Auto Insurance 101
Frequently Asked Questions
What is Bodily Injury Liability/Property Damage Liability
(BI/PD)?
State Required coverage for damages an insured person is legally
obligated to pay due to bodily injury or damage/destruction of
property to others arising out of a covered loss.
What is Uninsured/Underinsured Motorist (UM)?
An optional coverage for certain damages which an insured person is
legally entitled to recover from the owner or operator of an
uninsured or underinsured auto due to BI or PD sustained by an
insured person in a covered loss.
What is Personal Injury Protection (PIP)?
An optional coverage for an insured person for reasonable and
necessary medical and funeral services, 80% loss of income from
employment, and reasonable expenses incurred for obtaining
replacement services resulting from BI caused by a covered accident.
What is Collision Coverage?
Collision provides coverage to the insured auto should the insured
be at fault in a covered accident. Though optional, collision is
required by financing companies. Subject to deductible of insured's
choice.
What is Comprehensive Coverage?
Comprehensive provides coverage for damages other than collision.
Examples are theft, vandalism, hail damage , and collision with an
animal. Though optional, comprehensive is required by financing
companies. Subject to deductible of insured/s choice.
What is Rental Reimbursement?
Rental car reimbursement covers a rental vehicle as a result of a
covered accident.
What is Towing/Labor?
Towing/Labor is reimbursement for towing or roadside assistance per
disablement.
Should I carry full coverage or liability only on my vehicle?
After your vehicle has reached a certain age and value, dropping
collision and comprehensive coverage off of your policy is always an
option. |
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