Understanding your insurance policies may seem like a daunting task, but we feel it is important for each of our clients to understand their policy, what is covered and what is not. If you ever have questions please contact our office for a free policy review and explanation of your coverage. Below are some key ideas and terms regarding automobile insurance policies.
The first page of a policy is the ‘Policy Declarations’ or ‘Dec Page’. This page contains the basic policy information, name and address, amounts of coverage and descriptions of the vehicles and drivers covered on the policy.
The State of Utah requires insurance limits of $25,000 per person, $65,000 per accident for bodily injury and $15,000 per accident for property. Even a minor accident can quickly surpass these amounts therefore Certified Insurance recommends higher limits of $100,000 per person, $300,000 per accident for bodily injury and $100,000 per accident for property. This increase in coverage doesn’t increase the cost too much and when an accident happens will be well worth the expense. This is one way we make sure our clients are properly protected.
Some insurance terms it is important to know.
Comprehensive Coverage – If your vehicle is damaged due to an event other than collision, comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism.
Collision Coverage – If your vehicle overturns or collides with another object, collision coverage pays for the damage to your vehicle.
Deductible– A deductible is the amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Generally, choosing a higher deductible will lower your premium.
Full Coverage – “full coverage” is a common term that people use to describe how much auto Insurance coverage they have. Though there is no such thing as “full coverage,’ it often implies that the policy has more than just liability coverage.
Personal Injury Protection (PIP) Coverage – PIP is coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle.
Premium – A premium is the amount of money paid to an insurance company in return for insurance protection. A policy premium may change when changes to the policy are made, such as adding or removing vehicles or drivers.
Uninsured Motorist Coverage (UM) – If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM coverage for injuries, including death, that you , your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Please refer to your policy for any exclusions and restrictions.
Underinsured Motorist Coverage (UIM) – If a driver or owner of a vehicle does not have enough insurance, you can use UM coverage for injuries, including death, that you , your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Please refer to your policy for any exclusions and restrictions.
Underinsured/Uninsured Motorist Property Damage Coverage (UMPD) – If a driver or owner of a vehicle does not have insurance or does not have enough insurance, you can use UMPD to cover damage to your insured vehicle up to the limits you select. Please refer to your policy for any exclusions and restrictions.