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Today, a motor vehicle accident occurs every second. Automotive accidents cause an injury every 14 seconds. And every 13 minutes a car accident results in a fatality. More than 31 million accidents occur annually at a cost of more than $100 billion. Theft and vandalism are other major perils— a vehicle is stolen every 20 seconds. If you own or operate a car, truck, motorcycle, or ATV, it is important that you have the right kind of coverage – because if you don’t, then you are at risk of both injuries and damages incurred, including the potential for a serious financial burden if anyone is disabled or sues.

When you buy an automotive insurance policy, you are buying a package of individual coverages. The coverage sections can be grouped in three categories: Liability, Medical, and Vehicle. Each individual coverage protects you against different types of losses. At Reed Insurance, we know our markets and can customize your automotive insurance coverage to best fit your needs. Below are some common coverages found in an auto policy.*


Bodily Injury (BI) Liability Coverage: Liability insurance pays for the policyholder’s legal responsibility to others for bodily injury or property damage. This type of insurance provides coverage (up to the policy limits) for bodily injury sustained by another person, that you the insured, are held legally responsible for. The injuries caused must pierce the statutory threshold in your state. Damages paid are subject to standard policy exclusions. BI is mandatory in most states.

Property Damage (PD) Liability Coverage: Provides coverage (up to the policy limits) for damage to another person’s vehicle or another’s property, for which you or the operator of your vehicle is held legally responsible. Damages paid are subject to standard policy exclusions. PD is mandatory in most states.

Personal Umbrella Coverage: An excess liability policy is typically referred to as an “Umbrella Policy”. An umbrella policy provides liability coverage over and above your standard auto insurance or homeowners’ insurance limits. It offers protection against large and potentially devastating liability claims or judgments. Personal umbrella policies are typically available in increments of $1 million all the way up to $5 million. Here’s a quick tip, though: Protecting your assets reaches beyond just your banking or investment accounts. It could include your home, valuables, earning capacity, etc. When considering an umbrella policy you should purchase a limit that covers your net worth. At a cost of less than a dollar per day (varies by state) for each million of coverage, a personal umbrella policy is a great risk management tool.


P.I.P. Coverage: Provides coverage for the insured, any resident dependents and other passengers if they do not have PIP, if they are injured in a vehicle or sustain injuries as a result of a vehicle. Coverage is considered “no-fault”. The basic coverage limit is 80% of the medical bills up to $10,000.00. Coverage may also be provided for lost wages and a death benefit. PIP is mandatory in most states.

Medical Payments Coverage: Medical Payments Coverage protects you (as the policyholder), your family members, and your passengers. Medical Payments Coverage will pay for uncovered medical bills and, if necessary, funeral costs as a result of being injured in or by a vehicle, regardless of fault. Medical payments coverage is typically available in several coverage levels, including $1,000.00, $5,000.00, $10,000.00.

Uninsured Motorist Coverage: An uninsured or underinsured motorist is one who has no insurance, does not have enough insurance to cover your injuries, or whose insurance company is unable to pay the claim. It is estimated that 10% to 15 % of all drivers do not carry insurance. Uninsured Motorists coverage provides for payment of benefits for damages caused by owners or operators of uninsured/underinsured motor vehicles because of bodily injury or death resulting from. Such benefits may include payments for certain medical expenses, lost wages, and pain and suffering, subject to limitations and conditions contained in the policy. UM coverage will provide the following benefits for you, resident family members, and passengers in your vehicle:

  • Pay medical bills.
  • Provide for lost wages.
  • Pain and suffering.

UM is “must have” coverage, because this coverage provides protection for you and your family members if they are medically hurt in an accident.


Collision Coverage: Provides coverage to repair your covered vehicle if it is damaged as a result of a collision. Coverage provided is the actual cash value of the vehicle at the date of the damage less the deductible chosen. This is a required coverage if you have a lien or loan on your vehicle.

Comprehensive Physical Damage Coverage: Pays for damage to your vehicle resulting from: theft, fire, vandalism, flooding, hail, falling trees, etc. Coverage provided is the actual cash value of the vehicle at the date of the damage less the deductible chosen. This is a required coverage if you have a lien or loan on your vehicle.

Rental Reimbursement: Pays up to a specified amount daily amount for a rental vehicle while your vehicle is being repaired for damages covered under your policy.

Roadside Assistance: Covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. It covers the delivery of gas, oil or a battery, but not the cost of these items.