Insurance 101

Who is covered under an auto policy?

Your policy covers you, your spouse, other relatives who live in your household and others who have permission to drive one of your covered vehicles. In a No-fault insurance state, your own policy would provide coverage for bodily injury and/or property damage without regard to fault. Some policies have Named Operator provisions which requires that all drivers must be listed on the policy to be covered.

What is covered under the Liability coverage of my policy?

The Liability coverage in your auto policy pays damages which an insured becomes legally liable to pay because of bodily injury damage to others and property covered by an accident resulting from the ownership, maintenance or use of your car. Most state laws require that you carry a minimum amount of liability insurance. The California minimum for Bodily Injury is $15,000 per person and $30,000 per accident.

Are there other, optional coverages available?

Once you’ve met the minimum legal liability requirements, you should select other types and amounts of coverage to tailor your policy to your own needs. In addition to Liability coverage to protect you when you do damage to others, here’s what an auto policy may cover:

•Damage to your car.
Your car may be covered against collisions it may have with any other object, if you select collision coverage. Your car may also be covered against damage caused by other events such as vandalism, theft, broken glass, storms and falling objects, if you select “other than collision” coverage.

•You and your passengers against uninsured or underinsured motorists.
If you’re hit by someone who either doesn’t have insurance or doesn’t have enough insurance to cover the accident, uninsured motorist coverage and underinsured motorist coverage may provide additional protection. (In some states this coverage is mandatory.)

•You and your passengers for medical costs.
Your policy may provide coverage for reasonable and necessary medical and/or funeral expenses incurred as a result of injuries sustained in an accident, if you select medical payments coverage and/or, if available in your state, personal injury protection coverage.

•Towing and rental reimbursement.
Reimbursement for towing each time a covered auto is disabled up to a specified company limit. This coverage does not apply to towing of a covered auto due to a parking violation. Also included in motorist protection is emergency transportation. The company will reimburse an insured (up to a company specified limit) for the costs of emergency transportation from the place of a covered accident arising out of the operation, maintenance or use of a covered auto to:

Such place as the emergency may require
The intended destination
The insured’s residence