There are hundreds of insurance companies that advertise great rates for Car Insurance. Amid all of the offers of great savings, Friedle Insurance Agency won’t let the protection for your family take a backseat.
A Car Insurance policy is designed to provide you with a level of protection against property, liability, and medical costs if you are involved in an accident.
- Property coverage pays for the damage of or the theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and, sometimes, lost wages and/or funeral expenses.
All About Automobile Policy Coverage
BI? UM? PIP? If you’re trying to make sense of your automobile policy coverage options and the limits that you need, we can help. The basics are covered below, and provide the information you need (including the acronyms!) to understand your Automobile Insurance coverage options and policy.
Comprehensive and collision
Collision – Covers damage to your car when your car hits, or is hit by, another vehicle or other object. Less the deductible you choose, Collision Insurance pays to repair your vehicle. For older cars, you may want to consider dropping this coverage, since it is typically limited to the cash value of your car. Collision coverage is not required by a state, but if you have a loan or a lease, then the lien holder will require it.
Comprehensive (Other Than Collision or OTC) – For losses resulting from incidents other than collision, Comprehensive Insurance covers your vehicle, and sometimes other vehicles you may be driving. This coverage includes damage to your car if it is stolen or damaged by flood, fire, falling objects, or animals. States do not require that you purchase collision or comprehensive coverage, but, if you have a car loan, your lender may insist that you carry it until your loan is paid off.
Selecting comprehensive and collision deductibles
Collision coverage is generally sold with a deductible of $250 to $1,000, while comprehensive insurance is usually sold with a $250 deductible. By opting for a higher deductible, you’ll be lowering your auto insurance premium – and it’s just one method for doing so. Remember, the higher the deductible, the more you’ll pay out of pocket in case of a claim. To decide on a deductible that’s right for you, consider your available cash, disposable income, the value of your vehicle, and your tolerance for risk.
Bodily Injury Liability (BI) – This covers injuries that you, as the designated driver or policyholder, cause to someone else. Claims for bodily injury may include medical bills, loss of income, or pain and suffering. However, this insurance does NOT cover the cost of damage to your vehicle. It also does not cover the cost of damage to you or other people on your policy. Bodily Injury Liability is mandatory in most states.
Property Damage Liability (PD) – Covers you or someone driving the car with your permission if the car damages someone else’s property. Typically, the property is another vehicle. However, in some instance Property Damage Liability covers damages to items such as a fence, telephone pole, a house, etc. It also provides you with legal defense if another party files a lawsuit against you.
Medical Payments (MP) or Personal Injury Protection (PIP) – This no-fault coverage provides medical expenses to you and your passengers injured in an accident. Medical payments may also cover policyholders and their family members when they are injured either a) while riding in someone else’s car or b) when they are hit by a car while on foot or bicycling. If you and your regular passengers already have health insurance that covers similar expenses, this insurance, medical payments coverage, may be unnecessary. To be certain, you should check your health insurance policy for details.
Uninsured and Underinsured Motorist Coverage (UM or UIM) – UM or UIM coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured Motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. Secondly, this coverage will protect you if you are hit by a car, truck, or motorcycle as a pedestrian.
Selecting liability limits
Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit without the risk of jeopardizing your personal assets, such as your home and savings. By purchasing liability limits to account for both your current assets and future net worth, you’ll be protecting yourself against this risk. Friedle Insurance Agency will help you select limits that meet your unique needs.
What are the top ways you can save on your premium?
- Consider raising your deductible
- Keep up your good driving record
- Drive less to qualify for a low-mileage discount
- Drive a car with safety features such as anti-lock brakes, airbags, etc.
- Install an anti-theft device
- Ask about the Friedle Insurance Agency multi-policy discounts
Car Insurance FAQs Friedle Insurance
What kind of auto insurance coverage do I need?
Drivers in most states are required to carry liability insurance and be able to provide proof of insurance when registering a vehicle or renewing a driver’s license. Drivers with only the minimum amount of liability coverage who experience an accident may have to cover part of the damage costs out of their own pocket. For this reason, it is important to consider purchasing the correct amount of insurance, for most that is an amount above the minimum required by your state.
When choosing what type and how much auto insurance you need, consider the total value of your assets; how much, when, and who you drive; and they type of car or vehicle you operate
How much auto insurance is required in Wisconsin?
Wisconsin law mandates that all drivers must be able to cover the cost of any damage resulting from car accidents that they may have caused. In order to comply with these laws, all drivers must carry the following types of auto insurance: liability, uninsured motorist, and underinsured motorist.
Liability insurance helps cover costs associated with body or property damage resulting from an accident caused by the carrier. In Wisconsin, all drivers must have enough liability insurance to cover the following costs per accident:
- $25,000 coverage for injury or death (per person)
- $50,000 total coverage for injury or death to multiple individuals in a single accident
- $10,000 coverage for property damage
How can I make sure I’m getting the best value?
At Friedle Insurance, we strive to build a trusted relationship with our customers, and that means offering the best insurance coverage at fair prices. While it may be tempting to choose the cheapest possible coverage out there, our priority is protecting your family. We will work with you to design a car insurance policy that matches your lifestyle, protecting property, liability, and medical costs should you be involved in an accident. Contact us to discuss your needs today.
Why did my auto insurance premium change?
There are a number of reasons why you may experience a change in your premium costs. Some are due to outside influences that affect our business as a whole, like inflation. Usually, though, a premium change has to do with an event or change in your life, insurance, or driving record. If you need to make a claim, the cost of covering that claim (like medical or auto repair costs) may raise your premium.
Here are some reasons why you may experience a change in your premium cost:
- Getting in a car accident or receiving a ticket
- Claim adjustment costs
- Changes made to coverage or auto insurance policy by the driver
- Removing or adding drivers to a policy
- Purchasing a new or more valuable vehicle
- Moving to a different county or zip code
- Increase or decrease in driving