In these economic times, everyone is looking to save money somewhere. The national auto insurance companies keep promoting all kinds of “discounts”. You want to save money but be sure you understand how the different coverages are used and how much you will actually save. Before you renew your Massachusetts auto policy this year, you should know these three things:
1. Make sure you have adequate Optional Bodily Injury coverage. We recommend at least $100,000.00 per person and $300,000.00 per accident. If you are at fault for a car accident and the other party is injured, this is the amount of money that will be available to resolve that person’s personal injury claim against you. By having adequate optional bodily injury coverage, you will, along with other safeguards, protect your personal assets such as your home and savings accounts.
2. Make sure you DO NOT elect a P.I.P. deductible in your auto policy. P.I.P. stands for Personal Injury Protection benefits. Under P.I.P. coverage, your own insurance company pays for, among other things, your medical bills, 75% of your lost wages, funeral expenses, and replacement services. The amount of a typical P.I.P. premium is $59.00! DO NOT elect to have an $8,000.00 deductible just to save $59.00.
3. Make sure you have adequate Underinsured coverage. We recommend $100,000.00 per accident. This coverage protects you and follows you around, instead of following your vehicle. If you are in an accident that was not your fault and you are hurt, you may be able to bring a claim against the at-fault party. If they don’t have adequate bodily injury coverage to cover the value of your claim, they would be considered “underinsured.” In this case, you may be entitled to bring a claim against your own insurance company for an Underinsured Claim, but only if you have elected to have this type of coverage on your policy. This coverage is very valuable and can also be used if you are a passenger in someone’s else’s car or are a pedestrian.
In closing, it should be imported to note that we do not sell insurance. We truly want to help educate drivers as they renew their auto policy, and help them better protect themselves in case they should be involved in an accident. If you should have further questions about these issues, please feel free to contact our offices.
