AUTO Insurance

Mandatory For:

State Requirements: Bodily Injury Liability / Property Damage

Optional For:

Medical Payments  / Rental Car Reimbursement / Roadside Assistance & Towing

Lender Requirements: Bodily Injury Liability / Property Damage / Comprehensive / Collision

Bundled Savings With:

Home / Umbrella / Toys (Sometimes)

Promotional Discounts:

Yes

Auto Insurance is a more detailed coverage type that protects not just your car and those in it, but the cars and people around it. Here is a overview of not just what is mandatory, but what happens based on the auto coverage choices that are made.

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Image by Sonnie Hiles
liability coverage

Bodily Injury Liability / Property Damage

Bodily injury Liability provides coverage for injuries to other people in accidents that are your fault. There are generally two types of coverage:

  • Split Limits which split the amount per

    • Person​

    • Amount per Incident

    • Amount of Property Damage

  • Single Limit which offers a max lump sum for

    • Each Incident

    • This Includes Property Damage

property damage provides coverage to other people’s property that you damage in an accident that is your fault. This includes more than just the vehicle you damage, it could be:

  • A Structure

  • A Fence

  • A Sign

  • Etc.

Did you know?

If you have filed a claim where the dollar amount is higher than the coverage you have, your insurance company can file a lawsuit to recoup the shortfall. This means that if you don’t have the money to pay, they could put a lien on your home or garnish your wages.

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LIABILITY coverage

OPTIONAL RECOMMENDATIONS

IF YOU ONLY HAVE Liability COVERAGE I recommend that you carry these optional coverages:

  • Uninsured Motorist Property Damage – If you are in an accident and the other driver is uninsured this will provide monies to fix or replace your vehicle. 

    • Did you know this is very cost effective coverage? I have seen annual policies ​that are under $20.

  • Uninsured/Underinsured Motorist Bodily Injury – This provides coverage/additional coverage if you and/or anybody in your vehicle is injure in an accident that is not your fault and the other driver is either uninsured or underinsured. 

    • Did you know that if you have an accident that is not your fault, this assures that you and your family have coverage. This goes beyond health insurance payments. It also covers loss of income, rehabilitation needs that are not covered by insurance (home healthcare, transportation to get to appointments, etc.)

 
 
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FULL coverage

Bodily Injury Liability / Property Damage / Collision Coverage / Comprehensive Coverage

COLLISION COVERAge - Provides property damage coverage to your own vehicle for accidents that are your fault.

  • You will have a deductible for this coverage and can select one that meets your tolerance level.

  • Did you know that you pay more to have a lower deductible (def.)...the lower the deductible, the higher the premium (def.)

COMPREHENSIVE COVERAge - Provides property damage coverage to your own vehicle for “acts of God” or things you do not have control over.  

  • Examples:  Hail Damage, hitting an animal, damage while vehicle is unattended, etc.

  • You will have a deductible for this coverage and can select one that meets your tolerance level.

  • Did you know that if you hit an animal, it is a comprehensive claim (significantly less impact on future premiums), but if you swerve to miss an animal and hit anything else (fence, tree, another car, etc.) it is a Collision Claim that will impact your premiums for up to 5 years?

Did you know?

If you have an accident that is not your fault, Full Coverage  ensures that you and your family are protected. This goes beyond health insurance payments. It also covers loss of income, rehabilitation needs that are not covered by insurance (home healthcare, transportation to get to appointments, etc.).

Countryside Road
Additional OPTIONAL coverageS

Here are additional optional coverages:

  • Medical Payments – This optional coverage provides coverage to anyone in your vehicle, regardless of fault, so that everyone can seek immediate medical attention – Ambulance, Emergency Room visit, diagnostics, etc.

  • Roadside Assistance/Towing - Provides assistance for flat tires, jump starts, towing, etc.

  • Rental Car - Provides a stipend if you have a qualifying event that will pay for a rental car for a specified period of time or max amount.

EXAMPLE SCENARIO

Situation: There is an accident that involves 3 vehicles.

