Pennsylvania Auto Insurance Simplified (part 2)

This week we will continue our previous discussion about liability insurance.

As we previously mentioned, liability insurance covers “the other guy.” The first type of liability insurance is bodily injury. In the event that you are responsible for an accident, this is insurance coverage that pays the medical costs of injuries sustained by others. It can also include wages lost during recovery from an accident, as well as “pain and suffering” incurred because of the accident. 

The second type of automobile liability insurance that we will discuss is

Property damage liability insurance:

What is it and what does it cover?

Property damage liability insurance coverage includes the repair or replacement of property that was damaged or destroyed in an accident that is your responsibility. The property can include other vehicles, trees, mailboxes, fences, or buildings – any property that was damaged because of the accident. It would not only include parts and labor for a vehicle damaged in an accident, but also damage to items in the vehicle such as laptop computers, DVD players, cell phones, etc.

Why do you need it?

As with bodily injury liability, if you cause an accident, you are financially responsible. This means that you are personally responsible for any and all damage that has been done to property belonging to other people involved in the accident. When you purchase property damage liability insurance coverage, then your insurance company will pay the property damage costs, up to the amount of your coverage. Just like bodily injury liability insurance, property damage liability insurance is mandatory in most states.

What types of coverage are available?

Property damage coverage can range from $5,000 to $300,000, depending on the type of policy that you purchase. You may be able to choose between a split-limit policy and a combined single-limit policy. A single-limit policy has one maximum amount for bodily injury and property damage combined. The split-limit policy is the most common type, where bodily and property limits are “split,” with the third number in the split being the property damage limit. Take, for instance, a 100/300/50 split. That would translate to $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and $50,000 property damage per accident.

How much coverage do I need?

The purpose of liability coverage is to protect your personal assets. In a serious accident, the state-required minimum coverage won’t come close to covering all of the potential costs. You may end up paying for a major portion of the costs out of your own pocket. In some cases, drivers have been forced to liquidate their property, their savings and even commit future earnings in order to cover their liability in accidents. A generally accepted rule of thumb is to carry $50,000 of property damage liability insurance coverage for every vehicle you own. The more valuable your assets, the higher your Pennsylvania auto coverage should be.

Every month you make a payment to your insurance company, but do you really understand what it all means? What are the different categories, and what do they mean to you? Pennsylvania automobile insurance coverage can often be confusing – not only to new drivers, but also to those with many years of driving under their belts. Terms such as coverage, bodily injury liability, personal property, uninsured motorist, and comprehensive can be puzzling and frustrating. This article, and the ones that follow, will help to dispel the confusion and arm you with facts and information.

To begin, we will discuss liability insurance. Simply put, it’s insurance on “the other guy.” It pays for injury to others and damage done to other people’s cars or property. Liability insurance is a requirement for all drivers, in almost all of the 50 states. There are 2 types of liability insurance – bodily injury and property damage. Let’s discuss them individually, and answer some questions that you may have.

Bodily injury liability insurance:

What is it?

The term liability is defined by Webster’s dictionary as “an obligation under law. A legal responsibility for something, especially costs or damages.” As we said earlier, liability insurance covers “the other guy.” Bodily injury liability insurance is insurance that covers the “bodily injuries” of the other guy. In the event that you are responsible for an accident, this is insurance coverage that pays the medical costs of injuries sustained by others.  

What does it cover?

Bodily injury liability insurance covers the cost of injuries sustained by other people involved in an accident where you are at fault.

Who does it cover?

It covers people riding in your car, people in a car that you hit, or anyone else injured in an accident that is your responsibility.

  Why do you need it?

You need it because in the event that you cause an accident, you are financially responsible. This means that you are personally responsible for the medical costs of any and all people that are injured as a result of the accident. Medical costs are the currently the leading cause of personal bankruptcy in the United States. When you purchase bodily injury liability insurance coverage, then your insurance company will pay the medical costs up to the amounts of your coverage.

What types of coverage are available?

Generally, bodily injury liability insurance coverage is listed in two parts, such as $25,000/$50,000. The first number is the maximum amount that your insurance company will pay “per person.” The second amount is the maximum amount that will be paid “per accident.”

