Is There a Car Insurance Plan with Unlimited Coverage?

Car Insurance Coverage

Every car owner is expected to purchase insurance to protect against emergencies. A standard auto policy will cover damages caused by vandalism, collisions, and bad weather conditions. However, there are many factors you must consider to ensure that you get the best auto policy for you.

It can be very costly to repair or replace a damaged vehicle, so taking out auto insurance can help protect you from expensive out-of-pocket costs. Your policy kicks in when the damage to your car is caused by a covered accident. You can make claims for medical bills, repair costs, replacement costs, legal defense costs, and more.

Like every type of insurance policy, car insurance has a limit. A limit is one of the most important concepts to understand before purchasing a policy. There is no such thing as unlimited coverage, else policyholders will misuse the opportunity, and providers will acquire significant losses. An insurance limit tells you the maximum amount of money your provider will payout for a covered claim. Your car insurance only covers you up to the extent of your policy.

A typical insurance policy is a collection of coverages, and each of them has a limit. So, you are likely to have more than one limit in an auto policy.

Popular coverages in auto insurance include liability coverage, collision coverage, and comprehensive coverage. These coverages will have three separate limits.

How Are Coverage Limits Determined for Different Insurance Plans?

Your provider determines your limit based on various factors. Multiple coverages call for different limits.

Determining Liability Insurance Coverage Limits

For liability coverage, the limit is determined by that law of your state. Each state mandates minimum limits that motorists must purchase, but it is up to you to increase your liability limits by purchasing more coverages.

Determining Collision and Comprehensive Coverage

Collision and comprehensive insurance cover the following four types of accidents:

  • If your vehicle collides with another and you are at fault
  • Crashing into an object like a tree or mailbox
  • If your vehicle topples over
  • If an uninsured or underinsured motorist hits your car

Here, the limits are determined by the cash value of your vehicle at the time of the accident. That is, you will only be paid the repair or replacement costs equal to the actual cash value of the car at the time of the collision. As a result, your payout may not be able to replace a vehicle that you’ve been using for many years because its worth would have depreciated.  

If the damages exceed the limit of your car insurance, you will have to cover for the remaining out-of-pocket. In this case, additional coverages, like umbrella insurance, can help minimize out-of-pocket costs. This policy kicks in after your existing policy has reached its limit. Although umbrella insurance also has its limit, it is significantly higher than other policies. Therefore, your closest option to unlimited car insurance coverage is through an umbrella policy.

Umbrella insurance is important because it gives you additional coverage for any claims or lawsuits against you or your vehicle. Contrary to common belief, it is inexpensive to purchase as an addition to your other policies, and it helps to protect you against out-of-pocket costs.

Our insurance experts at Miller Carlisle Insurance Services can help you purchase an affordable auto insurance policy to suit your particular needs. Contact us today to get a quote!

Helpful Advice For What To Do After A Car Accident

Car Accident Reporting Tips

Getting in an accident is never an easy experience, but if it is your first one it can be downright frightening. To ensure that you can handle this experience with efficiency and ease, we have gathered some helpful advice for what to do after a car accident:

  • If anyone is injured, you must call 911 immediately. If nobody is injured, simply call the local police or fire department so that you can report your accident.
  • While you may think it is best to keep the scene of the accident intact, it is safest and most courteous to pull over to exchange information.
  • In exchanging information, you will want to collect and give out the following: name, address, driver license number and state of issue, make of all involved vehicles, phone number to all involved, including witnesses, insurance company name, model and year of vehicle, description of all damage caused, and pictures of the accident and all involved vehicles.
  • Once you have safely returned home, you must call your insurance agent. Some insurance companies have stricter deadlines than others, but making this call will ease your worries significantly as you pass on many of the responsibilities to your agent.

Contact Miller Insurance Associates in Carlisle for all of your Pennsylvania car insurance needs. We will guide you through the process of filing a claim.