What is auto insurance?
An automobile insurance policy is designed to cover you against certain types of losses or claims. The typical auto policy is defined as a four wheel motor vehicle of a private passenger, station wagon or jeep owned by or leased to you under contract. Other types of vehicles include pickup trucks and vans with a gross vehicle weight (GVW) 10,000 pounds or less. This type of policy is designed to cover persons going to and from work, pleasure usage of a vehicle and some approved business uses. Types of coverage’s are liability, property and medical should you be in an accident or suffer a loss or claim. By selecting the appropriate coverage’s such as liability, uninsured and underinsured motorist, medical, comprehensive and collision you will be properly protected in the event of a loss or claim. One of the most commonly asked questions of agents is “How much auto insurance do I need?” This is where a professional insurance agent will provide you with numerous insurance coverage options regarding limits and coverages and then explain the risk associated with each of them. We like to say you can never have enough insurance, however, we also realize you have to be able to afford the insurance policy as well. That’s why we offer plenty of discounts.
Auto insurance discounts we offer:
- Good Student
- College Graduate
- Drivers Education
- Defensive Driving
- Fireman’s Association
- Multi Policy
- Anti-theft, Anti-Lock Brakes, Air Bags
- Accident Forgiveness
- Paid In Full
- Electronic Payments Transfer – (EFT)
- Driver Monitoring Device
Helpful key terms and definitions:
Bodily Injury/Property Damage (BIPD) – Covers you if you cause damage to a person or persons and/or their property for which you are held legally responsible.
Medical Payments or Personal Injury Protection (PIP) – This coverage provides for the treatment of injuries to the driver and/or the passengers of the policyholder’s vehicle.
Uninsured and Underinsured Motorist coverage – Uninsured coverage is designed to reimburse you or a family member or can even cover a designated driver if one of you is struck by another driver who is uninsured and can apply to a hit-and-run driver. Underinsured motorist is in play when another driver hits you and doesn’t have enough car insurance to cover your loss.
Comprehensive coverage – This coverage is design to protect the covered auto in the event of theft, vandalism, glass, hail, flood or striking of an animal (to name a few). There is usually a deductible sold with this coverage that affects the premium charged.
Collision coverage – Is designed to cover an auto in the event of damage to your car as a result of striking another vehicle/object or flipping over. This coverage is a no-fault coverage meaning it doesn’t matter who is at-fault. If you are struck by another person and they have liability insurance to cover the loss then you will not have to use this coverage. There is usually a deductible sold with this coverage that affects the premium charged.
Rental and Towing/Labor coverages – Rental coverage is designed to reimburse you up to a certain amount in the event of a covered loss. Towing and labor will reimburse you in the event you vehicle becomes disabled and requires you to need a tow or labor cost as a result of a roadside covered event.
Auto Loan/Lease Gap coverage – This coverage will pay up to a certain amount (based on your policy coverages) to cover the gap between what is owed and what the actual cash value of the vehicle is at the time of loss whether it is financed or leased.
Custom Audio Equipment coverage – This coverage applies to add-on or replaced audio/video equipment that is installed in the vehicle. This is usually a separate endorsement and there is a value determined at the time the vehicle covered on the auto policy.
Transportation Network Community coverage (TNC) – This coverage/endorsement is designed to cover the vehicle when you work for companies like Uber or Lift. This helps fill in the coverage gaps between their insurance coverage and yours on your personal auto insurance policy. If you work for this type of company you should notify your agent immediately to make sure you have the proper endorsement to cover the vehicles.