Save money on your Auto Insurance!

We hear it time and time again, a client will tell us their old agent never really explained their auto coverage, or that they thought they had coverage, when in fact they did not! Don't let this happen to you. Pull out your auto policy and take a minute to review typical auto coverage terms and what they represent.

Liability insurance: This is coverage for the bodily as well as property damage caused by you to others. Pennsylvania requires minimum liability coverage. Liability covers legal expenses incurred by you in case a lawsuit is filed against you.

Collision and Comprehensive Coverage: Collision coverage pays for expenses incurred to repair your car caused by an accident. The premium for collision coverage depends on how much deductible you are willing to pay. Deductibles are the amount paid from your pocket for repairs before the insurance provider pays. Typically, the higher the deductible the lower the premium. Comprehensive coverage takes care of expenses due to vandalism, natural disaster, fire, theft, collision with an animal, etc. These coverages are not mandatory, but if your vehicle is financed by a bank, they may require it.

Medical: This is coverage for your medical expenses - as well as those of your passengers - whether you were driving your car or someone else's.

Personal Injury Protection (PIP): This endorsement covers medical expenses and lost wages to you and to your passengers. Also covers funeral expenses.

Underinsured/Uninsured Motorist coverage: This coverage pays for your damages in case you are the victim of an accident caused by a driver who is not insured, or not sufficiently insured, to cover all medical bills. This coverage is primary in hit-and-run cases.

Extras: Coverages that fall within this category might include expenses incurred for a rental car in cases where a car is damaged or stolen. Towing charges may be recovered if you opt for this coverage. Gap insurance pays the difference between the actual cash received and the remaining loan if your car is totaled.

Tort Option: Pennsylvania gives drivers the choice between full and limited tort. A driver who chooses "full" tort pays a higher premium (anywhere from 12% - 20% more) for coverage than with the "limited" tort option. With full tort, a driver can file a claim (and ultimately a law suit) for any injury you suffer as a result of an automobile accident. An individual who chose the limited tort option can only recover limited sums for injuries sustained in an automobile accident, but cannot collect at all unless the injuries are considered to be serious. A word of caution - the law defines "serious" injury very narrowly.