Today we’ll continue with the second part of reading and understanding your auto declarations page. If you missed part one, please check it out here.
Medical Payments
The medical payment line shows the limit purchased for injuries sustained to those within your own vehicle. Since you cannot be liable to yourself, this protection is designed to help cover your health insurance deductible and max out of pocket expenses. Your health insurance will expect your auto insurance to pay first as primary and they will become secondary.
Loss Of Use
This coverage is for rental reimbursement when a rental car is needed after a covered loss. You may purchase this coverage when you carry full coverage (comprehensive and collision) on your vehicle. Rental Reimbursement is not available for renting vehicles while on vacation. It also is not available when your car is in the shop getting an oil change. The only time loss of use is applicable is when the vehicle is damaged due to an immediate loss covered under the policy. You select your terms on a daily rate with a maximum allowed amount. This policy has $35 available every day up to a total of $1,050.
Emergency Roadside Assistance
Sometimes this coverage is also called towing and labor. It’s an optional coverage that you purchase to help get you off the side of the road. Click here for a full explanation of how it works and what is covered.
Comprehensive
Part one of this series was the required coverages to be legally insured. Part two is all the optional coverages available that many refer to as “full coverage.” The comprehensive coverage on your policy is to receive payment for your own personal vehicle. It applies when the damage happens as a result of something that cannot be held liable. Examples would include, animals, fire, glass breakage, and so forth. Comprehensive is subject to a deductible before it will pay out. This policy shows a $250 deductible with a $0 glass deductible. In the event that this policyholder hits a deer, they will owe $250 to the repair shop before the insurance applies.
Collision
Just as with comprehensive, collision coverage is for your own vehicle. And it is also subject to a deductible. This policy shows a $250 deductible for all vehicles insured. If a driver of any vehicle listed here causes damage to it either by hitting another vehicle or a piece of property, the collision portion of the policy will pay out. If you do not carry collision and hit an object such as a fence, sign, or another vehicle, there will be no payment made by the insurance company toward fixing or replacing your vehicle. You must carry collision to protect your own vehicle and receive payment when you damage it.
I hope this was a helpful short series with understanding your declarations page. If it raised any questions for you, please reach out to me by emailing kaylagulick@tnsig.com
Have a wonderful Christmas Season and a Happy New Year!!
