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What Types of Auto Insurance Coverage Do I Need?

Understanding auto insurance is essential for both legal compliance and financial protection. Auto insurance isn’t just a requirement—it’s a safeguard against risks like accidents, theft, and natural disasters. With so many coverage types available, individuals like yourself may find it challenging to determine what’s necessary. As you read further, you will find a break down of the various auto insurance coverage options, an explanation of what they entail, and help with deciding which coverage best suits your needs.

Understanding the Basics of Auto Insurance

Before diving into specific types of coverage, it’s essential to understand the fundamental purpose of auto insurance. The primary goal of auto insurance is to protect you financially in the event of an accident, theft, or damage to your vehicle. Insurance can cover various costs, including medical expenses, repair bills, and liability claims if you are at fault in an accident.

Most auto insurance policies consist of several components, and drivers typically choose coverage based on their needs, risks, and financial situations. The main types of coverage include:

Liability Coverage
Collision Coverage
Comprehensive Coverage
Uninsured/Underinsured Motorist Coverage
Medical Payments Coverage
Personal Injury Protection
Loan/Lease Gap Insurance

Understanding what each type of coverage includes is essential. The following explanations outline what each coverage option provides and why you might want to consider adding it to your auto insurance policy.

Liability Coverage

Liability coverage is typically mandatory in most states and is designed to protect you if you are found responsible for causing an accident. It consists of two components:

Bodily Injury Liability: This portion of liability coverage pays for medical expenses, lost wages, and other related costs for other parties if you are at fault in an accident that results in injuries. It also covers legal fees if the injured party decides to sue you.

Property Damage Liability: This coverage pays for damages to someone else’s property, such as their vehicle or other property (like a fence or building), if you are responsible for the accident.

How Much Liability Coverage Do You Need?

The minimum required amounts of liability coverage vary by state. However, it’s often recommended to purchase higher limits than the minimum to protect your assets in case of a severe accident. A common recommendation is to have at least 100/300/50 coverage. This means your coverage includes $100,000 for bodily injury per person, $300,000 for total bodily injury per accident, and $50,000 for property damage.

Collision Coverage

Collision coverage is an optional type of insurance that helps pay for repairs to your vehicle after an accident, regardless of who is at fault. This coverage applies to damage caused by colliding with another vehicle, hitting a stationary object (like a tree or lamppost), and rolling over.

When Should You Consider Collision Coverage?

Collision coverage is particularly beneficial for drivers with new or high-value vehicles. If your car is older or worth less than your deductible, you may consider dropping this coverage to save on premiums. However, if you rely on your vehicle for daily transportation, keeping collision coverage can provide another level of security.

Comprehensive Coverage

Comprehensive coverage protects your vehicle against non-collision-related incidents. This type of insurance covers damages caused by the following:

Theft
Vandalism
Natural disasters (hurricanes, floods, earthquakes)
Fire
Falling objects (like tree branches)
Animal collisions

Who Needs Comprehensive Coverage?

Comprehensive coverage is especially valuable for those living in areas prone to theft or natural disasters. Like collision coverage, you may want to consider dropping comprehensive coverage if your vehicle is older and its value is less than your deductible. However, for newer or higher-value cars, comprehensive coverage can be a worthwhile investment.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist (UM/UIM) coverage protects you if you are in an accident with a driver who either has no insurance or insufficient insurance to cover your damages. This coverage can include one or more of the following:

Uninsured Motorist Bodily Injury: Covers medical expenses and lost wages for you and your passengers if you are injured in an accident caused by an uninsured driver.

Uninsured Motorist Property Damage: Helps pay for damages to your vehicle caused by an uninsured driver.

Underinsured Motorist Coverage: Provides protection if you are in an accident with a driver whose insurance limits are too low to cover your damages.

Why Is UM/UIM Coverage Important?

Unfortunately, many drivers are on the road without adequate insurance coverage. Having UM/UIM coverage can provide crucial financial protection in the event of an accident with an uninsured or underinsured driver. This coverage is often relatively inexpensive compared to other types of insurance and can save you from significant out-of-pocket expenses.

Medical Payments Coverage

Medical payments coverage (MedPay) helps pay for medical expenses for you and your passengers, regardless of who is at fault in an accident. This coverage can include hospital bills, doctor visits, ambulance fees, and rehabilitation costs.

