12/7/2010 3:11 AM

The Finer Points of Auto Insurance

My basic premise, the basic premise of the Brooks-Waterburn Agency, and the Independent Insurance Agents in general,  is that insurance is a complicated contract.  The policies are written by a team of attorneys and are written to favor the insurance company, not you!  The writers of these policies have vast knowledge of insurance, law, and claims.  They are in the business and do it everyday.  You may make a buying decision about insurance once every few years.  Who do you think has the advantage?

Take Auto Insurance for example.  There are a host of coverages that you probably never heard of and worse, if you were involved in an accident and didn't have these coverages you could be financially devastated.  You think a Green Geco is on your side?  My point is obvious.  You need an advocate in your corner. A professional insurance person that can address these issues and look out for what's best for you, not the insurance company.  We are much more than a middle man!

For your consideration, here are some of the fine points of Auto Insuarance that could save you from financial ruin.

  1. Uninsured/Underinsured Motorist Coverages too Low:   This covers you for bodily injury if you are hurt in a motor vehicle accident and the other drive has no or very low coverage.  It’s like suing yourselfMost direct writers will have minimum or low limits for Uninsured/Underinsured Motorist Coverage.  The Uninsured limit should match your Liability Limit.  For example, if you have a $250,000/$500,000 Liability Limit, your Uninsured/Underinsured limit should be the same.
  2. Personal Injury Protection:  This is NYS No Fault Coverage.  This covers medical bills and lost wages if you or a passenger is hurt in a motor vehicle accident regardless of fault. NYS requires $50,000 limit.  For an additional $25 year the limit can be increase to $150,000
  3. Optional Basic Economic Loss (OBEL):  OBEL is a new type of additional No Fault coverage.  This provides an addition $25,000 in coverage for you to designate for whatever you need such as home health care or physica therapy
  4. Liability Limits Too Low:  If you own a home or business, the “standard $100,000/300,000/50,000 limit is far too low.  A new Mercedes or Lexus will cost well in excess of the 50k if you total it.  In this litigious society it pays to pay a few hundred dollars a year for the right protection.  Minimum protection should be $250,000/500,000/100,000.  Also, consider an Umbrella policy of $1,000,000 or more. 
  5. Comprehensive &/or Collision Coverages on Older Vehicles:  You pay $200-$300 a year on coverage for a car that is worth only $3,000.  Consideration should be given to deleting this coverage as the vehicle is not worth much anyway 
I hope you find that information useful.  Next blog will be about The Finer Points of Homeowner Insurance.  As always, we stand ready to assist you.  Call us at 888-997-9801 or check out our website at www.brookswaterburn.com


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  1. Taylor Bishop's avatar Taylor Bishop
    Thanks for helping me understand more about auto insurance. I actually hadn't heard of the OBEL before, bit it's interesting to learn that it's a new kind of No Fault coverage. Honestly, this makes me wonder how auto insurance has actually changed over the years, especially since this is a new feature that people can get. https://www.statefarm.com/agent/US/MT/Bozeman/Dan-Rust-GK4W01YS000
    Reply 8/24/2017 8:29 AM

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