Understanding Your Automobile Insurance Coverage

Many changes have been made in the laws, which concern the insurance coverage you should have on your automobile. The one thing to remember is that your physical health is more important than the automobile itself. Keeping this in mind, I would like to briefly explain the most important types of coverage that are available to you, as they relate to your body. (Please see the last page for a sample Coverage Selection Page):

#3 Uninsured Coverage

This portion covers personal injuries you sustain when struck by an individual who has NO INSURANCE, or injuries sustained in a HIT AND RUN ACCIDENT. This section will allow you to recover for your pain and suffering once you have incurred $2,000.00 in medical expenses or have suffered a fracture or other permanent injury, such as scarring. Mandatory coverage in Massachusetts is now 20/40. However, that is extremely minimal coverage.

Recommended coverage is 50/100, or more preferably 100/300. Call your agent for premium costs to determine what level of insurance you can afford.

#12 Underinsured Coverage

This portion covers personal injuries you might sustain if struck by an individual who has minimum coverage, or not enough coverage to compensate you for the severity of your injuries, and pain and suffering. DO NOT SELECT COVERAGE OF 20/40. THIS IS EQUIVALENT TO HAVING NO COVERAGE AT ALL!

Recommended coverage is 50/100 or preferably 100/300. Call your agent for premium costs to determine what level of insurance you can afford.

#5 Optional Bodily Injuries to Others

In order to have proper insurance on #3 and #12 above, it is necessary to have the same level of insurance in this section. Therefore, if you carry 50/100 on #3 and #12, YOU MUST carry 50/100 on #5. Likewise, if you carry 100/300 on #3 and #12, YOU MUST carry 100/300 on #5.

#6 Medical Payments

This is additional insurance which pays for your medical bills only. It does not apply to lost wages. In order to qualify for payments under this level of coverage, you must have exceeded $2,000.00 in medical expenses. Medical Payment options are relatively inexpensive and are worth taking even if you have personal health insurance. A satisfactory amount is usually $10,000.00 but increments start at $5,000.00. Again, call your agent for quotes.

#7 Collision and #9 Comprehensive

This coverage applies to your vehicle, not your body. This covers property damage to your vehicle by accident (COLLISION), fire and/or theft (COMPREHENSIVE). The age of your vehicle determines whether or not you should take advantage of this coverage. Usually, if the vehicle is 7 years or older, this coverage is not recommended. However, if you have financed the vehicle, and still have outstanding balance on that loan you MUST have this coverage. To lower your premium you can opt for a higher deductible, (i.e. $1,000.00 v. $500.00, please note that while your premium will be lower, you will be responsible for the first $1,000.00 in damages if you are at fault for the accident.)

THE ABOVE INFORMATION IS AN OVER-VIEW OF THE INSURANCE COVERAGE AVAILABLE AT THIS TIME. IT IS NOT MEANT TO BE A COMPLETE STUDY OF WHAT IS SUGGESTED FOR YOU IN PARTICULAR. THE BEST WAY TO DETERMINE WHAT IS BEST FOR YOU IS TO STOP INTO OUR OFFICE WITH YOUR COVERAGE SHEET. WE WOULD BE PLEASED TO DISCUSS YOUR OPTIONS AT NO CHARGE TO YOU.

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