QUOTES, COVERAGE & DEFINITIONS
This can also apply in a hit-and-run situation as long as you are able to get a license plate number and report it within 10 days.UM pays up to the first limit for any one person and, subject to the first limit for any one person, up to the second limit for all persons injured or killed in an accident.
UIM pays you and resident relatives in your vehicle against damages arising out of accidents with motorist who have motor vehicle insurance with lower limits of liability coverage than those damages suffered by you. UIM Pays the difference up to the first limit for one person and, subject to the first limit for any one person, up to the second limit for all persons injured or killed in one accident.
Auto Insurance Overview
Daryl Lofton Insurance Agency wants to make sure you are driving safely with the highest quality auto insurance for you and your loved ones. If you drive an automobile, state law dictates that you must be financially responsible for your actions.
All drivers must show their ability to pay for damages or injury to others resulting from the ownership or operation of a motor vehicle. Financial Responsibility Laws require every driver and owner of a motor vehicle to be financially responsible for his or her actions. The most common way drivers choose to comply with the financial responsibility requirement is by purchasing an automobile liability insurance policy.
If you have an accident not covered by insurance, then your license may be suspended. It is your responsibility to provide liability insurance for any vehicle you own regardless of whom is operating the vehicle. It is illegal for those vehicles to be operated without meeting the requirements of this law. Always make sure you are getting the best coverage for your insurance needs. Auto insurance can help protect you, your family and your car.
It can also help you restore your assets if they’re lost or damaged and protect you in the event of a lawsuit. All of which can mean greater peace of mind for you. Drivers are required to carry proof of liability insurance at all times in the vehicle they are driving.
Auto insurance policies have two parts. The first is the liability section of the policy. It covers your financial responsibility for injuring others and the repair of their vehicle in the case of an at fault accident. This coverage is required by most states.
A combined single limit of liability has one limit for both bodily injury and property damage combined. That means if a policy had a limit of $100,000 the maximum amount the policy would pay for the total bodily injury and/or property damage would be $100,000.
A split limit liability policy has a separate limit per person and per accident for bodily injury and a per accident limit for property damage. For example, if a policy had a limit of $25,000 on property damage and a $100,000 per person limit on bodily injury, with a $300,000 per accident limit on bodily injury, the maximum amount the policy would pay is: $25,000 for property damage and $300,000 for total bodily injury (not exceeding $100,000 per person).
The second part covers the car itself: comprehensive coverage reimburses losses from fire, theft or other perils; collision coverage pays to repair losses caused by an accident. Often this coverage is mandated by leasing companies or banks. There are also ancillary medical, car rental and other coverages which vary by state.
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive insurance is usually sold with a $100 to $3000 deductible, though you may want to opt for a higher deductible as a way of lowering your premium. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered.
Some companies offer glass coverage with or without a deductible. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000-the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.
Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets.
If you’ve financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement. Below is an example of the state minimum limits for auto liability insurance. The first number refers to liability limits for bodily injury for any one person, the second to limits for all persons injured, and the third refers to property damage liability limits. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual and $10,000 coverage for property damage.
Types of Car Insurance Policies – Third-Party Liability
There are two types of third-party liability policies: bodily injury and property damage. Bodily injury liability pays other people for damages the policy owner has done to them, such as medical expenses, lost wages, and pain and suffering; property damage pays other people for damages done to their property.
If someone files suit against the policy owner as a result of a car accident, these policies will provide monetary protection (up to the limit of the policy). Nearly all states require a set minimum amount of third-party liability coverage. Generally, states that don’t require these policies are “no-fault” states, which have enacted laws that eliminate most claims of “pain and suffering” and many other standard small claims.
Regardless of these “no-fault” laws, experts agree that the ideal policy should have more third-party liability coverage than is required by law. Juries sometimes award very large damages to plaintiffs with only minor injuries; the minimum required policy is highly unlikely to significantly defray liability costs in the event of a major lawsuit. And “no-fault” laws generally only protect drivers from petty claims – big injury suits are still allowable.
The common notation for bodily injury policies looks like 50/100 or 100/300, where the first number is the dollar amount (in thousands) of total coverage in the event that one person is injured or killed, and the second number is the total dollar amount (in thousands) for an entire accident. Again, this coverage will also handle legal expenses involved in settling suits brought against you. Experts suggest that a policy have at least 100/300 insurance ($100,000 coverage for one person’s injuries, $300,000 per accident).
Following the same notation as above, property damage is the third number listed on the policy, e.g., if the policy were 100/300/25, it would offer $25,000 worth of coverage to repair or replace others’ property (including cars). Typically, states require property damage insurance of around $15,000, but because the cost of the average new car is well above $20,000, coverage of at least $25,000.
State Liability Limits:
Arkansas – 25/50/25; Mississippi – 10/20/5; Tennessee – 25/50/10. Although legally defined as financial responsibility, Tennessee’s law is similar to a compulsory law because drivers can be fined if stopped by police or after crashes if they cannot show proof of financial responsibility.
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The Daryl Lofton Insurance Agency
7195 Swinnea Road, Suite B,
Southaven, MS 38671