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Things you need to know about Auto Insurance
Accidents are going to happen. They can involve not only damage to vehicles but to people as well. We want to be sure that when you have a policy with us, you fully understand the coverage you are purchasing and what it all means. We will take the necessary time to explain the coverage to you, so together, we can make the right decision on the protection you, your family and your vehicle need. Apply for Auto Insurance Now!
By periodically reviewing your policy, we are able to see how your situation may have changed. We will review your coverage again, make adjustments if necessary, and continue to make sure you are adequately covered.
In dealing with a local agency instead of an 800 number, we are able to get to know you, your family and your situation to better serve your changing needs.
With a local agent, you will gain the added benefit of having someone that can assist you along the way with any issues that may arise during a claims situation. It could be as simple as helping explain your coverage or work with you and the adjustor to coordinate things.
There are many different types of auto coverage you need to understand when putting a policy together:
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Collision - Covers damage to your automobile (car) when your car is hit by or hits another vehicle or other object. Coverage will pay to fix your car minus the deductible you have chosen. Coverage is limited to the terms and conditions that are stated in your policy. Collision is not required, but if you have a loan or lease your vehicle, the lender may require collision.
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Comprehensive - will cover your vehicle for damages sustained by damages caused from things other than collision. Damages covered for example but not limited to are fire, theft, vandalism, glass breakage or hitting an animal. Coverage is limited to the terms and conditions stated in your policy. Comprehensive is not required, but if you have a loan or lease your vehicle, comprehensive may be required by lender.
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Property Damage (PD) – Protects you if you damage someone else’s property. Others property may include but not limited to: House, fence, landscaping, etc. It will also provide you with legal defense if another files a lawsuit against you, resulting from this type of damage.
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Liability Coverage (BI) - It pays the people you’ve injured for property damage, loss of services, bodily injury, sickness, medical services, disease, loss of income and death. Will also pay for legal defenses on your behalf. Will provide coverage you, family or other passengers while in any automobile or as a pedestrian.
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Uninsured Motorist (BI) - Covers you, members of your household and passengers for injuries, damage or death caused by another motorist who was negligent and has no insurance coverage.
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Underinsured Motorist (BI) – Covers you, members of your household and passengers for injuries, damages or death caused by another motorist who was negligent and does not have sufficient insurance coverage. After there coverage is maxed out, the underinsured coverage on your policy will pick up coverage up to the limits of your policy.
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Personal Injury Protection Coverage (PIP) – Covers within the specified limits of your policy the medical, hospital and funeral expenses occurred due to an auto accident to you, others in vehicle and pedestrians struck by automobile.
Auto Insurance Frequently Asked Questions
What does full coverage mean?
Full coverage means different things to different people. Generally, when someone refers to full coverage on their vehicle it means there is coverage for your state mandatory requirements plus collision and comprehensive damage coverage. However, since the term “Full coverage” is used differently by people we make sure you understand what you are getting so there is no confusion.
Should I have full coverage on an older vehicle?
There is no right or wrong answer. Based on what they vehicle may be worth in the event of a loss and how much premium you are willing to pay for that coverage is one good way to help make the decision. It is a personal decision, but one we can walk you through to assist you in making the best decision for your particular situation.
What is an insurance score?
This is a formula insurance companies or third parties on behalf on insurance companies use to help determine different risk factors and trying to predict the likelihood of a claim. The score is used to help calculate part of the premium of your policy. There are also many other factors that go into making up your premium from age, vehicle, driving history to where you vehicle is garaged.
Does filing an auto collision claim affect my premium?
It depends on the company. If you are deemed at fault in accident it will most likely affect your premium. However, depending on the company even in the event that you are not at fault in accident your premium may still be affected due to certain discounts you may lose like accident free. We encourage all of our clients to call us first before filing a claim to look at the situation and help you evaluate your next step.
If I lend my car to a friend, will he/she be covered under my automobile insurance policy?
Yes, they are covered. When you loan your car to a friend or relative, he or she will be covered under your automobile insurance policy. If there are other drivers in the household, they need to be disclosed, but if you lend your car to someone else, they would be covered.
Will my insurance company cover me if I rent a car?
Yes, your insurance company will extend your coverage to a rental car, if you keep full coverage on a vehicle on your auto policy. If you have full coverage, you can opt out of the rental car companies insurance. Most car insurance policies will provide the same coverage for a rental vehicle as the policy provides for your own vehicles.
What's the difference between comprehensive and collision coverage?
Collision will cover accidental loss or damage to your vehicle because of a collision with another vehicle or an object. Comprehensive covers losses named in the policy that are not collision losses. Examples of this would be fire, theft, vandalism, or hitting an animal.
What is an insurance policy?
An insurance policy is a legally binding contract between an insurance company and the person who buys the policy, commonly called the "policyholder, who also is often the person insured.
In exchange for payment of a specified sum of money, called the "premium," the insurance company agrees to pay for certain types of loss or damage as specified by the contract. When a loss occurs which meets all of the requirements described by the terms of an insurance policy, the loss is said to be "covered" by that policy.
What is an insurable interest?
A person has an "insurable interest" in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses. For example, if the house you own is damaged by fire, the value of your house has been reduced, and whether you pay to have the house rebuilt or sell it at a reduced price, you have suffered a financial loss resulting from the fire. For example you would feel sympathy for your neighbor if their house were damaged by fire but no financial loss. You have an insurable interest in your own house, but you do not have an insurable interest in your neighbor's house.
How high should my liability coverage limits be?
No one can predict exactly how much you would have to pay if you were to cause an accident.
Ask yourself how you would pay for any damages exceeding your coverage limits.
The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages.
What is "High Risk" insurance mean?
The insurance term given to drivers who may have had difficulty getting insurance because of things like their driving record, drunk driving charges, bad credit or other problems. Also known as "non-standard insurance".
What is "No Fault Insurance"?
"No fault insurance" is a term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages. Under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault for the accident. Any other drivers involved will be covered by their own auto insurance policies.
Why does my premium change if I move to a different city?
The United States is divided into "rating territories." Certain areas of the country, particularly some cities, have many times more claims, in number and severity, than other areas that are less congested. So you could pay more, depending on where you live.
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