Who Should Consider Medical Payments Coverage?

If you have health insurance, you may wonder whether you need MedPay. While your health insurance may cover medical expenses from an accident, MedPay can help cover deductibles and co-pays. Additionally, MedPay can pay for immediate medical expenses if you don’t have health insurance.

Personal Injury Protection

Personal injury protection (PIP) is similar to medical payments coverage but goes further by covering a wider range of expenses related to injuries sustained in an accident. PIP can include medical expenses, lost wages, childcare costs, and funeral expenses

Is Personal Injury Protection Right for You?

PIP is required in some states (no-fault insurance states) but is optional in others. If you live in a no-fault state, having PIP coverage can help ensure you have financial support for various expenses resulting from an accident. Even in states where it’s not mandatory, PIP can provide an extra layer of protection and security.

Loan/Lease Gap Insurance

Loan or lease gap insurance is designed for drivers who still owe money on their vehicle loan or lease. If your car is totaled in an accident, standard insurance will typically only cover the vehicle’s current market value, which may be less than the amount you owe on your loan or lease. Gap insurance covers the difference.

Who Needs Gap Insurance?

If you have a new car, financed or leased it, or have a low-down payment, gap insurance can be a valuable addition to your auto insurance policy. It ensures that you won’t be left with a significant financial burden if your vehicle is declared a total loss.

Choosing the Right Coverage for Your Needs

With so many types of auto insurance coverage available, selecting the right combination for your needs can be overwhelming. Here are some tips to help you make informed decisions.

Assess Your Risks: Consider your driving habits, the area you live in, and the value of your vehicle. If you frequently drive in high-traffic areas or live in a region with high theft rates, you may want to prioritize certain types of coverage.

Understand Your State’s Requirements: Familiarize yourself with your state’s minimum insurance requirements and consider whether you want to go beyond those minimums for added protection.

Evaluate Your Financial Situation: Determine how much you can afford to pay in premiums and deductibles. Higher deductibles can lower your premiums but may leave you with higher out-of-pocket costs in the event of an accident.

Compare Quotes: Shop around and get quotes from multiple insurance providers to find the best coverage options and rates. Many insurers offer online tools to help you compare policies easily.

Consult an Insurance Agent: If you’re unsure about which coverage types are best for you, consult an insurance agent. They can help you navigate your options and find a policy that meets your needs.

Choosing the right auto insurance coverage is essential for protecting yourself, your passengers, and your vehicle. We will help you to understand the various types of coverage available—such as liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, personal injury protection, and gap insurance—so you can make informed decisions that align with your needs and budget.

December 10, 2024/by A.C. Marmo & Sons

Safety, Tips

10 Fall Car Care Tips: Prepare Your Vehicle for the Changing Seasons

Because seasonal changes affect your vehicle in a multitude of ways, it’s important to prepare for the transition from summer to fall. You’ll want to keep up on regular vehicle maintenance, while also paying close attention to season-specific car care tasks.

Essential Fall Vehicle Maintenance Tips

Check the Fluids

Checking your vehicle’s fluids is one of the most critical car care routines. The various fluids lubricate, cool, and perform other vital functions that help keep your car running and driving.

Take a few minutes to check the fluids under the hood, including the engine oil, coolant, and brake fluid. You’ll also want to check the automatic transmission fluid (if your car has a dipstick) and the power steering fluid (if your car has hydraulic power steering).

Warning: Never remove the cooling system cap when the engine is hot. Severe injury may result. Only check the coolant level and condition when the engine is cool.

Many vehicles also have assemblies, such as the differential and transfer case, that are located underneath the vehicle. You should check the fluids in these units regularly. If you have the know-how, you can safely raise and support the vehicle, then check the fluids yourself. You can also choose to have a professional do the job for you.

Inspect the Tires

We get it⁠—tires are about as exciting as an afternoon at the DMV. However, that doesn’t mean they should be ignored. Tires are super important because they affect the braking ability, handling performance, and overall safety of your vehicle.

Take a few moments to inspect your car’s tires to ensure they’re in good condition. First, you’ll want to check tread depth using a dedicated gauge. Take the measurement at three points across the tire: the outer tread, the center tread, and the inner tread.

If there’s 4/32” of tread remaining at any point, most professionals recommend replacing the tires. A tread depth reading of 2/32” or less indicates the tires are a safety hazard and should be replaced immediately.

