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This comprehensive guide will walk you through the ins and outs of auto insurance in Washington State, empowering you to make informed decisions about your coverage.
Insurance is an agreement between two parties: the insured (you), and the company (your carrier). In its most basic form, auto insurance can be broken down like this. A whole bunch of individuals put a “small” amount of money into a central pot. When something like a crash happens, the company reaches into that pot of money and writes a check for your damages. Sometimes, people can go years without needing to access that pot of money, but when they do, the amount they receive is often far, far more than the amount they have put in.
Auto insurance in Washington State isn’t just a legal requirement; it’s a crucial safeguard for drivers and vehicle owners. Having the appropriate levels of coverage ensures that you are not left with overwhelming expenses in the event of an accident, theft, or other covered incidents.
Without insurance, individuals may face significant financial strain, legal consequences, and even long-term debt. Auto insurance acts as a safety net, allowing you to drive with peace of mind, knowing that you are protected from these unforeseen expenses.
Auto insurance is essential for not only protecting yourself but also others on the road. It covers medical expenses for injuries sustained in an accident, regardless of who is at fault. This aspect of insurance is particularly important in Washington State, where the cost of healthcare can be substantial. Having adequate insurance coverage ensures that you can provide financial support to those involved in an accident, promoting a safer and more responsible driving environment.
💡 SHANE’S INSIGHT
In Washington State up to 30% of drivers on the road are driving with the minimum required amount of insurance, or no insurance at all! Most of the people we work with don’t realize that the coverage they are paying for each month will not take care of them in the event of an emergency…understanding what coverages you have is critical to making sure you aren’t putting your own assets at risk.
—Shane Roehl, Agency Owner
Understanding auto insurance can be confusing. We are here to help simplify things a bit. To better understand insurance coverage, let’s break things down into 3 simple types of coverage:
1. Protection for Others:
• Liability Coverage
2. Protection for You:
• Uninsured/Underinsured Motorist Coverage
• Personal Injury Protection (PIP)
• Medical Payments Coverage (MedPay)
3. Protection for Your Vehicle:
• Collision Coverage
• Comprehensive Coverage
• Specific Parts and Accessories Coverage
Q: What does underinsured mean?
A: It means that the total costs an insured driver is responsible for exceed their coverage limits. For example, a driver causes an accident that results in $75,000 in damage and medical costs, but only has $25,000 of liability coverage. That driver will be personally responsible for the other $50,000.
💡 SHANE’S INSIGHT
A lot of people use the term “full coverage.” This term doesn’t actually exist within the insurance industry. When consumers use this term, some mean “liability, collision and comprehensive.” Others mean those and uninsured motorist. Others also include Personal Injury Protection, and many mean “whatever coverage satisfies the bank.”
So just remember: if your agent tells you that you have “full coverage” that doesn’t necessarily mean you have “good” or “enough” coverage to adequately protect you. We’re happy to help you sort out the details of your specific auto policy.
—Shane Roehl, Agency Owner
The right coverage for you will depend on various factors, the type of vehicle you own, how often you drive, your financial assets, and of course, your budget all play a part. For instance, if you drive an older car with high mileage, collision coverage might not be as crucial as it would be for a brand-new vehicle. Similarly, a driver with considerable financial assets may need more liability coverage than a driver making minimum wage. Everyone’s situation is different, and coverages can be customized to fit your specific situation.
At Skyline Insurance Group, we believe in a personalized approach to insurance. Our agents take the time to understand your individual circumstances and tailor policies to your specific needs. We don’t believe in a one-size-fits-all approach, and we’re committed to ensuring you’re not paying for coverage you don’t need.
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To learn more about the various types of auto insurance coverage and how they can protect you, check out our detailed guide on “Types of Auto Insurance Coverage” for an in-depth look at liability, collision, and more.
Auto insurance policies are not one-size-fits-all; they are tailored to meet the varying needs of drivers. Understanding the different types of coverage available is essential for making informed decisions about your policy. Here’s a comprehensive overview of the main types of auto insurance coverage:
Liability insurance is a fundamental component of any auto insurance policy and is required by law in most states, including Washington. This type of coverage protects you if you’re legally responsible for an accident, causing injury to others or damage to their property. It typically includes:
Liability coverage limits are commonly written like this: “25/50/10” This means $25,000 per person and $50,000 per accident for bodily injury, and $10,000 per accident for property damage.
