Auto Insurance

What kind of coverage is right for you?

There are a few options, as well as some requirements, when it comes to insuring your vehicle. Most all states require liability insurance on your vehicle to register it for on-road use. Whereas, comprehensive and collision may be a requirement if your vehicle holds a lien from a lender.

When finding the right coverages there are some questions to consider. Including; do you own a car that you want repaired no matter who is at fault? Do you own a car with an outstanding loan? If you are involved in an accident, are you comfortable covering only those you are found liable to, without protecting your own vehicle? When asking yourself the right questions, it will be easier to understand the coverages that suit you best.

Below you will find different types of coverages and what they mean to you.

Bodily Injury Liability covers the people injured in an accident that is caused by you. It pays for damages you are legally responsible for as well as the legal costs to defend you if you are sued. This coverage is mandatory in most states.

Property Damage Liability covers any damage to someone else’s property caused by your vehicle. The damaged property would typically be another vehicle; however, it could also include signs, buildings, fences, or any other property that you are found legally responsible to repair or replace.

Personal Injury Protection (PIP)covers your injuries caused in an accident regardless of who is at fault. PIP is also referred to as “No Fault” insurance. The goal of PIP is to speed up payments to injured drivers by avoiding delays caused by the court system, resulting in lower legal fees, court costs, and therefore lower premiums.

Collision Coverage protects you for the amount of damage caused to your vehicle when you have been in a collision. If you are not at fault, the insurance carrier will work to recover damages from the other party involved in the accident. Collision coverage is optional, however if you have an outstanding loan or lease on your vehicle your lender may require this coverage.

Comprehensive coverage protects you from damage to your vehicle that occurs due to any reason other than a collision. Whether it’s theft, vandalism, fire, flood or other act of nature – your comprehensive coverage will pay for the damage or loss of your vehicle. If you have an outstanding loan or lease on your vehicle your lender may require this coverage.

Liability Coverage: Liability is one of the first questions asked when discussing your coverages. So, how much liability do you need?

When choosing your liability limits, consider all of your assets. This would include your home(s) and other property, vehicles, investments- as well as your future earnings. All of your assets are at risk if you are found liable for damages that exceed the limit of your insurance liability coverage.

Deductibles: Where should your deductibles be?

Collision and comprehensive coverages are subject to a deductible. The deductible is the amount that you are required to pay first, as your share of the repair or replacement of your vehicle. The higher the deductible amount you choose, the lower your cost of insurance will be for that policy period. When choosing your deductible amount, consider the follow:

How much are you willing to pay out of pocket if your vehicle needs repairs?
Consider how much you are willing to pay out of pocket for minor repairs in order to avoid making small claims on your policy.

Let the experienced agents at PowerSports Insurance Agency ensure that you have a policy that fits your needs, at a price that fits your budget. Contact us today to receive reliable, personalized, friendly service!