What type of insurance coverage pays for damage to your vehicle from a crash with another car or an object (like a tree or pole)?
Collision coverage. This is typically optional unless you have a loan on your vehicle, in which case the lender usually requires it.
What kind of damage is covered by Comprehensive insurance?
Comprehensive (or "Other Than Collision") covers damage from non-crash events like theft, fire, vandalism, natural disasters (hail, flood), or hitting an animal.
What protection is provided by Uninsured Motorist (UM) coverage?
It covers your own medical bills and sometimes property damage if you are injured by a hit-and-run driver or a driver who has no auto insurance.
What is the purpose of Underinsured Motorist (UIM) coverage?
It fills the gap when you are injured by an at-fault driver whose liability insurance limits are too low to cover all of your medical expenses.
Define "deductible" as it relates to an auto insurance policy.
A deductible is the fixed amount you must pay out-of-pocket for a claim on your Collision or Comprehensive coverage before your insurance company begins to pay.
You have a \(\$1,000\) Collision deductible. If you cause an accident with \(\$4,500\) in damages to your car, how much will your insurance company pay?
The insurance company will pay \(\$3,500\). You are responsible for the first \(\$1,000\) (your deductible).
What do Medical Payments (MedPay) and Personal Injury Protection (PIP) coverages do?
They cover medical and funeral expenses for you and your passengers after an accident, regardless of who was at fault. PIP may also cover lost wages.
Is it generally advisable for drivers to purchase liability coverage with limits higher than the state minimum?
Yes. State minimums are often insufficient to cover the high costs of a serious accident. Higher limits provide greater financial protection from lawsuits.
What is 'Rental Reimbursement' coverage?
An optional coverage that helps pay for a rental car if your own vehicle is being repaired due to a covered claim under your Collision or Comprehensive policy.
