Mandated by the state you live in, there are limits of liability that must be in place on your insurance policy for your vehicle to be driven legally on public streets, roads, and highways. Other coverages can be added to your auto insurance policy to help better protect you. These other coverages include comprehensive, collision, uninsured and underinsured motorist, medical, rental, work loss, & accidental death and dismemberment. When deciding on which coverages best suit your current needs, it’s always best to sit down with one of our licensed agents to get a full understanding of exactly what each coverage does and how to adequately build your auto insurance policy. No one policy design is best for everyone.
Your limits of liability are the maximum payouts for any one auto accident that an insurance company is obligated to pay to an injured party in which you are liable for damages. Most people use the term “fully covered” to describe their insurance policy when they have comprehensive and collision along with their limits of liability, but using this term is inaccurate as no one is truly ever “fully covered”. There is always the potential for someone to cause damages to other parties which exceed their policy limits thus putting the obligation for anything over the amount of those limits back on the “at fault” party. You will notice on your auto insurance that limits of liability are listed with 3 numbers (Example:$50,000/$100,000/$50,000). In this example, the first $50,000 represents the max payout for any one person you may have caused bodily injury to, damages for pain and suffering, medical expenses, or even death. The $100,000 represents the accrued amount for all parties involved you may have injured in a single at fault accident. So if you hit a vehicle and are at fault and that vehicle has multiple people in it, each person you injure can get up to $50,000 but no matter how many people you injure the policy will not exceed $100,000 in payouts for bodily injury for any one accident. The last $50,000 represents property damage caused by your neglect and once $50,000 has been reached, the policy will pay no more regardless of how much property damage you may have caused. Any damage over the limit falls back on the responsibility of you the insured. Your limits of liability should be chosen based on your tolerance for risk coupled with your ability to pay premiums and your overall financial situation.
These coverages are offered to help protect you from those on the road without any insurance or who have lower limits of liability. These limits are listed on your policy much like your limits of liability (Example $50,000/$100,000) and work in the same manner as they cover each individual in your vehicle, yourself included. UIM property damage is often listed separately (Example $50,000). The property portion for UIM is to cover for damages to your vehicle caused by someone without insurance or with lower limits of liability.
Sometimes accidents are out of your control and there’s no one to blame. Comprehensive coverage is one option you can select for your Auto Insurance policy and this coverage insures your vehicle for incidents such as hail storms or hitting animals in the road, just to name a few. This option can be purchased with low deductible amounts or higher amounts. The choice is yours.
When you are found at fault for an accident, Collision Coverage is used to help repair your vehicle or replace your vehicle should the damage be too much to repair. Deductible options generally start at $500 but can go as high as $2000. The higher the deductible, the lower the premium.
SIA will check every market available to us to find the product that’s suits your company best!