Do you have enough coverage?
-Auto Insurance 101: “B.I.P.D” (BODILY INJURY PROPERTY DAMAGE)
Ok, you have a policy, and for “you” it gets the job done - you meet the state insurance requirements, and your DMV vehicle tags are issued without a hitch. Off you go!
But…. is your coverage going to protect you if you get in an accident and destroy a car? Or, injure a few people in the vehicle you hit?
Some people will say: “hey things happen, this is my first accident in 20 years, give me a break “.
So, you’re working with your claims adjuster and you are warned – “you may be under insured”. Your response to that is “What? I pay your company for protection in case of an accident or claim, and now you tell me I may not have enough coverage? Please tell me your kidding.”
Well, when you are involved in an accident, insurance coverage is no laughing matter!
Let’s take a look at basic coverage-protection…
In this example we will use $15K/30K/10K for your policy limits. Your real coverage may be different.
Grab your auto insurance declarations page and let’s take a look.
Look under the heading of “Coverages“. Keeping with our example, this is interpreted as the following:
Bodily Injury Liability- $15,000 for each Person, $30,000 for each accident
Property Damage: $10,000 property damage.
Let’s break this down.
Bodily injury liability is $15,000 if you cause the accident. Ex: you rear end someone
$15,000 each person - that is the maximum your policy will payout for one person (if you injure someone in an accident).
$30,000 each accident - this is the total amount your policy will payout for bodily injury for the accident. So if you have three people injured the maximum for each would be $ 10,000 each adding up to the maximum $ 30,000. If someone’s medical bills add up to $25K, they will only get $15K because that is the maximum per person. You never know what type of medical or other insurance coverage your passengers may have, but you actually could be financially on the hook for any excess costs. Some accidents also involve more than one vehicle.
$ 10,000 property damage liability – So .. let’s say you ran into a new car (BMW, Mercedes, Tesla, or any vehicle)…. the most your policy will pay out is $ 10,000, to repair or replace the vehicle.
You can see that the above limits may not be sufficient coverage.
I want to encourage you to review your policy and think about your policy coverage. We at Woodland Park Insurance Services always say “buy as much coverage protection as you can afford… because you cannot bump up your limits after an accident to protect you on the date the accident took place”.
You may also want to consider an Umbrella Policy to help protect you if your coverage is not enough.
We know that this can get confusing, so that is why we say “At Woodland Park Insurance, we make the process of buying or amending your insurance like a walk in the park”. Our friendly and knowledgeable licensed agents will take the time to look at what you have and identify potential areas of vulnerability. We are an authorized agency with Mercury Insurance and several other companies, so we can find the best rate for you. We don’t charge a fee because we are an independent agent and not a broker.
We also have over 50 years in the business!
Call us or email us for a no-pressure free quote!