Personal Automobile Policy
Common auto insurance terms
In most states, liability coverage is mandatory, and other
coverages, like collision, are optional. If your car is leased or
financed, you may be required to buy certain coverage limits.
Discuss your insurance needs with your local independent
agent or broker to be certain you have the coverages you need.
Here’s a brief overview:
Collision Coverage
Collision coverage pays for damages if your vehicle collides with
another vehicle or object. Collision coverage is subject to a
deductible, which is the amount that you pay out of pocket before
your insurance company covers the remaining costs. You can
choose the amount of your deductible. The most frequently
selected deductible amount is $500. Typically, the lower the
deductible, the more you pay toward your overall policy premium.
Comprehensive Coverage
Comprehensive coverage pays for damage caused by an event
other than a car collision, such as fire, theft, vandalism, hail, or
flood. Comprehensive also covers damage to your car if you hit
an animal, and it covers the cost of a rental if your car is stolen.
Like collision coverage, comprehensive coverage includes a
deductible amount (typically the same amount you choose for
collision).
Liability Coverage
Bodily Injury and Property Damage liability covers your legal
liability for damages caused in a covered motor vehicle
accident. If the insurer covers an accident for which you are
sued, it also pays for a lawyer to defend you.
You can choose the limits that apply to your liability coverage,
and you can choose whether those limits are divided or
combined. Split Limits divide Bodily Injury Liability limits per
person and per accident. (For example, $100,000/$300,000
means that the insurer will pay up to $100,000 for Bodily Injury
liability per person in a covered crash and up to $300,000 per
crash.) For Property Damage liability, the insurer pays up to the
limit you select per accident. A Combined Single Limit combines
your liability coverage into one total limit per accident (in this
example, $300,000).
Personal Injury Protection
Personal Injury Protection (PIP) is available in certain states and
is commonly referred to as “no-fault insurance”. PIP covers your
medical bills and often lost wages. PIP usually also covers the
cost of personal services that you must pay someone else to do
for you as a result of a car accident.
Medical Payments Coverage
Medical Payments coverage applies no matter who is at fault
and covers the cost of reasonable and necessary medical care
provided to you as a result of a car accident.
Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist coverage pays for damages
that you’re legally entitled to recover for your bodily injury in the
event that the person who caused the damage does not have
any insurance or does not have enough insurance. Typically, this
coverage provides coverage equal to your liability limits.
Rental Reimbursement
If you buy Rental Reimbursement coverage, you will be
reimbursed for rental car charges incurred while your vehicle is
being repaired after a covered accident. You can buy Rental
Reimbursement coverage only if you also buy Collision and
Comprehensive coverage.
Roadside Assistance
Roadside Assistance covers the cost of a towing service (to the
nearest qualified repair facility) or other service provider if your
car breaks down, gets a flat tire, has a dead battery, runs out of
gas, or becomes stuck in the snow or mud. This coverage also
includes the cost of an auto locksmith if you’re locked out of your
car.
Transport Trailer Coverage (motorcycle, all-terrain vehicle,
snowmobile)
Transport Trailer coverage provides Physical Damage coverage
for a non-motorized trailer designed to be towed on public roads
by a land motor vehicle and is principally designed for
transporting the insured motorcycle or off-road vehicle.
Accident Prevention Course
Accident Prevention Course (APC), also known as and
Defensive Driver’s Course (DDC), is a New York DMV-approved
Point and Insurance Reduction Program (PIRP). NY drivers
who completed this 6-hour course receive a 5% discount off the
liability, collision, and no-fault insurance (PIP) premiums for 3
years, and may reduce up to 4 points on the driving record.
NJ drivers receive a 5% discount for 3 years and may reduce up
to 2 points on their records.
Common auto insurance terms
In most states, liability coverage is mandatory, and other
coverages, like collision, are optional. If your car is leased or
financed, you may be required to buy certain coverage limits.
Discuss your insurance needs with your local independent
agent or broker to be certain you have the coverages you need.
Here’s a brief overview:
Collision Coverage
Collision coverage pays for damages if your vehicle collides with
another vehicle or object. Collision coverage is subject to a
deductible, which is the amount that you pay out of pocket before
your insurance company covers the remaining costs. You can
choose the amount of your deductible. The most frequently
selected deductible amount is $500. Typically, the lower the
deductible, the more you pay toward your overall policy premium.
Comprehensive Coverage
Comprehensive coverage pays for damage caused by an event
other than a car collision, such as fire, theft, vandalism, hail, or
flood. Comprehensive also covers damage to your car if you hit
an animal, and it covers the cost of a rental if your car is stolen.
Like collision coverage, comprehensive coverage includes a
deductible amount (typically the same amount you choose for
collision).
Liability Coverage
Bodily Injury and Property Damage liability covers your legal
liability for damages caused in a covered motor vehicle
accident. If the insurer covers an accident for which you are
sued, it also pays for a lawyer to defend you.
You can choose the limits that apply to your liability coverage,
and you can choose whether those limits are divided or
combined. Split Limits divide Bodily Injury Liability limits per
person and per accident. (For example, $100,000/$300,000
means that the insurer will pay up to $100,000 for Bodily Injury
liability per person in a covered crash and up to $300,000 per
crash.) For Property Damage liability, the insurer pays up to the
limit you select per accident. A Combined Single Limit combines
your liability coverage into one total limit per accident (in this
example, $300,000).
Personal Injury Protection
Personal Injury Protection (PIP) is available in certain states and
is commonly referred to as “no-fault insurance”. PIP covers your
medical bills and often lost wages. PIP usually also covers the
cost of personal services that you must pay someone else to do
for you as a result of a car accident.
Medical Payments Coverage
Medical Payments coverage applies no matter who is at fault
and covers the cost of reasonable and necessary medical care
provided to you as a result of a car accident.
Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist coverage pays for damages
that you’re legally entitled to recover for your bodily injury in the
event that the person who caused the damage does not have
any insurance or does not have enough insurance. Typically, this
coverage provides coverage equal to your liability limits.
Rental Reimbursement
If you buy Rental Reimbursement coverage, you will be
reimbursed for rental car charges incurred while your vehicle is
being repaired after a covered accident. You can buy Rental
Reimbursement coverage only if you also buy Collision and
Comprehensive coverage.
Roadside Assistance
Roadside Assistance covers the cost of a towing service (to the
nearest qualified repair facility) or other service provider if your
car breaks down, gets a flat tire, has a dead battery, runs out of
gas, or becomes stuck in the snow or mud. This coverage also
includes the cost of an auto locksmith if you’re locked out of your
car.
Transport Trailer Coverage (motorcycle, all-terrain vehicle,
snowmobile)
Transport Trailer coverage provides Physical Damage coverage
for a non-motorized trailer designed to be towed on public roads
by a land motor vehicle and is principally designed for
transporting the insured motorcycle or off-road vehicle.
Accident Prevention Course
Accident Prevention Course (APC), also known as and
Defensive Driver’s Course (DDC), is a New York DMV-approved
Point and Insurance Reduction Program (PIRP). NY drivers
who completed this 6-hour course receive a 5% discount off the
liability, collision, and no-fault insurance (PIP) premiums for 3
years, and may reduce up to 4 points on the driving record.
NJ drivers receive a 5% discount for 3 years and may reduce up
to 2 points on their records.
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MY Insurance Agency
The materials on this website are meant to
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.