I cannot tell you how many times I have had people come to me after a car wreck and say “I Have Full Coverage” insurance. Wrong! There is no such thing as Full Coverage. It is important to understand what is the right insurance coverage you need.
When you purchase your vehicle insurance policy, you can pick and choose certain types of coverage. Often, people try to save a little money by opting out of certain coverage. This is usually a mistake. Generally, this happens simply because most people don’t understand what each type of coverage is.
There are five types of coverage that you should have on your vehicles:
- Liability Insurance Coverage
- Collision Insurance Coverage
- Comprehensive Insurance Coverage
- Uninsured Motorist Coverage
- Med Pay
So, what does this all mean? He is a basic explanation of these types of insurance coverage.
This type of coverage pays for the OTHER driver and their passenger’s damages when you are in a wreck and it’s your fault. Their damages could include property damage to their vehicle, their medical bills, loss of wages, pain and suffering, and more. In Mississippi, State Law requires everyone to carry minimum liability coverage of $25,000 per person and $50,000 per accident. Not having Liability Insurance can result in a traffic ticket up to $1,000 and you are required to have proof that you have it when you are driving a vehicle.
This type of coverage pays for the property damage to your own vehicle when you are in a car wreck. Some vehicle owners with older vehicles, or vehicles that are paid for choose not to have this type of coverage in place. If you have a loan on your vehicle, the lender will require you to carry Collision Insurance before they will lend you the money to buy the vehicle.
This type of coverage will cover damage to your vehicle resulting from other reasons not accident related, such as hail, flooding, vandalism, fire, theft, or acts of God such as a tree falling on your car. You normally have to pay a deductible before your Comprehensive Coverage will kick in. Comprehensive Coverage does not normally cover towing, roadside assistance, rental car, or stolen personal property from within your vehicle. However, these things can be covered by insurance purchased separately.
Uninsured/Under-Insured Motorist Coverage
Uninsured Motorist “UM” and Under-Insured Motorist “UIM” covers your damages when you are involved in a car wreck with someone who does not have liability insurance, or doesn’t have enough liability insurance to cover all the damages.
Approximately 23% of drivers in Mississippi are Uninsured.
Mississippi provides UM/UIM coverage by Statute unless you specifically sign a waiver saying you don’t want it (which is NEVER a good idea). UM/UIM coverage is also stackable, meaning that if you have multiple vehicles in a household, the limits can be stacked to provide additional coverage.
MedPay is no-fault insurance coverage to pay for the medical bills of you or your passengers, regardless of who is at fault. It is usually paid directly to the medical provider. You can purchase any amount of MedPay you choose, but $5,000 through $15,000 is typical.
This is a very basic overview of the different types of vehicle insurance coverage. An insurance policy is simply a contract between you and the insurance company, and it can contain many exclusions and exceptions. It is important that you read and understand exactly what types of coverage you need and have in your policy. Don’t wait until you are involved in a car wreck to learn that you didn’t have the coverage you thought you did. Read your Policy and call your Insurance Adjuster if you have questions to make sure you are covered.
Insurance Coverage Attorneys
If you or someone you know is injured in a car wreck, call Pepper & Odom Accident Insurance Coverage Attorneys today at 601-202-1111. Save our number in your phone because you never know when you may need it.
Visit Pepper & Odom Law Firm website for more Information about our Insurance Coverage Attorneys.