Auto Insurance

What is auto insurance ?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.Auto insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.
Auto Insurance Coverages
Choosing auto insurance from Progressive means choosing wide-ranging coverages that protect you, your family and your car. Select from options including Bodily Injury and Property Damage Liability, Comprehensive and Collision, Rental Reimbursement, Roadside Assistance and more.

Bodily Injury and Property Damage Liability
Bodily Injury and Property Damage Liability covers your legal liability for a covered accident that involves injury to another person or damage to someone's property, up to the limit of liability you select.
If your limits are 15/30/10, this means:
No more than $15,000 would be paid per person for Bodily Injury
No more than $30,000 would be paid per accident for Bodily Injury
No more than $10,000 would be paid per accident for Property Damage
Example:You are at fault for an accident that injured two people and damaged another vehicle. The other driver's total medical bills were $1,000 and the other passenger's total medical bills were $1,500.
The damage to the other vehicle was $5,000. All injuries and damages would be covered because they fall within the Liability limits you selected. Each person's injuries were less than $15,000, and the amount for all injuries was less than $30,000. The other vehicle's damage also was below the $10,000 Property Damage Liability limit.
On the other hand, if you are at fault for an accident and the medical bills from the injuries or property damage that you cause exceed your limits of liability, you are responsible for the remaining damage, which might put your personal assets at risk.
Comprehensive and Collision
Comprehensive and Collision coverages pay to repair or replace your auto if it is stolen or damaged in an accident, regardless of who is at fault. For each coverage, you select a deductible that you pay out of pocket. Your insurance company pays for the remaining damage up to the limits you select.
With Collision coverage, your insurance company pays for damage to your auto when you collide with another vehicle or object. If you hit a car, a pole or another nonliving object, Collision coverage will apply.
With Comprehensive coverage, your insurance company pays for damage to your auto caused by an event other than a collision, such as fire, theft or vandalism. If you hit an animal, or if your auto is flooded or stolen, Comprehensive coverage will apply.
Uninsured/Underinsured Motorist
When the person at fault for an accident does not have insurance, Uninsured Motorist Bodily Injury will cover injuries and damages you incur that the at-fault party is legally liable for, such as medical treatment and lost wages up to the limits you select.
If your injury expenses exceed the at-fault party's Liability limits, you can use Underinsured Motorist Bodily Injury coverage to pay for the amount not covered by the at-fault person's insurance. Similar to Uninsured Motorist coverage, Underinsured Motorist coverage is designed to cover the gap between the other person's Liability limits and the amount of your injury expenses, up to the Underinsured Motorist limits you select.
If the driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have enough insurance, you can use Uninsured/Underinsured Motorist Property Damage (UMPD) to cover damage to your insured auto, up to the limits you select. In some states, UMPD is available as an alternative to Collision coverage. Certain exclusions may apply. Refer to your policy.
Example:A driver who has no insurance rear-ends your car while you're sitting at a stop sign. Your car has $2,000 in damage. You go to the doctor because your neck is hurting, and your total medical bills equal $300. Your Uninsured Motorist limits are $20,000/$40,000/$15,000, which means your injuries and the damage to your car fall within these limits and will be covered.
Loan/Lease Payoff Coverage
Loan/Lease Payoff coverage pays the difference between what you owe on your vehicle and what your insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your Comprehensive or Collision deductible. Both Comprehensive and Collision coverage are required before you can add Loan/Lease Payoff to your policy.
You can purchase Loan/Lease Payoff coverage for vehicles that you lease or for which you have an unpaid loan. This coverage is only available if your loan or lease is held by a financial institution, not an individual.
After your Comprehensive coverage or your Collision coverage has paid you the actual cash value for your vehicle, less your deductible, your Loan/Lease Payoff coverage will pay the difference between the actual cash value and any additional amount you owe under the terms of your vehicle lease or loan (excepting fees and charges). However, the payment made under this coverage may not exceed 25 percent of the actual cash value.
What is covered by a basic auto policy?
Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury LiabilityThis coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP)This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
4. CollisionThis coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.
5. ComprehensiveThis coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
6. Uninsured and Underinsured Motorist CoverageThis coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
What is insured ?
Any light motor vehicle used for social, domestic and pleasure purposes and for the insurer's business.
Insured against what risks?
1(a). Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. 1(b). Riot and strike; terrorism; earthquake; flood, cyclone and inundation 1(c). whilst in transit by rail, road, air, elevator, lift. Perils under 1(b) can be deleted and a discount in premium availed.
2. Liability for third party injury/death, third party property and liability to paid driver.
3. On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken.
4. Certain discounts in premia are also available.
Who can insure?
Individuals and corporate owners of the private cars and the financier of the car having insurable interest in it.
What will policy pay and how much? Own Damage
Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report.
Garaging and towing charges - up to Rs 1000/-
Damage to tyres (when vehicle is also damaged) - 50 % of cost of replacement
In case of total loss, market value at the time of loss or sum insured whichever is less.
Act Liability
Death or bodily injury to third parties - Unlimited
Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward - Unlimited
Liability to paid driver - As per W. C. Act
Third party property damage - up to Rs 6000/-
All costs and expenses incurred with company's written consent f) In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy,his personal representative will be indemnified ,as in the case of insured,if he observes all conditions as the insured himself.
When will policy not pay?
Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage.
When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver's clause
War perils, nuclear perils and drunken driving.
If you're new to car insurance, want to switch to a different auto insurance company or are shopping for the lowest car insurance quote, choose Progressive. Saving hundreds on auto insurance is just the beginning.
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We have a variety of auto insurance articles just for you. Get the latest auto insurance news and information or compare auto insurance quotes today.
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