Continuing with our series of insight to your auto insurance policy... Let's dive into some Medical Benefits & Work Loss Benefits.
Here's the scenario again...
It's a beautiful Friday afternoon. You are on your way home from work & it's rush hour on Route 22. You are driving a 2017 Chevrolet Tahoe. There are cars everywhere & you are following a 2021 Cadillac CT4. In your rearview mirror, you are watching a Ford Mustang weave in & out of traffic - we've all seen that before, right? Just as you see them cut off a minivan and you're shaking your head, mumbling something to yourself, traffic ahead of you comes to a halt & you rear-end that Cadillac.
As a result of the impact, your airbags deploy giving you some head injuries. You experience some nasty brush burns along with a bad headache prompting you to get checked out at the hospital. The doctor takes some tests confirming the head trauma, diagnoses you with a concussion and recommends an overnight stay for monitoring. He also urges you take some time off of work so you can rest due to the impact of your head.
Your Insurance Policy
| Bodily Injury Liability | $50,000 per person/$100,000 per accident |
| Property Damage Liability | $50,000 per accident |
| Uninsured/ Underinsured Motorist | $15,000 per person/$30,000 per accident - Nonstacked |
| Medical Benefits | $5,000 per accident |
| Work Loss Benefits | $1,000 per month up to $5,000 |
| Tort Option | Limited |
| Comprehensive & Collision | $100 comp deductible/$500 collision deductible |
| Towing & Rental Expense | $75 towing/$30 a day up to $900 rental coverage |
Medical & Work Loss Benefits is many times listed as First Party Benefits which can also include other coverage options - such as Funeral Benefits, Accidental Death Benefits, as well as Extraordinary Medical Benefits. Medical Benefits is coverage for bodily injury sustained by yourself and/or members of your household that are in your vehicle during an accident or incident; this provides coverage for slamming fingers in the car door too! Medical coverage follows YOU as a person. If a friend is in your vehicle and carrying their own insurance, their own auto policy medical coverage would pay for their injuries. Work Loss Benefits will provide coverage to you for being out of work due to an accident.
On your policy in this example, you have Medical Benefits of $5,000. When you start to tally the tests & charges - do you feel confident you have enough coverage? Increasing this coverage is surprisingly inexpensive & can truly help when little things add up or when injuries are far more extensive than this example.
Now, the good doctor recommended some rest. Maybe you have some extra time off saved up but maybe you need to take a short unpaid leave. You either take time off without pay, or as in this situation, you can fall back on your auto policy & get some compensation. The coverage you have here is $1,000 per month. Once the math is done, you would be awarded with a $250 payout and can see the need to increase this coverage. Again, higher levels of coverage are inexpensive & would help a little more with your loss of wages.
Adequate coverage is relevant; changing from person to person. We recommend certain coverage levels to protect assests and/or the possibilty of severe occurrences, however you may opt to carry more or less coverage depending on your financial footing. Understanding the reality of your policy is key to determining your own specific coverage needs. Protecting yourself against the unthinkable is one of the reasons you carry insurance at all - so truly thinking about different possibilities as well as their costs is how you will pick the right ones for you!
Disclaimer : This article explains general knowledge for the purpose of education & information. Snyder Insurance Agency is not providing nor guaranteeing any insurance coverage within the above mentioned. Any & all claims, or coverage discrepancies and decisions will be an obligation of the insurance company at the time of loss.
