Business & Commercial Insurance

What Is Auto Insurance?

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.

What Does Auto Insurance Cover?

Auto insurance provides three main types of coverage:

• Property coverage – Pays for damage to or theft of your vehicle
• Liability coverage – Pays for your legal responsibility for bodily injury or property damage to others
• Medical coverage – Pays for medical treatment, rehabilitation, and sometimes lost wages or funeral expenses

Types of Auto Insurance Coverage

An auto insurance policy is typically made up of six different kinds of coverage. Most states require you to purchase some, but not all, of these coverages. If you are financing a vehicle, your lender may require additional coverage.

Policy Term and Renewal

Most auto insurance policies last for six months or one year. Your insurance company will notify you when it is time to renew your policy and pay your premium.

Why Do You Need Auto Insurance?

Auto insurance is essential for protecting yourself financially.

• Repairing or replacing a vehicle after an accident or theft can be expensive
• Medical costs for injuries can be very high
• You may be sued if you cause injury or damage to others
• Most states require at least minimum auto insurance coverage by law

Questions to Ask Your Agent

Your independent agent can help you find coverage that fits your needs. Consider asking:

• How much can I afford to pay out-of-pocket after an accident?
• What is the company’s reputation for customer service and claims payment?
• What discounts are available, such as good driver or multi-policy discounts?
• What is the process for filing and settling a claim?