Just like your vehicle, your auto insurance should fit your needs. We can help you decide what coverages best fit your current needs. Below, you can learn about the different coverages that make up an auto policy. Fill out our online form or contact us for a free quote.
Auto Policy Coverages
This coverage applies to injuries that you, the driver or policyholder, cause to someone else.
It’s very important to have enough liability insurance coverage. If you are involved in a serious accident, it is possible that you may be sued for a large sum of money. Your liability coverage limits would be available to you to cover those expenses. You should definitely consider buying more than the state-required minimum to better protect assets such as your home and savings. We are here to discuss what fits your needs and budget best.
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings, or other structures your car may hit.
Uninsured & Underinsured Motorist
Uninsured Motorist coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Underinsured Motorist coverage comes pays when an at-fault driver has insufficient insurance to pay for your loss. This coverage will also protect you if you are hit as a pedestrian.
Collision / Other Than Collision
This coverage pays for damage to your car resulting from a collision with another car or object. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium will be.
Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.
Other Than Collision (Comprehensive)
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object. This includes, but is not limited to fire, falling objects, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as deer.
Comprehensive insurance is usually sold with a $100 to $500 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
Comprehensive coverage also provides coverage if your windshield is cracked or shattered. Some companies offer full glass coverage with or without a deductible.
States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you maintain these coverages until your loan is paid off.
Medical Payments (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, personal injury protection, or PIP, can cover medical payments, lost wages, and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
Rental Reimbursement pays for you to rent a car if your car is off the road due to a covered loss. This usually on a per day/per claim limit.
Loan / Lease Gap Coverage
If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to maintain collision and comprehensive coverage. You’ll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.
- Collision covers the damage to the car from an accident with another automobile or object.
- Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a large animal.
The leasing company may also require “gap” insurance. If you have an accident, and your leased car is damaged beyond repair or “totaled,” there’s likely to be a difference between the amount that you still owe the auto dealer and the check you’ll get from your insurance company. That’s because the insurance company’s check is based on the car’s actual cash value which includes depreciation. The difference between the two amounts is known as the “gap.”
On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don’t actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a “gap waiver.” This means that if your leased car is totaled, you won’t have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.
If you have an auto loan, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you’ve finished paying for it. Ask us about gap insurance and we can make sure that we cover your loan in case of a loss.
Most personal auto policies provide coverage for driving in Canada; however, we recommend that you check with us before taking your car across the border.
Mexican law requires that you purchase separate liability coverage from a Mexican insurance company prior to operating your vehicle in Mexico. Your personal auto policy may provide some limited coverage but this coverage must meet the insurance requirements of the Republic of Mexico. Failure to purchase the proper Mexican liability insurance could result in a substantial fine if you are involved in an accident while driving in Mexico. Again, we suggest that you check with our office prior to taking your vehicle across the border.
In most cases, if the vehicle pulling the trailer is covered under the policy, the liability coverage will be extended to the trailer if you own the trailer. However, physical damage (comprehensive or collision) must be purchased separately. You will need to review your policy for exceptions.