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Property Damage Liability Coverage
Property damage liability coverage pays for any damage up to the stated
amount you cause to the property of others such as a crushed fender,
broken glass, or a damaged wall or fence. Your insurance will pay
for this damage if you were driving your auto or if it was being driven
by another person with your consent. Property damage liability also
pays if you damage government property like a light pole or signpost,
up to the limit you choose.
Uninsured Motorist Coverage (UM)
Uninsured motorist coverage applies to bodily injury you, your family,
and other occupants of your vehicle incur when hit by an uninsured
motorist or hit-and-run driver. It also covers you and your family
if injured as a pedestrian when struck by an uninsured motorist or
hit-and-run driver. It protects you by making sure that money is available
to pay for your losses that were caused by someone else. The minimum
amount of coverage required by law is $25,000/$50,000 for bodily injury
only. You may want to purchase more than the minimum coverage required
by law if you feel the need for more protection. Uninsured motorist
coverage does not cover your property damage and does not protect
the other driver. Your insurer may sue the other driver for any money
the insurer pays you because of the other driver’s negligence.
Underinsured Motorist Coverage (UIM)
This is an optional coverage that increases the bodily injury protection
to you and the people in your car up to the amount of coverage you
purchase. It becomes effective when the party causing an accident
has lower bodily injury liability limits than your UIM limits. The
maximum dollars paid is then the difference between the two limits.
For example, assume the UIM limits selected were $100,000 per person
and the person causing the accident had bodily injury limits of $50,000
per person. Under this scenario, you could collect up to $50,000 from
the at-fault driver and up to an additional 50,000 (the difference
in limits) under your own UIM coverage. UIM coverage typically does
not “add” the amount you purchased to the amount available
from the person causing the accident. Insurers are required to notify
policyholders who do not have UIM coverage of its availability. The
minimum limits of UIM coverage, if accepted after notification, are
$50,000 per person and $100,000 per accident.
Medical Payments Coverage
This coverage pays medical or funeral expenses for you or others injured
or killed in an accident while riding or driving in your auto. This
includes all reasonable hospital, surgical, chiropractic, x-ray, dental,
professional nursing, prosthetic, and rehabilitation expenses up to
the limits of the coverage. Medical payments coverage usually covers
only those expenses not covered by health insurance, such as copayments,
deductibles, etc. It will also cover you or members of your family
if you are struck by an auto while walking or while riding in another
auto. This coverage will pay for your medical and funeral expenses
even if you cause the accident. Usually, only expenses incurred within
one year after the accident are included. As an example, this coverage
will provide benefits for a friend, or a neighbor’s child injured
in your car. Medical expense coverage is an optional coverage. Note:
Companies must offer this coverage to you, but you do not have to
buy it.
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