Smalls Insurance Agency, Inc.

1. Bodily Injury Protection - $15,000/$30,000

If you are responsible for the injury or death of another person and have minimum coverage, your insurance company will pay:

Up to $15,000 to one person involved in a single accident

Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person

2. Property Damage - $10,000

If you are responsible for damages to another person's property and have minimum coverage, your insurance company will pay:

Up to $10,000 to a person involved in a single accident

3. Personal Injury Protection (PIP) - $15,000/$30,000

Whether you are responsible for the accident or not, your insurance company will pay for the medical expenses and loss of wages for you and your passengers. If you have minimum coverage, your company will pay:

Up to $15,000 to any one person involved in a single accident

Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person

Also included in PIP coverage is up to $5,000 for funeral expenses.

The minimum amounts in these three categories are relatively low and you may wish to purchase additional coverage to protect yourself from possible claims in higher amounts. Keep in mind, however, that as you raise your coverage, your premiums will increase.

Don't Drive Uninsured: Uninsured drivers are breaking the law and cost other drivers money in higher insurance premiums. Registered vehicles are randomly checked for coverage and insurance companies will notify the state if coverage is dropped. Driving without insurance can cost you a fine, your license plate or your driver's license.

These types of coverage are not required by law in Delaware. However, if you take out an auto loan, your bank or lender will likely require collision and comprehensive coverage.

Collision coverage pays for physical damage to your car as the result of your vehicle colliding with an object, such as a tree or another car. This coverage is based on the value of your vehicle and can be costly.

Important information about collision coverage: Auto insurance policies only require the company to cover your financial losses, not to replace your vehicle. In the case of an accident involving an older car, the cost of repairing it can quickly exceed the value of the car and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the car may be less than premiums paid for the coverage. Therefore, if your vehicle is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the vehicle or may not satisfy the balance of your auto loan.

Comprehensive coverage pays for damage to your car from almost all other causes besides an accident, including fire, severe weather, vandalism, flood and theft. Comprehensive coverage also will cover broken glass, such as windshield damage.

Uninsured motorist coverage pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other coverage.

Uninsured motorist coverage will have policy limits. It does not protect the other driver. Your insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the accident in order to make a claim under an uninsured motorist policy.

Under-insured motorist coverage protects you if you are involved in an accident that is not your fault and the other driver does not have enough insurance to cover your loss. This coverage does not pay for damage to your vehicle.

Towing and labor coverage pays the cost of towing your car to the repair shop subject to the limit of your policy. Premiums for this coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.

Rental reimbursement coverage usually pays the cost to rent a car after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.

But insurance companies often suggest different policies for motorcycles. Look for the following:

When inquiring about a policy, an agent may give you a quote based on the minimum personal injury protection (PIP) limit of $15,000, but with a $15,000 deductible. That means, unless you deliberately choose otherwise and pay an additional premium, you will essentially have no PIP coverage, as the coverage limit of $15,000 will be reduced to zero by the deductible. Consider other options which come at a higher premium but with lower deductibles.

A motorcycle insurance policy may provide only limited benefits. For example, a lower premium policy may provide medical and lost wage benefits for only those accidents which occur (a) on a highway and (b) when there is actual physical contact with another vehicle. To receive coverage for a greater range of potential accidents, you will likely have to pay higher premiums.  Ask your agent about the difference between “restricted” PIP coverage and "unrestricted" PIP coverage.

Things that affect your auto insurance rates, some controllable and some not:

Gender and age: Men have more accidents on the road than women; certain age groups tend to have more claims.

Type of vehicle: Luxury and sports cars average a higher number of claims; also the more expensive a vehicle, the more expensive it is to insure.

Driving record: Drivers with previous violations or accidents are considered to be a higher risk.

Discounts: Auto insurers may offer premium discounts for numerous reasons, including for people who have taken an approved defensive driving course. Ask your agent what discounts are available to you.

Amount of coverage: If you choose to carry coverage above the mandatory minimum, your premiums will be higher.

Deductible amount: Choosing a higher deductible will reduce the premiums of your car insurance. However, your out-of-pocket expense will be higher if you have an accident.

Usage of vehicle: The more you drive, the higher the risk and so the higher the premium.

Where you live: Urban areas have more claims than rural areas and some areas have more frequent accidents than others.

Marital status: Claims history shows that married persons tend to have fewer claims.

Maintain a good driving record.

Take the highest deductible you can afford on collision and comprehensive coverage. A higher deductible will mean lower premiums. But remember that you will be responsible for the deductible amount if you have an accident.

Take defensive driving. If all drivers of a vehicle complete an approved course, you can receive 10 percent off a portion of your auto insurance for three years. If you take a refresher course just before the end of the three-year period, you can receive a 15 percent discount.

Before buying a vehicle, call an agent for a quote on the cost of insuring it. Sports cars, luxury cars and more expensive cars cost more to insure. (A quote is only an estimate of the premium.)

Review your policy periodically and update coverage accordingly. As a car gets older and loses value, you may not need as much insurance for it. With some cars, it may make sense to only carry minimum coverage.             

Ask whether there are discounts offered for:

Multiple cars on a policy
Good student drivers
Mature drivers
Airbags, anti-theft devices and other equipment
Accident-free record
Other insurance with same company