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  Brief explanations of auto insurance coverages
         Liability coverage pays in the event you are at-fault (liable) in an accident and individuals who are not your family members are injured. Minnesota allows minimum limits of $25,000 per person and $50,000 per occurrence. Although these limits do meet MN minimums, they are not realistic. For the small additional premium charged, insured's should consider 50/100 ($50,000 per person/$100,000 per occurrence) or 100/300 limits.
   Property Damage : 
         Property damage coverage is designed to pay for the property damage that you cause to others in the event you are at fault (liable) in an accident. This coverage is often included with the liability limits and is written on declaration pages as the 3rd number with liability limits: 50/100/50 ($50.000 per person liability limit / $100,000 per occurrence liability limit / $50,000 property damage). Because many vehicles cost more than $25,000 or because an insured could easily be at-fault in an accident that involves more than one claimant vehicle, the minimum state requirement of $25,000 property damage should be increased.
   PIP; MN no-fault: 
         PIP stands for Personal Injury Protection but is often referred to as no-fault insurance. PIP covers medical expenses to the driver or individuals riding in your vehicle in the event of injury while riding in your car. The minimum limits required by law are referred to as PIP A coverage's and cover up to $20,000 per individual and up to $40,000 per occurrence. Although additional limits are also available, if an individual has good health insurance for the family, in many instances the minimums are sufficient. PIP limits can also be stacked (added together) for each vehicle in the family, to increase total coverage.
         Comprehensive coverage's are often referred to as other-than-collision property damage coverage's to an insured's vehicle. Comprehensive covers items like fire, theft, wind damage, water damage, and glass breakage. In Minnesota, insured's can choose a deductible on fire, theft, wind damage coverage's while at the same time choosing to carry full glass coverage ($0 deductible). This is a popular option since glass breakage is the most common comprehensive claim.


         Collision coverage covers damage to an insured's owned vehicle in the event it is damaged in an accident. Common deductibles (paid by the insured) are $100, $250, or $500. In the event of a not-at-fault accident, an insured has the option of paying the deductible and having the damage repaired by his or her own insurance company. The insurance company will then subrogate (collect the amount of damage incurred) from the insurance company of the party who was at-fault. When this takes place, the insurance company will reimburse the insured the amount of the deductible paid by the insured. This assumes the at-fault driver has auto insurance. In the event the at-fault driver does not have insurance, the collision coverage of the insured's vehicle will pay for the vehicle repair and, in most cases, the insured will not be able to recover the deductible amount that is paid.
   Emergency Road Service: 
         Emergency Road Service pays for a tow in the event a car is disabled by events such as going into a ditch or a flat tire. In many instances, there are maximum limits that a company will pay. In addition, this coverage is not meant to be a substitute for normal preventative maintenance. It will also pay for some on-site emergency repairs that a tow truck operator can complete. This is a valuable coverage to carry during because of the Minnesota winters.
   Rental Reimbursement : 
         If you are involved in an accident, in many instances you will still need to drive a vehicle even if your car is disabled. If an insured carries rental reimbursement coverage, it will pay a certain amount per day and a certain limit per occurrence to defray the cost of renting a vehicle. If the insured in not-at-fault in the accident and the at-fault driver is insured, the insured's insurance company will recover the rental reimbursement payments made from the at-fault driver's insurance company. If you depend on your car to get to work everyday, you should consider adding this coverage to your car insurance policy.
   Death and Disability: 
         Death and disability coverage's are available in the event of an auto accident and can be added to an auto policy. Although the added expense is small, normally insured's are well advised to take care of these coverage's by buying a disability insurance or life insurance policy.
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