INSURANCE 101
CAR INSURANCE: FULL COVERAGE DEFINED:
There is no such thing as full coverage. Really what it means is that you’ll have enough coverage to cover other people around you including your car but, the first thing is your liability insurance. Liability covers people outside of your car. If, God forbid, you get into a car accident, it will cover the third party. You are the first party. Your passengers are the second party and the people outside your car are the third party. So get into an accident with Joe and it will cover X amount per person, Y amount per occurrence and then you also have your property damage which will cover anything as far as a car, a home, a light pole, anything other than a physical human being.The next thing you have is your comprehensive and your collision coverage. Adding those three together is going to be your basic full coverage. Comprehensive is anything to your actual car, not the people but your actual car. It is fire, theft, vandalism. The way I see it is anything other than an accident, that’s where your comprehensive kicks in. You pay your deductible which is what you pay out of pocket to the insurance company and they pay for the difference of your car to either get repaired or to get you into a new car. The next is collision. Collision is self explanatory. You get into an accident, you pay your deductible, insurance company covers your car. Then you have something which is very important, uninsured motorist. Uninsured motorist coverage is if somebody is driving and they do not have insurance, they hit you then who is going to pay for that, not them, right? So you have uninsured motorist coverage protection which will cover you in the event that somebody driving who does not have insurance hits you, you will be covered for your bodily injury, your passenger’s bodily injury, up to the occurrence that you, up to the limits that you recommend or suggest at the time and also your car will be covered up to either $3,500 or if you do have the basic full coverage, then your collision deductible will be waived and then your uninsured motorist property damage will kick in without you paying a deductible and your car will be fully covered. The next is medical payments. Medical payments covers yourself and the people only in your car up to the limit that you get at the time when you purchase your insurance. So if you have $5,000 in medical payments, each one of the people in your car will be covered 5, 5, 5, 5, as many people that are going to be in your car. After that, you have rental, X amount of dollars for Y amount of days, towing per occurrence. So if you need $75 in towing, you know, towing reimbursement, you pay, they pay you back and then you also have roadside assistance which is going to cover you if your car breaks down or anything happens to your car while you are on the road and you just need some help on the road.
CAR INSURANCE: What Is Med Pay?:
Medical payments is an optional coverage. What it covers is you and the people in your car and remember, when you have car insurance it’s there to protect not really you but the people around you and people inside your car become a very big factor. So medical payments will protect those people in your car as well as yourself. It will cover the emergency transportation, God forbid, if you need to go to the hospital. It will cover the emergency room check in. It will cover anything in between from you getting to the hospital, being in the emergency room and then once you are checked in your health insurance kicks in as long as you have it.
WHAT DOES FULL COVERAGE MEAN ON A CAR INSURANCE POLICY?:
Well first, it’s a very broad term. The basic full coverage on a car insurance, an auto insurance policy means that you have liability which will protect the third party which are the people outside of your car if you get into an accident. The liability is X amount of dollars per person and Y amount of dollars for all those people combined as well as the property damage, for example their car or a light pole, a fire hydrant, anything other than a human being. Then you also have comprehensive and collision which are normally bundled into one. That is the basic full coverage. so comprehensive and collision. You have collision where if you get into an accident and something happens to your car, you pay your deductible which is what you pay out of pocket to the insurance company in order for them to either repair your car or replace your car and then you also have comprehensive and the way that I explain comprehensive is anything other than an accident, fire, theft, vandalism, you pay your deductible, the insurance company will pay for your car or repair it. Then you also have uninsured motorist. Uninsured motorist is if somebody hits you and they don’t have insurance then your insurance company will pay for your bodily injury. So it’s like you’re paying for liability for other people to drive but you are protecting yourself. So that will cover the bodily injury for yourself and the people in your car up to the limits that you request. That is the basic term of full coverage on a car insurance policy.
