Get To Know Your Auto Insurance Policy

While everyone understands the importance of auto insurance, it's equally important to understand your insurance coverage.  Without the right coverage, an auto accident could put your financial security at risk.  The following information should help you better understand what is available and what you need.

Common Coverages

Liability coverage – covers bodily injury and property damage

• Bodily injury liability protects you against financial loss because of an injury you may cause someone else.
• Property damage liability  protects you for damage you may cause to the property of others.
  
  For example, if you hit another vehicle and the driver suffers a broken leg, bodily injury covers the other driver's medical and rehabilitation expenses, pain and suffering.  Property damage liability covers damage to the other driver's vehicle.  

Uninsured coverage and Underinsured motorist coverage provides protection from motorists without proper insurance coverage. 

• Uninsured coverage protects you in the event the other driver doesn't have insurance.
• Underinsured motorist coverage fills the gap between the amount of the "each person" limit of liability as shown on the declarations page and the amount paid to the insured by the person or organization legally responsible when the other driver doesn't have enough insurance to cover your injuries.
  
  Even though auto insurance is mandatory in most states, experts say 12 percent of households have a least one uninsured vehicle.  

Collision and Comprehensive Coverages provide coverage when there is physical damage to your own vehicle.

• Collision coverage pays for the damage to your car due to impact with another vehicle or object. 
• Comprehensive coverage protects your vehicle from loss or damage from such things as vandalism, theft, hail and fire.

Medical Expenses Coverage pays medical bills for you as a result of an injury caused by an auto crash, regardless of who is at fault.

Other Optional Coverages

• Death benefit coverage
• Emergency road services
• Vehicle rental and trip interruption
• 100 percent repair/replacement coverage for new cars through four model years, after which the coverage returns to actual cash value

How to reduce your premium

Discounts

• Defensive Driver Discount, which could save you up to 5% if you have successfully completed a state-approved defensive driver course.
• Having anti-theft devices, multiple policies, multiple vehicles, safety devices, and/or for being a good student may lower your premium as well.

Change Your Deductible

Increasing your collision and comprehensive deductibles will lower your premium.  However, it's important to know how much you can afford to pay when faced with an unexpected claim and adjust your deductible accordingly.

As you and your family’s lives change, so do your insurance needs. Contact me to review your auto insurance and entire financial picture to make sure the things that are most important to you are protected.

Learn more

• Auto Insurance FAQs
• Auto coverage options
• Auto insurance discounts