Personal Automobile Liability Coverages
-Bodily Injury is any physical injury including sickness, disease and death to a person.
-Property Damage is any physical injury, destruction of, or loss of use of tangible property.
-Supplemental Payments are various expenses the insurer agrees to pay under a liability insurance policy for items such as premiums on bail bonds, loss of insured’s earnings, and other reasonable expenses.
Medical Payments Coverage is always paid without regard to fault. It is for medical and funeral services only. Nothing is paid for lost wages or pain and suffering under this coverage.
Uninsured/Underinsured Motorist Coverage
-Uninsured Motorist Coverage is designed to handle claims when the insured is injured by someone who doesn’t have any insurance.
-Underinsured Motorist Coverage is designed to handle claims when the insured is injured by someone who does not have enough insurance.
-The State of Michigan requires Bodily Injury to be $20,000 Per Person, $40,000 Per Accident minimum on any automobile policy written in the State.
Coverage for Your Damaged Automobile
-Collision is a named peril coverage in which a vehicle has an impact with another vehicle or an object. This can be when the vehicle is moving or not moving. Examples include but not limited to a rear end accident, head on collision, rolling vehicle on it side or top, hitting a tree.
-Other than Collision or “Comprehensive” is an open peril coverage so a vehicle is covered unless it specifically excluded. Examples include but not limited to hail damage, tree falls on vehicle, theft, vandalism, and a collision with an animal.
-A Deducible is the dollar amount you as the insured are responsible for in the event of a loss. For example, if your vehicle is damaged and the cost of the repairs is $3,000 and you have a $500 deductible, the insurer will pay $2500 and you are responsible for $500.
-Transportation Expense or “Rental Coverage” is used when your vehicle is being repaired for a covered cause or loss and you need a vehicle to drive. This is typically a set dollar amount per day paid for by the insurer.
-Exclusions included are wear and tear, freezing, mechanical breakdown, electronic equipment which is not permanently installed in the vehicle, government confiscation, radar detectors and custom vehicle furnishings.
-Duties After a Loss include notifying the company, cooperate fully in the claims process and settlement of the claim, send all documentation required to the company, submit to a medical exam, notify the police of any theft, and allow the company to inspect the damage before the repairs are made.
Endorsements for the Personal Auto Policy
-Towing and Labor costs in an endorsement that can be added to the policy for a specific dollar amount needed for towing a vehicle that is disabled.
-Miscellaneous Type Vehicle is an endorsement that would allow coverage for a vehicle that is used off road and also golf carts and motorhomes.
-Extended Non-Owned Coverage Vehicles Furnished or Available for Regular Use is an endorsement that allows coverage in the event you are driving a vehicle on a regular basis that is insured under a different policy. A common example would be a vehicle used by an employee that is covered under the company’s policy.
– In Michigan, victims of car accidents have access to No-Fault Benefits—also called Personal Injury Protection (PIP) which are insurance benefits paid to provide for: Medical care. Lost wages. “Replacement services” (for those who have lost the ability to do simple household tasks)
– Property protection (PPI) provides protection if you cause damage to properly parked vehicles or fixed properties such as buildings or lampposts in the state of Michigan. Outside Michigan, your Property Damage Liability Insurance covers your legal liability for property damage.