Commercial Vehicles Commercial Property Liability Auto Insurance Homeowners Insurance Life & Health Glossary

What are the different types of auto insurance coverage?
Auto policies typically consist of three components. The liability component protects you in case you're responsible for an accident. Medical payments coverage pays the medical and hospital bills (up to a limit) for you and your passengers. The collision/comprehensive component covers damage to your car if you're in an accident, if the car is stolen, or if vandals or fire damage the car.

How can I reduce my auto insurance premiums?
There are a number of ways to do this:

• Combine your home and auto coverages, and the carrier may give you as much as a 10% credit.
• Boost your deductible or consider reducing your physical damage coverage for an older car.
• Ensure you're receiving credits for safety devices like airbags, anti-lock brakes and alarm systems.
• Consult your agent before shopping. The cost of insuring otherwise similar cars can vary widely.

Why is there medical-payments coverage under my car insurance policy?
This coverage is designed to take care of immediate medical expenses without admission of liability.

What does comprehensive coverage cover?
This covers damage caused to the owner's car against an array of risks, including fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion.

What is collision coverage?
Collision covers damage caused when another car or object collides with the owner's car.

If I rent a vehicle, am I covered or do I need to purchase additional insurance?
It depends. The coverage - and limits - you currently have on your personal car applies to your rental. If you don't carry physical damage coverage on your car, don't want to be responsible for your deductible, or are renting a vehicle other than a private passenger car, pickup, van or trailer (e.g., a moped, camper or motorcycle), you may want to check with your credit card company or the rental agency about additional coverages they offer.

It is important to understand that although the damage to the rental vehicle may be covered, you can be held responsible for loss of rental income incurred by the rental agency for their vehicle being out of service. Your insurance does not respond to this exposure.

Do I have coverage for a rental vehicle outside the United States?
Your automobile insurance policy extends only to the United States, its territory possessions and Canada.

What is the rental coverage addition on my automobile policy?
If you're renting a car because yours is being repaired after a collision, rental coverage will reimburse your rental expense, up to a specified dollar amount per day, up to the maximum specified in your policy.

I drive a company car. How does this affect my insurance?
Unless specifically stated otherwise, your personal policy doesn't cover you for a vehicle that's available for your regular use. Since all auto insurance follows the vehicle first, your employer's coverage is the primary coverage, and you receive only the coverage your employer has chosen. For example, your employer's coverage doesn't protect you against liability for injuries to a fellow employee; however, your personal auto policy can be endorsed to provide this coverage at a very reasonable rate. Contact your agent for more details.

Am I covered if I tow a trailer?
The liability on the trailer always follows the vehicle coverage. If you'd like physical damage coverage for the trailer, you'll need to purchase it.

If another person borrows my vehicle, do I have coverage?
The insurance follows the vehicle, not the person. If another person borrows your vehicle with your permission, but doesn't do this on a regular basis, the vehicle is covered.

Is my child covered if s/he has a learner's permit? When do I have to add my child to my policy?
Your child is covered while operating your automobile on a learner's permit, but needs to be added when s/he receives a driver's license.

I have an older car. Do I need collision and/or comprehensive coverage?
It may not be cost effective to have collision or comprehensive coverages on an older car, depending on its value.