Auto Insurance
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
| Liability Coverage | Minimum | Description |
| Bodily Injury Per Person | $30,000 | Each person you injured in an accident that you cause would receive $30,000, up to your policy limit. |
| Bodily Injury Per Accident | $60,000 | The maximum your insurance would pay out for an accident you caused. At state minimums, this would cover 2 people in the other car. Anything above this limit would need to be paid out of pocket. |
| Property Damage Per Accident | $25,000 | The maximum your insurance company would pay to cover damage to the other driver’s vehicle in an accident. |
The Main Parts Of An Auto Insurance Policy
Your auto policy may include all of these coverages or some of them. Each coverage is priced separately.
- Bodily Injury Liability
For injuries the policyholder causes to someone else. - Property Damage Liability
For damage the policyholder caused to someone else’s property. - Medical Payments or Personal Injury Protection (PIP)
For treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. - Collision Damage to your car
For damage to the policyholder’s car from a collision. The collision could be with another car, a light post, fire hydrant, etc. - Comprehensive Damage to your car
For damage to the policyholder’s car that doesn’t involve a collision with another car. Covered risks include fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion. - Uninsured Motorist Coverage
For treatment of policyholder’s injuries as a result of collision with an uninsured driver. Underinsured motorist coverage can also be included in an auto policy. Underinsured motorist coverage comes into play when an at-fault driver has auto liability insurance, but the limit of insurance is inadequate to pay for your damages. - Roadside Assistance
For when your vehicle becomes disabled from mechanical breakdown, dead battery, flat tire, lockout or no gas or entrapment in snow, mud, sand and needs towing to the nearest repair facility. - Rental car reimbursement
For the use of rental cars when your vehicle is inoperable from damage claimed under comprehensive or collision damage coverage. - Loan / Lease Payoff
For gap coverage if you have a difference between the amount you owe on your auto loan and the amount insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your deductible.
Each state requires that you have certain types of coverages with minimum liability limits. The insurance industry recommends that your bodily injury liability limits be $100,000 per person and $300,000 per occurrence. These are the minimum limits we recommend.
Understanding Your Auto Insurance Policy
Is uninsured/underinsured motorist, collision coverage, comprehensive coverage, medical payments, and personal injury protection coverage require?
No, unless your vehicle is financed. If you financed the purchase of your car, your finance company or bank might require that you carry certain coverages on your vehicle. Review these requirements with your local independent agent to make sure you are satisfying the coverage requirements of your financial institution.
What is collision coverage?
This coverage pays for damage done to your vehicle if it collides with another object, such as another car, a utility pole, or fence. This coverage also covers damage for a hit-and-run accident.
What is other than collision coverage, aka comprehensive coverage?
Also known as “comprehensive coverage,” this provides coverage for damage to your vehicle caused by events other than a collision. Covered losses can include vandalism, fire, theft, and animal damage, to name a few.
Does my deductible affect this coverage?
Yes. The deductible amount you choose for comprehensive and/or collision coverage will affect the amount of payment, if any, from your insurance company. Why? Because the deductible amount you choose is the amount you agree to pay before your insurance coverage pays. For instance, if you choose a $500 collision deductible and then have a covered loss that totals $1,000, you would be responsible for paying the first $500 and then your insurance company would pay the remainder. But, if you would have a covered loss that totals $500 or less, you would be responsible for the entire amount because the total cost does not exceed the deductible amount you chose.
How can you make sure your coverages are adequate and that you can afford the deductible you’ve chosen?
Review your insurance coverage needs with your local independent agent. He or she can provide expert recommendations on the types of coverage you need to protect you and your family. And, your independent agent can also help you determine the best deductible amount and explain how varying your deductible changes your premium.
Each state requires that you have certain types of coverages with minimum liability limits. The insurance industry recommends that your bodily injury liability limits be $100,000 per person and $300,000 per occurrence. These are the minimum limits we recommend.