Family Auto Insurance
You know the importance of carrying auto insurance. The next question on your mind may be, “How much insurance should I carry?” While the law enforces that you have the minimum amount required, it may not be enough to cover damages from an accident. You will need more than the minimum requirement if you want better coverage. So read on and be guided to get the right insurance coverage you need.
There are two types of liability insurance: bodily injury and property damage. With this coverage, your insurance provider will pay for injuries that you or your family will sustain during an auto accident. In most states, the minimum limit is 25/50/20. The first number represents the maximum amount your insurer will shoulder, the second number is the ultimate limit per accident, and the third is the property damage liability.
Property damage liability pays for the cost of damages for hitting another person’s car or property, such as a tree or fence, during an accident. Same with bodily injury liability, the minimum amount of liability is 25/50/20. However, in both types of insurance, you may want more coverage than the required minimum.
Uninsured/Underinsured Motorist Insurance
Although states require drivers to carry liability coverage, it is said that 12.6% of drivers were uninsured. While others have some kind of coverage, it is not enough to cover the cost of a severe accident.
So how much of this type of coverage do you need? You will need to buy uninsured/underinsured motorist insurance similar to the amount of your liability insurance. So if you have a 250/500/100 limit for your liability insurance, you will need to buy the same amount of underinsured/uninsured motorist coverage.
Collision and comprehensive coverage pay for the cost of repairs. With comprehensive coverage, you get covered for various problems like car accidents, theft, vandalism, and falling objects, to name just a few. If you have a car loan or lease, the lending company may require you to carry both policies.
Collision and comprehensive coverage can help cover your car's repair and replacement costs if damaged. To cut down on costs, choose a higher deductible. However, when deciding on the amount of coverage you need, you need to weigh your ability to pay out of your pocket and the monetary value of your car.
Personal Injury Protection
Personal injury protection covers medical and hospitalization benefits due to a car accident. It also covers other expenses like lost wages, funeral expenses in case of death, and others. In other states, it is an add-on to “no-fault auto insurance,” while in other states, it is offered as optional coverage.
The rules on the amount of PIP coverage vary from one state to another. Basic coverage pays 80% of your medical bills and 60% of lost wages and replacement services. On the other hand, extended coverage pays for 100% of medical bills and 80% of lost wages and replacement services.
Get The Insurance Coverage You Need
When buying auto insurance, you do not want to pay for coverage you do not need. Consult your agent to guide you on getting the right coverage for your insurance needs.
At Family Auto Insurance Agency, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (313) 285-9042 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!
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Family Auto Insurance Agency
6442 Michigan Ave
Detroit, MI 48210
Lincoln Park Office:
3205 Dix Hwy
Lincoln Park, MI 48146
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