28/09/2022
Hey🙌 Today we`re going to talk about ‼‼‼Policy Components
Think of your 🚗 auto insurance policy as six separate policies 6️⃣. Some types of coverage are required by state law ⚖, depending on where you live. Others are optional➕.
Consider each one and ask yourself how much you need. Each type of coverage has its own premium. Add them up and you've got the price of your auto insurance policy. Subtract the ones you may not need and you gain some control over the cost💲.
1) Bodily injury liability ❣🗣 (BI) coverage covers you if you cause an accident in which someone else is hurt or killed. State laws differ as to how much you are required to carry. Consider what assets you have to protect and what you can afford 💱 when deciding how much to purchase.
2) Property damage liability (PD) coverage covers you when you damage someone else's property🚗💥🚘.
3) Collision coverage covers damage to your car if you run into another car 💥🚗, a brick wall🧱, a fire hydrant 💦, or other object. This coverage is not required by law, though your bank may require it if you have an auto loan.
4) Comprehensive coverage covers you in case your car is stolen 😓 or damaged in ways that don't involve a collision. Covered risks include hail, fire, theft, flood, earthquake, explosion, falling objects, and encounters with wildlife, such as deer.
5) Uninsured/Underinsured motorist (UM/UIM) coverage covers medical 😷🩸 and other expenses when you are hit by a driver without adequate auto insurance.
6) Medical payments coverage (Med Pay, or MPC) acts as primary coverage for medical expenses you and your passengers incur if injured in a motor vehicle accident, regardless of fault.🤒
