What is recommended for car insurance coverage?
Choosing the right insurance coverage can feel like a tightrope act. Sure you will want something that’s both affordable and will protect you in case of an accident. It’s tricky to strike the perfect balance, and all too often, drivers end up underinsured just to save a few bucks.
Without the right coverage, a car can leave you paying lots of bills, even if it wasn’t your fault. Yeah, every driver’s situation is different from each other, but we’ve come up with some recommendations for basic coverage that all drivers should have on their policy.
Choosing the right coverage.
The first choice you’ll make when deciding on the right car insurance policy will be choosing Full Tort or Limited Tort. It will determine whether you are able to sue for pain and suffering- Full Tort- or not sue for pain and suffering- Limited Trot.
Beyond Full Tort and Limited Trot, there are three other types of required coverage in Pennsylvania. They include:
• Bodily injury Liability- This protects you if a person files a claim against you after you’re found responsible for the accident that injured them.
• Property Damage Liability- This pays for any damage done to anyone’s property when you are found guilty of the accident.
• Medical Expense Benefits- It pays for the medical bills of you and anyone else covered through your insurance policy.
Automobile coverage information.
To understand your purchase of auto insurance, you should be familiar with these terms.
This insurance covers bodily injury to other people and damage to the property of others caused by your mistake or mistake made by someone else who drove your car with your permission. With a minimum of $25,000 per person and $50,000 per accident for bodily injury liability and $25,000 per accident for property Damage liability, is required by law, but drivers are strongly urged to consider higher limits.
Uninsured/Underinsured Motorist coverage.
Another insurance that covers bodily injury to you, your relatives who live with you, and your passengers if they are injured in an accident caused by an uninsured motorist. The standard coverage is an amount equal to your bodily injury liability coverage, but you may purchase additional coverage up to an amount double equal to your bodily injury liability. The minimum amount required by law is $25,000 per person, $50,000, per accident.
Underinsured Motorist conversion coverage.
Provides for reimbursement in case you are injured by an underinsured driver. If your damage exceeds the at-fault driver’s insurance or other payment, your underinsured Motorist conversion coverage will be available for damages not paid. This optional coverage is not reduced by payment from any other source, including the at-fault driver’s liability insurance.
Covers the damage to your car caused by a collision with another vehicle or object or by your car turning over. There is almost always a deductible which you must pay if you repair or replace the car.
Covers damage to your car other than that caused by collision, including theft, vandalism, impact with animals or birds, explosion, flood, falling objects, windstorm, and glass breakage. As with Collison coverage, there is usually a deductible.
Full glass coverage.
This insurance covers your car’s glass for breakage of safety glass with no deductible for an extra premium. Towing coverage covers the expense of towing your car to a shop. Rental reimbursement pays towards the expense of renting a vehicle if you have a loss covered by either collision or comprehensive Coverage and your is disabled.
What Coverage Amount Is Best Recommended and What Does 100/300/100 Mean?
It’s a good recommendation if you have coverage levels of 100/300/100, but what does that mean, exactly?
- 100 — The first number in your liability coverage is the maximum amount your insurance company will pay for bodily injury claims for an individual person. In this instance, the 100 represents $100,000 in coverage.
- 300 — The second number in your liability coverage is the maximum amount your insurance company will pay for bodily injury claims for a total accident. This does not supersede your per person maximum, however. So if you hit someone and they need $126,000 in medical care, you will be responsible for the extra $26,000 above your $100,000 per person limit, even though you have a per accident maximum of $300,000.
- 100 — The third number in your liability coverage is the maximum amount your insurance company will pay for property damage claims in an at-fault accident. In this instance, the 100 represents $100,000 in coverage.
If you can’t afford a minimum of 100/300/100 in liability coverage, you might still want to choose the highest amount of coverage you can afford. If 50/100/50 is the highest you can go, you might want to choose that instead of defaulting to the state minimums. Conversely, if you can afford more than 100/300/100 and your insurance company offers it, you could take the higher levels of coverage. There are some expensive cars on the road, and the average personal injury settlement in a car accident is $52,900. Having higher levels of insurance is an important part of protecting yourself financially.