X

Auto Insurance

 


 

Commercial Insurance, Protect your property

 

 

Don’t risk financial losses because someone else isn’t covered     Insurance Property Damage coverage pays for damage to your car.

  • An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.

But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts. Why? Because state-required minimums may not cover the costs of a serious accident, so it’s worth considering purchasing higher levels of coverage.

Here’s a rundown of the types of coverage available—some are required; others are optional; all are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.

AUTO INSURANCE

Mandatory coverage

How Much Coverage is Enough?

Technically there isn’t an auto insurance policy that protects you from 100% of events that can go wrong. But full coverage has come to mean that you have each of the major types of coverage: liability, comprehensive and collision.

Each type of coverage has limits to what it will pay out and when purchasing a policy, each driver must decide on how much coverage or risk they feel comfortable with.

Nearly every state requires car owners to carry the following auto liability coverage:

  • Bodily Injury Liability—This covers costs associated with injuries and death that you or another driver causes while driving your car.
  • Property Damage Liability—This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

 

Frequently required coverage

Many states require that you carry the following coverage:

  • Medical Payments or Personal Injury Protection (PIP)—Provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
  • Uninsured Motorist Coverage—Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. You can also purchase underinsured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

Even if these types of coverage are optional in your state, consider adding them to your policy for greater financial protection.

Optional coverage

How Much Coverage is Enough?

Technically there isn’t an auto insurance policy that protects you from 100% of events that can go wrong. But full coverage has come to mean that you have each of the major types of coverage: liability, comprehensive and collision.

Each type of coverage has limits to what it will pay out and when purchasing a policy, each driver must decide on how much coverage or risk they feel comfortable with.

While basic, legally mandated auto insurance covers the cost of damages to other vehicles that you cause while driving, it does not cover damage to your own car. To cover this, you need to purchase the following optional auto insurance coverages:

  • Collision—This optional coverage reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
  • Comprehensive—This provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
  • Glass Coverage—Windshield damage is common, and some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.

 

  • Mind The Gap Insurance.

If you lease or finance your vehicle, auto dealers or lenders will likely require you to purchase collision and comprehensive. But keep in mind that collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. (Note: For leased vehicles, gap coverage is usually rolled into your lease payments.)

 

Who is covered—and when?

Your auto policy will cover you and other family members on your policy, whether driving your insured car or someone else’s car with permission. Your policy also provides coverage if someone not on your policy is driving your car with your consent.

Your personal auto policy only covers personal driving, whether you’re commuting to work, running errands or taking a trip. Your personal auto policy, however, will not provide coverage if you use your car for commercial purposes—for instance, if you deliver pizzas or operate a delivery service. Note, too, that personal auto insurance will generally not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.

Protect yourself against uninsured motorists

Don’t risk financial losses because someone else isn’t covered

 

Despite the legal requirements in 49 states, many drivers in the U.S. remain uninsured. Don’t risk your financial health—make sure you’re insured, and learn how to protect yourself in the event of an accident with an uninsured motorist.


Uninsured motorists are relatively common

With the exception of New Hampshire, every state in the U.S. has a minimum Mandatory insurance requirements. Despite that, about one out of every eight drivers does not carry auto coverage; in some states, that number is one out of five.

If you’re involved in a serious accident with a motorist who doesn’t have an auto insurance policy, you could be at risk for substantial financial losses. Uninsured and underinsured motorist coverage is designed to protect against that possibility.

A handful of states require that uninsured coverage be included in all auto policies. Whatever the laws in your state, it’s a good idea. Check your policy or ask your insurance professional to make sure you’re covered if the other guy isn’t.

AUTO INSURANCE

How Much Coverage is Enough?

Technically there isn’t an auto insurance policy that protects you from 100% of events that can go wrong. But full coverage has come to mean that you have each of the major types of coverage: liability, comprehensive and collision.

Each type of coverage has limits to what it will pay out and when purchasing a policy, each driver must decide on how much coverage or risk they feel comfortable with.

Make sure you’re insured

Don’t go without at least a basic auto insurance policy. Even if you feel it’s tough to afford it, in the long run it’s for your own financial protection.

To help ensure that everyone, regardless of financial circumstances, can obtain car insurance, some states have programs to assist lower-income drivers. Check with the insurance division in your state to see if they offer such a program. Shop around and learn how you can reduce your car insurance cost and look for insurers that specialize in writing policies for lower-income consumers

AUTO INSURANCE.

Uninsured motorist coverage

Specific options for uninsured motorist coverage vary by state and insurer, but in general there are three types of protection:

  • Uninsured Motorist (UM) insurance – Also known as Uninsured Motorist Bodily Injury (UMBI) insurance, this coverage will pay your and your passengers’ medical bills if you’re involved in an accident with an uninsured motorist who is at fault. In addition, UM insurance will reimburse you and your passengers for lost wages. UM coverage also kicks in if, as a pedestrian, you are hit by an uninsured driver, or if you’re the victim of a hit-and-run accident.
  • Uninsured Motorist Property Damage (UMPD) coverage – Uninsured motorist insurance covers bodily injuries but not damage to your car or property. For this, you need UMPD coverage, which, in addition to paying for damages to your vehicle caused by an uninsured driver, generally also covers damage to other personal property such as your house or your fence. Ask your insurance professional or state insurance department whether UMPD coverage is available in your state.
  • Underinsured Motorist (UIM) protection – In some instances, an at-fault driver may have liability insurance, but his or her policy’s limits do not cover the full extent of damage to your vehicle. In such cases, UIM insurance will cover the shortfall.

Protect yourself from unhinged drivers, too.Insurance Tailored To Your Needs

se

Vehicle insurance (also known as car insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.