Currently, the State of Washington requires all drivers to carry 25/50/10 liability coverage, but as the average auto accident payout is over $25,000 where a moderate injury is sustained, 25/50/10 is not enough liability coverage to properly protect a driver, who will face out-of-pocket costs in such a situation if that’s all the liability coverage they carry.
Liability coverage is essential for protecting your assets and financial well-being. In the unfortunate event of causing an accident, this coverage ensures that you are not personally responsible for the substantial costs that may arise. It provides peace of mind, knowing that you are not left financially vulnerable in such situations.
💡 SHANE’S INSIGHT
Most people only think about covering their vehicle when they think about auto insurance coverage. A car can cost up to $100,000. But if you severely injure someone else and they spend time in the hospital, or are unable to work again, or even worse, they are permanently disabled, a judgement cold be levied against you as the responsible party which could reach into the hundreds of thousands (if not millions) of dollars. Liability coverage is, by far, the most important (and overlooked) line of coverage in your auto policy. Ask yourself this question, are you willing to bet your house, and all your future income that you’ll never get into a bad car accident? What if an extra $10 per month makes that a non-issue?
—Shane Roehl, Agency Owner
Collision coverage is designed to repair or replace your vehicle if it’s damaged in a collision, regardless of what it collides with (another vehicle, a telephone pole, a structure, etc.) or who is at fault. This type of coverage is particularly valuable for newer or more expensive vehicles. Here’s what it entails:
Collision coverage is essential for maintaining your vehicle’s value and ensuring you’re not left with a substantial financial burden after an accident. It provides the funds needed to get your car back on the road or helps you transition to a new vehicle if necessary.
While collision coverage focuses on accident-related damage, comprehensive coverage is a broader form of protection for your vehicle. It covers a wide range of non-collision incidents, including:
Comprehensive coverage is crucial for vehicle owners who want protection against unforeseen incidents beyond collisions. It provides peace of mind, knowing that your vehicle is protected from a wide range of potential risks.
💡 SHANE’S INSIGHT
Just about everyone has heard the word “deductible.” Collision and Comprehensive coverage are where this comes into play. Simply put, it is the amount of money you’ll be responsible for paying if insurance pays to fix your car. Think of it this way: if you have a $500 deductible and it costs $7,000 to repair your vehicle after a crash, you’ll pay $500, and your insurance company will pay the rest: $6,500. It’s a good rule of thumb to set your Collision deductible as high as is affordable (in order to get the lowest rate possible), and keep your Comprehensive deductible as low as possible, as Comprehensive coverage is generally pretty inexpensive in comparison to other coverages and is most often used for glass replacement. If you had a $0 deductible, you could get a new windshield for FREE if it were damaged by a rock from the road.
—Shane Roehl, Agency Owner
This type of coverage is designed to protect you from financial loss if you’re involved in an accident with a driver who has no insurance or insufficient coverage. It typically includes:
Uninsured/Underinsured Motorist Coverage is essential for ensuring you’re not left bearing the financial burden of an accident caused by someone else’s lack of insurance. It provides an extra layer of protection, giving you peace of mind on the road.
PIP coverage is designed to help pay for certain expenses if you’re injured in an auto accident, regardless of who is at fault. PIP covers:
Situations When PIP Doesn’t Apply: There are specific circumstances where PIP may not provide coverage, so understanding your policy is crucial.
Medical payments coverage, or MedPay, is an optional type of car insurance for drivers in Washington, and you can choose to get it if you want to cover medical expenses for you, other drivers on your policy, and your passengers after a car accident regardless of fault. The difference between MedPay and PIP is that PIP covers both medical bills and non-medical expenses after an accident, like loss of income and childcare. By comparison, MedPay insurance only applies to direct medical costs and funeral expenses. Both types of insurance cover the policyholder and their passengers after any car accident, regardless of fault.
💡 SHANE’S INSIGHT
Whether PIP or MedPay is a better option for you depends on your particular situation. For example, if you are retired or otherwise unemployed, you don’t have any wages for PIP’s wage replacement to cover, so the additional cost of PIP over MedPay may not make financial sense for you.
Most people who opt for MedPay set their coverage limit at the amount of their health insurance deductible. For example, if your health insurance has a $2000 deductible, setting your MedPay limit to $2000 means that if you are injured in an accident, your insurance carrier will cover your deductible and your health insurance will cover the rest of your expenses.
