Auto Insurance Overview
- Admin
- Apr 22
- 2 min read
Updated: Nov 2
As we age, our driving habits may change, often leading to reduced time behind the wheel. However, having the right auto insurance remains crucial. Whether you drive daily or only for occasional errands, proper coverage protects you from significant financial burdens in the event of an accident.
What Does Auto Insurance Cover?
Auto insurance policies typically consist of several key components:
Liability Coverage (Required in All States)
This coverage addresses damages or injuries you may cause to others.
Bodily Injury Liability – Covers medical expenses for others if you are at fault.
Property Damage Liability – Covers damages to someone else's vehicle or property.
Collision Coverage
This coverage pays for repairs to your own vehicle after a crash, even if you are at fault.
Comprehensive Coverage
This component covers damages from non-collision incidents such as:
Theft or vandalism
Fire
Falling objects
Hail or storm damage
Hitting a deer
Uninsured/Underinsured Motorist Coverage
This coverage protects you if the other driver lacks sufficient insurance to cover damages.
Medical Payments (MedPay) or Personal Injury Protection (PIP)
This pays for your medical expenses following an accident, regardless of fault.
Common Questions
“I barely drive — can I reduce coverage?”
Yes, consider the following options:
Low mileage discounts
Usage-based insurance (tracks your driving habits)
Removing collision coverage for older vehicles that hold little value
Some companies offer the option of putting a vehicle in storage, where it retains the same coverage for a lower rate under the agreement you will not use your vehicle during that time period. If the vehicle is used during this time, and an accident
occurs the insurance will not cover it.
“What’s the difference between liability and full coverage?”
Liability – Only covers damages you cause to others.
Full coverage – Includes liability, collision, and comprehensive coverage.
**NOTE: "Full coverage" is not a standard term used by insurance agents, as its meaning can vary widely among consumers.
“Does my insurance cover a rental car?”
Typically no, unless you have specifically selected this coverage. Most policies
provide coverage for a rental only after a covered claim (like an accident) and only if
you have added rental reimbursement to your policy. Always verify your coverage
before renting a vehicle.
Helpful Tip
You can often save money by bundling your auto insurance with homeowners or renters insurance through the same provider.
Need a Policy Check-Up?
If you are unsure of how your auto insurance works, or how it applies to your vehicle, I am more than happy to review your policy and give you an explanation of your coverages. It is 100% FREE. To find out more click the button below.
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