Many of us here at Fiffik Law Group are parents. As you’d expect from any parent, we take our children’s safety seriously. When we think about protecting our kids, we often envision securing their future through savings accounts, health insurance, and life insurance policies. However, one of the most critical, yet frequently overlooked, elements of family protection is auto insurance. When we get in the car with our kids, we want to make sure we’re protecting them while driving as well. One way to do that is to make sure we have the best auto insurance coverage for our family.
Here, we'll delve into the importance of auto insurance, the types available, and valuable tips to ensure your coverage effectively protects your family.
Is Being “Legal For Less” Enough Coverage?
You may recognize that tag line from an auto insurance TV ad, suggesting that buying just enough insurance to meet state minimum “legal” coverages is good enough. You might even think you have “full coverage.” Most people don’t really know what that means. They also don’t know that so-called “full coverage” isn’t going to cut it when it comes to protecting your family. So, let’s talk minimum coverage, full coverage, and then what else you can do to make sure your family is protected in the event of a car accident.
Minimum Auto Insurance Coverage
Being legal in Pennsylvania for auto insurance purposes requires very little. To stay on the road, you must have at least the following minimum insurance:
Bodily Injury Liability Coverage
Bodily injury liability (BIL) coverage will only cover the other person’s injuries and property damage if you cause an accident. It provides no benefit to you for your injuries. You need to have a minimum of $15,000 worth of bodily injury liability coverage per accident in Pennsylvania and $30,000 per accident. Again, if you cause an accident, its not difficult to believe that the costs of repairs and injuries to the other person will exceed this minimum coverage, exposing your assets to claims for uninsured damages.
Property Damage Liability Coverage
Property damage liability (PDL) coverage compensates victims dealing with vehicle and personal property damages after a collision. You need to have a minimum of $5,000 worth of property damage liability coverage to stay on the road in Pennsylvania.
First-Party Benefits
“First-party benefits” is a special type of coverage that provides a variety of medical benefits to you if you’re injured in an accident. You must have at least $5,000 worth of first-party benefits as a driver in Pennsylvania. With the high cost of healthcare, minimum coverage does not go very far and its very likely that you’ll end up with uncovered medical expenses as a result of an car accident.
Optional Auto Coverages
There are additional types of car insurance you may decide to opt into if you hope to protect yourself against accusations of liability. Some of the most common auto insurance options include:
Underinsured motorist (UIM) coverage, which covers you, your family and the passengers in your vehicle if you are hit by a driver who does not have enough auto insurance coverage – which would be any driver who has the minimum coverage required by law.
Uninsured motorist (UM) coverage covers you and your passengers if you are hit by a driver who does not have auto insurance. The number of uninsured drivers on the roads is steadily increasing. About 1 in 7 drivers has no insurance.
UM or UIM stacking which allows you to multiply your UIM and UM coverage based on the number of vehicles on your policy.
Loss of income which covers a portion of your lost wages if you are involved in a car accident, without regard to fault.
Funeral benefits, which compensate your surviving family members for your funeral arrangements and burial costs.
Comprehensive, which covers damage to your vehicle from vandalism, hitting a wild animal (like those pesky deer that seem to be everywhere), floods, fires, or vehicle theft.
Collision, which covers vehicle repair costs in the event of a car accident.
Rental car reimbursement coverage which covers the costs of your rental car after an accident.
Extraordinary medical benefits which provide a maximum of $1 million in coverage for medical expenses that exceed your policy’s bodily injury liability limits. This could be the cheapest health insurance you could purchase.
Accidental death benefits in the event of a car accident fatality
These are only a few examples of the types of auto insurance coverage that you may want to consider purchasing if you hope to protect your family from the financially devasting effects of a car accident.
Tips for Choosing the Right Auto Insurance
Opt out of “Limited Tort” coverage
You may be asked to waive your rights under the in return for a small discount on your auto insurance rates. It’s not worth it. There are other ways you can cut your insurance costs AND get the best coverage.
Assess Your Needs
Analyze your family's lifestyle and driving habits. Do you have young children? Are you often on the road for long distances? Understanding your unique circumstances will help you choose a policy that meets your specific needs.
Shop Around
Don’t settle for the first quote you receive. Comparing rates from multiple insurance providers can save you money and provide better coverage options.
Consider Bundling Insurance Policies
Many companies offer discounts for bundling auto insurance with other policies like homeowners or renters insurance. This can result in substantial savings.
Review Your Coverage Annually
Life changes—like a new driver in the household, moving to a new location, or purchasing a new vehicle—can necessitate adjustments to your coverage. Make it a point to review your policy regularly.
Understand Your Policy Limits
Ensure that your policy limits align with your family's financial situation. Opting for higher limits can provide better protection and prevent you from facing personal liability if an accident results in significant costs.
Auto insurance is more than just a regulatory obligation; it is a vital part of your family's financial security. By understanding the various coverage options, making informed choices, and fostering safe driving habits, you can ensure that you are effectively protecting your loved ones on the road. Remember, proactive measures today can make all the difference in safeguarding your family's future.
If you have specific questions about auto insurance or are seeking guidance on how to best protect your family with the right policy, don't hesitate to reach out. By approaching your auto insurance needs with diligence and care, you can drive with confidence knowing you’ve taken the necessary steps to protect your family.