Auto Insurance

 

Coverage and Deductible Options.

 

What is a deductible?

 

A deductible is the part of a covered loss that you have agreed to pay with your own money.
If you file a claim against your insurance, you will pay only the amount of the deductible. The company will pay the rest - up to your coverage limit.
When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.
Typically, higher deductibles mean lower premiums.

 

Who does my auto insurance policy cover?

 

An Auto Insurance policy typically covers:

• You and your spouse
• Relatives who live in your home
• Other licensed drivers who have permission to drive your insured vehicle.

 

Types of auto insurance coverage

 

An Auto Insurance policy generally consists of several kinds of coverages.
Because all 50 states have different laws when it comes to Auto Insurance, the following coverage descriptions are simply general information. They are not statements of contract.

 

Most Common Coverages:

 

Liability

Auto liability coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.
Auto liability coverage falls into two categories:

1. Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
2. Property Damage Liability -- which covers damaged property, and may include loss of use.

Liability coverage also pays legal defense and court costs.
State laws usually dictate the minimum amounts of insurance required, but higher amounts are available and recommended.

 

Personal Injury Protection (PIP)

This coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.
It may also pay for:

• Rehabilitation
• Lost earnings
• Replacement of services (For example, child care if a parent is disabled.)
• Funeral expenses

Medical Payments

This coverage is available in most states. It pays medical and funeral expenses for covered persons when those expenses are related to an auto accident.

Collision

This coverage helps pay for damage to a covered vehicle caused by:

• Collision with another vehicle
• Collision with an object
• A vehicle rollover

A deductible is required.

 

Comprehensive

This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.
Examples of this type of damage or loss include:

• Fire
• Wind
• Hail
• Flood
• Vandalism
• Theft
• Hitting an animal

A deductible may apply.

 

Uninsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this coverage may also pay for property damage.
This coverage varies by state and depends upon policy provisions.

 

Underinsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this coverage varies by state and depends upon policy provisions.

 

Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident.
Daily allowances or limits vary by state or policy provisions.

 

Emergency Road Service

This coverage pays for having your auto towed due to a breakdown.
Towing limits vary by state or policy provisions.
This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements.