Do
you Understand your Auto Policy?
Understanding
your car insurance policy can be difficult. As
a result, people often end up with policies that do
not provide the right protection. Here is some
basic information which you may not know.
Uninsured Motorist Protection:
This provides protection if you are struck by a driver
who does not have insurance, or by a hit and run driver.
Most states require that your insurance company provide
you with this protection.
Under-Insured Motorist Protection:
This provides protection if you are struck by a driver
who has only limited insurance. For example, if
you suffer a serious injury by a driver who has only
a $25,000 policy, but you have a $300,000 policy, you
are eligible for $25,000 from the other driver and $275,000
from your policy (i.e., this equals $300,000).
Personal Injury Protection (PIP):
This provides protection for medical bills and, sometimes,
a portion of your wages, even if you are at fault in
an accident. In some jurisdictions such as District
of Columbia there are limitations on whether a person
can make a PIP claim and pursue a claim for compensation.
Gap Coverage: This provides
protection on your financed vehicle. Essentially,
if you financed $20,000 on your car and have an accident,
but the value of the car at the time of the accident
is only $18,000, "gap" coverage may apply.
Collision Coverage: This
provides protection when your car is damaged.
Keep in mind that having collision coverage in the amount
of $250 as opposed to $500 or $1000 may increase the
amount of your insurance, especially if you are not
inclined to make a damage claim for an amount which
is less than $1000. You may want to get different
quotes from your broker.
***
Insurance
coverage is a complex matter, and varies greatly from
state to state. If you would like more information
on whether you have an appropriate policy, feel free
to contact us and one of
our lawyers will review your policy free of charge.
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