—Shane Roehl, Agency Owner
Auto insurance policies can also include various optional coverages, allowing you to customize your policy to your specific needs. These may include:
These additional coverages can be valuable, depending on your specific circumstances and preferences. For example, if you frequently travel and rely on your vehicle, rental reimbursement coverage can be a wise investment.
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To learn more about how your driving history, vehicle type, and other factors influence your premium, explore our article on “How Auto Insurance Premiums Are Determined.”
Understanding how auto insurance premiums are calculated is essential for making informed decisions about your policy. Insurance companies use various factors to determine the cost of your coverage, and knowing these factors can help you manage your premiums effectively. Here’s an in-depth look at the key elements that influence your auto insurance rates
Your driving history and experience behind the wheel play a significant role in determining your insurance premiums. Insurance companies assess your risk level based on past driving behavior and experience, which can include:
💡 SHANE’S INSIGHT
Every company weighs these criteria in different ways. Some companies put more emphasis on your driving record, others look at your zip code, and others give more weight to your credit history. While it might be interesting to know these details, at the end of the day all insurance carriers are very competitive with one another. It is better to look at the overall pricing and coverage options when comparing insurance providers, rather than worry about any single rating factor. If pricing seems out of line with what you’re seeing elsewhere in the market, be sure to talk to your agent about what rating factors their company weighs more heavily. You might be able to adjust some of these things.
—Shane Roehl, Agency Owner
The type of vehicle you own and how you use it are critical factors in determining your insurance premiums. Insurance companies consider the following aspects:
Your geographic location and personal demographics play a role in determining insurance rates:
Insurance companies in Washington State use “credit scores” as a factor in determining premiums. Your insurance history is also considered.
The amount and type of coverage you choose, as well as your deductible preferences, will directly affect your premiums:
💡 SHANE’S INSIGHT
Getting help determining which levels of coverage and deductibles are right for you is a very difficult task to accomplish on your own. Having a well-rounded discussion with an agent about how each coverage and deductible maps onto your household and financial situation is CRITICAL. One size does NOT fit all in the insurance world. What is right for you may be something completely different than what is right for your neighbor.
—Shane Roehl, Agency Owner
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To explore more about the process of purchasing auto insurance and how to make informed decisions, continue to the next section, “Steps to Purchase Auto Insurance.”
When it comes to buying auto insurance, making an informed decision is crucial to ensure you get the right coverage at the best price. Here’s a step-by-step guide to help you navigate the process:
The first step in purchasing auto insurance is understanding your unique coverage needs. Consider the following:
💡 SHANE’S INSIGHT
One thing to remember when comparing policies is that “apples to apples” doesn’t really exist. While the coverages and prices may look similar, the quote you get online or from an agency is just the first page of the policy. There are anywhere from 30-100 additional pages of terms and exclusions that vary from company to company. So make sure to ask your agent about any major exclusions or exemptions this policy may have vs the other companies you may be considering. If they’re worth their salt, they’ll know how their policy stacks up against the competition.
—Shane Roehl, Agency Owner
Once you understand your coverage needs, it’s time to compare different insurance policies. Here’s how to go about it:
After gathering quotes and comparing policies, it’s time to make a decision:
Once you’ve selected the right policy, it’s time to finalize the purchase:
💡 SHANE’S INSIGHT
One pro-tip I always recommend to new clients is to make sure you set up a phone call 2 weeks after your policy starts to make sure that every discount that was promised to you during the sales process took effect. Sometimes there are pieces of paperwork that need to be signed that slip past you in an email and these things can really add up on your monthly bill. Also be sure to set up a phone call 1 month prior to your renewal with your agent. This will allow you to see if there are any price changes to your premium and work with your agent to strategize on future discount and coverage opportunities.
—Shane Roehl, Agency Owner
RELATED TOPICS
For a detailed look at the process of filing an auto insurance claim and maximizing your benefits, continue to the next section, “Filing an Auto Insurance Claim.”
Filing an auto insurance claim can be a stressful process, especially when dealing with the aftermath of an accident or vehicle damage. This step-by-step guide will walk you through the claims process, ensuring you get the most out of your insurance coverage.
The first step after an accident or incident is to ensure everyone’s safety.
💡 SHANE’S INSIGHT
Remember, you don’t need to call your insurance company from the scene of an accident. Get to a safe place, take photos, write down what happened, and take a few minutes to catch your breath. This is a stressful situation and trying to work through the details of a claim while still on site at the accident can lead to missing key information.
