Auto Insurance policies contain the following protections in the event of a loss:
- Liability Insurance - pays for injuries and property damages to the other party involved in an accident if you are found liable.
- Collision Coverage - pays for damage to your car regardless of who is at fault. The insurance company must pay for the repair or up to the actual cash value of your vehicle, minus your deductible.
- Comprehensive (other than collision) – pays for damage to the policyholder’s car caused by anything other than a collision with another vehicle such as damage from fire, floods and theft.
- Personal Injury Protection (PIP) & Medical Payments - both pay limited medical and funeral expenses if you, a family member, or a passenger in your car is injured or killed in a motor vehicle accident. PIP also pays lost-income benefits.
- Towing and Labor Coverage - pays for towing charges when your car is not drivable, it also pays labor fees for such instances like changing a flat tire at the location of the break-down.
- Rental Reimbursement Coverage - pays a set amount for a rental car while your car is being repaired due to damage covered by your auto policy.
- Uninsured/Underinsured Motorist (UM/UIM) Coverage - pays for your injuries and property damage caused by a hit-and-run driver or a motorist without insurance. It will also pay when your medical and car repair bills are higher than the other driver’s liability coverage
- Custom Parts, antique auto.
An umbrella policy is a cost effective way to add an extra layer of protection in the event of a large loss. It also covers other forms of liability that are not ordinarily covered such as libel and slander as well as false arrest.
It is an extra layer of protection which may keep you from having to relinquish your home, stocks, retirement, college funds or any other significant assets in the event your homeowner’s, auto or boat insurance policy pays out its limits. A million dollar umbrella policy is affordable. This insurance is not only for the wealthy.