What if I just purchased auto insurance but I’m confused by all the terms on my policy?
Now that you have selected an agent, carrier and coverage levels, what happens if you suffer a loss? The employee-owners at Kemner-Iott Agency want to help you understand your auto insurance policy. So, pull out your declaration pages (auto policy that was either mailed or printed off for you) and let’s review what each coverage item means (You may want to grab a cup of coffee):
- Bodily Injury (BI) – BI will cover your legal defense costs and any damages you are found liable for as the result of an auto accident in which someone was killed or seriously injured, up to the limits of the policy.
- Property Damage (PD) – PD will pay for damages done by your vehicle to property of others outside the state of Michigan.
- Uninsured Motorist (UM) – UM coverage will protect you in the event you experience pain and suffering and excess wage loss due to a hit and run accident or an accident involving an uninsured motorist.
- Underinsured Motorist (UIM) – UIM coverage will compensate you for any difference between what the court awards you for pain and suffering caused by an accident, and the other driver’s policy limit if he or she has insufficient liability insurance.
- Special Tort Liability – Also known as Mini-Tort or Limited Property Damage, this provides up to $1000 towards another driver’s collision deductible; or, if they do not have collision coverage, up to $1000 in damages, if you are involved in an accident in which you are considered to be more than 50% at-fault.
- Property Protection (PPI) – PPI coverage will pay up to $1 million for any damage your vehicle causes in the state of Michigan to another person’s property, such as buildings, fences and parked vehicles.
- Personal Injury Protection (PIP) – PIP coverage will pay for all reasonable and necessary medical expenses should you be injured in an auto accident. Wages lost and replacement services are also included for a limited time. PIP also includes Survivor’s Loss benefits to your family in case of death due to injuries sustained in an auto accident.
- MCCA/MAIPF/MATPA – Michigan Catastrophic Claims Association (MCCA) provides coverage for unlimited medical benefits (PIP) for an automobile accident victim where medical costs exceed $530,000. All three of the these programs, MCCA, Michigan Automobile Insurance Placement Facility (MAIPF) and Michigan Automobile Theft Prevention Authority (MATPA) are programs established by the State of Michigan. MAIPF is a mechanism for providing coverage on persons not insured in the standard market. MATPA oversees automobile theft prevention programs.
- Comprehensive – Comprehensive, also known as “Other Than Collision”, will cover vehicle repair or replacement costs incurred as a result of theft, accidents involving animals, or damage caused by falling objects, fire, flood, or vandalism.
- Collision – Collision Coverage pays for damages to your car in the event of an accident with another vehicle, person or object. In the State of Michigan there are 3 choices of collision coverage: Limited – Pays for damage to your vehicle only if the driver of your vehicle is not more than 50% at-fault; Standard or Regular – Pays for damage to your vehicle regardless of fault. Your deductible will be applied; Broad – Pays for damage to your vehicle regardless of fault. If you are not more that 50% at fault your deductible will be waived.
- Road Trouble Service – Road Service pays you up to the policy limit for expenses incurred if you get a flat tire, run out of gas, or your vehicle needs to be towed.
- Additional Expense or Rental Reimbursement – Rental Expense provides coverage for a rental vehicle if your vehicle is out of service due to a comprehensive or collision loss.
Whew, aren’t you glad that’s over?!
Not all of the items listed are required under Michigan State Law, so check with your agent on what coverage fits your situation best.
At Kemner-Iott, we are dedicated to finding you the very best coverage to suit your needs and your budget. You can feel confident knowing that with our wide selection of insurance companies to choose from, we can do the shopping for you.
Ready to purchase a new auto insurance policy, or want to make changes to your existing policy? Kemner-Iott Agency is here to help you. Kemner-Iott is your community-centered insurance agency, here to help you with your insurance questions. Just give one of our local branches a call.
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