—Shane Roehl, Agency Owner
Once the immediate safety concerns are addressed, it’s time to contact your insurance company:
Thorough documentation is essential for a smooth claims process:
Depending on your insurance coverage and the severity of the damage, you’ll need to arrange for vehicle repairs:
💡 SHANE’S INSIGHT
Your agent should work to help navigate their company’s claims process with you after filing a claim. You’ll be assigned a claim manager, and that person can handle specific claims-related questions. Your agent is there to help you stay in contact with the claim manager, and make sure the lines of communication stay open between all parties.
—Shane Roehl, Agency Owner
Filing the required paperwork is a crucial part of the claims process:
It’s essential to know what your insurance policy covers and the benefits you’re entitled to:
Filing a claim doesn’t end after submitting the paperwork:
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To discover various ways to reduce your auto insurance premiums, from common discounts to strategic savings tips, continue reading the next section, “Auto Insurance Discounts and Savings.”
There are various ways to reduce your auto insurance premiums and save money. This section will explore common discounts and provide strategic tips to help you lower your auto insurance costs.
Insurance companies offer a range of discounts to attract and reward customers. Here are some of the most common discounts you may be eligible for:
💡 SHANE’S INSIGHT
Just like when you bought your policy, there is no one factor that determines your overall rates. Similarly, there is no one discount that will make “all the difference.” The clients that get the best value are the ones that take advantage of every opportunity offered by their carrier. Have a discussion with your agent about what discounts you are NOT getting and map out a gameplan to get them in the future. Sometimes, it is just a matter of time before you qualify for a discount.
—Shane Roehl, Agency Owner
In addition to discounts, there are several strategies you can employ to reduce your auto insurance costs:
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To learn about the specific auto insurance requirements in Washington State and how they may impact your coverage, proceed to the next section, “Auto Insurance Requirements in Washington State.”
Understanding the auto insurance requirements in your state is crucial for ensuring you have the right coverage and comply with the law. Washington State has specific regulations and unique laws regarding auto insurance, which are essential for drivers to know.
In Washington, drivers are required to carry liability insurance, which covers the costs of injuries and property damage to others in an accident where you are at fault. The minimum liability coverage limits are as follows:
It’s important to note that these minimum requirements are just a starting point, and many drivers choose to carry higher liability limits to ensure adequate protection.
Washington State requires all insurers to offer Personal Injury Protection (PIP) coverage, but it is optional for consumers to carry. You will need to sign a form confirming that you are declining PIP coverage if you choose to do so. PIP coverage provides medical and rehabilitation benefits for you and your passengers, regardless of who is at fault in an accident. The minimum PIP coverage limit in Washington are:
PIP coverage is designed to ensure that accident victims can access the necessary medical care and support without incurring significant financial burden. It fills the gap between the time of the accident and when other insurance benefits, such as health insurance, may kick in.
As mentioned earlier, Washington also requires all insurers to offer Uninsured/Underinsured Motorist Coverage to protect drivers from financial loss when involved in an accident with an uninsured or underinsured driver. You will need to sign a form confirming that you are declining PIP coverage if you choose to do so. The minimum limits for this coverage are:
💡 SHANE’S INSIGHT
Very few people think about Uninsured Motorist Coverage when they are putting their policy together. Many carriers know this, and when they try to “save you money” they will drop this coverage and not tell you. Here’s a rule of thumb to follow that will save you a lot of headache…Why would I pay someone else (liability coverage) more money than I would myself (UIM coverage)? Make sure these coverages match, the cost is negligible and you’ll thank yourself for it if you get hit by someone without any coverage.
—Shane Roehl, Agency Owner
While Washington has specific minimum requirements, it’s essential to consider additional coverage options to ensure comprehensive protection:
Washington has a few laws that drivers should be aware of:
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To learn how your car’s make, model, and age can impact your insurance costs, continue reading the next section, “How Your Vehicle Affects Your Premium.”
The type of vehicle you drive plays a significant role in determining your auto insurance rates. Insurance companies consider various factors related to your car when calculating premiums. Here’s a comprehensive look at how your vehicle can impact your insurance costs.
The make and model of your car are among the most influential factors on your insurance premium. Insurance companies use a vehicle’s characteristics to assess the risk and potential cost of claims:
💡 SHANE’S INSIGHT
Your insurance premium is not likely to change much if the vehicle you are newly insuring is similar to your old one. If you’re going from a very old car to a very new car, you’ll likely see a significant difference. Or, if you’re purchasing a higher-end luxury vehicle or a brand-new Electric Vehicle, you could notice a difference. But for the most part, if the car is similar in style and quality, your premiums won’t be too drastically impacted.
