Along with being a legal requirement in nearly every state, car insurance policies can help cover the costs resulting from an accident, including damage to your vehicle or injuries to others. Many of these same coverage concepts apply to your other vehicles, including motorcycles, recreational vehicles, golf carts, ATV’s, boats and yachts.

Understanding your coverage

Typical personal automobile insurance coverage includes several types of protection, such as medical payments, uninsured and underinsured motorist coverage, towing and labor and rental reimbursement. You may also insure two types of physical damage coverage, collision and comprehensive. Both are usually required if you have a lien on the vehicle. An excess liability policy extends over other policies, including auto, home, watercraft and motorcycle coverage. This type of umbrella coverage is often considered a cost-effective way to transfer risk if a significant loss occurs.

Knowing what each of these coverages does and where your limits and deductibles are set is important so you know what protection you actually have in the event of an accident or loss. Without a clear understanding of your policy, you may experience gaps in coverage or unexpected out‑of‑pocket costs at the worst possible time.

A knowledgeable insurance agent or broker can help you review your coverage, explain your options in plain language and recommend adjustments based on your specific situation. They can also help you identify potential discounts, ensure your coverage keeps pace with life changes and advocate on your behalf if you ever need to file a claim. Having a trusted professional guide you through these decisions can provide confidence that you’re properly protected, without paying for coverage you don’t need.

Insurance policies can include terms that may not be familiar if you don’t deal with them often. Understanding them can help you better navigate your coverage, ask the right questions and make informed decisions when selecting or reviewing your policy:

• Premium is the amount you’re required to pay your insurer for a specific amount of time for your insurance policy. This payment might be due all at once or it can be divided and paid in increments, typically monthly.
• Deductible is the amount you must pay before your insurance coverage begins. This payment is made in addition to the regular price of your premium.
• Collision pays to repair or replace your car, up to limits set by your policy, if it’s damaged in an accident.
• Comprehensive coverage pays for damage to your vehicle that is not the result of an accident, such as striking a deer, damage from a falling tree limb, vandalism or theft.
• Property damage liability covers damage you do to someone else’s car or other property.
• Bodily injury liability pays for claims against you if you injure someone with your car, as well as legal fees if you’re sued.
• Uninsured/underinsured motorist pays medical and other costs for you and passengers if a driver without insurance or an underinsured driver hits you.
• Medical or personal injury protection pays medical bills for you and anyone in your car, or for you if you’re in someone else’s vehicle.

How often should I re-evaluate my coverage?

You will want to re-evaluate your insurance coverage on a regular basis to be sure the coverage meets your needs as they change over time. When reviewing your coverage, take a close look at your limits, deductibles, discounts and any optional coverages to make sure they still align with your lifestyle, budget and risk level.

There are specific times where it may be especially important to take another look at your policy, including:

• Purchasing a new vehicle, whether it’s new or used.
• Adding or removing a driver.
• Major life events.
• Policy renewal time.
• Financial changes.

Getting insurance coverage for other vehicles

While car insurance is the most common type of vehicle insurance, you can also insure other vehicles, including boats, yachts and motorcycles. Just as with vehicle insurance, having the right watercraft insurance or motorcycle insurance is essential to protect your vessel and your personal liability from unexpected financial risk or loss. Boat and yacht insurance can help cover the cost of damages and losses resulting from an accident, damage to your watercraft or injuries to others. It’s important here also to re-evaluate your insurance coverage on a regular basis to be sure the coverage meets your changing needs.