Protect My Investment

Protect Your Investment

This week I attended a networking meeting in Dayton, called Simply W.O.M.E.N. One of the presenters, Stefani Holley, was from American Family Insurance: (http://www.facebook.com/StefaniRHolley) She mentioned some interesting facts about auto insurance:

Did you know: If you hit an animal that tried to run across the road in front of you, your damages will be covered by your comprehensive coverage on your insurance, but if you swerve to miss the animal and hit something else, you will have a collision claim and could have to pay a higher premium, depending on your policy, so think real hard before you decide NOT to hit the animal.   My comprehensive coverage has a $100 deductible, but my collision coverage has a $500 deductive. Collision claims are chargeable, so if you have a collision claim rather than a comprehensive claim, your premiums may go up...you will also be more at risk of hitting someone or something else like an uninsured or under-insured driver...

Do you know the state minimums for personal injury and property damage? 

The state of Ohio requires all drivers to have $12,500 for bodily injury claims, but caps this is $25,000/accident, so if there are more than two people in the car, they have to divide this total and get less than $12,500/person. Do you think $12,500 will cover most medical expenses for car accidents?

The state of Ohio requires all drivers to have $7,500 in insurance for property damage. So if you've just purchased a new car (most of them are worth more than $20,000), you will only get less than half of what you have invested if you are in an accident that is not your fault and the other driver only has "state minimum" coverage.

Stefani told me that these limits were set in the 1970s and haven't been re-calculated since! (Pay attention to changes that are set to take effect in March.)

So how can you protect yourself: 

1. Uninsured/under-insured motorist Coverage pays for bodily injuries suffered due to being hit by a driver without any or enough insurance, so as you are selecting your options for your insurance, choosing this coverage will protect you, if you are hit by a driver who has not insurance or not enough to cover your injuries. 

2. Collision Coverage will help you if you are hit by an uninsured/under-insured motorist. Your collision coverage will kick in if needed to pay for your property damage.

3. Umbrella Coverage might cover your expenses above state minimum (or if the under-insured motorist cannot pay for all your expenses). Stefani told me that American Family Insurance umbrella policies have an endorsement that allows it to pay out for these claims, but some major insurance companies do not have this endorsement, so ask your agent to be sure. Having this type of policy can also help you if you are sued for other issues not covered by your standard home and auto insurance.

It's a good idea to understand your insurance policies completely...I know it looks like a lot of reading, but talking with your agent will help you understand what you have. If you are making a switch or you need insurance, I am sure Stefani will help you out:  (http://www.facebook.com/StefaniRHolley)