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. Auto insurance provides property, liability and medical coverage:
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Comprehensive and Collision Coverage
Comprehensive and Collision coverages are the two main coverages that provide physical coverage for your vehicle. This coverage covers all losses to the insured vehicle except upset or collision and certain other exclusions. It includes losses such as deer hits, theft, and glass breakage. There are three different forms of collision coverage. They are: Limited, Regular and Broad.
No-Fault Collision Coverage
Limited Collision Coverage – Limited Collision will pay for collision damages when the driver of your insured vehicle is not more than 50% of the cause of the accident. If the driver of your insured vehicle is more than 50% of the cause of the accident, insurance will not pay for collision damages.
Regular/Standard Collision Coverage – Regular Collision will pay for collision damages to your insured vehicle, regardless of who is responsible for the accident. You must pay a deductible for each accident.
Broad Form Collision Coverage – Broad Collision will pay for collision damages to your insured vehicle, regardless of who is responsible for the accident. However, if the driver of your insured vehicle is NOT more than 50% of the cause of the accident, your deductible is waived.