November 7, 2018

How much coverage do you really need?

Everyone’s situation is different, so we can’t tell you how much coverage is enough. 

But, Root Insurance app can help you figure out your needs and understand coverage types, so you can decide which ones are right for you.

1. I’ll be driving

You’ll need Liability coverage, as it’s required by law. Liability consists of two kinds of coverage. 

Bodily Injury handles medical costs when you cause an accident and other people get hurt.

Property Damage covers the costs for any damage to other people’s property—their car, fence, etc.—when you cause an accident.

You should know:

• You’re legally required to have Liability if you’re driving, unless you live in New Hampshire. 

• It only covers other people and their property. It does not cover you, your family members, or your car.

• You’ll choose a maximum dollar limit for these coverages—each state has a required minimum limit. The limit you choose is the maximum amount Root will pay for repairs or medical costs under these coverages.

2. I can’t afford to repair or replace my car on my own

You should consider adding Collision and Comprehensive coverages.

Collision covers damage to your car, no matter who causes the accident.

Comprehensive covers damage to your car caused by anything other than an accident. This would cover things like hail, fire and flood damages; vandalism, theft, or even a run-in with a deer.

You should know:

• If you’re buying or leasing your car, your finance company might require you to get these coverages. They may also require you to add them to the policy; check with them.

• You’ll choose a deductible for each. Your deductible is the amount you pay towards the repair or replacement of your car first, before Root then pays for the rest.

• When you have Liability, Collision, and Comprehensive coverages, it’s sometimes referred to in the industry as having ”full coverage.”

3. I would need help paying for my medical expenses in an accident

Medical bills can add up quickly, especially if you also have to pay medical bills for your passengers. There are two types of vehicle insurance that cover this, but what you’ll be offered depends on your state.

Personal Injury Protection (PIP) covers medical expenses and lost wages for you and your passengers, no matter who causes the accident. This might be required if you live in a no-fault state. The Root app will let you know if it’s required where you live.

Medical Payments (MedPay) covers medical expenses for you and your passengers, no matter who causes the accident. Typically, this is offered if you don’t live in a no-fault state.

You should know:

• PIP covers some things MedPay doesn’t, like lost wages.

• If you don’t have health insurance and are in a car accident, this coverage could save you a lot of money.

• In some cases, MedPay also covers you if you’re hurt using public transportation, hit by a car while riding a bike, or in an accident while riding in a friend’s car.

4. If my car is in the shop after an accident, I’ll need a ride

This is where Rental coverage comes in. Rental covers the cost of a rental car while your car is being repaired or replaced. Root also offers you the choice of Lyft credits, instead.

You should know:

• You’ll choose a limit for the maximum amount of money and number of days Root will cover your rental car or Lyft credits.

• Lyft credits are a great option if you live in a city or have a short commute.

• Rental coverage only applies if your car is in the shop from a covered accident, not normal wear and tear.

5. I want to be prepared for anything and covered for every situation

Uninsured/Underinsured Motorist Bodily Injury (UM/UIM) covers your medical expenses, if someone who is not insured—or doesn’t have enough insurance—causes an accident you’re in.

Depending on your state, you may be offered Uninsured Motorist Property Damage (UMPD). This covers damages to your car, if you’re hit by an uninsured or underinsured driver.

You should know:

• 1 in 8 drivers on the road is uninsured.

• You might not need UMPD if you have Collision coverage. Your Collision covers repairs to your car, if you’re hit by an uninsured or underinsured driver.

• Sometimes Uninsured and Underinsured are sold as separate coverages.

Keep in mind that the more coverage you have, the higher your insurance rate will be (the more your insurance will cost). But, if you only choose the minimum coverage required by your state, then you’ll be responsible for paying any additional costs we talked about above—from medical expenses to repairing or replacing your car and more—out of pocket.

The Root app walks you through how each coverage, limit and deductible option affects your rate and what is covered—in real time.

Learn more about what coverages Root offers.