What coverages do I need?
State Requirements
In most states, you are required to carry
minimum auto liability coverage (or post a bond) and provide proof of insurance
before you can license your vehicle or renew your driver's license. If you are
caught driving without insurance, you may have to pay a large fine and have your
driver's license suspended.
Contact us to find out what the specific
requirements are in your state.
Types
of Auto Insurance Coverages
There are many different types of auto insurance coverages for you to choose
from. Your agent can work with you to decide what coverage combinations provide
the best protection at a price that fits your budget.
- Fault or no-fault coverage:
If you live in a no-fault state, your own insurance
company pays for any loss or injuries to you, no matter who causes the
accident. With no-fault, most claims can be settled quickly, without
litigation over who's at fault. However, no-fault can limit your right to
sue to recover damages. Individual states set the coverage and place limits
on your rights to sue.
In fault states, the person at fault
in the accident or the insurance company pays. With a fault system, your right
to sue is not restricted (nor is the other party's right to sue you). To find
out what the regulations are in your state, contact your local Farmers agent.
- Collision: Collision
coverage pays for damage to your vehicle that results from a collision with
another vehicle or object. Generally, the coverage reimburses you the amount
needed to repair or replace your damaged vehicle, minus the deductible. This
coverage is normally required if your vehicle is leased or if you have an
outstanding loan on the vehicle.
- Comprehensive: Comprehensive
coverage protects your investment in your vehicle by paying for losses
resulting from fire, theft, falling objects, riots, storms, earthquakes,
floods, collision with a bird or animal and other natural occurrences. Like
Collision coverage, Comprehensive coverage generally includes a deductible.
Comprehensive coverage is normally required if your vehicle is leased or if
you have an outstanding loan on the vehicle.
- Deductible: The
deductible is the amount of the loss you agree to pay or absorb in the event
of a claim or accident. Let's say you have a $250 deductible. If you have a
fender-bender, and the bodywork costs $1150, you will pay the deductible -
$250, and your insurance company will pay the balance - $900. With auto
insurance, deductible amounts typically range from $50 to $1,000 per claim.
Choosing a higher deductible reduces the cost of your insurance.
- Bodily Injury: Bodily
Injury coverage pays for any person(s) injured or killed in an accident
where you are at fault. Coverage includes medical expenses and lost wages.
These coverages are subject to the limits and conditions of your policy.
Most states require drivers to carry Bodily Injury coverage.
- Property Damage: In
a collision where you are at fault, Property Damage covers your liability
for damaging another person's personal property, such as an automobile,
house or fence.
- Medical Payments: This
coverage pays medical bills and funeral expenses for you or a passenger
injured while riding in your vehicle. Coverage extends to you or a family
member when riding as a passenger in someone else's vehicle or when struck
by a vehicle when on foot. Costs are covered up to the amount specified by
the policy.
- Personal Injury Protection (PIP): Personal
Injury Protection (PIP) pays a broader range of medical costs than does
Medical Payments coverage. PIP covers lost wages and the replacement of the
services of someone injured in an accident. Personal Injury coverage is
generally required in states with no-fault and available in some other
states.
- Uninsured Motorist/Underinsured
Motorist: Uninsured Motorist coverage
protects you, members of your household and your passengers in an accident
with a motorist who has no insurance or is underinsured. Uninsured Motorist
protection also covers you if you're injured by a hit-and-run driver. The
coverage also applies to you and the members of your household as
pedestrians. Coverage includes payment of medical costs, lost wages and pain
and suffering. It is required in many states. In some states or insurance
policies, Underinsured Motorist protection is separate from Uninsured
Motorist coverage.
Contact William Go for more
details.
Return to Top
How much will it cost me?
It depends on what you drive.
Did you know one of the biggest expenses in owning a car or truck is the cost of
insuring it? The car you drive can have a substantial impact on your auto
insurance premium, especially on your comprehensive and collision coverages.
Your agent can help you by letting you know which vehicles are better insurance
values.
The rates for comprehensive and collision
coverage are determined by looking at the vehicle loss history - how often it is
stolen, how costly it is to repair or replace after an accident. We can offer
more favorable rates on comprehensive and collision insurance for over 119
popular selling vehicles. That means if you really want to get a good
value for your insurance dollar, choose a car on this list. As an additional
benefit, these vehicles are often safer, less expensive to repair and less
likely to be stolen.
Contact William Go for more
details.
Return to Top
Tell me about safety
Driver
education: Are
the new drivers in your house really knowledgeable about insurance and driving
safety? We feel that educating young drivers is part of our responsibility, too.
By following this link: Y.E.S.
(You're Essential to Safety) Program, you will see an informative program
can help improve a young person's driving. In some states, young drivers who
complete the program may qualify for a discount on their auto insurance.
Cell phone safety:
Did you know there are more than 83 million cell phone
subscribers in the United States? Cell phone ownership has increased in every
age, education and income level. The increases are especially dramatic among
young adults 18 to 24 years old.
Concern about cell phone safety is on the
rise. This is due in part to the increase use of cell phone while driving. Most
of us spend a considerable amount of time in our cars. Not surprisingly, we will
attempt to optimize the time we spend driving by doing other things, including
using our cell phones.
However, cell phones can pose a serious
health risk. The National Highway Traffic Safety Administration (NHTSA) has
determined that driver inattention is a primary or contributing factor in as
many as 50 percent of all traffic accidents. While cell phones have many
benefits, it is very important to remember road safety always comes first.
Contact William Go for more
details.
Return to Top
Please contact us for more
information. We are happy to answer any of your questions.
*William Go does not provide tax or legal
advice. You should review your specific situation with your tax advisor for
information regarding, or issues concerning, the tax implications of making a
particular financial decision or taking any other action.
