The following are brief definitions of each separate coverage on an Auto Insurance Policy.
Bodily Injury Liability- This coverage applies to injuries that you, the designated driver, or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else's car with their permission. It's very important to have enough Liablility Insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. We recommend buying more than the state-required minimum to protect assests such as your home and savings. Property Damage Liability- This coverage pays for damage you (or someone driving your car with permission) may cause to someone else's property. Usually, this means damage to someone else's car, but it also includes damage to lamp posts, telephone poles, fences, buildings, or other structures your vehicle hits.
Medical Payments - This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. The state of Wisconsin requires Medical Payments to be at a minimum of $10,000.
Uninsured Motorist Coverage- This coverage will reimburse you, a member of your family, or a designated driver for bodily injury if one of you is hit by an uninsured or a hit-and-run driver.
Underinsured Motorist Coverage-This coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
Comprehensive- This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive Insurance is usually sold with a $100 to $500 deductible, although you may want to opt for a higher deductible as a way of lowering your premium. Comprehensive Insurance will also reimburse you if your windshield is cracked or shattered.
Collision- This coverage pays for damage to your car resulting from a collision with another car or object (other than an animal), or as a result of flipping over. It also covers damage caused by potholes. Collision Coverage is generally sold with a deductible of $250 to $1,000 -- the higher your deductible, the lower your premium. Even if you are at fault for the accident, your Collision Coverage will reimburse you for the costs of repairing your car, minus the deductible.
Many companies offer Roadside Assistance, Rental Reimbursement, and many other coverages. If you would like to know more about any of these please contact us and we would be glad to talk with you about extra coverages...