What are your options?
There are many different coverages within what's called the Personal Auto Policy (PAP). Described below, each is important to consider in structuring the most applicable coverage program for you and your vehicle. Email an agent to find out how much a package of coverages will cost.
Liability Insurance
The most important risk to protect yourself against is the liability of your actions afffecting others. In other words, if you have an accident that is your fault, liability insurance is what covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury (BI) liability covers injury to people, not your vehicle. Therefore, it's a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Property Damage (PD) liability protects you when you damage other people's property. Because of this, it's very important to select an appropriate limit to protect you from the damage you may cause to another vehicle or object.
Important Liability Considerations:
- Do not select Bodily Injury or Property Damage liability limits too low
- Maintain liability limits consistent across all vehicles
- Keep your liability coverage in-force at all times
- Understand how your policy works and what to do in the event of a claim
- Secure coverage with the input and advice of a licensed agent
- Email an agent to get your program started today
Physical Damage Coverage (Comprehensive and Collision)
Comprehensive - This coverage provides protection from losses other than collision. If your car is stolen, damaged by fire, flood or your car hits an animal, comprehensive (comp) coverage applies. Coverage is provided less your deductible. Comp coverage is not required by state regulation but if you have a loan or lease then it will usually be required by your finance company.
Collision - This coverage provides protection when your vehicle is hit by another vehicle or object. It pays to fix your car minus your collision deductible. Again, it is not a state required coverge but if loaned or leased, your finance company will require coverage.
Important Physical Damage Considerations:
- Understand your financing company's requirements for coverage
- Control your policy premium by selecting the appropriate deductible for both coverages (a higher deductible = a lower premium)
- If you have an older vehicle or one in poor condition, you may not require these coverages
- Be aware that collision and comprehensive coverage is normally limited to the cash value of your car
- Secure these coverages with the input and advice of a licensed insurance agent
- Email an agent to get your program started today
Uninsured / Underinsured Motorists Coverage (UM/UIM)
Uninsured Motorist Coverage (UM) - This coverage protects you, insured members of your household, your passengers and/or your vehicle when damages are caused by a driver who does not carry automobile insurance. Some estimates put the percentage of drivers who are not insured at around 25%. This means that approximately one in four drivers do not carry any active auto insurance while driving. UM coverage is extremely important to consider for your car, for your liability and for your passengers.
Underinsured Motorists Coverage (UIM) - This coverage protects you, insured members of your household, your passengers and/or your vehicle when damages are caused by a driver who does not carry sufficient protection to cover any respective damages. If you don't carry Collision coverage, Underinsured Motorist Property Damage in some states limits repairs to $3500 (some states are higher, some lower). If you have Collision, UMPD coverage only pays your collision deductible.
Important UM/UIM Motorists Coverage Considerations:
- Underinsured Motorist Property Damage alone is not enough to cover all potential vehicle repair or replacement costs.
- UM coverage should be placed consistent with your BI and PD coverage limits
- Uninsured Motorist Bodily Injury coverage will only cover medical expenses up to the limit of your policy
- Securing these coverages should only be performed with the advice and input of a licensed insurance agent
- Email an agent to get your program started today
Other Optional Coverages
Personal Injury Protection (PIP) - PIP coverage is a first-party medical coverage that provides, within specified policy limits, an insured drivers medical, hospital and funeral expenses. This coverage is not offered in all states.
Medical Payments Coverage - Specific to your selected policy limits, this coverage pays for your medical expenses incurred by a covered loss. It provides coverage for you, insured drivers listed on your policy and relatives living in your household as passengers. This coverage may also cover you as a pedestrian if hit by a moving vehicle. It does not matter who is at-fault.
Rental Reimbusement - This provides coverage for a rental car while your vehicle is being repaired from a covered comprehensive or collision loss. Typical coverage provided is $30.00 per day up to 30 or more days. Additional coverage can be purchased.
Towing/Roadside Coverage - This coverage provides specified amounts to offset towing bills and necessary labor expenses when your vehicle is disabled for mechanical breakdown, dead battery flat tire, lock-out, insufficent gas, oil or other fluids or being stuck in snow, mud, water or sand within a certain number of feet of the roadway.
Loan/Lease Gap Coverage - This coverage will pay the difference between what you owe on your loaned or leased vehicle and what your insurance may pay if your vehicle is a total loss or stolen and not recovered, less your Comp or Collision deductible. Both Comprehensive and Collision coverage are required before adding Loan/Lease Payoff coverage.
Other possible coverages include pet Coverage under an insured loss, final expenses coverage, disability protection from a covered loss and many other additional coverages and policy features that benefit you and your insured household. Coverage for your trailers, ATV's, motorcycles and snowmobiles can also be purchased to protect these assets.
Important Other Coverage Considerations:
- Know what you are purchasing before you purchase it
- Understand what your insurance objectives are when considering alternative coverages
- Secure coverages of this type with the advice and input of a licensed insurance agent
- Email an agent to get your program started today
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