1. Automobile Insurance
Personal Finance

2. Auto Insurance – Several Different Coverages Wrapped into One
Liability Coverage
Pays for damage to others and their property when you are at fault
Pays up to a limit
Three numbers: Such as 100/300/50
First number is coverage per injured person (in thousands)
Second number is maximum coverage for all injured persons per accident
Third number is coverage for property damage
Example: You are at fault in an accident involving four other people and their car
The above coverages mean your insurance company will pay a maximum of $100,000 per person, but only a maximum of $300,000 for the four people combined. It will also pay a maximum of $50,000 for their car

3. Auto Insurance – Liability Coverage
Each state has minimum liability coverages
In Louisiana, the minimums are 15/30/25
If you are liable for more than your insurance covers, you are on your own
Liability coverage does not cover injuries to you or your car

4. Uninsured Motorist Coverage
Pays for damage to you and your car if the other person is at fault and they don’t have enough insurance
Your company will pay up to a limit
Example is 100/300/50

5. Collision Coverage – Legally Optional
Pays for damage to your car that came as a result of a collision when you were at fault
If someone else was at fault, it should be covered under their required liability insurance
Pays to fix the damage to your car
Your car is “totaled” if it costs more to fix your car than it is worth
In that case, it pays the market value of your car
Any payments come after your deductible
You are not required to actually get your car fixed

6. Comprehensive Coverage - Optional
Pays for damage to your car caused by anything other than a collision
Theft
Vandalism
Flooding
Pays to fix the damage or the market value of your car
Whichever is less
After any deductible

7. Medical Payments to Others
Pays for medical costs of those in your car – including you
Your insurance company will seek to get this money back if another car was at fault
Your car insurance company should pay before your medical insurance

8. Suggestions
If you anticipate making a comprehensive or collision claim less frequently than once every five years, set the deductibles as high as you feel comfortable with
Keep your liability and uninsured motorist coverages high – or get an umbrella policy
Don’t pay for the extra insurance when you rent a car. Your insurance will cover it.
Anytime you let someone else drive your car, the insurance company treats it the same as if you were driving it, so make sure they will drive safely because your rates will go up if they cause an accident.