—Shane Roehl, Agency Owner
The age and overall condition of your vehicle also play a role in determining insurance rates:
As mentioned earlier, safety features can significantly impact your insurance rates:
Modifications and customizations to your vehicle can also affect your insurance rates:
💡 SHANE’S INSIGHT
Remember to tell your agent if you have special customizations or aftermarket accessories on your vehicle. Most carriers cover the replacement of the vehicle to manufacturer specifications. Things like window tinting, custom rims and tires, stereo systems, etc need to be identified on the policy if you want them to be covered!
—Shane Roehl, Agency Owner
How you use your vehicle and the number of miles driven annually are essential factors in determining insurance rates:
Your geographic location within Washington State can also influence your insurance rates:
💡 SHANE’S INSIGHT
Mileage and how it is factored into your policy rates is an ever-changing topic. Each carrier looks at this a little bit differently, and then they change their mind constantly. In the future, I anticipate that mileage will be a very large component as telematics and car shared data will provide insurers with more information on driving habits specific to your individual car.
—Shane Roehl, Agency Owner
RELATED TOPICS
If you’ve been denied auto insurance coverage, don’t worry! The next section, “What to Do if You’re Denied Auto Insurance Coverage,” will provide guidance and options for obtaining the coverage you need.
Being denied auto insurance coverage can be an anxiety-inducing situation, but there are steps you can take to navigate this challenge and obtain the coverage you need. Here’s a comprehensive guide to help you through this process.
Insurance companies may deny coverage for various reasons. Understanding the specific reason for your denial is the first step in finding a solution:
💡 SHANE’S INSIGHT
Simple mistakes like missed or late payments, or small gaps in coverage, can cause BIG problems. Usually, companies alert you to danger via email or text message. It’s a good idea to work with your agent to make sure you’re only subscribed to the important emails and texts from your carrier. Too often, we become desensitized to all the messages hitting our inbox…you want to be sure you’re only getting the communication you NEED.
—Shane Roehl, Agency Owner
If you’ve been denied coverage due to high-risk factors, there are specialized insurance options available:
There are steps you can take to improve your insurance profile and increase your chances of obtaining standard coverage:
Insurance rates and acceptance criteria can vary significantly between companies, so it’s essential to shop around:
Obtaining insurance after a denial may take time and effort, so it’s essential to be proactive and patient:
Being denied auto insurance coverage doesn’t have to be the end of the road. At Skyline Insurance Group, we’re committed to helping you find the coverage you need. Contact us to discuss your situation, and we’ll work tirelessly to find a solution. Our agents have the expertise and connections to navigate the insurance market and secure the right coverage for high-risk drivers.
💡 SHANE’S INSIGHT
Our industry has done you a huge disservice by telling you that price is all that matters when you shop for new insurance. In fact, when shopping for new insurance it’s critical to compare coverage levels, deductibles, and prices. It is also critical to compare the relative competence of the person you are speaking with in providing these quotes. Remember, how you buy your policy is how you will file a claim: if you buy your policy online without talking to someone…that’s how you’ll have to start a claim when your car is on a tow truck after an accident. So as you get quotes, be sure to ask who you’ll be working with if there’s ever an issue. What’s the dollar value of knowing that if you have a problem, that you can speak directly with a real person that lives where you do?
—Shane Roehl, Agency Owner
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For answers to common questions about auto insurance, check out the next section, “Frequently Asked Questions,” to address any lingering concerns or curiosities.
Addressing common questions about auto insurance can provide valuable insights and help you make informed decisions. Here, we tackle some of the most frequently asked questions to enhance your understanding of auto insurance.
It’s a good practice to review your auto insurance policy at least once a year. Life circumstances change, and your insurance needs may evolve over time. Annual reviews ensure that your coverage remains relevant and cost-effective. Consider reviewing your policy when significant life events occur, such as getting married, buying a new car, or moving to a new state.
In the case of minor accidents with minimal damage, you may choose not to file a claim, especially if the repairs are affordable. However, it’s essential to document the incident and exchange information with the other driver. Consider taking photos of the damage and obtaining the other driver’s contact and insurance details. You can then get an estimate for the repairs and decide if filing a claim is necessary. Remember, even minor accidents can have legal implications, so it’s always best to document and report them.
