Understanding Your Auto Insurance Policy

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Terms and Definitions

Bodily Injury Liability Coverage (BI) 
If an insured person is legally liable for an accident, Bodily Injury coverage pays for injuries to people involved in the accident other than the insured driver.  It also pays for legal defense costs.  Certain exclusions may apply.

You will find various numbers associated with your policy like 25/50/25, 50/100/50, 100/300/100, 250/500/500 etc. These refer to the dollar amounts in thousands associated with the level of Bodily Injury and Property Damage Coverage you have selected.  For instance, if you have 100/300/100 coverage, which is usually considered the base standard by insurance industry professionals, then it means you have $100,000 for injury available per person, $300,000 total for the accident, with $100,000 allotted for property damage.  (see Umbrella Coverage Options*)

Comprehensive Coverage
If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage.  This includes damages from fire, windstorm, hail, flood, vandalism, hitting an animal such as a deer, or even if your vehicle is stolen.

Collision Coverage
When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage to your vehicle.  Collision coverage also may extend to a non-owned vehicle or one rented for personal use that is in your custody or that you are operating.  Certain exclusions may apply.

Declaration Page
Your "Dec Page" is the summary of your auto insurance coverage and it lists the following:  types of coverage you have elected, limits for each coverage, cost for each coverage, specified vehicles covered by the policy, types of coverage for each vehicle included in the policy, and any other information that may be applicable to the policy.

Deductible
A deductible is the amount you agree to pay out of pocket for damage resulting from a specific loss or accident.  Generally, choosing a higher deductible tends to lower your premium.

State Minimum Requirements
Each state is able to select the minimum level of Bodily Injury and Property Damage required in that state.  On average, the lowest levels are around 25/50/10 but you should confirm this with your insurance agent.  Be aware that while lower levels like this exist, they do not offer much protection.  For instance, in the lowest levels example above, if you were to have an accident and the injury amounts for any one person were higher than $25,000 or $50,000 total for the accident, then you would be responsible for the remaining amounts personally.  Also, any monetary damage to other cars, signage, curbs, property etc. beyond the $10,000 designated for property damage would be owed by you as well.  Essentially you are "self insuring" for any amounts above what your chosen policy covers. 

These descriptions are for informational purposes only.  Please refer to your policy for specific details and definitions about your coverage.

Auto Insurance

Auto Insurance

Bodily Injury Liability Coverage, Comprehensive Coverage, and Collision Coverage. BID has you covered.

Homeowners Insurance

Homeowners Insurance

Your home is a key component of your financial well being, it only makes sense that you make sure it is insured properly.

Life Insurance

LIFE Insurance

Having a Life Policy in force is so important that it warrants special consideration. Let BID help you with your decision.