Basic Coverage

1. Bodily injury to others

Who is covered: provides protection in the event you injure or kill someone with your car
What is covered: Pays for medical expenses, pain and suffering, your legal bills, and claims against you and your family and others driving with your permission.
Bodily injury liability pays for claims associated with injury to people; it does not cover damage to your vehicle. For this reason it is important to consider the value of your assets, and not your vehicle’s age or value, when choosing a coverage limit.

You could be sued for much more than the basic limit for bodily injury to others. If you select limits that are too low you could be putting yourself at risk financially. Your home and retirement may be at risk every time you get behind the wheel of your car.

Consider your assets when choosing bodily injury liability limits. Coverage of $100,000 per person/$300,000 per incident is typically a good place to start.

2. Damage to someone else's property

Who is covered: protects you, anyone you allow to use the car, or a household member causing an accident.
What is covered: pays for damage to another person’s property and any costs associated with the loss of use of that property. Property damage coverage also provides you with legal defense if another party files a lawsuit against you.

The costs of a significant accident may include repairs to multiple vehicles, a house, or other property, as well as expensive legal fees. Insufficient coverage leaves you financially exposed and you could be forced to liquidate property, savings or other assets to pay for damages.

It is always a good idea to purchase more than the minimum limit. Saving two or three dollars a year to reduce coverage by $100,000 can make a car accident a devastating financial event. We recommend a limit of $200,000 to help minimize your exposure.

3. Bodily injury caused by an uninsured auto

Who is covered: protects you, anyone you let drive the car, household members and passengers against losses by an uninsured or “hit and run” driver.
What is covered: Pays for bodily and personal injuries, damages or death caused by an at-fault uninsured or hit-and-run driver. Damage to property or your car is not covered by this coverage.

This coverage insures you against a driver who does not have insurance and may not be able to pay for your injuries in the event of an accident. Given the large number of uninsured motorists, even in states with no-fault insurance, this is very important (and inexpensive) coverage to have.

Consider the cost of a major injury and how it could affect your lifestyle. Coverage of $100,000 per person/$300,000 per incident is typically a good place to start.

4. Bodily injury caused by an underinsured auto (UIM)

Who is covered: protects you, anyone you let drive the car, household members and passengers against losses by an underinsured driver.
What is covered: Pays the difference (or gap) between an underinsured driver’s Bodily Injury coverage and the UIM limits you select. Damage to property or your car is not covered by this coverage.

Many people buy only the minimum required amounts of Bodily Injury to Others, which may only be $20k per person. An Ellis Insurance professional can help you select the appropriate UIM limits necessary to protect yourself from high personal injury expenses.

The medical costs associated with a serious accident can quickly exceed $20k or $25k (the minimum bodily injury coverage in CT, MA, NH, NY, RI, and VT). Without this coverage, you’ll be responsible for costs that exceed the other party’s bodily injury limits.

5. Collision (and limited collision)

What is covered: Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or object. If your car is financed or leased, the finance company may require that you carry this coverage.
What is covered by limited collision: a variation on Collision coverage, Limited Collision pays for collision damage to your car as long as you are not more than 50% at fault and the owner of the other car is identified. If you are more than 50% at fault, Limited Collision will not cover damages to your vehicle.

If you are in an accident and another identifiable driver is at fault, a “waiver of deductible” gives you the convenience of working with your own insurance company. They will pay for the repair to your vehicle, you don’t have to pay your deductible, and your premium will not go up.

To keep your premium low, select as large a collision deductible as you feel comfortable paying out of pocket. Contact us for help choosing an appropriate deductible limit and determining when the cost of carrying collision coverage exceeds the benefit.

6. Comprehensive

What is covered: Comprehensive physical damage coverage pays for losses to your vehicle resulting from incidents other than collision, such as fire, theft, vandalism, and hitting – or being hit by – an animal.
Glass breakage
Comprehensive coverage may protect you when you are using a rental car or have permission to borrow someone else’s vehicle. See Rental Car Insurance for more information.
Lenders frequently require this coverage if your car is financed.

COVERAGE ALERT! Many companies are applying a deductible to glass coverage, resulting in a hidden cost to you when a windshield is chipped or broken. Sand and salt from winter driving can make chipped windshields a regular event in the Northeast, and so having a glass deductible could cost you hundreds.

To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket in the event of a claim.

7. Personal injury protection (PIP)

Who is covered: provides protection for you or anyone you let drive your car, anyone living in your household, passengers and pedestrians regardless of who causes the accident. Policyholders and their family members are also covered while riding in someone else’s car or if injured as a pedestrian struck by another vehicle.
What is covered: Pays for medical expenses, hospital and funeral expenses, replacement services, and a percentage of lost wages.
The drivers and passengers of motorcycles may not be covered, but they may purchase PIP to protect others who may be injured by the motorcycle.

Health insurance may not cover all of your medical expenses such as dental and cosmetic services, co-payments and deductibles. Your exposure increases if you frequently carpool or drive with passengers.

Many insurance companies apply a PIP deductible, reducing the insurance company’s costs but saving the consumer very little money. This is a dangerous practice that effectively removes a valuable coverage.

8. Medical payments

Who is covered: protects you, your household members, and passengers no matter who caused the accident. Coverage may also protect you or your family members if they are injured in someone else’s car, hit by a car while on foot or bicycling.
What is covered: increases the amount of compensation for medical expenses from the basic amounts covered under Personal Injury Protection.

If you have an accident and your passengers do not have adequate health insurance, you may find yourself responsible for helping with their medical bills.

If you drive with passengers whose health insurance status is unknown to you, you should have medical payments coverage on your policy. It is an inexpensive way to protect passengers in your vehicle and to supplement your own health insurance in the event of an accident.