Uninsured motorist coverage is another type of coverage available as part of a personal auto policy.ย Uninsured motorist coverage allows the insured to recover damages from his or her own carrier from accidents in which the other driver is at fault and either has no coverage, whose carrier refuses to cover losses, is insolvent or from hit and run drivers. It is important to understand that (1) the other driver must be at fault, and (2) the insured’s own carrier covers the cost of damages. [Read more…] about Uninsured & Underinsured Motorist Coverage
Intro to Medical Coverage for Car Insurance Policies
The medical payments coverage part of a personal auto policy covers the costs of medical services for anyone in the insured’s vehicle. Limits on this coverage are typically low because most individuals have their own individual or group medical insurance policies that cover most of the these costs. This coverage is specifically for individuals in the insured’s vehicle, not for medical expenses of pedestrians, other drivers, or any other injured parties.ย Damages to other parties are covered under liability coverage with much higher limits. [Read more…] about Intro to Medical Coverage for Car Insurance Policies
Intro to Liability Coverage for Car Insurance
Auto liability coverage is the part of your personal auto policy that provides protection against others’ claims due to bodily injury/death and property damage to other parties. This also includes defense and settlement costs of claims.
Most policies include a single limit, or maximum amount of damages paid for each accident, no matter how many individuals are injured or how much property is damaged. [Read more…] about Intro to Liability Coverage for Car Insurance
Intro to Property Coverage for Car Insurance
The property coverage part of your personal auto policy covers repair and replacement costs for your vehicle. Understand that this type of coverage only covers the insured’s vehicle.ย Damages to other parties are covered through liability coverage. There are two types of coverage: collision coverage and other-than-collision coverage (also called comprehensive coverage). [Read more…] about Intro to Property Coverage for Car Insurance
Introduction to Auto Insurance
In terms of property-liability insurance, auto insurance is the most familiar to the general population.ย With the number of accidents that occur each year, it is easy to understand why.
A particular event that could potentially decrease wealth is characterized as a risk exposure. For our more cynical readers I must specify that “marriage” and “kids” are not typically classified as risk exposures, nor is a prenuptial agreement traditionally considered a form of insurance.ย In terms of auto insurance, three main risk exposures exist:
- Property damage/loss
- Bodily injury to you/your family
- Legal liability for harm to others due to your negligence.
Most personal auto policies included some level of protection for each category of risk exposures.Keep in mind that although most auto policies have much in common and are written in reasonably understandable language, significant differences, clauses, and exclusions can exist. It is important that you thoroughly review your policy, your state’s requirements, understand your needs and seek clarification on anything that is unclear. A “small” misunderstanding in terms can cost you “big” money.
Under most personal auto policies coverage applies to any individual that has qualified permission (typically from the insured or spouse) to operate the vehicle.
Can We Put a Value on Human Life?
This concept primarily related to the topic of life insurance.ย We’ve mentioned that we cannot place a value on human life. ย It is important to understand that though we cannot readily assess the value of a human life, we do put a price on it in different ways, some more direct than others. We will not begin to take a position in this debate, but we will illustrate a few examples for perspective. [Read more…] about Can We Put a Value on Human Life?
