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First State Blog

June: WHAT AM I COVERED FOR?

 A couple weeks ago I had a man walk into my office and ask me if I could help him getting insurance for his vehicles.  I said I would be glad to help! He then starting giving me information on what he currently has, or so what he thought he was covered for, and also letting me know he just moved from a different state.  I asked him if he brought along his current policy so I can review it, ask some questions and get a quote for him.  Upon first look everything he thought he was covered for was not what it said on his Declaration sheet.  I then started to explain to him what he is ACTUALLY covered for.  Let’s just say he wasn’t too happy with his former agent upon completion of the meeting.

When it comes to insurance most people are the same, they know they are covered for SOMETHING, but not quite sure what that something is.  If you are one of those people you certainly are not alone.  With home and auto coverage not only is there the standard coverages, but a lot of optional coverages as well.  A few companies that you see on commercials go into detail on these optional coverages, and mind you, just because you see a specific company touting these coverages, most companies provides the exact same coverages they are promoting. 

you hear an agent say you have 100/300/100 coverage do you know what they are talking about?  When  they say you have a $500 deductible on your comp and collision, do you know the difference?  If they ask would you like roadside assistance, rental reimbursement, glass coverage, vanishing deductible, accident forgiveness, new car replacement, do you know what you are getting?

Let’s start with 100/300/100, and what that is covering. The first number reflects 100,000 of bodily injury coverage for an individual hurt in an accident you were at fault for.  The second number is the total amount of coverage you have for everyone hurt in the accident you were at fault for.

The 3rd number covers property damage.  This is the other vehicle, a light pole, and actual building that you hit. The Total amount you have in this example is 100,000.00 in coverage.


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