Episode 120: This is a good episode for anyone who is getting ready to renew their automobile insurance. Calloway County automobile accident attorney Jeff Roberts breaks it down to help you understand the types of automobile insurance coverages. There are different types of coverages. This episode will help you to decide if you have the right coverage and possibly the proper amount of auto insurance coverage.
I have “Full Coverage”
This is often confused because it actually means you have various types of coverages, but it doesn’t mean you have enough to protect you if you’re in a car wreck. Low limits might be cheaper, but you could end up in a financial problem if you don’t have the proper policy limits. There’s a balance you should consider.
Here are the different types of automobile insurance coverages Jeff will discuss today:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection Coverage (PIP, No-Fault, BRB)
- Underinsured Motorist Coverage
- Uninsured Motorist Coverage
- Collision
- Comprehensive
- Rental Car Coverage
- Roadside Assistance Coverage
- Gap Insurance
Most car insurance policies exclude motorcycles. If you’d like more information on the importance of understanding a key difference between your auto insurance policy and your motorcycle insurance policy, click here to listen to that episode.
Bodily Injury Coverage
This liability coverage applies when you caused the accident or are partially negligent for the accident. Kentucky is a pure comparative fault state, so this can affect the amount of damages you can recover. Bodily injury coverage pays the other people’s medical expenses, but not yours (assuming you were the driver). It will also apply to the passengers in your vehicle, if you’re at fault.
Your policy may have split limits. Look for something such as 50/100 in the bodily injury section of the declarations page. This would mean you have $50,000 for any single individual, but a cap of $100,000 total for that collision. Again, this coverage does not cover your medical expenses. The lowest amount of coverage allowed in Kentucky is 25/50.
Some policies have a single limit, such as $250,000. That could apply to one person or everyone injured (excluding you, as the driver).
If you let someone borrow your car, and they got into an accident, your bodily injury liability coverage would apply to the person who borrowed the car.
It’s important to understand that while these amounts of coverage sound significant, a single trip to the ER and some diagnostic tests or a surgery will quickly exceed what you thought was enough liability protection. The state minimum of $25,000 in bodily injury coverage is just that, a minimum. Jeff recommends an average person should consider 100/300. If you are a professional or a high-income earner, you should consider $250k or $300k and an umbrella policy.
For information on the rights of passengers in a vehicle that’s involved in a wreck, listen to Episode 28.
Property Damage Coverage
This covers the damage to the other vehicles, assuming you are the at-fault driver. The minimum coverage in Kentucky is $25,000, but you can purchase much higher limits of coverage. A lot of vehicles on the road are much more expensive than $25,000. The victim could attempt to sue you, personally, to recover amounts beyond what your insurance pays.
Jeff clarifies that while full coverage refers to the different types of coverages you have, the policy limits refer to how much coverage you have. This is another reason it’s very important that you carefully review your coverages and limits before you renew them.
Personal Injury Protection (PIP, No-Fault, BRB)
This is automatic coverage in Kentucky. It’s an important coverage to protect you, as the driver, and your passengers. These benefits will be paid, regardless of who is at-fault for the accident. This is why it’s commonly referred to as no-fault coverage.
Your automobile insurance will pay the first $10,000 of medical expenses, some lost wages, and potentially a few other types of damages. You can purchase added reparations benefits, which will increase that $10,000 limit for you and each of your passengers.
It’s important to note that everyone in your vehicle receives this coverage, individually. They don’t have to divide $10,000 among themselves.
Having PIP benefits enables you to be able to seek medical treatment, immediately, rather than waiting for a settlement. Some people mistakenly avoid going to the doctor, because they can’t afford a deductible. PIP can be an initial safety net.
Uninsured Motorist Coverage (UM)
This coverage protects you if you’re hit by an uninsured driver. Your own policy will pay your bodily injury damages (e.g. your medical bills), up to the policy limits. This enables you to get benefits, even though the other driver wasn’t covered. Not all states require drivers to have automobile insurance.
If you are involved in a hit-and-run collision, UM coverage can pay your damages. However, you must be able to prove there was contact between the two vehicles was made. If you swerved off the road and hit a tree, and the at-fault driver left the scene, but no contact was made, you may not be able to recover using your uninsured motorist coverage.
This mandatory coverage in Kentucky. The least amount is $25,000.
Underinsured Motorist Coverage (UIM)
This coverage can be used when your damages exceed the policy limits of the at-fault driver. This protects you and your passengers for bodily injuries. Again, this refers to medical expenses.
UIM coverage is optional. You can purchase more UIM coverage, as well as UM coverage. Jeff strongly recommends having this type of coverage.
Jeff uses the example of a car wreck, assuming you are not at fault. Suppose the medial bills are $50,000. The at-fault driver has $25,000 of bodily injury coverage. You also have $10,000 in PIP coverage. You would still be $15,000 in the hole (i.e. $50k – $25k – $10k = $15k). You could file a UIM claim for the additional $15,000 in medical bills.
It’s important to note that it won’t increase your insurance rates if you file a PIP claim, UM claim or UIM claim. These all assume you were not the at-fault driver, so why should you be penalized? In fact, UM/UIM are coverages that you’ve already paid for and so your insurance company has a contractual obligation to pay you.
Collision Insurance Coverage
This coverage comes into play if you are the at-fault driver. It will pay for your property damage to your vehicle, up to the policy limit.
