Looking for Auto Insurance?
At Vault Insurance & Risk Management, we offer comprehensive auto insurance coverage options to drivers in Nebraska and beyond. Whether you own a standard vehicle or a collector car, we’ve got you covered.
While many people associate car insurance with coverage for damages to their vehicle, the reality is that it provides protection for much more than just the car itself. With so many distractions on the road and a high volume of vehicles, the risk of getting into a car accident is significant.
Every time you get behind the wheel, you are taking a risk, which is why it’s crucial to have a clear understanding of your coverage options. Our team can help you navigate the different types of coverage available to ensure that you, your vehicle, and any potential injuries resulting from your actions are all adequately protected.
Making Sense of Your Liability Limits: A Guide to Understanding Your Auto Insurance Coverage
Let’s break down what your liability limits really mean. If you have 50/100/50 limits in the event of an accident, your insurance company would pay out a maximum of $50,000 per injured person, with a cap of $100,000 for all injuries, and $50,000 for property damage.
However, it’s important to note that these limits can be quickly exhausted, particularly given the high costs of healthcare and vehicle repairs. Anything beyond these limits would need to be covered out of pocket, which could result in legal action being taken against you.
Consider the case of Nikki, the owner of Vault Insurance & Risk Management, who was involved in an accident and broke a bone in her hand. After two surgeries, her insurance claim was settled for $135,000. With the limits set at the aforementioned amounts, you would have been on the hook for the remaining $85,000. This serves as a sobering reminder of the importance of having adequate liability coverage in place to protect your assets and finances in the event of an accident.
Important Auto Insurance Coverages
When you browse through your policy, you may see certain coverages and wonder exactly what they are, and why they’re on your policy.
Let us clarify a few of the more important ones for you:
This is the part of your policy that covers your car in the event you damage the car itself somehow, as a result of an accident with a fixed or moving object like another car, a curb, a house, a guard rail, etc..
This coverage also protects your car, but in the event that something else damages your car, that is not a fixed or moving object. For example, theft, fire, lightning, wind, hail, a rock that cracks your windshield while you’re driving on the highway, an animal you might hit, and so on.
Suppose you damage someone’s car in an accident, or a guard rail, house, or some other property that belongs to someone else. This is the part of your policy that compensates the other person for that damage
Bodily Injury Liability
This coverage protects your financial interest in the event you injure another party in an accident. This is the part of your policy that pays that other party for their medical bills and related expenses. Due to the high cost of medical care, it’s dangerous to carry liability limits that are too low. We recommend a minimum of 250/500/100 limits.
Un-insured & Under-insured Liability
This coverage pays you and can provide pay out for things that health insurance won’t. In the event that you are injured by another party, and that other party was either unidentified, or they weren’t carrying a high enough limit of Bodily Injury Liability to cover your expenses. This is also a very important part of your auto policy because you have zero control over how much insurance other people are driving around with.
Medical payments coverage, also known as Med Pay, is an optional coverage that can be included in an auto insurance policy. This type of coverage is designed to help pay for medical expenses incurred as a result of a car accident, regardless of who is at fault.
This coverage helps pay for the cost of renting a vehicle if your car is damaged or stolen and is being repaired due to a claim.
This coverage provides drivers with assistance when their car breaks down or becomes disabled, leaving them stranded on the side of the road.
Common Auto Insurance Rating Variables
Age — insurance companies use your age in their overall rating algorithms. Drivers who are under 25, and over 65 typically don’t get preferred rates because statistics show that those two age demographics have the most loss frequency and are therefore more at risk for financial loss due to an auto accident
Credit — credit is a metric that has been used in insurance scoring for many years. The better your credit, the more favorable your rates will usually be
Car — the type of car, engine size, safety features, cost, part availability/cost, crash statistics, etc.. are all part of determining the rate
Driving History — your driving record and loss history plays a substantial role in the price. If you have a spotty driving history, or multiple moving violations or accidents, chances are, you won’t get a preferred rate until those things are at least 3 years old
Household — insurance companies underwrite at the household level, meaning they try to judge based on the entire household, what the probability of loss will be. If there are multiple drivers in the house who are under the age of 25 that will impact everyone’s pricing in the household
How to get started with your car insurance quotes
It is simple! Get a free, no-obligation quote from us by filling out the required information in the form below. After completing the form, you have the option to upload your current declaration pages. This way, we can verify that you have not missed any crucial coverage. If you’d rather speak with us directly, feel free to give us a call. We strive to simplify the process for you.