Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. There are several different coverage's which make up the policy. The coverage is Bodily Injury and Property Damage, Medical Payments, Uninsured and Underinsured Motorist, Comprehensive, Collision, Road Service and Rental Reimbursement.  There can be some additional coverage offered depending on the company.

Auto insurance provides property, liability, uninsured/underinsured motorist, medical coverage, comprehensive, collision, road service and rental reimbursement:

·         Collision and Comprehensive coverage pays for damage to or theft of your car.

·         Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

·         Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

·         Uninsured and Underinsured Motorist pays for your bodily injury caused by the negligent third party as a result of an accident.

·         Road Service typically pays for towing to the nearest repair shop, delivery of gas, change of a tire or jump start.

·         Rental Reimbursement pay for car rental while your car is in the shop due to a covered comprehensive or collision loss. 

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.

Posted 11:28 AM

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