Personal Auto Insurance

Auto insurance is an important purchase for most drivers. There are three major reasons to buy auto insurance.

To protect your assets

To satisfy your lender

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

 

1. Bodily injury liability, for injuries the policyholder causes to someone else.

 

2. Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder’s car.

 

3. Property damage liability, for damage the policyholder causes to someone else’s property.

 

4. Collision Coverage, for damage to the policyholder’s car from a collision.

 

5. Comprehensive Coverage, for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.

 

6. Uninsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

Additional Optional Coverages

A wide range of additional coverage types may be available, depending on the insurance company we work with and the state you are in.

 

What is the difference between comprehensive and collision coverage coverage?

Both coverages protect against damage to your car. Comprehensive (sometimes known as “other than collision”) pays repair costs for your vehicle when it is damaged by something other than another vehicle, such as animal hits, hail, vandalism, or theft. Collision pays repair costs for your vehicle when it is damaged by another vehicle or a stationary object like a tree or lamp post.

 

What is a deductible?

It’s the amount you agree to pay for repairs before the insurance carrier starts covering costs.

What Is Umbrella Insurance?

 

Personal umbrella policies or a PUP is an extension of your liability insurance. It helps broaden and increase your protection. Umbrella insurance protects you in liability situations where your home, auto or boat policies come up short.

 

This can include significantly upping your coverage limit to relieve the financial strain of medical bills and legal fees in the event of an extremely costly accident. The extra coverage protects you by increasing the dollar limit of liability coverage for primary policies. Your agent will review your specific needs and offer coverage options for you.

These definitions provide a brief description of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. Additionally, this informational resource is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company, agent or agency. If you have questions about your insurance, you should contact your insurance agent, the insurance company, or the language of the insurance policy.