If you have an agent, call them first to discuss the details of your situation. Sometimes it makes more sense to pay out of pocket for certain types of claims based on the downstream rating implications. Your agent will have a better understanding of how a claim could impact your future premiums.
Yes, it is possible to obtain auto insurance with a foreign driver’s license in Washington State. Some insurance companies specialize in providing coverage for international drivers or those with foreign licenses. You may need to provide additional documentation, such as a valid passport and visa, to prove your identity and legal status. It’s essential to shop around and compare quotes from different insurers to find the best coverage for your situation.
Collision coverage and comprehensive coverage are two essential types of auto insurance, but they cover different scenarios:
Young drivers often face higher insurance rates due to their lack of driving experience and higher risk profile. However, there are several strategies to reduce premiums:
Driving without insurance is illegal in most states and can result in severe consequences:
Yes, you can obtain specialized insurance for classic or collectible cars. These vehicles often have unique insurance needs due to their age, value, and limited usage. Classic car insurance policies typically offer agreed-upon values, covering the car’s full value in case of a total loss. These policies may also include coverage for car shows, exhibitions, and restoration projects. It’s essential to work with insurance providers who specialize in classic car insurance to ensure your vehicle is adequately protected.
Congratulations on reaching the end of this comprehensive guide to auto insurance! You’ve gained valuable insights into the world of auto insurance, from understanding coverage types to managing premiums and filing claims. Now, let’s wrap up with a few key takeaways and emphasize the importance of personalized advice and quotes.
If you’re ready to take control of your auto insurance or have questions about your current coverage, we’re here to help. Contact Skyline Insurance Group today for personalized advice and quotes:
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This comprehensive guide will walk you through the ins and outs of auto insurance, empowering you to make informed decisions about your coverage.
Insurance is an agreement between two parties: the insured (you), and the company (your carrier). In its most basic form, auto insurance can be broken down like this. A whole bunch of individuals put a “small” amount of money into a central pot. When something like a crash happens, the company reaches into that pot of money and writes a check for your damages. Sometimes, people can go years without needing to access that pot of money, but when they do, the amount they receive is often far, far more than the amount they have put in.
Auto insurance in Washington State isn’t just a legal requirement; it’s a crucial safeguard for drivers and vehicle owners. Having the appropriate levels of coverage ensures that you are not left with overwhelming expenses in the event of an accident, theft, or other covered incidents.
Without insurance, individuals may face significant financial strain, legal consequences, and even long-term debt. Auto insurance acts as a safety net, allowing you to drive with peace of mind, knowing that you are protected from these unforeseen expenses.
Auto insurance is essential for not only protecting yourself but also others on the road. It covers medical expenses for injuries sustained in an accident, regardless of who is at fault. This aspect of insurance is particularly important in Washington State, where the cost of healthcare can be substantial. Having adequate insurance coverage ensures that you can provide financial support to those involved in an accident, promoting a safer and more responsible driving environment.
SHANE’S INSIGHT
In Washington State up to 30% of drivers on the road are driving with the minimum required amount of insurance, or no insurance at all! Most of the people we work with don’t realize that the coverage they are paying for each month will not take care of them in the event of an emergency…understanding what coverages you have is critical to making sure you aren’t putting your own assets at risk.
—Shane Roehl, Agency Owner
Understanding auto insurance can be confusing. We are here to help simplify things a bit. To better understand insurance coverage, let’s break things down into 3 simple types of coverage:
1. Protection for Others:
• Liability Coverage
2. Protection for You:
• Uninsured/Underinsured Motorist Coverage
• Personal Injury Protection (PIP)
• Medical Payments Coverage (MedPay)
3. Protection for Your Vehicle:
• Collision Coverage
• Comprehensive Coverage
• Specific Parts and Accessories Coverage
Q: What does underinsured mean?
A: It means that the total costs an insured driver is responsible for exceed their coverage limits. For example, a driver causes an accident that results in $75,000 in damage and medical costs, but only has $25,000 of liability coverage.
SHANE’S INSIGHT
A lot of people use the term “full coverage.” This term doesn’t actually exist within the insurance industry. When consumers use this term, some mean “liability, collision and comprehensive.” Others mean those and uninsured motorist. Others also include Personal Injury Protection, and many mean “whatever coverage satisfies the bank.”
So just remember: if your agent tells you that you have “full coverage” that doesn’t necessarily mean you have “good” or “enough” coverage to adequately protect you. We’re happy to help you sort out the details of your specific auto policy.