Vehicle #1

Vehicle #2

Vehicle #3

Number Of Passengers : 2

Number Of Passengers : 1

Number Of Passengers : 3

Passenger #1 : 

Minor injuries but goes to ER to confirm.

ER Visit : $5,000.  

Passenger #1:

No injuries but goes to the ER to confirm.

ER Visit : $6,500.  

Passenger #1 :

Minor injuries but goes to ER to confirm.

ER Visit : $4,500. 

Passenger #2 :

 Suffers a broken arm

Cost : $10,000

N / A

Passenger #2 :

Minor injuries but goes to the ER to confirm.

ER Visit : $5,500

N / A

N / A

Passenger #3 :

Hospitalized, requires rehab, is unable to work for one month. Cost: $90,000

Car Damages: $5,000

Car Damages: $10,000

Car Payout Total: $25,000.

Bodily Injury Costs: $15,000

Bodily Injury Costs : $6,500

Bodily Injury Costs: $100,00.

TOTAL COST:

$20,000

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You have the following coverage: 

  • Bodily Injury Coverage: $100K per person and $300K per incident

  • Property Damage Coverage: $100K

  • Uninsured / Underinsured Bodily Injury Coverage: $100K/$300K

  • Comprehensive and Collision Deductible: $1,000

  • Medical Payment Coverage: $5,000

  • Rental Car Reimbursement Coverage: $50/day up to $1,500

  • Towing/Roadside Assistance Coverage: Included

TOTAL COST:

$16,500

TOTAL COST:

$100,000

 

  • You are vehicle 2 and the accident is your fault

  • The total Vehicle #1 Bodily Injury cost is $20,000 

  • The total Vehicle #2 Bodily Injury cost is $160,000 and no single passenger suffered bodily injury over $100K.  

    • Because you have medical coverage to $5,000, the carrier would have paid out that $5,000 to each person in your vehicle.

    • You have a $1,000 collision deductible therefore the property damage paid to fix your car is $9,000 - after the first $1,000 which is your responsibility.

  • Your total cost is $1,000

    • Insurance total payout $194,000.  

    • You will experience increase in insurance premiums for the next 3 – 5 years depending on your carrier, unless you have accident forgiveness endorsement.

scenario #1 

  • You are driving Vehicle #3 and Vehicle #1 is responsible

    • BUT Vehicle #1 only has the state minimum of $25K per person Bodily Injury Coverage, $50K Coverage per Incident and $15K in Coverage Property Damage. 

  • Because you have 100/300 Bodily Injury Coverage, your insurance has you taken care of, but will sue the driver in Vehicle #1 for the difference of what they paid out.

  • Let’s also say the owner of Vehicle #2 was insured with the state minimums ($25k/$50k/$15k with Liability only) and your insurance company pays your claim first. This driver is completely out of luck and they will be responsible for 100% of their medical bills and the $10K to fix or replace their car.

scenario #2

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AUTO Coverage Self- Assessment

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Do you have a new vehicle?
Are you thinking about purchasing a new car?
Have you installed after factory equipment on your vehicle?
Do you have a loan on your car and are upside down on your loan?
Do you carry state minimums?
Do you have teenage drivers, but have not shopped your insurance?
Has it been more that 3 years since you last shopped your auto insurance?
 

TESTIMONIALS

"TRACIE IS VERY KNOWLEDGEABLE IN THE INSURANCE FIELD. SHE GENUINELY CARES ABOUT HER CLIENTS. BASED ON YOUR NEEDS, SHE SUGGESTS WHAT TYPES OF POLICIES WILL BEST BENEFIT YOU. IT HAS BEEN A GREAT PLEASURE TO WORK WITH TRACIE. HER COMMUNICATION AND ATTENTION TO DETAIL I HAVE RECEIVED ARE SUPERB. I AM IMPRESSED WITH TRACIE'S WARM AND FRIENDLY PERSONALITY. I HIGHLY RECOMMEND USING TRACIE FOR YOUR INSURANCE NEEDS."

BRIAN AULD / CLIENT

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