When you buy an auto insurance policy, you’re buying a package of individual coverages. Each coverage protects you against different types of losses. Once you understand the various coverages, you can decide which ones to include in your personal insurance package. You can also determine the limits of coverage you will need. The following are some common coverages found in an auto policy.
NOTE – Your policy may not contain all these coverages.
Our auto policies include everything you’d expect and a lot of things you might not.
A deductible is the amount you pay before the insurance starts to pay for your loss. Since the purpose of insurance is to pay for the losses you cannot afford, raise your deductible to a limit that you could handle in case of a loss.
If your home is less than 10 years old, you may be eligible for a new home discount.
You may be eligible for a discount if you have burglar and fire alarm systems and/or sprinkler systems. Monitored systems will earn a bigger discount than unmonitored systems.
Comprehensive Physical Damage Coverage pays, up to the coverage limits, for damage to your vehicle or any vehicle in your custody resulting from theft, fire, vandalism, flooding, hail or other perils (but not damage by collision or overturning). It is usually required if you have a vehicle loan.
Medical Payments Coverage pays, up to the coverage limits, for reasonable and necessary doctor, hospital and funeral expenses for you and your passengers injured or killed in an accident, regardless of who is at fault. Payments are usually limited to one to three years after the accident. This coverage is optional in most states without no-fault insurance systems.
Rental Reimbursement pays up to a specified amount for rental vehicle charges while your vehicle is being repaired for damage covered under your policy. If you prefer not to incur the cost of renting a vehicle yourself and cannot be without a vehicle while yours is being repaired, you might consider this coverage.
Uninsured/Underinsured Motorists (UM/UIM) Coverage pays, up to the coverage limits, for pain and suffering, which is not covered by medical, disability and personal injury protection. Underinsured motorist coverage pays for bodily injury to you or your family resulting from the negligence of someone whose liability insurance limits are insufficient. The definition of an underinsured motorist varies from state to state.
Towing and Labor covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. It covers the delivery of gas, oil or a battery, but not the cost of these items. If you lock the keys in the vehicle or need a tire changed, this may also be covered. These services are often included in auto club memberships, which can result in unnecessary duplicate coverage.
Condominiums and townhouses have special insurance needs.
They don’t need as much insurance as a house, but owners have more to insure than a renter. The insurance needs for a condo owner include personal property and liability coverage. Special policies for condominium owners, known as form HO-6, will provide the liability and personal property protection a condominium owner needs.
Condominium owners need to insure not only their personal possessions in the condo, but also any built-in units such as cabinets, fixtures, appliances and shelves. In addition to covering the personal property, a condo owner also needs liability coverage. The liability portion of the policy would cover injuries or damage to people or property that the condo owner would be liable for.
A common practice for RV owners is to insure their RV under their current auto policy. But too often the owner does not take the time to read what and how much is covered under their auto policy. In many instances, RV’s covered under auto policies are not adequately covered.
One misconception RV owners have is that the personal property in their RV will be covered under their homeowner’s policy. This is true, but, coverage on personal property is limited when the property is kept somewhere other than the “residence premises.” Often the limit in a standard policy is very low and the usual policy deduction would apply.
To insure proper and adequate coverage, a RV owner should add a separate RV coverage to their current auto policy or secure a policy specifically for RV’s.
If the RV owner’s insurance carrier does not have this type of coverage available, there are insurance companies that specialize in RV coverage. Usually the cost is minimal, especially compared to the alternative of finding out the RV and its possessions are not covered after a loss occurs.
You can count on our agents to help you make good decisions about your insurance protection.
Our agents live and work within our communities. With two offices in Southern Illinois, we are always close.
You might be uneasy about starting a claim, but our agents will guide you through the claims process.