Iowa Insurance Made Simple

Have you ever sat down and talked to an Insurance Agent, whether it be on your current policies or if you are looking for a quote, and felt like you needed to have the newest version of Insurance for Dummies on your lap?

I find myself throwing insurance terms around as if everyone knows exactly what I am talking about. Insurance is not hard to understand when explained to you correctly in common terms.

Liability: This is coverage that you need in the event you are found at fault for injury or damages to others. If you look at your Iowa auto policy you’ll see that it is broken down into just those two categories, bodily injury (usually limits such as 100,000/300,000: up to $100,000 per person with a maximum of $300,000 per accident. This could include medical bills, loss of income and even pain and suffering) and property damage ($100,000 of damage, usually an other vehicle but could also include a building/fence or personal property.). State minimums are 20/40/15, however, these limits are not recommended because you are responsible for the cost that exceeds your limits.

Medical Payments: This covers you and your immediate family in your vehicle or someone else’s.

Comprehensive Deductible: This is what is paid out of your pocket before the insurance company will pay a covered loss for damages to your insured property due to an other than collision claim (ex. Hail, Deer, or Theft)

Collision Deductible: This is what is paid out of your pocket before the insurance company will pay a covered loss for damages to your insured property due to a collision claim (ex. You run into anything, another car, a building, a light pole, even a curb!)

Uninsured/Underinsured: (This one always trips up our insureds) IT DOES NOT PAY FOR YOUR CAR! (That is what your collision coverage covers) This coverage protects you and your family if you or your car are struck by a driver who has very little to no insurance. This will pay your bodily injury bills.

Roadside Assistance: Also, commonly misunderstood by insureds, this is not included nor implied, you needs to let your agent know you want this coverage.

Rental Car Reimbursement: This coverage is also not included nor implied, you need to let your agent know you are interested. It will cover a rental car (up to the limit you select per day with a max paid out limit as well) while your vehicle is being repaired due to a covered loss.  Not related to this coverage at all, many people call in to ask if they rent a car if they have coverage or if they need to buy the insurance from the car rental facility. My answer is “You have coverage on your policy just as if you were driving your own vehicle to pay for liability and damages, however, you need to check with your agent to see if your insurance company covers any “loss of use” (while vehicle is being repaired, they can charge you daily rental fees while it is not rentable). If they do not then it is highly suggested to buy the rental car facility insurance as that could be a hefty fee depending on damages. “

I hope this helps all of you even just a little bit. However, if you are still confused or need to make changes now that you understand it a little better, call Doubleday Insurance today. 515-964-0637. Or visit our NEW website at www.doubledayinsurance.com.