Taking the Mystery out of Your Auto Insurance Coverage... 

Part 4 - Other Coverages.

What folks often refer to as "Full Coverage" is actually made up of several different components:  1.  Comprehensive, 2. Collision and 3. Other Coverages.

The good news is that you can "pick and choose" among the 3 elements of Full Coverage.  The sections below should help you determine which, if any, elements of Full Coverage you need to protect your interests.

In this section, lets take a look at "Other" Coverages...

What Other Coverages Are Available? 

       . Uninsured/Underinsured Motorist

       . Personal Injury Protection ("PIP")

       . Medical Payments

       . Death Indemnity

       . Towing & Labor

       . Rental Car

Lets take a look at each one of the above coverages and see how they might help with your auto insurance needs...

What is Uninsured/Underinsured Motorist Coverage?

As the name suggests, Uninsured and Underinsured Motorist coverage provides protection for you in the event that you are involved in an accident where the other driver is at fault and (a). doesn't have insurance or (b). doesn't have enough insurance to cover all of your losses.

Uninsured Motorist coverage also protects you in the event of a "hit and run" accident, and in  situations where your vehicle is hit while parked and the responsible party doesn't leave any contact information.

How Much Uninsured/Underinsured Motorist Coverage do I have? 

(So that I don't have to keep typing out that long combination of words, lets refer to Uninsured/Underinsured Motorist Coverage as "UM/UIM" from now on....)

Many clients set their UM/UIM limits at the same level as their Liability Limits (back to good the ol' 25/50/25, for example).

Just as we discussed in the Liability Coverage section, you want to make sure to protect your interests.  Remember, in the case of UM/UIM, we are talking about damage to your vehicle and possible injury to yourself and/or passengers.  If you have a vehicle worth $50,000, I wouldn't recommend carrying less than that amount in property damage coverage on UM/UIM.

As a general rule of thumb in our area, 50/100/50 limits on UM/UIM are usually sufficient.  As always, we can look at your  individual situation and make any necessary adjustments.

Should I Carry UM/UIM on My Policy?

YES.  YES.  Oh, and by the way.....YES!!!!!!

As you can see, I am fairly opinionated on whether or not your should carry UM/UIM coverage!  If my persistence is not enough of a convincer....keep this little statistic in mind:

1 in 3 drivers in Hays and surrounding counties is not insured.  Next time you're at a traffic light or stop sign, look around you.  If there are 3 other cars next to you, 1 of the drivers is not insured.  That's pretty scary....and is absolutely the reason why I insist that you carry UM/UIM!

Even worse...if we looked for a statistic on what ratio of drivers are underinsured, it would probably increase to 2.5 out of 3.  You don't want to have your $50,000 Tahoe totaled by a person carrying only $25,000 in property damage coverage, do you?  That's where your Underinsured Motorist Coverage kicks-in.

Just as with Liability coverage, there is no deductible on UM/UIM coverage.

Best of all, price should not be a reason for you not to carry UM/UIM.  At Farm Bureau, our UM/UIM rates are very inexpensive - and compared to the risk you'd be taking not to carry the coverage - it's a "no brainer".

Let's take a look at another optional coverage, PIP and Medical Payments....

PIP vs. Medical Payments Coverage.

There are two main types of personal injury coverages available for on your auto policy.  These coverages apply to injuries suffered by you the insured, while liability coverage pays for injuries suffered by someone else that you injure in an at fault accident.

Both PIP (Personal Injury Protection) and Medical Payments coverage will cover a specified amount of medical bills that you incur in an accident, regardless of whether or not you are at fault.

The major difference between the 2 types of coverage is that PIP will also pay for lost wages in the event you are unable to work for a specific period of time.  Medical Payments coverage stops there - just the medical bills are covered, not any lost wages.

The rule of thumb for this one is pretty simple.  If you are working and would stand to suffer financially by being out of work due to an accident, I would take the PIP coverage so that your wages are covered in a potential loss.  If you aren't working (i.e., a full time student or are retired), I would stick with Medical Payments coverage only.

There is one other consideration to make when debating whether or not to take the PIP or Medical Payments coverages.  If you have very good health insurance coverage, you might want to decline the PIP/Med Pay option since your medical bills would be covered by your health insurance.

PIP coverage is available in amounts ranging from $2,500 to $10,000.  Medical Payments Coverage is available at $5,000.

Now we'll move on to another optional coverage, Death Indemnity....

Death Indemnity Coverage.

Farm Bureau offers a very inexpensive Death Indemnity Coverage as an option on your auto  policy.

In the event of a fatal accident (regardless of fault), your loved ones would receive a $5,000 payment under the Death Indemnity option.  This payment could be used to help pay for final expenses, etc. in the event of such a tragic loss.

This coverage is available for only $1 every 6 months, per person covered (that's about 16 cents per month, per person).  Both drivers and non-drivers can be coverered by the Death Indemnity Option.

Now we'll take a look at Towing & Rental Coverage...

Towing & Labor

Towing & Labor is a nice all-around feature to have on the policy, and at very little cost.  In fact, on a 6 month basis, the additional premium is usually around $2 per vehicle (that's about 33 cents per month).

The towing aspect of the coverage is pretty obvious....  If your vehicle is disabled and you have it towed, you will be reimbursed for the cost of the towing.

The "Labor" portion of the coverage is a little more broad....covering both roadside aid (i.e., jump starting your vehicle) and pop-a-lock type service should you lock your keys inside your vehicle.

Towing & Labor coverage is available at $40, $80 and $120 intervals, per disablement.

F.A.Q.:  Will filing a Towing/Labor claim count against me or increase my premium?  No - not at Farm Bureau, anyway.  We do not penalize clients for filing a Towing and/or Labor claim.

Rental Coverage

In the event that your vehicle is disabled due to an accident (regardless of fault), Rental Reimbursement coverage will pay for the expense of renting a vehicle while waiting for repairs to be completed.

This coverage is available in intervals of $20/600, $25/750, $30/900, $35/1050.  The first number is the reimbursement per day, while the second is the total reimbursement available for a given occurrence.

If you have more than 1 vehicle in the family and you think you'd be able to fall back on another car in the event of a disablement, I would recommend taking a pass on the Rental Coverage.

If, on the other hand, you only have 1 vehicle, or you have 2 but the 2nd is used daily for work and/or school as well, the Rental Coverage is probably a good idea - and very inexpensive.  Typical coverage comes in at around $3 per 6 months, or roughly 50 cents per month, per vehicle.

This concludes our information on additional auto insurance coverages that are available to you.  Please choose an option below, or at the side menu, to continue... 

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