By David Peel
If you were given a test on your automobile insurance policy would you pass?
You want to understand your policy BEFORE you have an accident. Here are the common coverages and recommended levels:
Liability: This coverage pays medical bills, lost wages, legal settlements, and repairs that are the result of injuries or damage that you (or a permissive driver) cause to someone else’s person or property. It will also protect you when driving someone else’s car with his or her permission. Liability insurance is broken down into three amounts: per person limit for bodily injury, per incident limit for bodily injury, and a property damage limit. Using the recommended amounts of $100,000, $300,000 and $100,000, the limits are generally written as 100/300/100. Unfortunately, Tennessee still only requires 25,000 50,000 Which has remained unchanged since 1977. Please get more.
Collision coverage: pays for any damage to your car resulting from a collision with another car or object, regardless of whether you are at fault. Deductibles generally range from $250 up to $1,000. Typically, a higher deductible means a lower premium.
Comprehensive: This insurance will pay for damage to your vehicle that is caused by theft, vandalism or something other than a collision.
Medical payments: This will pay for the medical treatment of the policyholder and any passengers in the vehicle that were injured during an auto accident, regardless of fault. Amounts are usually $1,000.00 or more.
Uninsured and underinsured motorist (UM/UIM): pays for damages (Medical bills, lost wages, pain and suffering) to a family member, a permissive driver, a passenger who are hit by an unknown, uninsured or under-uninsured motorist. Surprisingly to many, this also covers pedestrians who are members of your household who were hit by a hit-and-run driver. It even covers your children riding home with other people who may not have enough coverage. It’s probably the most misunderstood and undervalued per dollar auto insurance available. Again, the insurance is broken down into three amounts: per person limit for bodily injury, per incident limit for bodily injury, and a property damage limit. Using the recommended minimum amounts of $100,000, $300,000 and $100,000, the limits are written as 100/300/100. This is the only coverage that guarantees payments to your family and passengers and it does not hurt you in any way to make the claim.
Peel seeks justice for those injured in tractor trailer and car accidents, medical malpractice, and disability. He often addresses churches, clubs and groups without charge. Peel may be reached through PeelLawFirm.com wherein other articles may be accessed.