- Someone else drives your car or you drive a car you do not own: If you allow a friend or family member to drive your car, that person or even your car might not be covered, depending on the insurance company/policy. Renting a car, you may also need to purchase extra coverage and some policies will not provide protection.
- Comprehensive Coverage: covers damage to your car in situations other than a collision with another car or a stationary object. Provides coverage for theft, vandalism, damaged by flood.
- Collision Coverage: If a collision occurs with another car or a stationary object and you are at fault, your policy will provide coverage in order for you to pay for the repairs to your car.
- Uninsured/Underinsured Coverage: If you are hit by someone who does not have enough insurance or does not have insurance, this is how this coverage would generally work:
- Uninsured Motorist Bodily Injury – This may pay for damages when a covered person is injured and the person at fault for the accident does not have liability insurance.
- Underinsured Motorist Bodily Injury – This may pay for damages when a covered person is injured and the person at fault for the accident does not have enough liability coverage.
- Underinsured/Uninsured – This may pay for damages when a covered vehicle is damaged and the person at fault for the accident does not have liability insurance or does not have enough liability insurance.
Read your policy to understand your coverage.
