It is a question we all have asked – “What car insurance coverage do I need?”. The answer varies depending on the individual. Everyone is required to carry state minimums but that may not be enough. You need to talk to an insurance agent to determine the right amount of coverage for you. Here are some things to keep in mind when having that conversation.
Auto Insurance Includes:
- Uninsured Motorist
- Medical Payments
- Rental Reimbursement
- Roadside Assistance
Most people only carry the mandatory Liability Insurance coverage that is required by law. Liability insurance protects you when another party is injured or has property damaged due to an accident when you are at fault.
Insurance limits are commonly measured as 25/50/25. The first number is the per person covered amount for bodily injury that you may have caused someone else. The second number is the per accident coverage limit for total bodily injury damages. The third number is for property damage liability, covering for repair and replacement that your vehicle might have caused to someone else’ property.
While states require a minimum coverage, your financial responsibility does not end when your insurance runs out. It might be worth your while to make sure you have sufficient coverage to handle the worst-case scenarios.
The Two Parts to Liability Insurance
- Bodily Injury (BI) helps cover the other party’s lost wages, medical bills and legal defense if you are sued and found to be at fault. Coverage should be based on your net worth. Level of income and other factors such as if you have children driving your vehicles need to be reviewed. Make sure you are properly protected so you do not have to use your own money to pay after an accident.
- Property Damage (PD) is there to help pay for damage to the other party’s vehicle or property. This includes car parts and labor, as well as damage to real property. Higher limits protect you from having to pay for these out of your own pocket. Coverage various but often is an amount per accident.
Comprehensive coverage pays to repair or replace your car if it is damaged by something like a falling tree or other types of damage that occur when you are not driving. Comprehensive also covers theft. It can include full glass coverage, fire, or even hitting a deer.
Comprehensive coverage pays to repair or replace your car if it is damaged by something like a falling tree or other types of damage that occur when you are not driving. Comprehensive also covers theft and hail damage. It can include full glass coverage, fire, or even hitting a deer.
Uninsured & Underinsured Motorists Coverage (UM & UIM)
Protect yourself when you are not at fault. This coverage is there to protect you when you are not at fault in an accident and when the at-fault driver either has no insurance or does not have enough insurance to cover the cost of the accident. In Oklahoma, this coverage is only for bodily injury damages.
- Bodily Injury: Protect yourself when you are not at fault. This coverage is there to protect you when you are not at fault in an accident and when the at-fault driver either has no insurance or does not have enough insurance to cover the cost of the accident. In Oklahoma, this coverage is only for bodily injury damages.
Medical Payments Coverage
Rental Coverage (Additional Transportation Expenses)
Coverage can be figured by day and by rental amount. After an at-fault accident, it provides coverage for rental cars while your car is being repaired.
Coverage is for towing and labor costs due to an accident or breakdown. Typically, this is a set dollar limit. This coverage varies by name so ask your insurance agent about the details.
Take Advantage of
- Having Low Mileage per year
- Being a Homeowner
- Taking a Driver Safety Class
When getting insurance come prepared. You’ll need to let the agent know:
- Your vehicles year, make, model, and vehicle identification number (VIN)
- Who will be driving the car, their ages, education and driving record
- How many estimated miles you drive to and from work or school
- Last time you took a Driver Safety Class
- Are you a homeowner
What Car Insurance Coverage Do I Need – It Changes Yearly
The process of getting insured does not start and end with the initial purchase. Yearly reviews are important to remain properly insured and to stay on top of discounts.