By Alberto Espinosa Sr.  AME Insurance InsurPro LLC

Do you understand what your personal auto insurance covers?  Here's an easy way to remember.

Auto Insurance offers three key coverage areas:

  1. Protection for others
  2. Protection for you and your family
  3. Protection for your car

Remember that, and its a good start.   To learn more read on:

First key coverage area: Protection for Others

Pretty much it's what it means; if you are liable for damages to others you will be held to a financial responsiblity standard, your protection for others coverages' would pay toward these damages.

Lets say on the way home yesterday you caused a serious accident.  Your auto insurance would offer you protection for others for the Bodily Injury and/or Property damages (up to your policy limites) which may have occurred.

Second key coverage area: Protection for you and your family

Again, pretty much what it means; it protects you and your family (or occupants in the car) by offering coverage for medical bills and some accompanying complications resulting from injuries.

Personal Injury Protection

In that earlier serious accident mentioned above, Personal Injury Protection (PIP) pays for reasonable and necessary medical expenses at 80%.  In addition you may have coverage for a loss of earnings, as well as replacement services (paying for tasks you can can't do because of your injuries such as cleaning etc. )   It covers you, your dependent relatives and occupants in your vehicle, as well as coverage for you as a pedestrian struck by a car.  The maximum amount you may recover in PIP coverage is $10,000.

Uninsured Motorist (UM)

Covers you and your family or other occupant in your vehicle, for bodily injury,  as result of an accident caused by an uninsured motorist.  In addition it may pay for some accompanying complications resulting from injuries such as pain, suffering, mental anguish or inconvenience.   You may stack your coverages' (i.e. you would be covered by the UM coverage on all the vehicles on your policy), or un-stacked UM coverage (only coverage on occupied vehicle may apply). You may receive a discount for the Non-Stacked version, or you can reject the coverage all together.

Medical Payments

Covers you and your family for reasonable expenses for medically necessary treatment such as ambulance services, medical surgical hospital expenses such x-ray, etc.  It may help you to cover the 20% of medical payments which may not be covered under the PIP coverages' described above.

Third key coverage area: Protection for your Car

Comprehensive Coverage

Affords coverage for losses to your insured vehicle other than as a result of a collision  (i.e. fire, theft, vandalism etc.).  The coverage amount may be the actual cash value of your vehicle and a deductible will usually apply.

Collision Coverage

Again pretty much what the name implies, provides coverages' for the repair or replacement of your insured auto, in the event of a collision.  A deductible usually also applies to collision coverage.

There are other ancillary coverages' available such as Rental Reimbursement, and Towing which can help to defer the cost associated with the same, after a covered loss.

So remember auto insurance basically has three key coverage areas:

  • Protection for others
  • Protection for you and your family
  • Protection for you car

Please consult with your agent or company and review your policy for your complete policy coverages', exclusions and limitations, as well as the terms and conditions, that may apply.  Coverages' will vary from company to company and state to state. Understand that this is a broad outline and general description of personal auto insurance, and is not representative of any particular auto policy itself, does not change your policy, nor makes and representation of coverages' which may apply to your policy.

When you get a moment ( LOL ) most likely will be when you receive your next renewal, go ahead and check your policy, assure yourself that you and you're family are adequately protected with the right coverages' for you risk.  If you're not sure call your agent or call us and we'll be happy to give you an auto policy protection review.

Contact us at AME Insurance InsurPro LLC

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