What’s Included in Your Car Insurance Policy?

Welcome to What Do You Wanna Know Wednesday.

For today’s segment, we’re talking about everyone’s standard automobile insurance policy. Many people don’t know what’s in their policy—the different components and protections that are already in place. So, let’s take a look. First, there are compulsory insurance policy limits. For example, under “bodily injury to others,” you might see limits like $20,000 per person and $40,000 per accident. This means these are the minimum amounts required by law. If more than one person is injured, the total payout is capped at $40,000, so two people could get $20,000 each, but if there are more injured parties, that amount gets split. Below that, you might see coverage for bodily injury caused by an uninsured auto, which protects you if you’re hit by a hit-and-run driver or someone without insurance. This coverage often has higher limits, like $250,000 per person and $500,000 per accident. Then, there’s optional insurance, which lets you increase those minimum limits to better protect your assets. For instance, you can raise bodily injury coverage to $250,000 per person and $500,000 per accident, so if you hurt someone else, you’re not exposing your home or savings. Another important part is underinsured motorist coverage, which many don’t realize they have. If the other driver has minimal insurance but your injuries exceed that amount, your policy can cover the difference, up to your limits. For example, if the at-fault driver has only $20,000 in coverage but you have $250,000 in injuries, your policy will cover the remaining $230,000. Even if the other driver has $100,000 coverage, your underinsured motorist coverage can pay the difference up to your limit. These protections offer significant benefits that many people overlook. It’s a good idea to review your policy and understand what you have. If you don’t have these coverages, consider adding them. If you have any questions, feel free to reach out to us using the information below.