Business Auto Verus Personal Auto Part II


Auto insurance coverage how it works  Part II

What do the numbers mean 100/300/50

1.Bodily Injury Liability   100
    This covers bodily injury that you cause to others while using your car. You and family members listed on the policy are also covered when driving someone else's vehicle with their permission. It's very important to have enough liability protection. Consider buying more than the state-required minimum to protect assets such as your home and savings
2. Medical Payments or Personal Injury Protection (PIP)
     This covers a limited amount of medical and hospital costs. Coverage limits are defined in the policy. Need to ask your agent what this amount is.

3.Uninsured/underinsured motorist bodily injury
     This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured, a hit-and-run driver, or an at-fault driver who has insufficient insurance to pay for your total loss. The max they will pay is what is on your policy. So if you have 25,000 bodily Injury that is all they will pay even if it was not your fault

4. Collision    50,000
     This covers damage to all vehicles that are involved in the accident if it is your fault.
5. Comprehensive
     This covers damage to your car — except by collision. For example, this covers your car if a tree falls   on it or someone vandalizes it.

6. Emergency road service
    This covers towing when your car breaks down.

7. Car rental expense
     If you have a claim that is covered under your auto insurance policy, this coverage pays to rent a car. 

8. GAP 
      In the event your vehicle is a total loss, GAP coverage pays the difference between the current         market value of your car and the amount you still owe the bank.

10. Custom equipment coverage
    This covers direct and accidental loss to custom furnishings or equipment.
    The middle number (300) is what the insurance company will pay for the total accident  minis the property damage (50)