All About Auto Insurance

Most states require you to carry some kind of auto insurance (or post a bond) when you operate a motor vehicle. You're also required to provide proof of insurance before you can license your vehicle or renew your driver's  license. Although coverage is mandatory, the amount and kinds of coverage can  vary.

Often, the required minimum coverage may not be enough to  adequately compensate your assets or your earnings. Your Salmeri Agent can help you understand your own state requirements and work with you decide what coverage you need. Here is a list of auto insurance topics you'll want to know about:

    Fault or No-Fault -- This depends on the law in your state.

    Collision -- Pays damages to your own vehicle. Generally, there is a  deductible.

    Comprehensive -- Pays for losses from fire, theft, storm, etc. Generally, there is a  deductible.

    Deductible -- The amount of a covered loss you agree to pay.

    Bodily Injury -- Pays for injury to others when you are at  fault.

    Property Damage -- Pays for property damage when you are at fault.

    Medical Payments -- Pays for your  own or your passenger's medical expenses.

    Personal Injury Protection -- In no-fault  states, this covers a broad assortment of medical expenses.

    Uninsured/Underinsured Motorist -- Pays for coverage to you if other driver is not insured or is underinsured.

    Mechanical Breakdown Insurance -- Pays for repairs, car rentals and more when breakdowns occur.

Fault or No-Fault
If you live in a no-fault state, your own insurance company pays for any loss or injuries to you,  no matter who causes the accident. In at-fault states, the person at fault in the accident or their insurance company pays.

With no-fault, most claims can be settled quickly, without litigation over who's at fault. However, No-Fault can limit your right to sue to  recover damages. Individual states set the coverage and place limits on your rights to sue, so check with your Salmeri Agent.

With a fault system, your right to sue is not restricted (nor is the other party's right to sue you). But, court cases assigning blame can take years to settle. Also, the costs of trying your case can be substantial.

Collision
Collision coverage pays when your own vehicle is damaged in an accident. Generally, the coverage reimburses you the amount to repair or  replace your damaged vehicle, minus the agreed-on deductible. It is usually the  most expensive coverage in your auto policy.

Comprehensive
Comprehensive  pays for damages to your car caused by an incident other than a collision with another car or object. You're covered for fire, theft, riots, collisions with  animals, storms, falling objects, earthquakes, floods and other natural occurrences. Often, comprehensive insurance includes a daily rental provision  that pays a certain amount toward a rental car in conjunction with a theft  claim. Like collision, comprehensive coverage generally includes a deductible.

 

 

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