By David Gullborg

It happens every year: the renewal policy for your automobile insurance arrives in the mail. Like most people, you open the envelope and the first thing you do is look at the invoice to see if the premium increased. The premium is a very important factor in your insurance but there is a lot more to the policy than premium.

An automobile insurance policy provides a multitude of benefits to which we rarely give a great deal of thought.

Let’s look at a breakdown of the coverages that may be included in your auto policy:

Full Tort Option: A form of insurance coverage unique to Pennsylvania. Providing unrestricted rights of recovery for pain and suffering.

Limited Tort Option: A form of insurance unique to Pennsylvania. Providing restricted rights of recovery for pain and suffering.

Bodily Injury Liability: Provides coverage for injuries sustained by a third party that you are held legally liable for.

Property Damage: Provides coverage for damage you cause to a third party’s property (i.e. vehicle, house, lawn, guide rail, etc.) that you are held legally liable for.
First Party Medical: Provides coverage for medical expenses incurred by you, resident relatives and other people in your auto, as a result of an accident involving an automobile. (Unique to Pennsylvania).

First Party Income Loss: Provides coverage for loss of earned income for you and resident relatives as a result of an auto accident. (Optional coverage, unique to Pennsylvania).
First Party Funeral: Provides coverage for funeral expenses incurred by you and resident relatives due to an auto accident. (Optional coverage, unique to Pennsylvania).

First Party Accidental Death: Provides a death benefit to you and resident relatives for death as a result of an auto accident. (Optional coverage, unique to Pennsylvania).

Extraordinary Medical Benefit: Provides coverage for medical expenses exceeding $100,000. (Optional coverage).

Uninsured/Underinsured Motorists: Provides coverage for bodily injury sustained by you in an auto accident caused by another person who either has no insurance or does not have enough Bodily Injury Liability coverage to cover your damages. (Optional coverage).

Comprehensive: Provides coverage for damage to your vehicle not caused by collision or upset, (i.e. fire, theft, vandalism, glass breakage, collision with an animal, flood). (Optional coverage).

Collision: Provides coverage for damage to your vehicle caused by a collision or upset, including collision with the roadbed. (Optional coverage).

Towing: Provides coverage for your vehicle being towed. May be subject to a specific dollar amount, (i.e. $50-$75). (Optional coverage).

Rental Reimbursement: Provides coverage to subsidize the cost of a rental vehicle to replace your vehicle while it is being repaired due to a Comprehensive or Collision Claim. (Optional coverage).

Lease/Loan: Provides payment for the difference in the value of your vehicle and the balance owed on your lease or loan in the event your vehicle is a total loss. This coverage is subject to limitations regarding the definition of balance owed. (Optional coverage).

This is a brief overview of the coverages you may find in your automobile insurance policy. Many of these coverages are mandatory by state law, others are optional but may be required if your vehicle is financed or leased. For further clarification of these coverages and advice on the amount of coverage limits you should purchase to adequately protect your assets, contact your professional insurance agent.

David. D. Gullborg, CIC, LUTCF, is the vice-president of Gullborg Insurance, Inc., in McMurray, offering 20 years of experience and knowledge in the insurance business. He can be reached at 1-877-941-8200 or e-mailed at dgullborg@gullborgins.com. The company’s Web site is www.gullborgins.com.