Understanding Car insurance - What you need to know 101

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My background in insurance: Licensed in over 35+ states, I’ve been an insurance agent for 5+ years and am currently in the top 5% sales with the 3rd largest insurance company in the U.S. I have personally helped over 5,000 people buy insurance in auto alone.

I am going to show you what coverages you should be asking for from your insurance agent.

Most common coverages used:

Starters: BI 25/50 PD 50 UMBI 25/50 UMPD 10 (depending on value of veh) Medical payments 5,000

Middle coverage: BI 50/100 PD 50 or 100 (check price diff) UMBI 50/100 UMPD (value of veh) Medical Payments 5,000.

Average home owner coverage: BI 100/300 PD 100 UMBI 100/300 UMPD (value of veh) Medical Payments 5,000, road service/towing, Rental car (if requested)

If your vehicle is valuable then full coverage: Comprehensive and Collision. I use deductibles of 250(comprehensive) and 500 (collision). If the cost of these coverages are more than what the value of the vehicle is in a 3 year period you may want to evaluate if it’s still worth keeping.

Remember, it’s a risk. How much risk do you want to take?

States with mandatory PIP coverage

• Arkansas

• Delaware

• Florida

• Hawaii

• Kansas

• Kentucky

• Maryland (unless a waiver is signed at initial purchase of the policy)

• Massachusetts

• Michigan

• Minnesota

• New Jersey

• New York

• North Dakota

• Oregon

• Pennsylvania

• Utah

Certain states require insurance companies to offer PIP coverage, but allow the insured to reject it in writing:

• Washington[5] Once you reject the coverage it stays that way until you request it be added or start a new policy.

• Texas

PIP Source: