{"id":2635,"date":"2011-11-16T22:16:15","date_gmt":"2011-11-17T04:16:15","guid":{"rendered":"https:\/\/www.kbmco.com\/ins-fl\/?page_id=2635"},"modified":"2018-03-07T11:18:28","modified_gmt":"2018-03-07T17:18:28","slug":"auto-insurance-tips","status":"publish","type":"page","link":"https:\/\/www.kbmco.com\/ins-fl\/insurance\/knowledge-center\/auto-insurance-tips\/","title":{"rendered":"Auto Insurance Tips"},"content":{"rendered":"

Auto Insurance Knowledge Center:<\/h2>\n

Click any of the following general topics to reveal all the helpful details.
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Statements on this website provide general information only as it relates to policies and coverages. All coverages are subject to the terms, conditions and exclusions of the actual policy issued so contact one of our licensed agents for questions regarding your specific needs and policy.<\/p>\n<\/p><\/div>\n

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THE BASICS OF AUTO INSURANCE<\/h2>\n
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\n <\/span>Keen Battle Mead & Company\n <\/div>\n

The Basics of Auto Insurance<\/h2>\n
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What is auto insurance?<\/p>\n

Owning a car involves several risks. When a car accident occurs, people may be injured and vehicles (or other property) may be damaged. Damage can also occur through theft, vandalism, or natural disasters. Auto insurance can protect you against the financial loss associated with these risks. Insurance companies provide auto insurance through personal auto policies (PAPs) \u2014 a contract between you and your insurer specifying each party’s rights and obligations.<\/p>\n

Why do you need it?<\/p>\n

State law (and\/or your car’s lender) often requires you to purchase at least a minimum amount of auto insurance. You may find it sensible to purchase greater coverage, however, to protect your auto investment, pay for necessary medical expenses, cover your legal liability, and cover any additional losses related to driving. If you cause an accident and the other driver suffers damages over and above your policy’s limits, your personal assets and future earnings may be put at risk.<\/p>\n

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Understanding your personal auto policy (PAP)<\/strong>
Your policy discusses types of coverage, rights, and obligations, as well as exclusions or limitations. Coverage types include: liability, medical payments, uninsured\/underinsured motorist, and coverage for damage to your auto.<\/p>\n

What is a deductible?<\/strong>
A deductible is an amount of money you pay before your insurance kicks in. Deductibles are generally $100, $250, $500, or $1,000.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

Anatomy of the Personal Auto Policy (PAP)<\/div>\n
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Part A \u2014 Liability Coverage<\/p>\n

Liability coverage insures you against injuries you cause to other people and damage you cause to other people’s property. Liability claims can be virtually limitless \u2014 this is one area where you definitely do not want to be underinsured.<\/p>\n

Part B \u2014 Medical Payments Coverage<\/p>\n

Medical payments coverage pays medical expenses resulting from an automobile accident up to a specified dollar limit \u2014 with no need to wait and find out who is at fault.<\/p>\n

Part C \u2014 Uninsured\/Underinsured Motorist Coverage<\/p>\n

This coverage insures you against losses caused by someone who is completely uninsured or who has less than adequate insurance to cover the loss.<\/p>\n

Part D \u2014 Coverage for Damage to Your Auto<\/p>\n

Part D consists of collision coverage (damage caused in an accident) and comprehensive coverage (fire, theft, flood, vandalism, and other events). These coverages can be written with or without a deductible.<\/p>\n

Part E \u2014 Duties After an Accident or Loss<\/p>\n

This part deals with the specific procedures that must be followed in order to have your claim covered. Timely payment of your claim may depend on your compliance with these procedures.<\/p>\n

Part F \u2014 General Provisions<\/p>\n

Part F contains various provisions that limit and qualify the coverage provided in other sections of the PAP. If the conditions set forth in this section are not met, the insurer may be able to deny coverage of a claim.<\/p>\n<\/p><\/div>\n\n<\/div>

COVERAGES<\/h2>\n
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Auto Insurance Coverages<\/h2>\n
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Coverage Options & Cost Factors<\/div>\n

Auto insurance isn’t a “should I or shouldn’t I?” proposition. Most states have laws requiring you to purchase at least some minimum level of auto insurance. In reality, there is often a large gap between the insurance you’re required to carry and what you should consider carrying.<\/p>\n

