When it comes to Auto Insurance, it is important to understand the basic coverage options and how they affect you. Here are some of the most common coverages.
Liability Coverage
Your liability coverage is generally composed of three related amounts: Bodily Injury Per Person, Bodily Injury Per Occurrence, and Property Damage. Bodily Injury Per Person is the dollar amount your insurance company will pay to cover medical expenses and other related costs for one individual person in an incident. Bodily Injury Per Occurrence is the total amount that your insurance company will pay for such expenses from one incident. Property Damage is the maximum amount your insurance company will pay for damage to cars, buildings, road signs etc.
Collision Coverage
While Liability Coverage covers you for damages to others, Collision Coverage is for your vehicle. For an accident on the road with a stationary object or another vehicle, Collision Coverage will cover the cost to repair your vehicle minus your deductible.
Comprehensive Coverage
Your collision coverage takes care of accidents. Your Comprehensive Coverage steps in for the less common situations, such as a fire, a tree falling on your car, or damage from a storm. Your deductible needs to be met before your insurance company will make any payment.
Uninsured/Underinsured Coverage
Your liability insurance covers you when you are at fault in an accident. But what happens if someone hits you and does not have insurance or enough insurance to cover your losses? That is when your Uninsured or Underinsured coverage steps in. This is a safeguard for you and your family, and the limits should match those of your own liability coverage.
Towing & Labor or Roadside Assistance Coverage
Have a flat tire? Slide off the road in the snow? Ran out of gas? That is when your Towing & Labor or Roadside Assistance coverage comes to the rescue. This economical coverage is one of the most-used forms of insurance and can help relieve a lot of frustrating situations.
Glass Deductible Buyback
Another common claim is for a glass chip or a broken window. With Farmers Glass Deductible Buyback option, you can have the glass repaired for free for a chip or have your deductible reduced to $100 if you need to replace the glass.