What is auto insurance?
An auto insurance policy is a contract between you and an insurance company. You
pay a premium, and in exchange, the insurance company promises to pay for
specific car-related financial losses during the term of the policy.Do I really need auto insurance?
Auto insurance is designed to protect yourself financially. If you or anyone for
whom you're responsible seriously injures another person, you can be held liable
for the injured person's medical expenses, rehabilitative therapy and long-term
nursing care, as well as for his or her lost earnings.
Auto insurance is also often a legal requirement. State laws typically state
that as a driver, you either must have insurance, or be able to provide evidence
that you have the financial resources to pay a judgment against you if you cause
injury or damage to another person. An insurance policy is the easiest way to
document that you can pay damages.
Who is covered under an auto policy?
Your policy usually covers you, your spouse, and other relatives who live in
your household and others who have permission to drive one of your covered
vehicles.
What is covered under the Liability coverage of my policy?
The Liability coverage in your auto policy pays damages which an insured becomes
legally liable to pay because of bodily injury damage to others and property
covered by an accident resulting from the ownership, maintenance or use of your
car. Most state laws require that you carry a minimum amount of liability
insurance. (We recommend that you carry much more than the minimum -- certainly
enough to protect all your assets.)
In some states, Uninsured Motorist coverage may also be required. Uninsured
Motorist coverage is designed to protect you from injuries or damages caused by
a driver of an uninsured or underinsured motor vehicle.
Are there additional optional coverage available?
That's up to you. Once you've met the minimum legal liability requirements,
(we'll tell you what these are when you get a quote), you should select other
types and amounts of coverage to tailor your policy to your own needs. In
addition to Liability coverage to protect you when you do damage to others,
here's what an auto policy may cover:
Damage to your car. Your car may be covered against collisions it may have with
any other object, if you select
collision coverage. Your car may also be covered against damage caused by other
events such as vandalism, theft,
broken glass, storms and falling objects, if you select comprehensive coverage.
You and your passengers against uninsured or
underinsured motorist. If you're hit by someone who either doesn't have
insurance or doesn't have enough insurance to
cover the accident, uninsured motorist coverage and underinsured motorist
coverage may provide additional
protection. (Again, in some states this coverage is mandatory.) You and your
passengers for medical costs. Your policy
may provide coverage for reasonable and necessary medical and/or funeral
expenses incurred as a result of injuries sustained
in an accident, if you select medical payments coverage and/or, if available in
your state, personal injury protection coverage.
- What affects my auto insurance rates? A
number of factors, including:
- Where you keep and drive your car. Where you live
and drive has an impact on the cost of your insurance. That's because the
frequency of events like vandalism and car theft, and the cost of car
repairs and medical bills, vary from one area to another. For example,
operating a car in Chicago, Illinois, may cost twice as much as operating a
car in Pierre, South Dakota
- The make and model of your car. The cost of
insurance depends on what type of car you drive.
- How the car is used. Rates can vary based on
whether your car is used for pleasure, commuter use or business use. Your
annual mileage driven can also have an impact.
- Your driving record. Your insurance rates may be affected
by traffic tickets and convictions for various violations over the past
several years.
- Your age. Statistically, less experienced drivers
have more accidents and tend to get more tickets. How the car is used.
Rates can vary based on whether your car is used for pleasure, commuter use
or business use. Your annual mileage driven can also have an impact.
Contact by phone (800) 874-9191, FAX (602) 992-8227 or email below for more
product information.
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