What is auto insurance?

Automobile insurance covers motorized vehicles, which require a separate policy for property damage and liability. Motorized vehicles are not covered under a homeowners insurance policy for property damage and/or bodily injury liability situations when operated away from an insured's premises.

Insurance companies look at many details when setting the price for insurance policies. Price alone should not be the basis of your decision. There are other factors to consider, including quality of service provided, the claims process, policy provisions, and coverage limits.

Benefits of auto insurance:

Comparing auto insurance policies is a good idea. Rates can vary in price depending on the insurance company. Be sure to compare the same combinations of coverage from each company. With auto insurance, there usually six types of coverage:

• Bodily Injury Liability - Pays your legal bills and claims against you if your car is involved in the injury or death of another person. The coverage extends to others driving your car if they are using the car with your permission.
• Medical Payments - Pays accident-related medical expenses for you and your passengers. Also pays if you or your family members are injured while riding in another's car or are struck by a car while walking.
• Uninsured/Underinsured Motorist - Pays for costs related to property damage or injuries to you, your family members, or guests in your car if the damage or injuries are caused by an uninsured, underinsured, or hit-and-run driver.
• Property Damage Liability - Pays your legal defense costs and claims against you if your car is involved in damage to another's property. Does not cover your property, including you auto.
• Collision - Covers damage to your car caused by a collision with another vehicle or any other object, regardless of whom was responsible.
• Comprehensive Physical Damage - Covers damages to your car resulting from theft, fire, hail, vandalism, or a variety of other causes.