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What does an auto insurance policy cover?
Auto insurance is your financial protection in case of an accident.
It covers property, liability, and medical expenses. Property coverage
includes damage to or theft of your vehicles. Liability covers legal
expenses for bodily injury or property damage to others. Medical
coverage pays the treatment costs for injuries and rehabilitation.
In some cases, it covers lost income or burial expenses.
What kinds of coverage are available in an auto insurance policy?
Listed below are the general, basic coverages included by most insurance
firms. Specific terms may differ from company to company. In all
cases, your car must be driven with your permission. If you or anyone
on your policy is driving someone else's car, you must have permission.
Otherwise, coverage is invalid.
.
Liability - This term generally refers to bodily
injury that anyone listed on policy, such as family members, cause
to
someone else, whether driving your car or someone
else's. Most states require a minimum amount of liability
coverage. Because of the potential for lawsuits,
you should consult with your agent to evaluate additional coverage
to protect your home and assets.
Personal Injury Protection (PIP) – This
coverage pays for medical treatment costs for the driver and passengers
of
your car. Payments can cover a range including
medical payments, loss income, lost services or even funeral
expenses.
Property Damage – This is usually damage
to someone else's property. It can be a car, but can also be other
structures your car hits.
Collision - This is the primary coverage in
case of an accident. You generally have the option to apply a deductible,
the higher amount you select, the lower your
premium. This coverage reimburses you for repair costs, minus the
deductible. If you are not at fault, your insurance
company will try to recover the repair costs from the other driver's
insurance company, including the deductible,
which will be refunded to you.
Comprehensive – This coverage takes care
of loss or damage that is not caused by a collision. It includes
weather-
related damage, such as storms, floods, vandalism,
damage from birds, deer or other animals, and vandalism or
theft. This coverage is also offered with a
deductible that may lower your premium. It is not mandated by most
states; however, most lenders require this
coverage until you pay off the loan.
Uninsured and Underinsured Motorist –
If you are hit by someone without auto insurance or someone who
does not
have enough insurance to cover your cost, your
coverage will apply. This coverage does not include your property
damage.
How do I know what coverage I need?
The type and amount of coverage depend on a number of criteria;
the type and age of your car, whether you own it or are paying a
loan or lease, who will be driving it and their ages, your driving
record, the annual distance you expect to drive, where you live
or work, and in some cases, your financial responsibility.
What is Tort?
The choices: Limited Tort and Full Tort.
Limited Tort – Limits your right to sue
for pain and suffering, except in cases of serious injury. This
“limited tort”
option qualifies you for a reduction in your premium.
Full Tort – Does not limit your right
to sue. This “full tort” option is not eligible for
a reduced premium.
See our Brochure
for more information.
If I choose the Limited Tort option, what am I giving up?
You are giving up your right to sue for non-economic damages, more
commonly known as “pain and suffering”, except in cases
of serious injury. Serious injury is defined by law as death, serious
impairment of body function or permanent, serious disfigurement.
Am I responsible for auto insurance if I lease a car?
Yes. And you must obtain collision and comprehensive insurance for
the term of the lease. Depending on your leasing company, you may
also be required to buy 'gap' insurance in case the car is 'totaled'
before the lease is up. This covers the difference in the actual,
depreciated value of the car and the amount still due on the lease.
What about insurance when I rent?
The coverage you carry on your car, providing you have collision
and comprehensive coverage is sufficient to cover a rental car for
pleasure use. However, the rental car companies can hold YOU responsible
for Loss of Use of the vehicle in the event it is not operable.
If their vehicle is in a shop being repaired and not available for
rental, the rental company loses money which they can charge you
for. Your insurance company does NOT cover this type of expense.
The coverage provided by the rental car company should cover this
type of exposure. To be sure, please check with your insurance agent
and the rental car company.
The Top 6 Reasons Why to Purchase Car Insurance from the Rental
Car Company?
How can I select the best policy and insurance company for my
needs?
Sterner Insurance works with over 20 companies. Our experienced
agents can offer you many options and comparative pricing to ensure
you get the best coverage for your budget and your needs. We can
save you the time and effort of contacting several companies, getting
individual quotes, and then evaluating and comparing them. Plus,
we will actively seek ways to manage your premiums by suggesting
options that give you discounts, such as good driver, claim-free,
driver education, combination auto & home, multiple car policies,
etc.
What about claims? Do I handle them through Sterner or the insurance
company?
Your agent is always your first source for information on policy
and procedure. Claims information is provided with your policy and
generally indicates that company's appropriate procedure, forms,
and the facts you must have to present a claim. But your agent is
always available to help you through the process.
What if I have a problem with a claim?
If, for some reason, you feel your claim is not being handled appropriately,
we want you to contact your agent first. We may be able to help
you solve the problem or put you in touch with the appropriate person
at insurance company. Many insurance policies include appraisal
and arbitration services to assist in resolving problems with claims.
There are also state and national consumer hotlines for insurance
issues available, as well as independent arbitration services.
Where can I get information about auto insurance?
Many of the insurance companies we deal with have websites that
help consumers understand their policies and procedures. Another
good source is the Insurance Information Institute at www.iii.org/individuals
which also contains links to many other information sources. Pennsylvania
also provides information on its website at www.ins.state.pa.us.
For more information, email us at personal@sternergroup.com
or give us a call at 1-888-STERNER
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