Auto - Piedmont Insurance & Business Group | Raleigh NC

When purchasing an auto insurance policy, you have many different choices when it comes to individual coverage options. Each option protects you against various types of losses. It is important that you understand the different coverages so that you can decide which ones are suitable for you to include in your personal insurance package. The section below covers some of the basic coverages found in an auto policy:

Bodily Injury (BI) & Property Damage (PD) Liability Coverage

Bodily injury (BI) liability coverage covers, up to the coverage limits, costs related to covered injuries you may have caused to other people in an accident. This coverage also provides for a legal defense in case you are sued. In case you are at fault in an accident, your property damage (PD) liability pays for the covered damage you cause to the other vehicle and/or property. This coverage is required in most states.

Medical Payments

Responsible for paying, up to the coverage limits, for doctor, hospital, and funeral expenses for you or any of your passengers that are injured or killed due to an accident, no matter who is at fault. The payments are, for the most part, limited to one to three years post-accident. Medical payment coverage is optional in most states.

Uninsured/Underinsured Motorists (UM/UIM) / Uninsured Motorist Property Damage (UMPD) Coverage

Uninsured/underinsured motorist coverage can help pay for damages and medical costs that result from an accident caused by someone who has either no insurance or inadequate insurance coverage. Uninsured Motorist Property Damage (UMPD) pays for damages if your vehicle is hit by a driver without insurance or you are the victim of a hit-and-run. This is applicable in most states. If your liability coverage is at the minimum state limit, usually you have to go with UM coverage, but not UIM. UIM is included when the personal liability is 50/100 or above, generally speaking.

Collision Coverage

Responsible for paying, up to the coverage limits, for the damage that is done to your vehicle you operate due to a collision or a rollover. If you have a vehicle loan, you are most likely required to have collision coverage. This coverage is most applicable when the driver is responsible for the damage due to the accident. This coverage usually assumes a deductible out of the policyholder's pocket.

Comprehensive Physical Damage Coverage

Responsible for paying, up to the coverage limits, for the damage of your vehicle or a vehicle in your custody due to theft, fire, vandalism, flooding, hail, or other hazards (not including collision or overturning). This happens most of the time when the car is parked and not in motion. If you have a vehicle loan, you are most likely required to have collision coverage.

Rental Reimbursement

Responsible for paying, up to a specific amount, for the costs of a rental vehicle during the time your vehicle is being repaired for the damage that is covered under your specific policy. If you cannot afford to be without a vehicle during the time yours is getting fixed, you should consider getting this coverage.

Towing & Labor

Responsible for covering the incurred costs of the services required at the location of the breakdown or the towing expenses. It also covers the delivery of gas, oil, or a battery; however, this does not include the cost of the previously mentioned item.

Piedmont Insurance and Business Group is here to help you and answer any of your questions regarding renters insurance options. We want to make sure you understand exactly what is covered in your policy. Our agents are available to help break down your coverage option and go over the events you are protected against, as well as assist you in estimating the worth of your personal belongings.

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