Things To Watch Out For
Your means of transportation is more than 4 wheels, it is something that helps you experience life to the fullest. Let’s make sure that your vehicle has the coverage it needs to keep you on the road.
Deductibles
Deductibles are the amount you pay out of pocket in the event of a covered loss before your insurer covers and costs. The higher the deductible, the lower the premium. Watch out for insurers increasing deductibles to lower your premium. Be sure your deductible is set at what you are comfortable paying in the event of a covered loss!
State Minimums
The state minimums of liability in Colorado are $25,000/$50,000/$15,000
The Catch: The average cost for a broken arm if surgery is necessary? $16,000 in medical bills. Then let’s say they were out of work for 2 months to heal. $12,000 in lost wages. Totaled new car, $35,000. You are already on the hook for $23,000 of the damages as that is how far over your limits the damages are, and that was just if one person was injured and one vehicle! State minimums can be a good way to save money until an accident happens!
Uninsured/Underinsured Motorist Coverage
This coverage is for exactly what it sounds like, those who are driving without insurance or those that may not have enough insurance! 1 in 6 drivers in our state doesn’t have insurance.
The Catch: While this may be an additional cost, it is worth it! You can opt out of this coverage and pay your deductible if you are involved with an uninsured motorist BUT the accident will go down as an at-fault accident on your record. This can result in higher premiums down the line.
Towing/Roadside
A self-explanatory coverage, right? Yes, but be sure to investigate the details! It is not covered by default by all insurers AND there are different limits on how much the insurer will cover.
Primary Coverage
BI/PD Limits
These limits vary by state and typically are represented as ##/##/##, or PP/PO/PD.
The first number represents the number in thousands that will be dispersed Per person for liability in an accident (medical bills, lost wages, etc.).
The second number represents the Liability in an accident that will be paid out per occurrence. $50,000 limit and 4 people injured? That is all you will have for all 4 people injured in the other vehicle.
The third number represents property damage coverage for your property and non-owned property in an accident. 2 vehicles totaled and only 25K in PD coverage? You are on the hook for any damage to vehicles above that limit.
Uninsured/Underinsured Motorist
This is for exactly what it sounds like, YOU! If you get in an accident with a driver, and the other driver is at fault but happens to not have insurance or does not have the liability coverage sufficient for your injuries this coverage comes into play! This coverage is only for liability coverages such as medical bills, lost wages, etc. property damage is covered under your collision coverage.
Uninsured Motorist PD
If you have uninsured motorist coverage but only have liability coverage on your vehicle, you would normally be out of luck to get your vehicle repairs paid for. With uninsured motorist PD coverage, you set a deductible to have full coverage for your vehicle in the event of another driver without enough insurance damaging your vehicle.
Medical Payments
Medical payments coverage helps pay for your or your passengers’ medical expenses if you’re injured in a car accident, regardless of who caused the accident. Some states offer this coverage, and some do not.
If you do not have this coverage and you get into an at-fault accident, your medical bills for yourself and your passengers is on YOU! This coverage is a must to help with health insurance deductibles and various medical costs.
Comprehensive
Comprehensive coverage on your vehicle covers it for damage from non-collision-related incidents (hail, fire, theft, vandalism, etc.).
Typically, these are written on a named perils basis.
Collision
This coverage is protection for at-fault accidents for your vehicle.
Glass Deductible Coverage
This coverage protects your windshield from chips, cracks, and other non-collision-related damages. It varies from carrier to carrier regarding deductibles. Certain carriers eliminate your deductible to replace/repair your windshield while others reduce it to around $100 typically.
Collision/Loss Of Use
Loss of Use coverage reimburses the insured a flat sum to assist with expenses incurred following a loss more than the deductible arising under Comprehensive and/or Collision coverages.
In other words, this is rental car reimbursement regardless of if you rent a vehicle or not. You will get paid a certain amount daily for the time that your vehicle is being repaired and you can use the money for whatever you like!
This coverage also provides extra towing coverage reimbursement costs if a disablement occurs more than 50 miles from your residence. It additionally will pay a flat rate per day in the event of total theft of the vehicle while you obtain another vehicle.
Rental Reimbursement
This coverage reimburses the insured for the lesser of actual daily rental charges or the purchased limit option for a maximum of 30 days for each qualified disablement on a covered vehicle.
Essentially this reimburses you for up to an agreed amount per day for 30 days on a rental car.
Towing And Roadside
Covers reasonable and necessary towing and labor costs incurred because of disablement of an insured car up to an agreed-upon amount. This coverage with certain insurers also reimburses you up to 2 times per year for being locked out of your vehicle and employing a locksmith.
Endorsements:
Policy Perks:
Vanishing Deductible
This perk does vary by insurer, but in short, the longer you go without a claim, the lower your deductible will get. It typically reduces by $50 or so per policy period after a set amount of time.
Accident Forgiveness
Similar to the vanishing deductible perk, the accident forgiveness perk comes into play after a set period of time that is set by your insurer. If you go a certain amount of time without accidents and you do have one, the accident will not be listed at fault and your rates will not be increased.
Driving Habits/Tracking
There are all types of apps that you can download from various insurers that track different driving habits to decrease rates. They track things such as hard braking, speed, phone usage, screen time, etc. They can give up to 20% discounts for safe driving habits and do not punish you for bad driving habits.
Guaranteed Renewal
This policy perk typically comes into play after a certain amount of time and does what it states! After a certain amount of time being a client with an insurer, they will guarantee your renewal regardless of losses that occur within your policy period.