What is Auto Insurance, and what does it cover?
Auto Insurance, like it sounds, is insurance designed to cover automobiles. However, it’s not just autos
that are covered by auto insurance. When we use the term “auto insurance” in the insurance industry,
what we really mean is insurance for road licensed vehicles. This includes trucks. Depending on the
policy, it can include motorcycles. Auto insurance policies can also cover trailers.
All auto insurance policies provide liability protection for the use of the vehicle covered. It covers
negligence like failing to control the vehicle as well as loading and unloading claims. The policy can be
written to provide medical payments coverage for those in the vehicle, regardless of fault. And the
policy can also include coverage for the vehicle itself; referred to as “full coverage.”
When talking about auto insurance, it’s important to understand that there is a difference between a
Personal Auto Policy and a Commercial Auto Policy. In addition to the coverages just discussed, the
Personal Auto Policy also provides certain additional protection for the Named Insureds on the policy.
For example, the Named Insureds get coverage by the policy in any vehicle they drive. They also get
coverage for certain claims resulting from exposures they face as a pedestrian.
Why is Auto Insurance Important?
There are three significant reasons this coverage is important.
- Obviously, if you or your company owns a vehicle, auto insurance is very important because it’s
very possible to have an accident that causes serious bodily injury or property damage. All it
takes is hitting a patch of ice for your vehicle to go in an unintended direction and injure
someone else. If this happens, you need protection so you don’t lose everything you own. - In addition, even if you don’t own a vehicle, you still may find yourself needing to drive for
someone else or moving about as a pedestrian. The Personal Auto Policy covers this exposure. - Finally, in most communities, the purchase of auto liability insurance is a requirement to get a
vehicle licensed. As such, every vehicle owner must have coverage.
- Obviously, if you or your company owns a vehicle, auto insurance is very important because it’s
Here are some common types of coverage that can be provided in an Auto Insurance Policy:
- Bodily Injury Liability: Coverage is provided for bodily injury claims to others hurt in a covered
accident. Bodily injury includes medical bills, lost revenue, and pain and suffering claims. - Property Damage: This includes both damages to other vehicles as well as real property that
may become damaged because of a covered loss. - Medical Payments: This coverage is provided for the driver and those in the vehicle, regardless
of fault. The coverage is typically meant to provide for heath insurance deductibles and things
that the driver’s medical insurance may not cover. Coverage also applies for loss of life. - Comprehensive/Other-than-collision Coverage: This is physical damage coverage for the
vehicle itself for a variety of claims – usually other than collision. For example, theft, vandalism,
acts of nature are all things that Comprehensive coverage provides for. In addition, collision with
animals is also covered by Comprehensive Coverage. - Collision Coverage: As the name suggests, this coverage is for the vehicle insured from claims that are the result of a collision.
- Rental Reimbursement: This coverage provides a dollar amount for the obtaining of a rental vehicle in covered accidents where the vehicle cannot be driven.
- Towing and Roadside Assistance: As the name suggests, this coverage provides the owner with resources in the event of a breakdown of the insured vehicle.
- Bodily Injury Liability: Coverage is provided for bodily injury claims to others hurt in a covered
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and
finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your investment and minimize financial risks with Commercial General Liability Insurance.
Contact our team today to learn more about our insurance solutions and how we can help safeguard
your ownership or business interests.