LIABILITY - Property Damage, Bodily Injury, Medical Payments, Uninsured & Underinsured Motorist

BODILY INJURY/PROPERTY DAMAGE - The State requires you to have bodily injury/property damage coverage and it can come in various increments. Liability coverage applies if you are in an accident and create damage or injuries to other people or property. It covers the cost of repairing the other person’s vehicle, any property damage and/or injuries you have caused. The state minimum in Iowa is $20,000/$40,000/$15,000. The standard limits most people choose are $100,000/$300,000/$100,000. However, higher limits are available and required if you have an umbrella policy. You should not have to pay a deductible if you need to use this coverage. 

LET’S SAY you are driving down the road in your 2 ton death machine in the winter and happen to glance down at your phone to check road conditions only to hit a slippery spot on the interstate and lose control. You hit a brand new pickup truck, a newer SUV, and 2 signs before stopping in the ditch. Your liability insurance will cover the damages up to $100,000. If the damage is over that amount, you then become responsible for that additional amount. You can now understand why the state minimum limits are too low with only $15,000 in property damage? If the occupants in the other vehicles are hurt, you have $100,000 per person in coverage for the medical bills and up to $300,000 per occurrence. 

UNINSURED and UNDERINSURED MOTORIST ~ This coverage protects you and your passengers if someone hits your vehicle and causes bodily injury to you or the other passengers in your vehicle. This coverage does nothing for your vehicle itself. It only covers the people inside the vehicle that have sustained injuries. The fact is, a lot of people drive without insurance or with state minimum limits so it’s an important coverage to have on your policy. 

LET’S SAY you have UM/UIM coverage of $100,000/$300,000 on your policy. You’re driving down the road with your child and 3 of their friends when you get t-boned by a driver who didn’t stop at a stop sign sending your vehicle flying through the air. All of you are transported to the hospital with serious injuries. The vehicle that hit you had state minimums which allows for $40,000 for all five of the passengers in your vehicle. The ambulance bills alone will be $20,000 not to mention the four night stay and surgery your passengers might require. Your underinsured motorist coverage will kick in to help cover the medical bills up to $300,000. FULL COVERAGE ~ Full coverage is a combination of comprehensive and collision coverage along with the required liability. *If you have a loan on your vehicle, this coverage is required. 

COMPREHENSIVE COVERAGE ~ Typically called “other than collision” would cover the cost to repair your vehicle (less your deductible) for damage caused by vandalism, deer hits, theft, flood, fire, a tree falling on your car, hail, etc. This includes something not necessarily related to an accident. A common misconception is that people think their home policy covers their vehicle if it is parked in the garage and the garage burns down. Unfortunately this is not the case. You must have comprehensive coverage on your policy to receive any compensation in that instance. Comprehensive requires a deductible that you pay first and can come in various increments ranging from $250-1000+.

LET’S SAY that you’re parked on the street in front of a friend’s house, a storm comes through and blows a tree down on your car smashing it or there is hail with the storm; Comprehensive coverage would provide coverage to fix your vehicle once you satisfy your deductible. If the charge to repair the hail damage is $1,000 and you have a $250 comprehensive deductible, you would receive $750 from your insurance company to apply towards the repairs. 

COLLISION COVERAGE - This is the coverage that covers any damage to YOUR vehicle whether you are at fault or someone without insurance hits you. Anything that you collide with is covered under collision. This coverage also has a deductible you must pay before the company kicks in. There are several deductible options you can choose from. 

LET’S SAY from the example above on the interstate where you lose control and have damage to your vehicle. This is the coverage you will want to fix your vehicle. The cost to repair your vehicle is $2,500 and you have a $500 deductible. You would receive a check from your insurance company for $2,000 to apply towards the repair bill.

OPTIONAL COVERAGES

Roadside assistance - This is the coverage that helps cover towing costs or assists with a flat tire while traveling. It can usually be added to your policy for a minimal fee. 

Rental Reimbursement - If you are involved in an accident and your vehicle is no longer drivable, this coverage will allow you so much per day in a rental vehicle. This does not cover mechanical breakdown. 

Gap - Typically offered on new vehicles to pay the difference of the actual value of your car and the amount left on a loan or lease if your car is totaled.