2019 is in full swing and we're a few weeks out from the start of March Madness, the three weeks of college basketball glory! Office and neighborhood pool registrations are open and you're gearing up to make your picks and set your bracket. Completing a bracket takes time and careful thought, but completing the perfect bracket is a 1 in 9.2 quintillion chance. On average, there is an auto accident in the U.S. every 4.6 seconds. Making sure you are covered against these odds is much easier than picking your March Madness bracket.
Your auto insurance breaks down into three major sections: liability coverage if you cause an accident, medical coverage for yourself and passengers, and physical damage for your vehicle.
Bodily Injury Liability coverage protects you for any bodily harm or death of another party involved in an accident that you may be liable for. The average liability cost of an accident with a non-disabling injury is $21,000. The average for an accident resulting in a disabling injury is $61,600, and expenses can climb over $1 million for fatal accidents. These figures include lost wages, medical expense, and vehicle damage.
Property Damage Liability covers you for any damage to another parties' property that you may cause with your covered vehicle. This includes, but is not limited to, another vehicle, personal belongings, bicycles, mailboxes, and telephone poles. The state of Florida requires that you carry Property Damage Liability on any motor vehicle tagged and registered for road use.
There is coverage available on your auto insurance that will cover to pay for medical expenses and lost wages for you. Personal Injury Protection, also commonly referred to as PIP, is that coverage. Like Property Damage Liability, PIP is a required coverage by the state for any registered motor vehicle. PIP is a $10,000 limit that will be the first coverage to pay for your medical expense if you're involved in an accident, no matter who is at fault. PIP claims are required to be filed within 14 days of an accident to receive the full benefit.
Uninsured or Under-Insured Motorist (UM) coverage is one of the most important coverages you can have. This coverage will reimburse you for medical expenses and lost wages you may incur from a not-at-fault accident where the at-fault party does not have liability insurance or enough liability insurance to cover their liable expense. This is crucial as medical insurance plans may have exclusions for injuries caused in an auto accident.
Finally, you have physical damage coverage for your vehicle. This is split into two separate coverages. Collision coverage repairs damage to your vehicle caused by colliding with another object. Whether it be another vehicle, a mailbox, or simply backing out of the garage and scraping the side of the car. Second, is comprehensive coverage. Comprehensive coverage repairs damage to your vehicle caused by anything other than a collision. This includes, but is not limited to, fire, flood, and vandalism. If your car is parked in the garage during a hurricane and the house falls in on it, coverage would be provided by your auto policy and not your homeowner's policy. These two coverages also have deductibles that you may select as out-of-pocket expense for repairs to your vehicle.
That wasn't so bad, was it? Give our office a call and one of our agents will review your policy with you. We will provide an all-around review of your coverage and provide recommendations where your coverage may be lacking. With accidents becoming more frequent with more drivers on the road than ever, make sure you're protecting yourself, your family, and your assets.
ABOUT THE AUTHOR
Raymond Killian is a Personal Lines Account Manager at Bouchard Insurance. Raymond is experienced in all lines of personal insurance.