When it comes to giving clients advice on how to properly cover their vehicles, the first discussion point is this: if you got in your car, left the driveway, and got in an accident would you want your vehicle repaired? Most people say yes. This is always funny to me because usually that same person has told me two seconds earlier that they want the cheapest coverage available. It is always at this point where I transition into a little insurance education on the topic.
The Three Layers of Coverage
1. Liability – aka “crash and burn” or “plpd.” In many states where insurance is a requirement, this is actually the only level that is required. This is coverage in it’s most basic form. Not for the car itself, but for you and the other people on the road. This protects you from lawsuit if you damage someones property or cause injury to their bodies. There is also protection for you and your own injuries if in an accident with someone who is uninsured or underinsured. Don’t skimp on coverage here. Higher levels are usually super cheap and well worth it.
2. Comprehensive – This provides coverage for the actual vehicle for anything other than a collision. This includes (but is not limited to): hail, falling objects, vandalism, theft, fire and windshield cracks. Some companies even offer an add on option that allows your deductible to be waived if you have a windshield claim.
3. Collision – the third and final level is collision. This is what gives you the option of repairing your vehicle if in an accident with someone or something. Generally, this is where a lot of your insurance costs are incurred. This is partially because the most common type of accident is a collision. Review your deductible options with your advisor for potential savings.
In Michigan, all three levels together make up full coverage and give you total vehicle and asset protection. Review these options with your agent or contact Heather Mosher | 906.315.7233 | email@example.com to minimize gaps in coverage. Safe driving!