More Information on Automobile Insurance

We feel it is important that you fully understand the coverages you have or may be without. Read these brief explanations and recommendations regarding available auto insurance coverages:

  1. Tort Option: a significant coverage in auto insurance, you should consider opting for full tort coverage. This allows an “unrestricted right of recovery” against the responsible party who injured you. The limited tort option has a premium savings; however, you significantly limit the legal protection for you and your family. “Out of pocket” expenses (auto repairs, medical bills, loss of income) are always recoverable, however, other rights of recovery (right to be compensated for pain and suffering) are waived under the limited tort option without a “serious injury” (example, permanent disfigurement or disability).
  2. Bodily Injury Liability: Bodily injury liability: due to our litigious society and in order to protect your future assets and retirement, we recommend at least $250,000 per person and $500,000 per accident in case you cause injury to another person or persons.
  3. Property Damage Liability: protects you from suit for damage to another person’s property. Limits are available from the minimum of $5,000 up to $1,000,000. We recommend at least $100,000 as you could cause serious damage involving multiple vehicles, tractor-trailers, or significant damage to buildings.
  4. First Party Benefits Coverage: protects you and your family in a number of instances and usually this “FPB” coverage can be relatively inexpensive:
    1. Medical Expenses: like health insurance, this coverage pays for medical treatment you sustain in an auto accident. However, there are no “co-payments, deductibles, primary physicians, etc.” that you may be subject to with health insurance. After this limit is exhausted, you may then revert to your personal health insurance assuming coverage exists through your employer or your personal health insurance. If you don’t carry health insurance, you should purchase significant Med Pay Coverage. It is available up to $100,000 or Extraordinary Med Pay up to $1,000,000.
    2. Loss of Income: Loss of Income: this coverage pays for your lost wages while recovering from an auto accident. It is subject to a monthly limit (up to $5,000) and an aggregate limit (up to $100,000). It is a very inexpensive coverage to protect your family.
    3. Accidental Death: his coverage pays for expenses related to an accidental death for you, your family, or your resident relatives who are killed in an auto accident. Coverage is very inexpensive and is available up to $25,000 per person.
    4. Funeral Expenses: this coverage pays for funeral expenses for you and your family as a result of an auto accident. Coverage is very inexpensive and is available up to $2,500.
    5. “Uninsured and Underinsured Motorist” Coverage: protects you, your passengers, and your assets…” protects you and the people you love from a run-in with someone who is less responsible and less insured than you are. It’s an extremely important coverage.” We recommend at least $ 100,000 per person and $300,000 per accident.
      1. Unstacked Coverage: protects you and your family with Uninsured and Underinsured Motorist coverage for the stated limit on a per person/per accident basis.
      2. Stacked Coverage: significantly increases your UM/UIM protection by “stacking” coverage for each vehicle insured under the policy. For example, with three insured vehicles your $100,000/$300,000 coverage is increased to $300,000/$900,000 (3x).
  1. Physical Damage: coverage for your insured vehicles. In order to save premium, most financial planners as well as Bayline Insurance Agency recommend that you consider increased deductibles. Deductibles range from $0 to $1,000 and can significantly reduce your premium when increased. Consider the age and “value” of your car when electing to purchase this coverage.
    1. Comprehensive Deductible: this coverage includes “deer” accidents or any collision with an animal, fire, theft, flood and glass breakage. Many policies “waive” the deductible if a windshield can be repaired rather than replaced. We recommend at comprehensive deductible of at least $100.
    2. Collision Deductible: this coverage pays for your repairs after a collision with another vehicle or object as well as uninsured drivers or “hit & run”. For the savings, most “third parties” as well as Bayline Insurance Agency recommend at least a $500 deductible.
  2. Lease/Loan Coverage: if you purchase (or lease) a new vehicle, there can be a significant difference or gap between the “insurance value” and the “loan or lease value” if you “total” the vehicle. This protection covers that “gap”.
  3. Towing: this coverage will reimburse you if your automobile needs towing. Many times this coverage is limited to $50 or $75; however, The Erie’s policy pays “reasonable expenses”. This pays in addition to any “club” membership protection.
  4. Rental Car: provides alternate transportation if your vehicle is being repaired due to a covered accident. This protection has a daily and aggregate limit. We recommend at least $30 per day.
  5. Reduced Usage or “Lay-up Storage”: for a reduced premium, this endorsement waives the insurance while your car is being stored each year during the winter. The storage period must be the same three-consecutive months each year and if changes to the storage period are desired, notification must be submitted.
  6. Umbrella Liability: if higher limits of protection are desired, a personal catastrophe liability policy can be written which can extend your protection to $1,000,000 or more.
  7. Accidental Death or Disability: if higher limits of first-party benefits; accidental death or disability are desired, separate life and disability income policies should be discussed.