Auto Frequently Asked Questions
What does Liability Coverage mean?
Liability covers you, up to your policy limits, from lawsuits if you are involved in an accident. This coverage provides protection even if you are driving another person’s vehicle. Once your policy limit is exceeded, defense coverage is no longer provided. Liability Coverage includes the following:
(1) Bodily Injury
Bodily injury coverage is typically sold as split limits, a limit for each passenger and an overall limit for the accident. For example, if you elect to purchase $250,000/$500,000 coverage, you have the following coverage maximum payouts in the event of an accident: $250,000 maximum payment to any individual involved in the accident, and $500,000 maximum payment for all individuals involved in the accident. The minimum limits for BI vary by state. Always check with your agent about risks associated with purchasing lower or minimum liability limits.
(2) Medical (applies to WI) or Personal Injury Protection (PIP, applies to MN)
This provides coverage for medical and/or funeral costs for you in the event of an accident, up to your policy limits. States are either Medical States or PIP states depending on their state law. Please check with your agents for a complete description on Medical Coverage and its relation to other existing Health/Life Coverage you may have.
(3) Property Damage
As the name implies, property damage covers you from any damages resulting to another person’s property in the event of an accident. For example, if you purchase $100,000 of Property Damage, the maximum amount paid for damage to other individual’s property would be $100,000 for the accident.
(4) Uninsured/Underinsured Motorist
Uninsured Motorist provides coverage for you if the other driver does not have insurance at all. Underinsured Motorist provides liability coverage for you if the other driver has liability limits that are lower than your policy limits.
What does Collision and Comprehensive Coverage mean?
These two coverage options provide compensation for damage to your vehicle if an accident should occur. Collision provides coverage in the event of an accident. Comprehensive provides coverage for damage from other perils such as storms, fire, theft, vandalism or malicious damage, flood, earthquake, birds or animals.
Comprehensive and Collision are sold with deductibles. A deductible is the amount you pay first. After the deductible has been reached, the insurance coverage provides payment for the additional amount of repairs/replacement needed. A typical deductible for Comprehensive and Collision is:
• $100 Comprehensive
• $250 Collision
It is very important that you consult with your agent to determine the best coverage for you. Depending on vehicle, age, driving record, income and many other factors, the right coverage will vary.
What is Gap Insurance Coverage?
In the event of a “total loss” gap insurance will pay the difference between the actual cash value of the car and what you owe on your loan or lease. When the balance of the loan or lease drops below the value of your vehicle, gap insurance is no longer necessary.
What is Rental Reimbursement Coverage?
If your vehicle is disabled due to an accident, rental reimbursement coverage helps you to pay the cost of having to rent a car while your vehicle is being repaired. Typical rental reimbursement coverage reads $30/$900; this means that you can be reimbursed up to $30 a day, not to exceed a total of $900.
What is Towing & Labor Coverage?
This coverage help you pay the cost you incur from having your car towed if it breaks down or from an accident, to the repair shop.
What is Full Glass Coverage?
This coverage means that you pay no deductible for the repair of replacement of safety glass on any vehicles with this endorsement.
I just bought a new car, am I covered?
Yes, If physical damage is required on the vehicle and physical damage exists on your current auto policy, you have up to 14 days. If you do not have physical damage already on your policy, you have up to 4 days to contact your insurance company.