Let’s say, for instance, that you are responsible for an accident that injures 2 people. The first person’s medical bills come to $15,000. The second person’s injuries amount to $35,000. Your coverage only allows for $25,000 per person, in other words $25,000 + $25,000. In this case, the second person’s medical bills are $10,000 over the maximum amount of your coverage, and that additional amount won’t be paid.

What happens if you don’t have enough coverage?

As in the scenario above, if you don’t have enough coverage, then you will be personally liable for the additional costs. This means that you could be sued for the additional $10,000 by the person involved in the accident above. In that event, you would not only incur the medical costs, but also the legal fees involved.

How much coverage do I need?

Pa Car Insurance coverage exists so that you can protect your assets. Purchasing as little as you can get by with is short-sighted; it is also a great personal risk. You should purchase as much coverage as you can afford. The current cost of automobile accidents far exceeds most state minimums. Both the insurance industry and consumer groups recommend that you carry a minimum of $100,000 coverage per person, and $300,000 coverage per accident.

Auto insurance is something you can’t do without, and thankfully there are Pennsylvania senior auto insurance discounts available to make it more affordable for those over age 55. The trick is in getting all the discounts that are available to you. Unfortunately, this is not as easy as jumping online and getting low rates simply because of your age. Many times you’ll find that a knowledgable agent can find discounts that are overlooked by internet search engines.

The first step to getting senior auto insurance discounts is to get an online quote or a quote by phone. Do not take this quoted figure as the absolute amount you will have to pay for your insurance. This is only a starting point in your search for the most discounts available. You should get quotes from more than one company or broker. Preferably an agent who represents many different insurance companies who can do this work for you. Here at Williams Agency we represent many different companies and can tell you firsthand that the rates for car insurance in pennsylvania can vary by hundreds of dollars on the same customer. Many times we’ll ask questions that the “online” systems don’t ask…why?…because we know how to qualify you for extra discounts.  Typical online car insurance quotes in Pa will not give you all the discounts that may be available. Instead, you will have to contact the broker or agent directly to talk to them about possible discounts.

There are many types of discounts available. Most companies offer a discount just for being over the age of fifty five or sixty five. This discount will likely be provided to you when you get your Pennsylvania free auto insurance quotes. However, many more discounts may also be available. Some companies offer a discount if you are over fifty five and attend a refresher driving course. Some companies will offer a combination discount for age, credit history, driving history, length of time at the same residence and a variety of other factors. Trusting a reputable agent to make these inquiries will save you a great deal of time and energy. Statistics show that even though many people shop for rates online, the majority still choose to do business with a local agent they know and trust. It pays to do some research and ask around about the agent who’s providing your information.

Most companies also offer discounts for multiple drivers or multiple vehicles. You can also get discounts for the type of car you drive, if it has an air bag, if it has recent safety features like anti-lock brakes, and if it has an anti-theft system. You can also get discounts for having a clean driving record for a number of years, usually at least three to five.

Finally, you can get discounts for having multiple policies. These discounts are available from companies that offer more than one type of insurance. You can get quotes for home owners insurance, renters insurance, or even boat insurance when you get your Pennsylvania free auto insurance quotes. This allows you to take advantage of discounts for having more than one policy in your name with one company.

You can consolidate all of your policies with one company, get a discount, and have only one bill. If you ask about these pennsylvania senior car insurance discounts when you call brokers and agents, many will give you all the discounts they offer to earn your business.

When you are getting a Pennsylvania home insurance quote it is important to know how much coverage you need to get so that you can get an accurate quote. In order to choose the right policy for you, you will need to understand the typical amounts of coverage provided by most insurance companies, as well as your options for increasing that amount of coverage at an additional cost. This will allow you to get more accurate homeowners quotes in Pennsylvania and make it easier to compare quotes once they have been obtained. Most qualified agents will ask many in depth questions so that they can calculate a rebuild cost estimate for your home. The systems used by many qualified agents will help you insure your home adequately. There are also many instances where you may opt for a “market value” type policy rather than a “full rebuild” policy.

Typical Coverage Amounts

There are many types of coverage that are included in most homeowner’s policies, and these types of coverage have typical coverage amounts. For example, if you want to have your detached garage or other detached structures insured, they will generally be covered for up to ten percent of the value of your home, many times that is 10% of the dwelling amount. Increaseing the coverage for unattached building is relatively cheap so be sure you’ve reviewed the situation and are prepared to carry the correct amount of coverage.