—Shane Roehl, Agency Owner
The right coverage for you will depend on various factors, the type of vehicle you own, how often you drive, your financial assets, and of course, your budget all play a part. For instance, if you drive an older car with high mileage, collision coverage might not be as crucial as it would be for a brand-new vehicle. Similarly, a driver with considerable financial assets may need more liability coverage than a driver making minimum wage. Everyone’s situation is different, and coverages can be customized to fit your specific situation.
At Skyline Insurance Group, we believe in a personalized approach to insurance. Our agents take the time to understand your individual circumstances and tailor policies to your specific needs. We don’t believe in a one-size-fits-all approach, and we’re committed to ensuring you’re not paying for coverage you don’t need.
RELATED TOPICS
Auto insurance policies are not one-size-fits-all; they are tailored to meet the varying needs of drivers. Understanding the different types of coverage available is essential for making informed decisions about your policy. Here’s a comprehensive overview of the main types of auto insurance coverage:
Liability insurance is a fundamental component of any auto insurance policy and is required by law in most states, including Washington. This type of coverage protects you if you’re legally responsible for an accident, causing injury to others or damage to their property. It typically includes:
• Bodily Injury Liability: This covers the medical expenses, lost wages, and pain and suffering of others involved in an accident where you are at fault. It is crucial to have sufficient bodily injury liability coverage, as medical costs can quickly escalate, especially with severe injuries.
• Property Damage Liability: This part of the policy covers the cost of repairing or replacing someone else’s property damaged in an accident you cause. This can include other vehicles, buildings, fences, or any other property affected.
Liability coverage limits are commonly written like this: “25/50/10” ß This means $25,000 per person and $50,000 per accident for bodily injury, and $10,000 per accident for property damage.
Currently, the State of Washington requires all drivers to carry 25/50/10 liability coverage, but as the average auto accident payout is over $25,000 where a moderate injury is sustained, 25/50/10 is not enough liability coverage to properly protect a driver, who will face out-of-pocket costs in such a situation if that’s all the liability coverage they carry.
Liability coverage is essential for protecting your assets and financial well-being. In the unfortunate event of causing an accident, this coverage ensures that you are not personally responsible for the substantial costs that may arise. It provides peace of mind, knowing that you are not left financially vulnerable in such situations.
SHANE’S INSIGHT
Most people only think about covering their vehicle when they think about auto insurance coverage. A car can cost up to $100,000. But if you severely injure someone else and they spend time in the hospital, or are unable to work again, or even worse, they are permanently disabled, a judgement cold be levied against you as the responsible party which could reach into the hundreds of thousands (if not millions) of dollars. Liability coverage is, by far, the most important (and overlooked) line of coverage in your auto policy. Ask yourself this question, are you willing to bet your house, and all your future income that you’ll never get into a bad car accident? What if an extra $10 per month makes that a non-issue?
—Shane Roehl, Agency Owner
Collision coverage is designed to repair or replace your vehicle if it’s damaged in a collision, regardless of what it collides with (another vehicle, a telephone pole, a structure, etc.) or who is at fault. This type of coverage is particularly valuable for newer or more expensive vehicles. Here’s what it entails:
• Collision Repair: If your car is damaged in a collision, this coverage pays for the necessary repairs. This can include everything from minor dents and scratches to more extensive damage requiring panel replacement or structural repairs.
• Replacement or Cash Value: In the event that your vehicle is deemed a total loss after a collision, collision coverage provides compensation. This can be in the form of a replacement vehicle of similar value or a cash settlement based on the car’s actual cash value.
Collision coverage is essential for maintaining your vehicle’s value and ensuring you’re not left with a substantial financial burden after an accident. It provides the funds needed to get your car back on the road or helps you transition to a new vehicle if necessary.
While collision coverage focuses on accident-related damage, comprehensive coverage is a broader form of protection for your vehicle. It covers a wide range of non-collision incidents, including:
• Theft and Vandalism: If your car is stolen or damaged by vandals, comprehensive coverage will help cover the costs. This includes repairs or replacement, as well as potential expenses related to recovering a stolen vehicle.
• Natural Disasters: This coverage protects your vehicle from damage caused by natural events such as floods, hurricanes, hailstorms, or falling objects (e.g., trees or utility poles).
• Animal Collisions: Comprehensive coverage also includes protection against damage caused by collisions with animals, a common occurrence in many rural areas.
