WHAT DOES AUTO INSURANCE COVER?

Additional Equipment: This generally refers to equipment that is not the vehicle’s factory-available equipment. This covers customization of your vehicle done after the factory releases the car to the dealer. If you tend to personalize your car with special wheels and custom interiors, discuss this with your agent—you can cover the cost. 

Auto Death Individual and Specific Disability: This provides a specific amount of coverage in the event of death or specified disability of you as the named insured or of your family members due to an accident. Not all carriers offer this coverage.

Bodily Injury: Bodily injury liability coverage pays in the event that you are legally obligated to pay damages after having caused bodily injury to others in an accident (i.e., a covered loss). Coverage amounts are selectable as a combined single limit (CSL) such as $500,000 or in split limits (such as 250/500/100, etc.). With split limits, the first limit (250) indicates the maximum amount (in thousands of dollars) that can be paid in any one accident to any one person for injury or death. The second limit (500) indicates the maximum amount (in thousands of dollars) that can be paid in any one accident (occurrence) for all persons for injury or death. The third figure (100) is for property damage to house, cars, light posts, etc. In contrast, a CSL policy offers one lump sum to pay for all of the above. Your bodily injury policy also provides for legal defense costs, subject to provisions in the policy.

Collision: This covers physical damage to your insured vehicle (less any deductible selected) when the damage is caused by a collision with another car or object as defined in the policy.

Comprehensive: This covers your insured vehicle for physical damage arising from perils other than collision. Examples are theft, fire, earthquake, hitting an animal while driving, and vandalism. 

Broad Form Drive Other Car (BDOC): This provides coverage if you regularly use a company car. Discuss details with your agent. 

Extended Theft/Stereo/Tapes: This covers direct and accidental losses to stereo and sound transmission or receiving equipment and accessories that are subject to the provisions of the policy. The comprehensive coverage deductible does not apply to these items. If you have upgraded your sound system after market, you can insure it for theft.

Glass Deductible Buyback: This coverage limits or eliminates the comprehensive coverage deductible for a glass claim. Examples of a glass claim include a chipped, cracked, or pitted windshield. My son was mowing our lawn, and the lawn mower hit a small rock, which flew into the car’s side window, shattering the glass.

Medical Coverage: This is the reasonable cost for necessary medical services, up to the specified amount, due to bodily injury sustained by an insured person or passenger in a covered vehicle accident.

Property Damage: Property damage liability coverage will pay for accidental property damage caused by you as an insured driver to someone else’s property when you are legally responsible. The policy also provides for legal defense costs, subject to provisions in the policy. Examples of property damage include damage to cars, buildings, street lights, and guard rails. I’ve seen huge claims to repair guard rails and buildings that would normally be a small claim for the damage done to the car. This is another reason to have umbrella liability that also covers property damage. 

Rental Package–MH/Truck/Van Camper: This provides coverage as specified in the endorsement when you drive a rented motorhome, truck, van, camper, or other specified rented vehicle. 

Rental Reimbursement Coverage: This coverage reimburses you for either actual daily rental charges or the purchased limit (whichever is lesser) for a qualified disablement on a covered vehicle. A qualified disablement means that the loss is covered by the comprehensive or collision sections of your policy. Rental reimbursement may be purchased for any vehicle covered by comprehensive and collision coverage. The limit can typically be purchased in varying amounts, such as $50 or $100 a day. If you don’t have another car to drive when your car is in the shop due to an accident, be sure to have car rental coverage. 

Rental Trailer/Camper Unit: This provides coverage as specified in the endorsement for a rented trailer or camper that is towed or attached to your insured vehicle or other specified rented vehicle. 

Trailer coverage:  Most auto policies will cover the trailer for liability damages only.  

Loan/Lease Gap Coverage: This covers the additional cost of terminating a finance contract on your insured vehicle in the event of a total loss. For example, if you owe more on your vehicle than the fair market value and the car is totaled, residual debt coverage will cover the amount that you still owe. 

Towing and Road Service: This covers reasonable and necessary towing and labor costs incurred because of the disablement of your insured car. Uninsured Motorist Property Damage: This pays up to the limit on the policy to repair your car if hit by an uninsured driver. 

Uninsured Motorist Bodily Injury: This is personal auto insurance that provides coverage for injuries if the insured is involved in an accident with an uninsured, at-fault driver. 

Vehicle Manufacturer Replacement Parts: Also known as “original equipment manufactured,” this provides for replacement of new property or parts made by the original manufacturer, if available. If you want new parts that are made only by the manufacturer of your car, buy this endorsement. Otherwise, your policy will allow rebuilt parts, after-market parts, recycled parts, and parts made by companies other than your carmaker. These after-market parts are not a bad thing and are typically warranted by your carrier for as long as you own your car. However, if you’re a car buff, you may prefer to pay the extra premium to make sure your car is 100 percent the way you want it.

Please note that coverage options and discounts vary by state. Limits and exclusions apply. One of our team members will be able to assist you with further details on the provided quotes.

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