You should also check the tire pressure with a dedicated gauge. When checking the pressure, ensure that the tires are inflated to the specification listed on the placard inside the door jamb. Do NOT set the pressure to the reading on the tire’s sidewall—that’s the maximum pressure.

If the pressure is too low, use an air compressor (or an air pump at the gas station) to add air. In the case that the pressure is too high, you can let air out of the tire by pressing down on the tip of the valve stem core with a pocket screwdriver.

Make Sure All of the Lights Work

Sadly, the long summer days will soon be coming to an end. Because nighttime comes earlier during the fall, you’re more likely to be driving when it’s dark out. Before that happens, get a friend to help you make sure all of your car’s exterior lights (including the brake lights and reverse lights) are working correctly.

A non-functional light usually indicates a burnt-out bulb. While replacing a bulb is usually a simple task, there are instances where the job can be difficult. For example, on some vehicles, the front fascia must be removed to access the headlight bulb.

Bulb replacement instructions can usually be found in your car’s owner’s manual. By reviewing the instructions, you’ll get an idea of whether the job is something you can handle on your own.

You can always have a professional change the bulb if the task seems too difficult.

Check the Wiper Blades

The fall season often brings rain and sometimes even snow. You’ll want to make sure your car’s wiper blades are in good shape to deal with these conditions.

To check the wiper blades, turn on both the wipers and windshield washers. A good set of blades should produce a streak-free sweep and leave the windshield clear.

Replace the wiper blades if they do not perform well.

You’ll also want to consider the washer fluid. There are winter blends, which are designed to resist freezing, and summer blends for warmer weather. When the temperatures start to drop, you’ll want to make sure you have a winter blend in your car’s washer fluid reservoir.

Inspect the Brakes

We don’t need to remind you of the importance of your car’s brakes, do we? You (or your mechanic) should check the brakes a least twice a year to ensure they’re in good condition. Right now, before the snow starts to fly, is the perfect time to take a peek.

How do you know when your brake pads are worn out? When there’s 4mm of friction material remaining, most professionals recommend replacing the brake pads (and usually replacing or resurfacing the brake discs). A reading of 3mm or less indicates the brake pads are a safety hazard and should be replaced immediately.

Make Sure the Heater is Working

If you’re like most drivers, you didn’t turn your car’s heater on at all during the summer. But soon, the weather will get cold and you’ll be pining for a warm cabin once again.

It’s a good idea to test your vehicle’s heater before the temperatures start to drop. Automotive heating systems rely on hot engine coolant, so if the heater is blowing cold air, you likely have a problem somewhere within the cooling system. For example, the thermostat may be stuck open, the water pump may be faulty, or the heater core could be clogged.

If you have the know-how, you can troubleshoot the problem yourself. Otherwise, you may want to have a professional diagnose and repair the issue.

Take Care of Any Outstanding Maintenance

Remember that booklet, called the owner’s manual, that’s buried in your glovebox? Dust it off and turn to the section that covers the manufacturer’s maintenance schedule⁠—you’ll find the suggested intervals for the routine services the automaker recommends.

Is your car due (or overdue) for service? Then take care of it now. Lack of maintenance is one of the most common—if not the most common—reasons for mechanical breakdowns.

Address Any Known Problems

Car problems left ignored often snowball into big-time concerns. For example, a leaking radiator hose can lead to a low coolant level, overheating, and catastrophic engine damage.

Ignoring issues can also leave you stranded on a chilly fall morning. Address any known problems now to prevent further headaches.

Store Classic Cars and Other Toys

Most people put their classic cars and other toys into storage once summer is over. Of course, the best place to store your ride is in the garage. But if you don’t have access to covered parking, a car cover is the next best option.

Be sure to select the correct type of cover; some are designed for outdoor use, while others are for indoor use. Also, park the vehicle in a safe location that’s protected from the elements as much as possible.

Then, follow the product instructions to install and secure the cover.

Accessorize for the Season

You might start accessorizing for the fall season by picking up, say, a fluffy scarf or warm beanie. While you’re at it, don’t forget that you can also accessorize your car with practical upgrades, such as floor mats and seat covers.

Making the necessary adjustments to your vehicle whenever the season changes is one way to keep it around for a long time.

Source: https://www.carparts.com/blog/five-fall-car-care-tips/

October 22, 2024/by A.C. Marmo & Sons