• Glass Damage: Comprehensive coverage typically includes repairs or replacement of damaged windshields and windows.
Comprehensive coverage is crucial for vehicle owners who want protection against unforeseen incidents beyond collisions. It provides peace of mind, knowing that your vehicle is protected from a wide range of potential risks.
SHANE’S INSIGHT
Just about everyone has heard the word “deductible.” Collision and Comprehensive coverage are where this comes into play. Simply put, it is the amount of money you’ll be responsible for paying if insurance pays to fix your car. Think of it this way: if you have a $500 deductible and it costs $7,000 to repair your vehicle after a crash, you’ll pay $500, and your insurance company will pay the rest: $6,500. It’s a good rule of thumb to set your Collision deductible as high as is affordable (in order to get the lowest rate possible), and keep your Comprehensive deductible as low as possible, as Comprehensive coverage is generally pretty inexpensive in comparison to other coverages and is most often used for glass replacement. If you had a $0 deductible, you could get a new windshield for FREE if it were damaged by a rock from the road.
—Shane Roehl, Agency Owner
This type of coverage is designed to protect you from financial loss if you’re involved in an accident with a driver who has no insurance or insufficient coverage. It typically includes:
• Bodily Injury: This covers the medical expenses and lost wages for you and your passengers if you’re injured by an uninsured or underinsured driver.
• Property Damage: It also covers the cost of repairing or replacing your vehicle if it’s damaged by an uninsured or underinsured motorist.
Uninsured/Underinsured Motorist Coverage is essential for ensuring you’re not left bearing the financial burden of an accident caused by someone else’s lack of insurance. It provides an extra layer of protection, giving you peace of mind on the road.
PIP coverage is designed to help pay for certain expenses if you’re injured in an auto accident, regardless of who is at fault. PIP covers:
• Medical and Hospital Expenses: Up to $10,000 for reasonable and necessary medical and hospital expenses per person injured in an auto accident, available for up to three years after the accident. You can add additional coverage to increase this benefit to $35,000.
• Wage Loss: Up to $200 per week (up to $10,000 total) for income replacement if you’re unable to work due to injuries from an accident. This benefit begins after a 14-day disability period and is available for one year. Additional coverage can increase the benefit to $35,000, paid at a maximum of $700 per week.
• Loss of Services: Up to $200 per week (up to $5,000 total) to compensate for work you can’t perform, such as household chores. Additional coverage can increase this benefit to $14,600.
• Funeral Expenses: Up to $2,000 for each person who dies as a result of an auto accident.
Situations When PIP Doesn’t Apply: There are specific circumstances where PIP may not provide coverage, so understanding your policy is crucial.
Medical payments coverage, or MedPay, is an optional type of car insurance for drivers in Washington, and you can choose to get it if you want to cover medical expenses for you, other drivers on your policy, and your passengers after a car accident regardless of fault. The difference between MedPay and PIP is that PIP covers both medical bills and non-medical expenses after an accident, like loss of income and childcare. By comparison, MedPay insurance only applies to direct medical costs and funeral expenses. Both types of insurance cover the policyholder and their passengers after any car accident, regardless of fault.
SHANE’S INSIGHT
Whether PIP or MedPay is a better option for you depends on your particular situation. For example, if you are retired or otherwise unemployed, you don’t have any wages for PIP’s wage replacement to cover, so the additional cost of PIP over MedPay may not make financial sense for you.
Most people who opt for MedPay set their coverage limit at the amount of their health insurance deductible. For example, if your health insurance has a $2000 deductible, setting your MedPay limit to $2000 means that if you are injured in an accident, your insurance carrier will cover your deductible and your health insurance will cover the rest of your expenses.
—Shane Roehl, Agency Owner
Auto insurance policies can also include various optional coverages, allowing you to customize your policy to your specific needs. These may include:
• Rental Reimbursement: Covers the cost of a rental car while your vehicle is being repaired after a covered incident.
• Towing and Labor: Provides coverage for towing and roadside assistance when your vehicle breaks down or becomes disabled.
• Custom Parts and Equipment Coverage: Protects any custom additions or modifications made to your vehicle.
These additional coverages can be valuable, depending on your specific circumstances and preferences. For example, if you frequently travel and rely on your vehicle, rental reimbursement coverage can be a wise investment.
RELATED TOPICS
To learn more about how your driving history, vehicle type, and other factors influence your premium, explore our article on “How Auto Insurance Premiums Are Determined.”
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