Business Agent Report

by Jim Moeckler

If you drive a vehicle, almost every state requires you to carry auto insurance. Most states require a minimum amount of bodily injury and property damage liability insurance before you can legally drive your vehicle. If you’re financing a vehicle, your lender may have additional insurance requirements.

Regardless of the coverage required, it’s smart to carry auto or cycle insurance to protect yourself and those around you. Car and cycle insurance helps save your finances when an accident occurs and helps pay for vehicle damage repairs. Consider these major policy protections when purchasing auto or cycle insurance:

Bodily Injury Liability pays for injuries you, the designated driver or policyholder, cause to someone else when operating a covered vehicle.

Property Damage Liability pays for damages you (or someone driving the covered vehicle with your permission) cause to someone else’s property. This typically means damage to someone else’s car, but it can also include damages to fences, buildings or other structures.

Medical Payments pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses due to bodily injury or death from an accident.

Uninsured and Underinsured Motorist Coverage reimburses you, a member of your family, or a designated driver if one of you is hit by an uninsured driver. Underinsured motorist coverage applies when an at-fault driver doesn’t have enough insurance to pay for the total loss. This coverage also protects you if you are hit as a pedestrian.

Collision pays for damage to your car or cycle resulting from an accident with another car or object.

Comprehensive reimburses you for loss or damage caused by something other than a collision, such as theft, fire, or contact with animals like birds or deer. This coverage also reimburses you if your windshield is cracked or shattered.