Auto Insurance policies do not have to be complicated. We want to make it easy for you. We always recommend that your purchase adequate coverage to commensurate with your net worth. Let’s take a look at the coverages.

Liability-

The first section is the liability section of the policy. It covers your financial responsibility for injuring others. Some liability coverage is required by most states. It is usually stated as a three art number like 250/500/100 (expressed in 1000s), or could be as a single number like 500. This number represents the maximum amount insurance will payout after a claim. The liability policy will cover the medical bills of of the other party as well as property damage.

Physical Damage-

The second part of auto insurance covers the car itself. Comprehensive coverage reimburses losses from fire, theft, vandalism, glass breakage or other perils. Collision coverage pays to repair losses caused by collisions with other vehicles or object. Leasing companies or banks often mandated this coverage. In addition, there are optional medical, car rental, towing, accidental death and other coverages which vary by state.

We highly recommend utilizing higher deductibles on the physical damage coverage to reduce premiums. Also, we strongly encourage our clients to consider an umbrella policy. An umbrella policy will give additional liability coverage over you auto policy. Furthermore, the policy will extend over your home, rental, boat, etc. With umbrella insurance, it is important that you carry the required amount of basic liability insurance to avoid a gap in coverage in the case of a serious accident. Usually this limit is 250/500/100 or higher.

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