What Are The Different Types of Auto Insurance?

It is very important that you choose the auto insurance coverage that best meets the needs of you and your family, and that you know what your policy covers before you need to use it. Below is a list of definitions for many of the coverages available to you. For suggested coverage amounts see How Much Auto Insurance Coverage Should I Buy. Please note that the specific conditions of each coverage may vary by state. To learn more about the exact details of the coverages, or to discuss your policy with one of our licensed agents, please e-mail Customer Service or contact us at 800-437-8394.

Definitions of Auto Insurance Coverages

Auto Loan/Lease Protection: If your vehicle is a "total loss," the balance you owe on the loan or lease may exceed the cash value. This optional protection covers the payment gap and is available on cars, trucks, or vans for which you purchase Other Than Collision (previously known as Comprehensive) and Collision Coverage. If you already have an auto insurance policy with us, you can add this coverage, as long as your vehicle is not more than three model years old.

Bodily Injury Liability Coverage: Pays for financial loss when you are held legally responsible for an accident that causes injury or loss of life to other individuals. This protection also provides for your defense against a claim or lawsuit.

Collision Coverage: Pays up to the actual cash value for your vehicle, less the deductible, for damage caused by an impact with another vehicle or object. Your finance company may require Collision Coverage on the vehicle. If you are considering rejecting this coverage, we recommend that you first contact your finance company.

Full Tort/No-Limitation on Lawsuit Option: Allows you to retain unrestricted rights to bring a lawsuit against a negligent party.

Limited Tort/Limitation on Lawsuit Option: Allows you to recover out-of-pocket and other expenses; however, you are unable to recover certain damages such as payments for pain and suffering unless injuries are defined as serious.

Medical Coverage: Pays reasonable expenses for you and your passengers for medical services which result from an automobile accident.

Optional Transportation Expenses: If you have Other Than Collision and Collision Coverage, you can purchase an additional amount of coverage to pay for a rental car while your vehicle is being repaired or until it can be replaced. This coverage pays a flat amount per day, depending on a pre-determined limit. For your convenience, we may even arrange to drop the rental car off at home or workplace when you call to file the claim.

Other Than Collision Coverage: Previously known as Comprehensive Coverage, pays up to the actual cash value, less the deductible, for damage that is not caused by the impact with another vehicle or object (for example: fire, theft, vandalism, flood, or striking an animal) Your finance company may require Other Than Collision Coverage on the vehicle. If you are considering rejecting this coverage, we recommend that you first contact your finance company.

Personal Injury Protection/First Party Benefits: If you are in an accident, Personal Injury Protection (also referred to as First Party Benefits and No-Fault Insurance), allows you to be reimbursed for certain expenses by your own insurance company, regardless of which driver was at fault. Most Personal Injury Protection states have a combination of required and optional coverages that include medical, disability, and death benefits.

Property Damage Liability Coverage: Pays for financial loss when you are held legally responsible for an auto accident that causes damage to other people's property, including the vehicles of other drivers.

Stacked Coverage: Allows you to multiply the amount of uninsured or underinsured motorist coverage by the number of insured vehicles on your policy.

Towing and Labor Coverage: If you have Other Than Collision Coverage and Collision Coverage, you can purchase additional coverage to pay necessary towing and labor costs to move your damaged or inoperable vehicle to a body shop or other location.

Uninsured/Underinsured Bodily Injury Motorist Coverage: Pays for financial loss to you and your passengers resulting from bodily injury or loss of life caused by an uninsured or underinsured driver or vehicle owner.

Uninsured/Underinsured Motorist Property Damage Liability Coverage: Pays for loss or damage to your vehicle that you are legally entitled to receive from the owner or driver of an uninsured or underinsured vehicle.

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