The Details of Your Auto Insurance Coverage Matter - Ask your agent these 4 questions today!

Car wrecks are never scheduled or anticipated events. If you wait until you are in a wreck to discover how good (or bad) your insurance coverage is, it's too late. Call your agent today and ask these questions to better understand your policy and make the needed changes.

1. "If I'm injured in a car wreck, incur medical bills, and miss work, am I covered? If so, how much coverage is there?"

   Even with the help of a talented personal injury lawyer, the claims process is typically going to take several months (depending on the extent of your injuries). You will not see any sort of settlement check until it concludes. So what about those medical providers sending you collection letters, and those other bills going unpaid because you're unable to work and not receiving pay checks? Ensure with your agent that you have Personal Injury Protection Coverage (PIP) on your policy, or what some states simply call MedPay Coverage. While adding this coverage increases how much you pay each month, adding about $5000 worth of it shouldn't cause too much of an increase.

2. "If I'm hit by a driver with no insurance at all or by one who has minimal coverage, is my own coverage going to step in and help?"

   Not unless you have Uninsured/Underinsured Motorist Coverage. The importance of this type of coverage cannot be overstated. At the very least, be sure you have UM/UIM coverage that is in line with the minimum policy limit requirements in your state. If your budget allows, I would suggest adding as much as 100/300. Talk to your agent about these numbers and get quotes on how varying amounts affect your monthly premium.

3. "If my car is severely damaged or totaled, will you provide a rental car? For how many days?"

   This varies drastically among insurance companies. Do not count on the other driver who just slammed into you to have a good insurance policy that will provide you a rental car. Talk to your agent and ensure that a rental car will be made available to you if you're involved in an accident.

4. "If a car wreck is my fault, and my car is badly damaged, will you be repairing it?"

   Only if you have collision coverage, and only after paying the deductible you've agreed to pay. If it's within your budget, I strongly recommend paying enough of a monthly premium to keep a low deductible of about $500. Also, agents like to throw around the phrase "full coverage," but that term is vague and means nothing without hearing more specifics. Have your agent elaborate about exactly what they'll cover if an accident is your fault or partially your fault, and adjust your plan accordingly.