Most states require you to carry some kind of auto insurance (or post a bond)
when you operate a motor vehicle. You're also required to provide proof of
insurance before you can license your vehicle or renew your driver's license.
Although coverage is mandatory, the amount and kinds of coverage can vary.
Often, the required minimum coverage may not be enough to adequately compensate
your assets or your earnings. Your Allen Financial agent can help you understand
your own state requirements and work with you decide what coverage you need.
Here is a list of auto insurance topics you'll want to know about:
Fault or No-Fault -- This depends on the law in your state.
Collision -- Pays damages to your own vehicle. Generally, there
is a deductible.
Comprehensive -- Pays for losses from fire, theft, storm, etc.
Generally, there is a deductible.
Deductible -- The amount of a covered loss you agree to pay.
Bodily Injury -- Pays for injury to others when you are at
fault.
Property Damage -- Pays for property damage when you are at
fault.
Medical Payments -- Pays for your own or your passenger's
medical expenses.
Personal Injury Protection -- In no-fault states, this covers a
broad assortment of medical expenses.
Uninsured/Underinsured Motorist -- Pays for coverage to you if
other driver is not insured or is underinsured.
Click here for Frequently Asked Auto Insurance Questions
or Auto Safety Tips
Fault or No-Fault
If you live in a no-fault state, your own insurance company pays for any loss or
injuries to you, no matter who causes the accident. In at-fault states, the
person at fault in the accident or their insurance company pays.
With no-fault, most claims can be settled quickly, without litigation over who's
at fault. However, No-Fault can limit your right to sue to recover damages.
Individual states set the coverage and place limits on your rights to sue, so
check with your agent.
With a fault system, your right to sue is not restricted (nor is the other
party's right to sue you). But, court cases assigning blame can take years to
settle. Also, the costs of trying your case can be substantial.Bodily Injury
This coverage pays, subject to policy limits and conditions, allsums which you
are legally obligated to pay for any person(s)
injured or killed in an accident where you are at fault.Coverage includes
medical expenses and lost wages.
Property Damage
Property Damage is liability coverage for damage to another's personal property,
such as an automobile, house or fence, in a
collision where you are at fault.
Medical Payments
This coverage handles medical bills and funeral expenses for you or a
passenger injured while riding in your vehicle. Coverage extends to you or
a family member when riding as a passenger in someone else's vehicle or when
struck by a vehicle when on foot. Costs are covered up to the amount specified
by the policy.
Personal Injury Protection (PIP)
Personal injury coverage pays a broader range of medical costs than does Medical
Payments coverage. Coverage includes provisions for lost wages and the
replacement of the services of someone injured in an accident. Personal Injury
coverage is generally required in states with No-Fault and available in some
other states.
Collision
Collision coverage pays when your own vehicle is damaged in an accident.
Generally, the coverage reimburses you the amount to repair or replace your
damaged vehicle, minus the agreed-on deductible. It is usually the most
expensive coverage in your auto policy.
Comprehensive
Comprehensive pays for damages to your car caused by an incident other than a
collision with another car or object. You're covered for fire, theft, riots,
collisions with animals, storms, falling objects, earthquakes, floods and other
natural occurrences. Often, comprehensive insurance includes a daily rental
provision that pays a certain amount toward a rental car in conjunction with a
theft claim. Like collision, comprehensive coverage generally includes a
deductible.
Uninsured Motorist/Underinsured Motorist
Uninsured Motorist covers you in an accident with a motorist who has no
insurance or is underinsured. In some states or insurance policies, Underinsured
Motorist protection is usually separate from Uninsured Motorist coverage.
Uninsured Motorist protection also covers you if you're injured by a hit-and-run
driver. Coverage includes payment of medical costs, lost wages and pain and
suffering. It is required in many states.
Contact by phone (800) 874-9191, FAX (602) 992-8227 or email below for more
product information.
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