Focus on Coverage, Not Premium.

Whether you are watching television or driving down the road you see Insurance advertisements everywhere, and the one common focus with most of these national companies is the monthly cost for auto insurance. Now we completely understand that cost is a major factor in the purchase of insurance, but the number one area of focus should be your coverage, because without the proper coverage you could be left paying out of your pocket or losing your assets you worked hard for.

Understanding the basics of auto insurance

Bodily Injury Liability Coverage – This coverage would pay for injuries that you cause to someone else in the event that would result in a lawsuit.

Property Damage Liability – This coverage pays for damage you cause to someone’s property. This includes vehicles, building, etc.

Uninsured and Underinsured Motorist Coverage – This coverage pays for your bodily injury caused by an Uninsured or Underinsured motorist. This coverage pays for your pain and suffering.

Comprehensive (Other than Collision) – Covers damage caused by colliding with a deer or animal, fire, hail, flood, falling objects, theft or vandalism and also covers glass breakage.

Collision – Covers damage resulting from hitting another vehicle, building or object.

State minimum coverage

The State of Pennsylvania requires a minimum coverage for Bodily injury in the amounts of $15,000 each person and $30,000 each accident.

The minimum coverage for property damage is $5,000.

Now let’s look at an example. John is insured with state minimum limits. he is driving on the highway and suddenly rear ends the vehicle in front of him causing damage to the rear bumper and tail lights. JOHNS PROPERTY damage coverage is $5,000. If the vehicles damage exceeds $5,000 john would have to pay out of pocket, or he could be sued for damages.