Auto Insurance: Basic Coverages
Insurance Coverages 101
We know that auto insurance options can seem a little confusing.
Lots of companies want to sell you an insurance policy, but do they
really tell you what you’re getting and why you need it? Nationwide does.
That’s why we offer this handy online guide.
Take a minute to familiarize yourself with these definitions, videos and
additional things to consider. We think it’ll help you make more
confident decisions when considering your auto insurance needs.
Bodily Injury
Pays others' medical costs related to an accident if you are at fault. It may also cover the injured parties' lost wages and your legal defense.
Watch and Learn
Play the video below to get a better understanding of this coverage.
Things to Consider
Still not sure how this coverage applies to you? Click on the links below for real-world tips that will help you understand the importance of Bodily Injury and how it could help you.
Split limits
Bodily Injury limits are stated in a “maximum per person/ maximum per accident” format. For instance, $100,000/$300,000 limits means:
- Each person injured in your at-fault accident is covered up to $100,000
- The maximum total coverage for all injured parties is $300,000
Coverage limits
Selecting low limits will decrease your insurance premiums, but could also put you at financial risk. The average driver chooses $100,000/$300,000 coverage limits. If you have sizeable assets, consider purchasing even more coverage.
Court Costs
The average bodily injury claim exceeds $10,000, but this average skyrockets to $261,000 when taken to court. (Source: www.iii.org)
Protect your assets
If you have a high net worth, a personal umbrella liability policy can help protect your financial well-being against settlements that exceed your auto policy limits. Plus, they are very affordable.
Medical bills
If you were responsible for an accident involving people without health insurance, you could be responsible for paying all of their medical bills. These bills are typically covered by Bodily Injury.
Click continue to learn more about Property Damage coverage.
Property Damage
Pays for damages to another person’s property or vehicle if you are at fault in an auto accident. It will also provide for your legal defense if a suit is brought against you as a result of this accident.
Watch and Learn
Play the video below to get a better understanding of this coverage.
Things to Consider
Still not sure how this coverage applies to you? Click on the links below for real-world tips that will help you understand the importance of Property Damage and how it could help you.
Coverage Limits
Selecting low limits will decrease your insurance premiums, but could also put you at financial risk. Damages in excess of your limits may have to be paid out of your own pocket.
What you drive matters
Average property damage claims caused by SUVs and pickup trucks are 15% higher than standard automobiles. On the other hand, accidents involving minivans and station wagons result in the least costly claims.
Click continue to learn more about Collision Coverage.
Collision
Pays for damage to your vehicle if you hit another vehicle, another vehicle hits you, or your vehicle rolls over.
Watch and Learn
Play the video below to get a better understanding of this coverage.
Things to Consider
Still not sure how this coverage applies to you? Click on the links below for real-world tips that will help you understand the importance of Collision Coverage and how it could help you.
Deductibles
Choose a deductible you’re comfortable paying out of pocket. Moving from a $250 to $500 deductible can reduce your insurance costs by 20% or more. But remember that you’ll be responsible for paying this deductible.
New versus old
Owners of newer vehicles may benefit more from purchasing collision insurance. If your insurance premium is greater than 10% of your vehicle’s actual value, you might consider dropping this coverage in favor of lower premiums.
Lease or finance
If you lease or finance your vehicle, your lien holder likely requires this coverage. Consult your loan or lease agreement to ensure you’re selecting the required limits.
The average deductible
The national average deductible for collision insurance has risen to $500.
Investment protection
The average new car’s MSRP tops $28,000. Protect your auto investment with this coverage.
What you drive matters
On average, collision claims for SUVs and pickup trucks are 10% higher than those for standard automobiles.
Click to learn about Comprehensive Coverage.
Comprehensive
Helps pay for damage to your vehicle not caused by collision or upset. Examples include damage or loss resulting from theft, vandalism, fire, windstorm, flood and certain other natural disasters.
Watch and Learn
Play the video to get a better understanding of this coverage.
Things to Consider
Still not sure how this coverage applies to you? Click on the links below for real-world tips that will help you understand the importance of Comprehensive Coverage and how it could help you.
Deductibles
Choose a deductible you’re comfortable paying out of pocket. Moving from a $250 to $500 deductible can reduce your insurance costs by 20% or more. But remember that you’ll be responsible for paying this deductible.
Animal crossing
One of the most frequent comprehensive claims is collision with an animal, which causes an average damage of $2,800.
Lease or finance
If you lease or finance your vehicle, your lien holder likely requires this coverage. Consult your loan or lease agreement to ensure you’re selecting the required limits.
Car Theft
The FBI claims that an automobile is stolen every 26 seconds in the United States. The national average theft claim is $7,113.
New versus old
Owners of newer vehicles probably benefit more from purchasing comprehensive insurance. If your insurance premium is greater than 10% of your vehicle’s actual value, you might consider dropping this coverage in favor of lower premiums.
Investment protection
The average new car’s MSRP tops $28,000. Protect your auto investment with this coverage.
Click continue to learn how to Take the Next Step.
Take the Next Step
We hope you feel more insurance confident now.
Nationwide knows that insurance isn’t a one-size-fits-all product. That’s why we offer you so many ways to customize your policy. Plus, you could save up to $500 by switching to Nationwide*.
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Ready for an auto insurance quote?
Get an online quote 24/7 at nationwide.com. You can even print out your proof of insurance card from your own computer**.
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Still have questions?
We can help. Find your local Nationwide agent, or call 1-877-On Your Side® (1-877-669-6877) to speak with an insurance professional.
*Average annual savings based on Nationwide policyholder data gathered nationally through July 2007.
**Not available in NY, NH and DE.
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