Common Personal Auto Policy Coverages<\/div>\n
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\n Liability \u2014 Bodily Injury\n <\/div>\n
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\n Liability \u2014 Property Damage\n <\/div>\n
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\n Medical Payments (Med Pay)\n <\/div>\n
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\n Uninsured Motorist Coverage\n <\/div>\n
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\n Underinsured Motorist Coverage\n <\/div>\n
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\n Collision Coverage\n <\/div>\n
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\n Comprehensive Coverage\n <\/div>\n
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\n Towing & Labor\n <\/div>\n
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\n Rental Car \/ Transportation Expense\n <\/div>\n
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\n GAP Coverage\n <\/div>\n<\/p><\/div>\n

Liability Coverage<\/p>\n

Liability coverage consists of bodily injury liability and property damage liability. The bodily injury portion is the most crucial \u2014 claims for medical bills, lost income, and pain and suffering can easily mount to hundreds of thousands of dollars. In most states, required minimum liability coverage doesn’t come close to covering the costs associated with a serious accident.<\/p>\n

Collision & Comprehensive Coverage<\/p>\n

Collision covers losses when your vehicle is damaged in an at-fault collision. Comprehensive covers losses when your vehicle is damaged by fire, vandalism, flood, and a variety of other events. If you drop your damage protection coverage, you could be responsible for the entire cost of repairing or replacing your vehicle.<\/p>\n

Endorsements<\/p>\n

Endorsements are optional provisions you can add to your auto insurance policy for an extra premium, to expand your coverage. Typical endorsements include towing and labor, car rental costs, extraordinary medical expenses, and certain recreational vehicles.<\/p>\n<\/p><\/div>\n\n<\/div>

EXCLUSIONS<\/h2>\n
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Auto Insurance Exclusions<\/h2>\n
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What’s Not Covered<\/div>\n

Your personal auto policy (PAP) identifies a number of events and situations that are specifically omitted or excepted from coverage. These are called exclusions. Knowing what’s not covered is just as important as knowing what is.<\/p>\n

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Common Exclusions Include:<\/strong><\/p>\n

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  • Property damage and personal injury that you intentionally caused<\/strong><\/li>\n
  • Damage to a vehicle from normal wear and tear<\/strong> or mechanical breakdown<\/li>\n
  • Losses while using your vehicle for commercial\/rideshare purposes<\/strong> (without proper endorsement)<\/li>\n
  • Injuries to employees during the course of employment (covered by Workers’ Comp)<\/li>\n
  • Losses from war or nuclear hazard<\/strong><\/li>\n<\/ul><\/div>\n

    Limitations<\/p>\n

    Your PAP also specifies certain caps on the dollar amounts of coverage you are entitled to receive. Separate limits are generally set for liability, medical payments, uninsured motorists, collision, and comprehensive coverages.<\/p>\n<\/p><\/div>\n\n<\/div>

    CLAIMS & MORE<\/h2>\n
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    Auto Insurance Claims & Smart Shopping<\/h2>\n
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    Do I Have Enough Auto Insurance?<\/div>\n

    Auto insurance often seems fraught with weighty terminology. It’s smart to ask questions and have our agents explain the differences between coverage types. Understanding your coverage levels before a loss occurs is far better than discovering gaps afterward.<\/p>\n

    When to Review Your Policy<\/p>\n

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    • Annual renewal:<\/strong> Review your policy and make necessary changes \u2014 a month before renewal is ideal.<\/li>\n
    • Family status changes:<\/strong> Marriage, divorce, new teen driver \u2014 all affect your coverage needs.<\/li>\n
    • Property increases in value:<\/strong> Your home could be at risk without adequate auto liability protection.<\/li>\n
    • Net worth increases:<\/strong> As your assets grow, so does the importance of proper coverage levels.<\/li>\n
    • You buy a new or additional car:<\/strong> Review your liability coverage to ensure it’s still adequate.<\/li>\n<\/ul><\/div>\n
      Saving Money on Auto Insurance<\/div>\n
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      • Increase your deductible<\/strong> \u2014 Raising from $250 to $500 can lower your annual premium by 10% or more.<\/li>\n
      • Drop collision\/comprehensive on older vehicles<\/strong> \u2014 If your car is worth less than $1,000, it may not be cost-effective.<\/li>\n
      • Drive less<\/strong> \u2014 Ask us if you qualify for a low-mileage discount.<\/li>\n
      • Maintain a clean driving record<\/strong> \u2014 No accidents or violations can earn price breaks.<\/li>\n
      • Install safety\/antitheft devices<\/strong> \u2014 Anti-lock brakes, airbags, car alarms may earn discounts.<\/li>\n
      • Inquire about multi-policy discounts<\/strong> \u2014 Bundling auto and homeowners often yields savings.<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<\/div>\n