We all need to have insurance for our vehicles, and we all want to save money where we can. That’s the reality of today’s world. But the other reality is that things are not getting cheaper to fix and trimming down your auto insurance is not the answer. Let’s break it down so you know what your auto insurance policy should contain.
Each state sets a requirement for a minimum for bodily liability. This covers you if you injure another driver. Utah requires a minimum of $25,000. Let’s put this in perspective so you can see why this isn’t the best decision. One Insurance Information Association found that the average claim for bodily injury was $15,443 and can only go up from there. We all know how quickly medical bills can add up and if you don’t have enough of this type of coverage, it comes out of your pocket. So in order ensure you are covered, the insurance industry recommends that your bodily injury liability limits be at least $100,000 per person and $300,000 per occurrence. You may never use all of this, but it’s better to ensure that the money is there should it ever be needed.
Next is property damage liability coverage. This is to cover damage any property you may damage in an accident. Utah requires a minimum of $15,000 or a total of $80,000 for bodily and property combined. However, it is recommended to extend this coverage up to $50,000 or more. Property damage can get expensive very fast, and you don’t want to risk having to pay that out of pocket as well.
Every policy also has optional add-ons that most of us don’t think about that can also save you money in the long run. These include the following;
- Collision – covers damage to your vehicle after an accident.
- Comprehensive – covers damages unrelated to an accident such as; theft, larceny, vandalism, fire, hail, water, flood, animal, falling objects, etc.
- Uninsured/underinsured motorist – covers increasing costs that the other driver’s insurance is unable to cover or if they are not insured at all.
- Rental car – for while your car is getting repairs.
- Roadside assistance – so that you’re not stranded.
Personal Injury Protection (PIP) is required in the state of Utah due to being a no-fault state. The state requires a minimum of $3000, which will cover your medical expenses until it’s exhausted. This happens fairly quickly and once this happens, you file a claim with the other driver’s insurance to cover medical costs. This can be time-consuming, but that is what insurance is there for.
Talk with your agent today about these coverage options and how to better protect yourself and your loved ones. We understand the need to save money but we also want to make sure that you’re protected.