Unfortunately, it’s only after an accident that many of our clients discover that while they believed they had “full coverage”, they have not protected themselves.
In Minnesota, the minimum amount of auto insurance coverage is $30,000/$60,000/$10,000, but what does that really mean?
What is (BI) Bodily Injury Coverage?
This car insurance liability coverage will pay for personal injury (or death) to you when the other driver or owner is involved in an accident with your vehicle in which the other driver is found to be at fault. However, the other at fault insurance will only pay up to the limits of liability provided in its policy (as shown on the “declarations page”.) For example, if the BI limits are $30,000/$60,000 the insurance company would only pay for damages up to $30,000.00 per injured person or a total of $60,000.00 for any number of persons injured in the accident. If the damages exceed the limits of liability, the other at fault driver or owner is personally responsible for those excess damages. This coverage protects your assets if you are found responsible for a covered accidents.
What is ‘No Fault’ Coverage?
If you suffer injuries in an accident, this coverage with your insurance company will protect you whether or not you cause the accident, up to the limits of your policy and only for specific economic losses. Under most policies, this coverage will apply towards a percentage of reasonable and necessary medical expenses and your lost wages. However, once the limits of coverage have been reached, you are responsible for paying all of your own medical expenses. This coverage is required in Minnesota.
What is Uninsured/Underinsured Motorist Protection (UM)?
This car insurance coverage provides coverage to protect you and your family. It provides for payment of remaining medical expenses and lost wages that you may have, payment for bodily injury, pain and suffering, loss of enjoyment of life, disability, and other non-economic damages that have been incurred as a result of the negligence of another person who lacks bodily injury liability coverage or fails to carry enough coverage to pay for your losses.
What is Property Damage (PD)?
This coverage pays for certain automobile damage which the other at fault driver causes to your vehicle.
What is Comprehensive (Comp)?
This coverage with your insurance company pays for losses from incidents other than a collision, such as a fire, theft, flooding, vandalism, or storm damage. Many insurance policies have deductibles for this coverage, meaning you will be responsible for the initial cost of the loss up to the amount of the deductible you have chosen.
What is Collision?
Collision coverage with your auto insurance company pays for repair or replacement of your vehicle if it is involved in an accident. It will pay regardless of who causes the accident. It does not cover injuries to people or damage to property other than your vehicle. Generally, you will have a deductible for this coverage, requiring you to personally pay for the initial expenses, subject to the amount of deductible you have chosen.
What is a deductible?
A car insurance deductible must be paid before the insurance company pays any benefits. Larger insurance deductibles will decrease your insurance premium. The is the amount that you agree to pay on each claim.