Most policies also cover damage or theft of personal property in the home, and this coverage is usually equivalent to fifty percent of the value of the home. Many of the newer contracts provide 70-75% of the dwelling value in additional personal property coverage. This is another good reason to dig out your policy and have it reviewed. This is one of the most common areas that we find folks are drastically underinsured.

It is important to note that in the case of theft, fire or destruction, you will only receive cash value for your belongings up to that amount, not replacement value. All of these things are important to know before getting a Pennsylvania home insurance quote. Adding replacement cost guarantee to your contents coverage will ensure that you don’t fall victim to having your belongings depreciated in the event of a loss. This is a very affordable coverage that you should never go without. Replacement cost on the structure is also recommended.

Certain items in your home can only be insured for so much. Silver other than silverware is sometimes limited to around two hundred dollars. Silverware is covered at $2,500. Jewelry and furs is limited to around a thousand dollars. This is all you can get for basic coverage if these items are lost or destroyed. Fine arts, guns and other collectible items may also be subject to exclusions and limitations so a good agent will be needed to help you decide how to insure your belongings properly.

Personal liability is another thing to consider in homeowners quotes in Pennsylvania. Most policies cover $100,000 per occurrence for personal liability. Medical payments for injuries that occur on the property are usually kept at around $1,000 per person per occurrence. Keep in mind that if you ever have to use your personal liability coverage your premiums will most definitely increase.

There is also coverage available for additional living expenses in the event that your home cannot be lived in while it is being repaired from a covered occurrence, such as a fire. The amounts of this coverage vary by policy, and there is no set amount that is an industry standard. The minimum amount seems to be equal to 20% of the amount of coverage on your dwelling. The maximum I’ve seen is through Erie Insurance and it’s actual loss sustained for up to 1 year.  These are things a good agent will review and adjust to properly cover your families situation.

Getting Additional Coverage

You are not by any means limited to these coverage amounts. You can easily add additional coverage to your policy for an additional fee. You need to specify this desire when you attempt to gather homeowner’s quotes. Determine beforehand how much coverage you want in different areas and then request those amounts when you call or go online for your Pennsylvania home insurance quote.

For example, you can add what is called a floater to your policy to get additional coverage for your belongings. This floater is basically a personal property endorsement that lists each item covered and its value. In this way you can insure your jewelry and other expensive belongings against theft or damage. If you want this type of insurance feature, you need to specify that at the time that you get your Pennsylvania home insurance quote.  Any collectibles, valuables or items that you have an above average amount of should be discussed and reviewed with a trusted agent who can offer the proper advice to covering them properly.

    I probably should start off with saying that I’m very grateful for the insurance business, it has provided me with many great opportunities, friendships and a good living.  Having so many clients who are referring friends, family, coworkers to my office is a blessing that I take very seriously. I’m grateful to each and every person who not only chooses us…but then tells others about their positive experience.  You can be assured that we will continue to do everything we can to make you happy you joined us.

   This is the time of year that I officially become semi-retired.  If I had my way…and didn’t have thousands of clients depending on me…I’d archery hunt every day of the season.  The feeling of sitting 25 feet up in a treestand…feeling almost invisible in the forest is an awesome feeling. Yeah, harvesting game is nice too…but my enjoyment comes from the quiet time, alone or with one of my daughters(not quite so quiet time) and watching nature take it’s course. Sometimes I wonder if I could go and just take a camera…sorry bambi lovers…not quite ready for that yet. So…I’m off to scout, climb trees and otherwise become a nuisance to the whitetail deer population. Please leave a message when you call and try to be remember that any of the gals in my office can probably help you out of your emergency just as well as I can….trust me!

  Since Google watches my site pretty regular…now I have to add some keyword phrases that makes them think I’m talking insurance jibberish. Then they move my site up through the ranks and when one of the internet shoppers types something in google about things like pennsylvania car insurance quotes, pa auto insurance, pennsylvania senior auto insurance discounts, pennsylvania free auto insurance quotes and erie insurance agents they get my site right up there near the top. Hey, competition for this geeky stuff is gettin fierce so if I want my hunt time….I gotta squeeze this stuff in there.

   Thanks again for letting us serve you, it’s a pleasure.

P.S. If you have one of these guys eating your shrubs, garden, etc. and you need him removed…call me!  As always, I try to help when I can.