Understanding Common Personal Automobile Policy Terms

1.    Bodily Injury

Bodily injury is part of your personal automobile policy that protects other parties that are injured in an accident that is deemed your fault. The state of Oklahoma requires that the minimum amount be 25/50, meaning your insurance would pay up to $25,000 if one other person is injured, and up to $50,000 if there are more than one injured person in the other vehicle. This minimum amount of coverage is required by law, but that is not the maximum amount you can have. Your bodily injury coverage can go as high as 250/500, meaning up to $250,000 for one and up to $500,000 for more than one. The cost of bodily injury is usually very affordable.

2.    Property Damage

Property damage is another part of your personal automobile policy that is require by law in the state of Oklahoma. This coverage is to take care of costs you are responsible for in an accident to someone else’s property, such as other vehicles. The property damage matches the first half of your Bodily Injury limit, so if you have 25/50 bodily injury, your property damage amount would be up to $25,000. I always like to remind my insured’s that $25,000 in terms of damage, doesn’t go very far anymore. Many vehicles on the road today cost more than $25,000. Meaning if you cause an accident, and total an expensive vehicle, you would then be responsible for the remaining cost of replacing that vehicle if it is totaled. Property damage is also very affordable, so increasing it is always a good idea.

3.    Uninsured Motorist

Uninsured motorist is not something that is required by law in Oklahoma, but it is an excellent coverage to have. Uninsured motorist is a form of medical coverage. Many people think that this coverage protects their vehicle in the event that their vehicle is damage due to an uninsured or an under insured motorist, but that isn’t the case. The only coverage that covers your personal vehicle is comprehensive and collision, but we’ll get into that a little later. Uninsured motorist limits can go as low as 25/50, meaning up to $25,000 for medical expenses if only one person is injured, and up to $50,000 is more that one is injured, if the driver at fault has no insurance, or not enough to cover your medical expenses. The amount can be raised to as high as 250/500; the cost of this coverage is menial compared to what it offers. If you don’t have uninsured motorist, it would be a good idea to consider it.

4.    Medical

Medical is just that. It covers your or your passenger’s medical expenses up to a certain point. It is another coverage option that is not required by the state of Oklahoma, but it is a good coverage to have.

5.    Collision

Collision coverage is coverage for your vehicle. It will pay (minus your deductible) for repairs or replacement of your vehicle, if it collides with another vehicle, or an object. Most agents will require photos of the vehicle before adding collision, to make sure there is no existing damage.

6.    Comprehensive

Comprehensive is another type of coverage for only your vehicle. It will pay (minus your deductible) for repairs or replacement of your vehicle if it is damaged due to occurrences that are not related to a collision. Examples would be hitting a deer, hail damage and fire. Like with collision, most agents will require photos before adding the coverage to insure there is no existing damage.

-Jordan Newcomer

Licensed Property & Casualty Insurance Agent