I’m feeling really confused about the auto coverage options with State Farm and could use some advice. My wife and I recently got a letter asking us to sign a document stating that we reject all of our coverages. Before I call to make any changes, I’m trying to figure out which coverages to choose and how much coverage I need for each. Here are the options I’m considering:
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Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): Should I set these limits to match my bodily injury liability limits?
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Underinsured Motor Vehicle Coverage (Coverage W): Should this also have limits that equal my Uninsured Motor Vehicle Coverage limits?
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Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): Is it advisable to set these limits equal to my property damage liability limits?
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Medical Payments Coverage (Coverage C): Is the $5,000 limit per person sufficient for medical and hospital expenses?
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Death, Dismemberment, and Loss of Sight Coverage (Coverage S): Is the $5,000 benefit a good amount?
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Total Disability Coverage (Coverage T): Are the income benefits of $140 per week for earners and $70 for non-earners reasonable?
I’m feeling a bit lost and not sure how to approach this. Any guidance would be greatly appreciated!
It can definitely be overwhelming to navigate auto insurance coverages, especially with so many options. Here’s a breakdown of the coverages mentioned and some suggestions that might help clarify what you and your wife should consider:
Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): This coverage protects you if you’re in an accident caused by a driver who doesn’t have any insurance. It’s wise to have limits that match your liability coverage for bodily injury, as this helps ensure you’re fully protected in case of a crash.
Underinsured Motor Vehicle Coverage (Coverage W): This is similar to the uninsured motor vehicle coverage but protects you if the other driver has some insurance but not enough to cover your damages. Opting for limits that match your uninsured motor vehicle coverage limits can provide a good safety net.
Uninsured Motor Vehicle Coverage – Property Damage (Coverage U1): It seems like there is a repeat here; make sure you clarify if there are separate limits suggested, as this can often be a point of confusion.
Medical Payments Coverage (Coverage C): This coverage can help pay for medical bills for you and your passengers after an accident, regardless of who is at fault. A limit of $5,000 per person is a common option, but you might want to consider higher limits if you feel it’s necessary based on your health insurance or overall health situation.
Death, Dismemberment and Loss of Sight Coverage (Coverage S): This coverage provides benefits in tragic situations. If you can afford it, it might be beneficial to have this coverage for peace of mind.
Total Disability Coverage (Coverage T): This provides income if you’re unable to work due to an accident. Depending on your personal circumstances, you may want to consider this coverage especially if you rely on your income for daily expenses.
Suggestions:
Liability Coverage: Make sure you have adequate liability coverage (at least the state minimum, but more is often advisable). Many experts recommend $100,000 per person / $300,000 per accident for bodily injury, and $100,000 for property damage.
Opting In: When you call State Farm, you can ask them to explain the coverages, their benefits, and limits. Express any concerns or priorities—like if you want to ensure both of you are protected in case of an accident. You can start with “I want to make sure my wife and I have the right coverages, and I need some guidance on what I should be considering based on our circumstances.”
Budget Considerations: Evaluate how much premium you’re willing to pay for coverage. It can be tempting to go for minimum options, but balancing cost with sufficient protection is key.
Ultimately, the best coverage for you will depend on factors like your financial situation, how much risk you’re willing to take, and whether you feel your current health and income situation warrant additional coverage. Don’t hesitate to ask your agent for detailed explanations—they’re there to help!