Automobile Insurance (Personal)

This coverage has two parts. The first is the liability section of the policy. It covers your financial responsibility for injuring others and some coverage is required by most states.

The second part covers the car itself: comprehensive coverage reimburses losses from fire, theft or other perils; collision coverage pays to repair losses caused by an accident. Often this coverage is mandated by leasing companies or banks. There are also ancillary medical, car rental and other coverages which vary by state.

Utilizing high deductibles on the physical damage coverages can help reduce premiums. If you carry umbrella insurance, you must be sure that you carry the required amount of basic liability insurance to avoid a gap in coverage for a serious accident.

Frequently Asked Questions

When my child gets his/her driver’s license must I add him/her to my insurance policy?

Yes. All licensed drivers living in the household need to be listed on the automobile policy unless they have their own automobile insurance elsewhere.

How can I get insurance for my motorcycle?

Motorcycle insurance can be obtained by adding a miscellaneous-type vehicle endorsement to your existing automobile insurance policy. This endorsement will also provide coverage for mopeds, motor homes, dune buggies and other such vehicles.

What should I consider when purchasing automobile or car insurance?

There are a number of factors you should consider when purchasing any product or service, and insurance is no different.

Here is a checklist of things you should consider when purchasing automobile insurance.

  • First, purchase the amount of liability coverage which makes sense for you.
  • Second, you should decide which optional coverages you want. For example, do you want the optional physical damage coverages in Part D or is the market value of your car too low to warrant purchasing them.
  • Finally, once you have decided what you want in your automobile insurance policy, you can now decide who you would like to purchase the insurance from. For example, you may decide you like the idea of purchasing insurance from a mutual company rather than a stock company.

I live in a state where I can elect either no-fault coverage or traditional tort coverage. Which one should I choose?

A number of states allow policyowners to choose whether they would like no-fault insurance or traditional tort coverage. Which one you choose depends upon your tolerance towards the risk that you may not be able to sue for pain and suffering damages in all accidents.

However, since the thresholds where you regain your tort rights are usually low, many policyowners choose the no-fault coverage because the premium can be substantially reduced by doing so.

When renting a vehicle, should I buy the insurance coverage offered by the car rental company?

If you have automobile insurance protection on your personal vehicles, you do not need to buy extra insurance.

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