Things That Could Be Missing From Your Auto Insurance Policy

When it comes to auto insurance, not all policies are created equally. Whether your insurance provider quoted you with inadequate coverage or you weren’t aware of the limits you should have when getting a quote, many drivers discover their policy won’t cover as much of a claim or damages as they’d hope after it’s too late.

At Berry Insurance, we know that car insurance can be a complex topic, and that it is tricky to know exactly what coverages you should have on your policy. That’s why we take pride in not only providing clients with the best coverage, but also educating them on exactly how they should be covered behind the wheel.

In this article we’ve compiled a list of the common areas that are missing from auto insurance policies, and why you should consider adding them to your own. 

Optional coverages

Depending on the state you live in, the minimum required coverages on your auto insurance policy may vary. Here in Massachusetts, for example, the coverages all drivers on required to hold on their policy are: 

• Bodily injury to others
• Personal injury protections
• Bodily injury by uninsured auto 
• Damage to someone else’s property 

While not mandatory to carry on your policy, these optional coverages offered by insurance providers can be just as important for every driver to consider:

Collision:

This coverage provides protections against damages to your vehicle as a result of a collision accident, regardless of fault. This coverage is subject to your deductible, which is typically at a minimum of $300. You can increase your deductible for additional savings.

Berry Insurance suggests collision coverage for all drivers auto policies, and is required if you are financing your vehicle. Some insurance carriers will offer limited collision coverage, but we would not typically recommend less protection when it comes to possible collision claims.

Comprehensive: 

Comprehensive provides coverage for damages to your vehicle caused by something other than a collision with another object. Examples include flooding, fallen objects, hail, pests, or collision with animals. This also includes glass coverage. 

This coverage is subject to your deductible, usually at a minimum of $300. However, a deductible would not typically be applied to glass repair. Your deductible for this coverage can be increased for additional savings. 

Wondering if comprehensive or collision coverage is right for you? For more information about when this coverage is recommended, take a look at this article in our Learning Center: Do I Need Comprehensive or Collision Auto Coverage?

Medical payments: 

Medical payments (aka Med Pay) provides you with reasonable medical expenses for anyone occupying your vehicle during the time of an accident. The minimum available coverage is $5,000 per person, but this coverage can be increased.

We’d recommend medical payments coverage to anyone who isn’t sure they would be able to cover the medical expenses after you or a family member is involved in a car accident. This includes everything from ambulance and EMT fees to hospital stays and surgery. 

Optional bodily injury to others (OBI):

This coverage provides medical expense and lost income to anyone that you injure when at fault in an auto accident anywhere in the U.S. The coverage contains two limits, being per person and per accident. The minimum available coverage is $20,000 per person and $40,000 per person, but coverage can be increased. 

Berry Insurance recommends this coverage with at least $100,000 per person and $300,000 per accident.

If you’re interested in learning more about whether or not optional coverage should be applied to your policy, check out our article on optional additions like rental reimbursement or towing coverage. 

Potential discounts

With insurance prices on the rise, we know that everyone is looking to save money where they can. In fact, the biggest thing missing from your current auto policy may be potential discounts you are eligible for but don’t have applied to your current policy.

Potential savings you could apply to your policy include discounts for: 

Joining an association/membership group: 

If you’ve recently joined organizations that partner with your insurance provider such as AAA, AARP, alumni associations, wholesale clubs, military organizations, honor societies, and more could make you eligible for savings. 

Check with your insurance company on the organizations they partner with and whether you could be eligible for savings applied to your policy. 

Students with good grades: 

Many insurance carriers offer savings for policyholders with children who earn good grades at school - usually with an average of a B or higher. If your child falls into that average, be sure to update your agent or provider to earn this discount. 

Telematics programs: 

Enrolling in telematics programs can help you save money by providing your driving data to insurance providers. With telematics, insurance companies use tracking technology through a mobile app or device attached to your vehicle to monitor driver data including speed, mileage, driving time, hard brakes, and more that can help to determine insurance premium. 

Check with your agent to see if your carrier offers this service, and read this article for more information: What is Telematics in Car Insurance?

Installing safety/anti-theft features: 

If you’ve recently updated your vehicle with newer safety features or anti-theft equipment like alarm systems, your insurance provider may offer discounts as you are decreasing the risk of insuring your vehicle. 

Taking a defensive driver course: 

Signing up for a defensive driver course can not only help you become a safer driver, it can also make you eligible for discounts that may be offered by your insurance provider. 

Many insurers will offer this discount to any driver who completes the course, while others only offer them to certain types of drivers - such as teenagers or seniors. 

Bundling policies: 

If you have your personal insurance policies with multiple carriers, you may be missing out on bundling discounts. 

Many insurance companies offer incentives for the more business they provide their clients. This means that if you bundle your auto alongside your homeowners/rental/condo insurance policies with the same carrier, you may be able to save approximately 5-25 percent on your auto policy, depending on which types of insurance you are bundling with. 

Looking for more ways to save money on your auto insurance policy? For discount offers on low mileage, drivers over 65, veterans, and online payment options - check out this article: 13 Ways to Save On Your Auto Insurance. 

Higher Limits

If your current auto insurance policy only has the minimum required coverage limits, you may find yourself without the proper amount of protection you need when filing a claim. 

Reviewing your current limits with a trusted insurance agent can help to determine what areas of your policy may need to be increased to ensure you’re covered for every situation. While this will increase your policy premium, we have found that the state minimums for auto insurance rarely provide enough coverage. 

Umbrella coverage

While not technically part of an auto insurance policy, umbrella insurance adds additional coverage onto your existing liability coverages on your auto, homeowners, renters, and condo insurance policies. 

Umbrella coverage helps supplement your pre-existing liability coverage to aid in the cost of damages or legal defenses that result from incidents involving property damage or injury where you are responsible. So, when your existing liability coverage won’t cover the entire cost of the damages, umbrella steps in to save the day. 

Most of our clients at Berry Insurance opt for a $1 million umbrella policy, because it is affordable at only $160 - $300 a year, and provides enough coverage for the catastrophic or worst-case scenario claims. 

Do note that in order to be eligible for an umbrella policy you need both an auto policy and a home/renters/condo policy, and your existing limits on those policies need to meet certain policy limits. For more information on whether umbrella insurance is right for you, check out this guide: What is Umbrella Insurance and How Do I Know if I Need it?

Designing your perfect auto policy 

Your auto insurance policy should be curated to the specific needs of you and your family, ensuring each driver is properly protected while behind the wheel. Now that you know more about the areas that may be lacking in your current policy, you can better plan on what you need to add in the future. 

If you decide that you’re not satisfied with your current policy and need a change, you may be wondering where to start. For more information on how to get a policy, check out our step-by-step guide on how to buy car insurance.