Collision can be used if you are not at-fault, but there is a delay in determining which driver was at-fault. Sometimes your insurance company will go ahead and pay to get your car repaired, while that determination is being made. If your car is totaled, collision insurance will give you the fair market value of your vehicle, so you can get another car. Your insurance will try to go back and recover the benefits from the at-fault driver’s coverage. At least this way, you’ll be able to move forward.
As a general rule, collision coverage has a deductible you will have to pay. If your insurance recovers the benefits from the at-fault driver, you may be reimbursed for the deductible you paid.
Comprehensive Coverage
This is similar to collision coverage. It covers the damage to your vehicle. It applies when the damage is not from “fault.” For instance, this could be hail damage, storm damage, if you hit a deer, an electrical fire in your car. These are typically referred to as “acts of God.”
Does Full Coverage Provide Enough Coverage?
As previously discussed, while you may have various types of coverages, under “full coverage,” the issue is whether you have enough coverage. Assume you have $25,000 limits on collision and comprehensive coverage, for your $80,000 truck. One night you hit a deer and it does $40,000 in damage to your truck. Your collision coverage will only pay the policy limit of $25,000. That leaves you $15,000 in the hole.
This is one example of why you need to calculate whether you are carrying enough coverage, as it relates to the policy limits. No one plans to be in an accident. Your insurance should be there, when it happens.
Rental Car Coverage
You can purchase rental car coverage with your automobile insurance policy. If you’re in a wreck, regardless of fault, your policy will pay a certain amount to pay for a rental car, for a specific number of days. Some rental car coverages can also pay if your car is in the shop for a significant repair, such as a new transmission or other major issue.
Roadside Assistance Coverage
This coverage is to assist if you’re having mechanical issues while you’re traveling. Your insurance company will dispatch a tow truck or help to change a flat tire. It can also be useful if your having battery problems.
Gap Insurance Coverage
This is a very good type of insurance to have. It’s usually a separate policy from your automobile insurance. The car loan company may offer it. It covers the difference between the property damage and the value of your vehicle’s loan. For instance, if you have a newer car, the fair market value of the car may be less that what you owe on your car loan.
Assume you have a $30,000 car loan and you get hit by a negligent driver. Just before the collision, your car would have been worth a certain amount (i.e. the fair market value). Let’s also assume the fair market value is $26,000. If your car is totaled, the at-fault driver’s insurance company would only pay up to $26,000. That leaves a gap of $4,000 still left on the car loan. Your gap insurance would cover that $4,000.
You may want to monitor the payoff value of your loan, over time. As the loan balance decreases, you may be able to reduce or eliminate the gap insurance coverage and premium. An example is if you’ve paid down your car loan to a remain balance of $5,000. Assume you’re in a collision caused by another driver. If the fair market value of your car, just before the collision is $15,000, the at-fault driver’s insurance would pay up to $15,000. This would enable you to pay-off the remaining $5,000 and still have $10,000 to put toward another vehicle. In this case, still having gap insurance wouldn’t have been necessary.
Gap insurance can also be used if you’re buying a used car with a car loan.
Motorcycle Insurance
As we said in the beginning, motorcycle insurance is a different topic, but this is a good time to be thinking about your policy. Here’s a link to Jeff’s episode, 2025 Motorcycle Safety Tips. Remember, your UM/UIM insurance from your automobile policy doesn’t cover your motorcycle.
Jeff also stresses that PIP coverage isn’t automatic for a motorcyclist. You have to specifically purchase this coverage. Without it, you’ll be unable to recover the first $10,000 of damages (e.g. medical expenses and lost wages), even if you weren’t at fault.
Closing Thoughts
Given that many people are going through insurance renewals at this time of the year, please consider sharing this episode on your social media to help others. Remember, it’s a good idea to make sure you understand the types of automobile insurance coverages. More importantly, make sure you have the proper coverages and policy limits to protect you and your family.
If you have questions about your car wreck, Jeff is here to help you, anywhere in Kentucky.
We hope you found this episode insightful and helpful.
Thank you for listening!
What Do Other Clients Think About Jeff?
We always encourage listeners to read the Google Reviews Jeff Roberts has received from many of his clients. A 5-Star rating and the comments are earned recognition and demonstrate Jeff’s commitment to his clients. As a solo attorney, he has more Google Reviews than some firms with multiple attorneys. Jeff shares the credit with his staff at the Roberts Law Office. Successfully representing injured clients is a team effort. It’s why Jeff likes to say his firm offers small town service with big city results.
Jeff Roberts Represents Injured Clients Throughout Kentucky
With offices located in Calloway County (Murray) and now in Christian County (Hopkinsville), Jeff has a history of representing personal injury clients, workers’ compensation clients and social security disability clients across the state. He’s represented clients from Paducah, Bowling Green, Louisville, Covington, Whitesville and many other Kentucky locations. He’s not just a Western Kentucky injury attorney.
Is It Time to Speak with an Attorney about Your Car Wreck Claim?
The office phone number is (270) 753-0053 or toll free at 800-844-5108. For more information, visit www.JeffRobertsLaw.com. This podcast is meant to provide information and is not legal advice. Jeff’s principal office is located at 509 Main Street, Murray, Kentucky. Co-host Jim Ray is a non-attorney spokesperson. This is an advertisement.
