If you happen to become involved in accident, you will need protection against liability, property, and additional medical costs. An Automobile Insurance policy with Midwest Insurance Group is designed to provide you with quality protection.
- Property includes coverage payment for your car if damaged or stolen.
- Liability coverage covers costs of your legal responsibility to others for property damage or bodily injury.
- Medical coverage pays for the cost of rehabilitation, treating injuries, and at times, lost wages and funeral expenses.
More About Automobile Policy Coverage
If you have questions concerning your automobile policy coverage options and the limits that you need, we can help! We’ve covered the basics below, which provides the information you need (including acronyms!) to understand your Automobile Insurance policy and coverage options.
Comprehensive and collision
Collision – This covers damage to your car when your car hits, or is hit by, another vehicle or other object. Collision pays the costs necessary to repair your vehicle, less the deductible you choose. For older cars, you may want to consider dropping this coverage, since it is typically limited to the cash value of your car. This coverage is not required by a state, but if you have a loan or a lease, then the lien holder will require it.
Comprehensive (Other Than Collision or OTC) – This covers your vehicle, and sometimes other vehicles you may be driving, for losses resulting from incidents other than collision. This includes damages made to your car if it becomes stolen or damaged by fire, flood, falling objects or animals. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist that you carry it until your loan is paid off.
Selecting comprehensive and collision deductibles
Collision coverage is generally sold with a deductible of $250 to $1,000; comprehensive insurance is usually sold with a $250 deductible. Opting for a higher deductible is a way to help lower your auto premium. When deciding on a deductible that best fits your needs, take into consideration your available cash, disposable income, the value of your vehicle, and your tolerance for risk. Typically, the higher the deductible, the more you’ll pay out of pocket in case of a claim.
Bodily Injury Liability (BI) – This covers injuries that you, the designated driver or policyholder cause to someone else. Claims for bodily injury include medical bills, loss of income, or pain and suffering. It does NOT cover the cost of damages incurred to your vehicle, or to you or other people on your policy. This is mandatory in most states.
Property Damage Liability (PD) – This provides coverage if you or someone driving the car with your permission causes damages to someone else’s property. Typically the property is another vehicle but it could be a fence, telephone pole, a house, etc. Additionally, it provides you with legal defense if another party files a lawsuit against you.
Medical Payments (MP) or Personal Injury Protection (PIP) – This no-fault coverage covers medical expenses to you and your passengers injured in an accident. Better safe than sorry! Medical payments may also cover policyholders and their family members when injured while riding in someone else’s car, or when they are hit by a car while on foot or bicycling. If you and your regular passengers already have health insurance that cover similar expenses, medical payments coverage may be unnecessary. Check your health insurance policy for details.
Uninsured and Underinsured Motorist Coverage (UM or UIM) – This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. This coverage will also protect you if you are hit as a pedestrian.
Underinsured Motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss.
Selecting liability limits
Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance. In the event you become involved in a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets, including your home and savings. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. We will help you select limits that meet your unique needs.
Top Ways to Save on your Premium
Raise your deductible
Maintain a good driving record
To qualify for a low-mileage discount, consider driving less
Drive a car that has safety features such as anti-lock brakes, airbags, etc.
Consider installing an anti-theft device
Ask about our multi-policy discounts