Understand Your Auto Coverage Options

Auto insurance provides protection for your car, you and your passengers, and your finances.

Liability

What is it?

Liability coverage helps protect you from damage you may cause as a result of your negligence in an accident. Liability consists of Bodily Injury Liability and Property Damage Liability.

The first part:

Bodily Injury Liability helps pay for losses if you are at fault in an accident and are legally responsible for others' injuries.

When choosing this coverage you should consider the cost of medical expenses, such as hospital bills and rehabilitation. If the accident is severe, you could be held responsible for medical expenses that exceed your coverage limit.

The second part of liability:

Property Damage Liability helps pay for losses if you are at fault in an accident and are legally responsible for another's property damage.

When choosing this coverage you should consider the costs of repairing multiple vehicles, a fence or even a home. If the accident is severe, you could be held responsible for property damage expenses that exceed your coverage limit.

 

Example: You cause an accident, and the other vehicle is considered a total loss. If you have a limit of $25,000 and the value of the other vehicle is $30,000, this coverage would pay up to the limit of $25,000. You could be responsible for the additional $5,000. Any damage to your car would be paid under the optional Collision Coverage.

Uninsured/Underinsured Motorist

What is it?

Uninsured/Underinsured Motorist Bodily Injury helps provide for medical expenses for you and your passengers if you are injured by a driver who does not have any, and in some cases not enough, insurance. (States regulate what options are available.)

Uninsured/Underinsured Motorists Property Damage Coverage helps cover costs related to damage to your insured vehicle (and in some states personal property carried in the vehicle), if the vehicle is damaged by a driver who does not have any, and in some cases not enough, insurance.

Medical Payments

What is it?

Medical Payments is optional in most states. If you have an accident, it helps pay for medical, dental and funeral expenses for you or any other person riding in your covered vehicle, regardless of who is at fault.

Example: You and your passenger are injured in an auto accident. Your reasonable and necessary medical expenses total $25,000 for you and $10,000 for your passenger. If you have a $25,000 Medical Payments limit, both of your injuries would be covered, since the limit applies to each person injured.



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