Auto insurance doesn’t just protect your car or the car you hit, it provides a range of protection including non-auto property and injuries to people. Here’s a breakdown of all the elements covered by auto insurance. We’ve divided the terms into two groups. The first group applies to insurance protection for the victims of an accident you cause. The second group is protection for you and your passengers.
Protection for other people when you are at fault:
- Liability coverage helps cover expenses when you’re at fault in and accident. The money will go to the people you hit, but it won’t cover the people in your car.
- Bodily Injury Liability (BIL) – This policy pays for the medical expenses of people injured in a crash in which you’re at fault. Indiana requires $25,000 for the driver and $50,000 for all other occupants.
- Property Damage Liability – This policy pays for damage done to the other car if you’re at fault in an accident. Indiana requires a minimum of $10,000 for damages to the other car. But with most cars costing well over $20,000, the minimum coverage may not be enough.
Protection for you and your car in an accident:
- Medical Payments – This covers you and your passengers’ medical expenses after an accident. This may also cover lost wages due to missed work.
- Uninsured/Underinsured Motorist Coverage – This helps cover costs if someone without insurance, or minimal coverage hits you.
- Collision – This policy covers repairs to your car after an accident.
- Comprehensive – This policy covers costs if your car is stolen or damaged outside of an accident.
Too little or too much.
Minimum coverage is related to the law, but not necessarily what is best for your protection. Indiana, for example, requires car owners to carry a 25/50/10 liability package. If you’re involved in a serious accident, it’s possible that an individual’s medical expenses could exceed $25,000, or a group’s expenses could total more than $50,000. In addition, $10,000 for car repairs isn’t a lot, considering that the average car now costs a little more than $20,000. So if you cause an accident that creates more damage than your insurance covers, then you are personally on the hook for the difference. For example, if you hit and total a car worth $50,000, and you’re only insured for the minimum of $10,000, then you have to cough up $40,000 to pay the difference. That’s why many people opt for policies that cover more than the required minimums, particularly if they have assets that can be seized to pay for repairs and medical care.
Your independent Provident Insurance agent is trained to help guide you through all the decisions that will provide you with the best coverage at the best price. We’ll make sure you are insured adequately for your assets and your budget.
To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.