More than just
a proof-of-insurance card.
Auto insurance is designed to protect you from the financial consequences of an accident, damage to your vehicle and certain other unexpected losses. The important part is understanding what each coverage does before you ever need to use it.
Understanding the main parts of your policy.
An auto policy is really a collection of separate coverages. Some protect other people when you cause an accident. Others protect you, your passengers or your own vehicle. Your limits, deductibles and optional coverages determine how much protection you actually have.
Liability coverage.
Liability is the foundation of an auto insurance policy. It generally applies when you are legally responsible for an accident.
Bodily Injury Liability
Helps pay for covered injuries to other people when you are legally responsible for an accident. It may also help with certain legal defense costs, subject to the policy terms.
Property Damage Liability
Helps pay for covered damage you cause to someone else’s vehicle or other property, such as a fence, building or utility pole.
What do numbers like 100/300/100 mean?
A limit shown as 100/300/100 commonly represents up to $100,000 of bodily injury coverage per person, $300,000 per accident and $100,000 of property damage coverage per accident. Exact policy wording and available limit structures vary by insurer and state.
Coverage that helps protect you.
Not every driver on the road carries enough insurance. Other parts of your policy may help protect you and your passengers when the other driver cannot.
Uninsured Motorist
May help protect you if you are injured or your covered property is damaged by a driver who has no insurance, depending on the coverage purchased and state rules.
Underinsured Motorist
May help when an at-fault driver's liability limits are not enough to cover a covered loss.
Medical Payments
Can help pay certain medical expenses for you and your passengers after a covered auto accident, regardless of who caused it.
Personal Injury Protection
In states where it is available or required, PIP can help with covered medical costs and may include other benefits such as lost income. Availability and benefits vary by state.
Protecting your own vehicle.
Liability coverage does not pay to repair your own car. Collision and comprehensive are the coverages that are generally used to protect the vehicle itself.
Collision
Helps pay to repair or replace your covered vehicle after a collision with another vehicle or object, subject to your deductible and policy terms.
If you finance or lease your vehicle, your lender or leasing company will typically require physical damage coverage.
Comprehensive
Helps cover many types of non-collision losses, such as theft, vandalism, fire, falling objects, weather-related damage and contact with an animal.
Comprehensive coverage also generally has a deductible, although glass treatment can vary by insurer and state.
Optional coverages worth considering.
These coverages may not be included automatically, but they can make a significant difference when something goes wrong.
Rental Reimbursement
Helps with the cost of a temporary rental vehicle while your covered vehicle is being repaired after an eligible loss.
Roadside Assistance
May help with towing, jump starts, lockouts, flat tires and other roadside emergencies, depending on the plan.
Loan / Lease Payoff
May help reduce the gap between your vehicle's covered value and the amount you still owe on a loan or lease after a total loss, subject to policy terms.
Glass Coverage
Some insurers offer special glass deductibles or full-glass options for covered windshield and window damage.
New Car Replacement
Some policies offer enhanced settlement options for qualifying newer vehicles after a covered total loss.
Custom Equipment
Additional coverage may be available for certain permanently installed aftermarket equipment or vehicle modifications.
What should you review?
- Your bodily injury and property damage liability limits
- Your uninsured and underinsured motorist protection
- Your comprehensive and collision deductibles
- Whether rental reimbursement is included
- How much you would owe after a total loss on a financed vehicle
- Which drivers and vehicles are actually listed on the policy
Price is only one part of the quote.
Two auto policies can have similar premiums but very different liability limits, deductibles and optional coverages. Comparing the total policy instead of only the monthly payment can help you understand what you are actually buying.
How it works.
Tell Us About Your Vehicles
Provide basic information about the drivers, vehicles and your current coverage.
Review the Coverage
We help you understand the limits, deductibles and important differences between options.
Choose What Fits
Select coverage based on your needs, budget and the amount of risk you want to retain.
Ready to review your auto insurance?
Whether you are shopping for a better rate, buying another vehicle or simply want a second look at your current coverage, D. King Agency can help you compare your options.