What does Automobile Insurance Cover?

Liability Coverage: This coverage is provided for the listed drivers and auto on your policy. The liability coverage provides funds up to the limit of the policy to settle the at fault claim on your behalf. If you do not have liability insurance or enough liability insurance to pay a claim, the party that was damaged, (due to your negligence), may go after you personally. The most important item to remember is that you need to have the liability limits higher than your personal assets. If not, you may have to sell your personal possessions to pay for your claim.

Medical Payment: This coverage allows the party that was injured within your auto to have their medical bills paid due to injuries sustained within your vehicle. The payments would be paid up to the limit of the medical payments coverage and are subject to the policy language. Make sure you understand this coverage and its limitations, conditions and exclusions before you buy it.

Comprehensive: Provides coverage for accidental damage to your vehicle for most causes, except collision or upset. This coverage is subject to a deductible.
Full Glass Coverage: This coverage waives the deductible for any broken glass on your auto. Some policies restrict this coverage to certain types of claims and specific pieces of glass on your auto, while excluding other pieces of glass.

Collision: Provides coverage for accidental damage to your vehicle caused by collision or upset. This coverage is also subject to a deductible

Uninsured Motorist: This coverage provides protection up to the policy limits for payment of legally collectable damage for bodily injury or death caused by another vehicle that is not properly insured.

Underinsured Motorist: This provides the same coverage as Uninsured Motorist up to the policy limits, except that it provides the coverage if the other vehicle does not have sufficient coverage to pay the full amount of your loss for bodily injury.

Towing Coverage: This is a reimbursement coverage that pays for towing to the nearest repair facility up to the limit of the coverage. It is important to understand the limitations, conditions and exclusions for this coverage.

Rental Car Expense: This coverage pays for a rental car while your car is in the shop being fixed due to a covered loss.

Dwelling: This coverage provides funds to repair or replace your home up to the limit of the policy if it is not a guaranteed replacement policy. Not all home insurance policies are the same. Some offer replacement cost, while others offer replacement cost up to a certain limit. It is important to understand what it will take to replace your home. Failure to understand this important item may be the difference between having enough coverage to pay for rebuilding your home or not. There are many limitations, conditions and exclusions on this coverage. It is important to understand them all.

Personal Property: This is a coverage that provides monies to repair or replace your contents up to the limit of the policy. There are many limitations, conditions and exclusions on this coverage. It is important to understand them all.

Other Structures: This coverage is usually a percentage of the dwelling coverage, and can only be used for other structures for damages that fall within the scope of the policy. Most policies place other structure coverage limits at 10% of the dwelling amount.

Liability Coverage: This is a very important coverage. It provides coverage in case someone is hurt on your property. For example, if your dog bites someone, this coverage will pay for the medical expenses and all the damages associated with that claim. Failure to have enough coverage may create a financial loss for you. There are also additional options that would allow this coverage to be used. There are many limitations, conditions and exclusions on this coverage. It is important to understand them all.

Scheduled items: It is important to understand what items are covered under the base policy and which items may need to be specifically listed on the policy. Not all personal possessions are covered under the base part of the personal property coverage.

What is a Personal Liability Umbrella?

This policy was designed to provide coverage for losses that would have a higher dollar amount than your home or auto liability limits. If you have assets that are over your auto/home liability limits, this policy is crucial. If you do not have enough liability coverage, your personal assets may be at risk. This means that you may have to sell those possessions in order to pay for the damages that were caused due to your negligence.