State Farm auto coverage confuses me. What do you suggest?

One thought on “State Farm auto coverage confuses me. What do you suggest?”

1. It sounds like you’re trying to make sense of your State Farm auto coverage options, which can definitely be confusing! Here’s a breakdown of the coverages you listed, along with some suggestions based on common needs and considerations:

   1. Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): This coverage kicks in if you’re in an accident caused by someone who doesn’t have insurance. Opting for limits equal to your Liability Coverage for bodily injury is generally a good idea, as it aligns your protection.

   2. Underinsured Motor Vehicle Coverage (Coverage W): This covers you if you’re in an accident with someone whose insurance isn’t sufficient to cover the damage. Having limits equal to your Uninsured Motor Vehicle Coverage is a standard practice and provides you with consistent coverage levels.

   3. Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): This sounds like a repeat from the first point. If it’s presented as a separate line item, ensure it’s needed; otherwise, it’s likely just a mistake.

   4. Medical Payments Coverage (Coverage C): This covers medical expenses for you and your passengers, regardless of fault. A limit of $5,000 per person can be a decent safety net, but depending on your health insurance and financial situation, you may want to consider higher limits.

   5. Death, Dismemberment and Loss of Sight Coverage (Coverage S): This is typically a supplemental coverage for extreme cases. A limit of $5,000 is reasonable, but consider whether you feel this coverage is necessary for you.

   6. Total Disability Coverage (Coverage T): This covers lost income if you’re unable to work due to an accident. If you rely heavily on your income and don’t have other supports in place, this could be important. The limits are relatively low, so analyze your own financial situation to determine if this is important for you.

   Recommendations:

   • Start with Liability Coverage: This is mandatory, so ensure you have adequate limits. Many experts recommend at least $100,000 per person and $300,000 per accident for bodily injury, along with a reasonable property damage limit.
   • Consider Collision and Comprehensive Coverage: If you have a loan on your vehicle or it’s valuable, you’ll want these coverages. They protect against damages to your own vehicle.
   • Evaluate Uninsured/Underinsured Coverage: Given the number of uninsured drivers, having sufficient limits here is essential.
   • Assess Medical Payments and Disability Coverage: If you are concerned about medical costs or loss of income, these coverages might be worth investing in based on your financial situation.

   Before you call State Farm, it might help to write down your priorities—like how much risk you’re willing to shoulder and what peace of mind means to you. This can guide you through your conversation and help you select the most appropriate coverages for your needs!

   Reply