Platt Insurance’s Post

Transcript

If you're like most people, it's been a long time since you reviewed your car insurance. May have just continued the same coverage from your parents or another family member, or even just accepted the state minimum limits and thought that would cover you, but how much coverage do you actually need? For this video, we planned to cover three of the most important Coverages, Liability Coverage, Comprehensive coverage, and collision coverage. So first, liability insurance covers costs like medical or repair costs for other people if you cause an accident, most U.S. states. Require liability coverage, which means this isn't an option. In Ohio. The minimum limit is 25,000 per person and 50,000 per accident, but those minimums are not nearly enough to protect you. Imagine if you or someone in your family caused an accident and someone was seriously injured or it ended in a fatality. Medical bills alone would far exceed those limits. While the likelihood of an accident like this happening is low, it would have devastating effects financially if it does. If the cost of an accident exceed your limit and you weren't able to cover the difference, it's possible the courts could garnish your wages or seize important assets like your home. If you've paid off your home, have significant assets or a teen driver, we will suggest much more and possibly even an umbrella policy. Ultimately, it's up to you to decide how much of the risk you're willing to share with the insurance company. The next two coverages are comprehensive and collision coverage. We're discussing these together because they work the same. And that they cover damage to your car, as opposed to liability, which covers damage or medical bills for other people. You would typically pay a small portion toward the damage, which is called a deductible, usually anywhere from $500 to $2500. These coverages are also required if you have a loaner lease. Comprehensive coverage protects you from the things like theft or damage from a fire, a storm, broken glass like a windshield, or even a tree branch falling on your car. Comprehensive will pay to replace or repair your car if the damage isn't due to a collision. Collision insurance covers the cost to repair or replace your car after an accident with another vehicle or object. Typically, if a car is totaled, you would receive the depreciated value of the car. This is sometimes frustrating for people, but that's just how insurance works. One solution is to look at carriers that offer replacement car coverage, which is typically only available for newer vehicles. Just remember, state minimum limits. Are not enough coverage. We highly recommend that you meet with an independent agent like Platt Insurance to review your options.