From Rich & Cartmill Insurance

Auto insurance might not be the most exciting thing to think about—but it’s one of the most important. Whether you’re a new driver, a parent with teen drivers on your policy, or someone who hasn’t looked at your coverage in years, understanding what you’re paying for is essential. At Rich & Cartmill, we believe insurance should never be confusing. That’s why we’re breaking down the key parts of your policy—so you can drive with confidence.

Why You Need to Know What’s in Your Policy

When it comes to car insurance, it’s easy to let your coverage renew year after year without really digging into the details. But here’s the thing: not knowing what your policy covers (or doesn’t cover) can leave you financially vulnerable when accidents happen. Auto insurance isn’t one-size-fits-all, and understanding the basics empowers you to make better decisions and save money in the long run.

Liability Insurance: The Foundation of Coverage

Let’s start with the coverage that’s legally required in almost every state: liability insurance. If you cause an accident, liability insurance helps pay for the damage and injuries you’re responsible for.

There are two parts to liability:

• Bodily Injury Liability pays for things like hospital bills, physical therapy, or even legal fees if you injure someone.
• Property Damage Liability covers the cost to repair or replace the other person’s vehicle—or any property you damage (like a fence or light pole).

Most states have minimum coverage requirements, but those limits are often too low to fully protect you. At Rich & Cartmill, we typically recommend higher limits to better safeguard your financial future.

Collision Coverage: Protecting Your Car After a Wreck

Collision coverage is what helps pay to repair or replace your vehicle after an accident—regardless of who was at fault. Whether you back into a pole or get T-boned at an intersection, this part of your policy covers damage to your own car.

If you’re financing or leasing your car, your lender will likely require collision coverage. But even if you own your car outright, it’s still worth considering—especially if you can’t afford to pay for major repairs out of pocket.

Comprehensive Coverage: What About Everything Else?

Comprehensive coverage often confuses people by name alone. Spoiler alert: it doesn’t mean “covers everything.” What it actually covers is damage to your car that doesn’t involve a collision.

Think of it as protection against:

• Theft
• Vandalism
• Hail, fire, or flood
• Falling objects (like a tree branch)
• Hitting a deer or other animal

Basically, comprehensive is for the “what-ifs” life throws at your vehicle. It’s optional, but it pairs well with collision coverage to give you full protection.

Uninsured and Underinsured Motorist Coverage: When the Other Driver Doesn’t Have Enough

Not everyone follows the law. If you’re hit by someone who has no insurance—or not enough—uninsured/underinsured motorist coverage (often shortened to UM/UIM) kicks in to help.

This coverage helps pay for:

• Medical expenses
• Lost wages
• Pain and suffering

It’s especially important in states with a high percentage of uninsured drivers. It also protects you in hit-and-run accidents.

Personal Injury Protection (PIP) and Medical Payments (MedPay)

Some states require PIP, which covers your medical bills, lost income, and even child care if you’re injured in a car accident—regardless of who caused it. If PIP isn’t required in your state, Medical Payments coverage (MedPay) may be available. It’s more limited but can still be helpful.

Even if you have good health insurance, these coverages can bridge the gap, especially for out-of-pocket costs or deductibles.

Understanding Deductibles and Limits

These two terms can make or break your insurance experience.

• Your deductible is the amount you agree to pay out of pocket before your insurance covers the rest. Higher deductibles mean lower premiums—but more money upfront if something happens.
• Coverage limits are the maximum amount your policy will pay per claim or per accident. Choosing limits that reflect your assets and income is key to protecting your financial well-being.

If your car is totaled and your coverage maxes out at $10,000—but it costs $18,000 to replace—guess who’s covering the gap? You are. That’s why understanding your limits matters.

Optional Add-Ons Worth Considering

Want more protection? Many insurance carriers offer additional options you can include:

• Rental Car Reimbursement: Pays for a rental while your car is in the shop after a covered claim.
• Roadside Assistance: Helps with towing, flat tires, battery jumps, or if you’re locked out of your car.
• Gap Insurance: If your car is totaled, this covers the difference between what your car is worth and what you still owe on the loan.

These extras usually cost just a few bucks a month—and can be a lifesaver when you need them most.

How to Know If Your Coverage Is Right for You

Ask yourself:

• Could I afford to fix or replace my car out of pocket?
• What would happen if I injured someone in an accident?
• Do I have young drivers on my policy who increase risk?
• How would a claim affect my savings?

If any of these questions leave you unsure, it might be time to reassess your coverage.

Let Rich & Cartmill Help You Get It Right

You don’t have to figure it all out alone. At Rich & Cartmill, we walk you through your policy, help you understand what every line means, and tailor your coverage to your life and budget. Our agents take pride in making insurance simple, approachable, and honest.

Ready to get clarity on your auto insurance—or make sure you’re not overpaying for coverage you don’t need? Reach out to your local Rich & Cartmill agent today. We’ll help you understand your policy—and make sure it’s working for you.