American Advantage is the choice for Pewaukee auto insurance. Auto insurance policies are comprised of two sections of coverage: Liability and Physical Damage. Each of these portions of an auto insurance policy include different coverage components and various limits and deductible options. While is very easy to try to purchase the lowest cost insurance protection available, it is very important to understand what the coverage is intended to protect so you can make wise purchase decisions and purchase sufficient protection for your individual circumstance. Working with an Independent Agent who offers you multiple choices and explains coverage options and differences in products is critical to having good protection when you need it most.
The Liability section provides protection for you and your assets if you cause injury to people and/or damage to someone else’s property. It provides the protection needed to meet State’s mandatory insurance requirements, but even more, it protects your financial future, your current assets, future earnings, etc that may be legally garnished as a result of a serious injury auto accident involving a vehicle you own, regardless if you were driving it, or if someone else was. The State of Wisconsin currently requires a minimum Bodily Injury limit of $25,000 per person and $50,000 per accident, as well as $10,000 Property Damage limits. While this amount may be sufficient for most accidents, it is clearly not adequate protection for accidents resulting in serious or multiple injuries or death, nor is it adequate protection for person’s of increased net worth. Imagine if you caused an accident and the other vehicle was totaled, would $10,000 replace any new vehicle today?
Medical Payments coverage is also part of the Liability section of the policy. This provides generally a small amount of coverage for passenger’s and your medical bills or burial costs, if injury/death resulted from a car accident. This is sometimes helpful to pay a health insurance deductible, co-insurance payment, etc. You may elect not to include this coverage on your policy.
Uninsured Motorist and Underinsured Motorist coverage are also part of the Liability section of an auto policy. Though often misunderstood as to how this coverage is actually applied to a loss, it is important protection for you and your family against injuries caused by someone that has a) either NO auto liability coverage in place or b) not enough auto liability coverage limits in place to pay for costs associated with injuries resulting from an auto accident. This coverage also extends to you and your family while as passengers in someone else’s car or as a pedestrian/bicyclist, if struck by a car. Like Liability coverage, various limits of Uninsured and Underinsured Motorist coverage are available. The State of Wisconsin currently requires a minimum of $25,000 per person and $50,000 per accident for Uninsured Motorist coverage.
The Physical Damage section of a policy provides the protection for your vehicles against damage of various types. It is completely optional to purchase, and the cost of this protection can be controlled somewhat by choosing higher deductibles. Comprehensive, or sometimes named, Other Than Collision, coverage will provide for the repairs of damage to your car caused by things such as broken glass, hail damage, animal collisions, flying objects such as road debris, theft of the vehicle and fire. Collision coverage will provide for the repair of your vehicle if you hit something with it, or it is hit by another vehicle, including being involved in a hit and run, or overturns. Additionally, you can purchase coverage for towing and rental cars under this section of the policy.
Umbrella Policy or Excess Liability Policy
Umbrellas, sometimes also called Excess Liability policies, provide an additional level of Liability protection for your assets and financial future. Relatively inexpensive, they provide limits from $1,000,000 to $5,000,000 or even as high as $10,000,000 of Liability protection for claims or damage judgments resulting from things like auto, motorcycle or boating accidents, personal liability losses as a home or condo owner, even as an owner of rental properties. Teen drivers, animal ownership, pools or trampolines are all common reasons why it would be wise to consider purchasing an Umbrella Liability policy. Many Umbrella Liability carriers also offer additional limits of Uninsured and Underinsured Motorist coverage to enhance the coverage limits provided on your auto insurance policy.