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 Liability:
Liability
coverage pays in the event you are at-fault (liable)
in an accident and individuals who are not your family
members are injured. Minnesota allows minimum limits
of $25,000 per person and $50,000 per occurrence. Although
these limits do meet MN minimums, they are not realistic.
For the small additional premium charged, insured's
should consider 50/100 ($50,000 per person/$100,000
per occurrence) or 100/300 limits. |
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Property
Damage :
Property damage coverage is designed
to pay for the property damage that you cause to others
in the event you are at fault (liable) in an accident.
This coverage is often included with the liability limits
and is written on declaration pages as the 3rd number
with liability limits: 50/100/50 ($50.000
per person liability limit / $100,000 per occurrence
liability limit / $50,000 property damage).
Because many vehicles cost more than $25,000 or because
an insured could easily be at-fault in an accident that
involves more than one claimant vehicle, the minimum
state requirement of $25,000 property damage should
be increased. |
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PIP;
MN no-fault:
PIP stands for Personal Injury
Protection but is often referred to as no-fault insurance.
PIP covers medical expenses to the driver or individuals
riding in your vehicle in the event of injury while
riding in your car. The minimum limits required by law
are referred to as PIP A coverage's and cover up to
$20,000 per individual and up to $40,000 per occurrence.
Although additional limits are also available, if an
individual has good health insurance for the family,
in many instances the minimums are sufficient. PIP limits
can also be stacked (added together) for each vehicle
in the family, to increase total coverage. |
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Comprehensive:
Comprehensive
coverage's are often referred to as other-than-collision
property damage coverage's to an insured's vehicle.
Comprehensive covers items like fire, theft, wind damage,
water damage, and glass breakage. In Minnesota, insured's
can choose a deductible on fire, theft, wind damage
coverage's while at the same time choosing to carry
full glass coverage ($0 deductible). This is a popular
option since glass breakage is the most common comprehensive
claim. |
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Collision:
Collision
coverage covers damage to an insured's owned vehicle
in the event it is damaged in an accident. Common deductibles
(paid by the insured) are $100, $250, or $500. In the
event of a not-at-fault accident, an insured has the
option of paying the deductible and having the damage
repaired by his or her own insurance company. The insurance
company will then subrogate (collect the amount of damage
incurred) from the insurance company of the party who
was at-fault. When this takes place, the insurance company
will reimburse the insured the amount of the deductible
paid by the insured. This assumes the at-fault driver
has auto insurance. In the event the at-fault driver
does not have insurance, the collision coverage of the
insured's vehicle will pay for the vehicle repair and,
in most cases, the insured will not be able to recover
the deductible amount that is paid. |
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Emergency
Road Service:
Emergency Road Service pays for
a tow in the event a car is disabled by events such
as going into a ditch or a flat tire. In many instances,
there are maximum limits that a company will pay. In
addition, this coverage is not meant to be a substitute
for normal preventative maintenance. It will also pay
for some on-site emergency repairs that a tow truck
operator can complete. This is a valuable coverage to
carry during because of the Minnesota winters. |
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Rental
Reimbursement :
If you are involved in an accident,
in many instances you will still need to drive a vehicle
even if your car is disabled. If an insured carries
rental reimbursement coverage, it will pay a certain
amount per day and a certain limit per occurrence to
defray the cost of renting a vehicle. If the insured
in not-at-fault in the accident and the at-fault driver
is insured, the insured's insurance company will recover
the rental reimbursement payments made from the at-fault
driver's insurance company. If you depend on your car
to get to work everyday, you should consider adding
this coverage to your car insurance policy. |
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Death
and Disability:
Death and disability coverage's
are available in the event of an auto accident and can
be added to an auto policy. Although the added expense
is small, normally insured's are well advised to take
care of these coverage's by buying a disability insurance
or life insurance policy. |
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