Auto Insurance
Auto insurance is something that most people know they have to have but don’t really know what they should have. In Missouri, there is a state law that requires you to have insurance – if caught without it, you can have your license taken away…Yikes!!! Here is an overview of the different parts to personal auto insurance policies.
ALL Policies have the following…
Liability
An Auto or Car policy provides protection for your assets – current and future. The liability part of the policy protects you if you cause an accident that results in injury or damage to another person or their property. The insurance policy pays their medical bills, pays for their time lost at work and pays to repair their car or fence or whatever property you damaged. You can get on with your life. The liability part of the policy protects you if the injured party decides to sue you! The policy even pays for your lawyer!!
Collision Coverage
Collision Coverage provides protection for your vehicle.
The physical damage part of the policy (Collision Coverage) protects your vehicle if it is damaged in an accident you cause or if you’re in an accident caused by someone else who DOESN’T have insurance. Guess what’s going to happen to the OTHER driver in this situation? If you guessed that they lose their license, you’d be right!! You WILL have to pay a deductible and the insurance company will pay the remainder of the loss.
Comprehensive Coverage
Comprehensive Coverage provides protection for your vehicle.
The physical damage part of the policy(Comprehensive Coverage)protects your vehicle if it is damaged by something other than an accident – such as: fire, hail, vandalism, theft, flood, broken glass, hitting an animal, etc… Again you WILL have to pay a deductible.
Uninsured Motorist Coverage
Provides bodily injury protection for you or your passengers.
This coverage provides protection for you and your passengers if you’re injured in an accident caused by a driver who has NO insurance in place. Again, guess what happens to THAT driver??? – By law, you MUST buy this coverage.
Optional Parts that you should have…
While you don’t have to have the following by law there are good reasons to strongly consider them.
Underinsured Motorist Coverage
Also provides bodily injury protection for you or your passengers.
This coverage provides protection for you and your passengers if you’re injured in an accident caused by a driver who HAS insurance in place, but they didn’t have ENOUGH insurance to take care of everyone’s injuries. You DO NOT have to buy this coverage.
Medical Payments Coverage
This coverage provides protection for you, your passengers or even someone sitting on the tailgate of your pickup and falls off and chips a tooth !! The coverage limit is lower than the liability limit but no one has to be “AT FAULT” for this coverage to be used. You Do NOT have to buy this coverage.
Rental Reimbursement Coverage
This coverage provides protection for you if your car or pickup is damaged by a covered loss and you need to rent a vehicle to replace it. You can ONLY buy this coverage if you also buy at least Comprehensive coverage and for some companies Collision coverage too.
Towing / Roadside Assistance Coverage
This coverage provides protection for you if your car or pickup becomes disabled due to some type of mechanical failure, or you run out of gas, or you lock yourself out of your car, etc…. Again, you can ONLY buy this coverage if you also buy at least Comprehensive coverage and for some companies Collision coverage too.
