“What’s one thing everyone has—while no one understands it?”
If asked to a Family Feud audience, the top answer could very-well be “insurance”. Thankfully this week our presenter Tom Arbaugh of Farm Bureau Insurance Michigan (FBMI) pulled back the curtain on one of the most confusing documents most of us receive — the auto insurance declaration page. In plain language he walked through what the various line items refer to, why they matter, and where he most often makes recommendations to better protect clients.
The first item Tom instructed us to check was Bodily Injury Liability — coverage that pays when you’re responsible for injuries in an accident. Tom never recommends less than $500,000 per person, with $1 million in Property Damage Liability per accident as a standard safeguard.
🚗 Key Coverages Tom Recommends:
- Bodily Injury Liability – $500k+ minimum per person
- Property Damage Liability – $1M per accident
- Personal Injury Protection (PIP) – Unlimited, to cover hospital bills, attendant care, and long-term needs
- Uninsured/Underinsured Motorist – Up to $500k for protection when others aren’t covered
- Comprehensive Coverage – Covers damage while parked or moving against non-fixed objects
- Collision (Broad vs. Normal) – Broad saves your deductible if you’re not at fault
- Rental Reimbursement – Highly recommended to keep you driving if your vehicle is out of commission
Tom also reminded us that Michigan’s no-fault system, while making Michigan a more expensive state to be insured in, does also save time and hassle on getting repairs completed. It ensures coverage without waiting through drawn-out investigations to assign and collect claim payments. Companies will still negotiate and collect for fault between them, but their clients, for anything qualifying, are always quickly paid out.
At the end of the day, Tom’s approach is about clear explanations, honest recommendations, and peace of mind for his clients.
Want to better understand your coverage (and maybe find out what’s missing)? Connect with Tom Arbaugh at Farm Bureau Insurance Michigan today!
And if you want to meet more professionals who care enough to walk you through the details, join us at Border to Border Business Connections — guests are always welcome.
