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Descriptions |
Bodily Injury:
This coverage, combined with property damage liability coverage, is the foundation
of any auto insurance policy and is required in most states. If bodily injury claims
or lawsuits are brought against you and if an investigation or a court finds you to
be legally responsible for injuries to persons arising out of an auto accident,
your bodily injury liability insurance
will pay up to your policy limit, injuries to other people - such as pedestrians,
passengers in your car, or people in other vehicles. Also, bodily injury liability
coverage provides for your legal defense against those bodily injury claims or lawsuits,
if necessary.
An
objective in selecting limits of any liability coverage should be to purchase coverage
equal to the net asset value that you have available and could reasonably lose in the
event of causing damages to others. It is a good idea to consider and purchase higher
limits than what your state requires.
For further
information see the appropriate section in Understanding
Insurance.
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Property Damage:
This coverage, combined with bodily injury liability coverage, is the foundation of
any auto insurance policy and is required in most states. If property damage claims
or lawsuits are brought against you and if an investigation or a court finds you to
be legally responsible for damages to property arising out of an auto accident,
your property damage liability
insurance will pay up to your policy limit, for repair or replacement of things like
someone else's car, light posts, or even buildings. Also, property damage liability
coverage provides for your legal defense against those property damage claims or
lawsuits, if necessary. Property damage coverage does not pay for the damage to your
own property; damages to your property are covered under the optional collision and
comprehensive coverages.
An
objective in selecting limits of any liability coverage should be to purchase coverage
equal to the net asset value that you have available and could reasonably lose in the
event of causing damages to others. It is a good idea to consider and purchase higher
limits than what your state requires.
For further
information see the appropriate section in Understanding
Insurance.
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Personal Injury Protection (Arkansas & Kansas):
Arkansas PIP coverage is only available in Arkansas and is required
by the "Required First Party Coverage Law", but any or all of the component
coverages may be rejected in writing. This coverage is often referred to as
"no-fault" or "PIP" coverage. This coverage provides benefits up to the policy
limit, to the named insured and members of their family who reside in the same
household who are injured in an auto accident. It also covers passengers injured
while in the insured vehicle. This coverage applies regardless of who is at fault.
The Arkansas PIP coverage provides three major benefits including a medical
payments benefit, a work loss benefit, and an accidental death benefit. These
benefits are outlined in detail in the policy of insurance and are legislated by
the state of Arkansas.
Kansas PIP coverage is only available in Kansas and is required by
the "Kansas Automobile Injury Reparations Act". This coverage is often referred to
as "no fault" or "PIP" coverage. The benefits under this coverage are paid,
regardless of fault and up to the policy limit, to the named insured and relatives
in the household for injuries sustained while that person is a driver or passenger
of a motor vehicle or after being struck by a motor vehicle as a pedestrian. The
benefits may also be available for injuries sustained in Kansas while a
non-related driver or passenger is injured in your covered vehicle or if your
covered vehicle strikes a pedestrian. This coverage, and the benefits available,
is subject to exclusions that are tied to the titled ownership of a motor vehicle
and the financial responsibility laws of the state of Kansas.
There are six basic benefits under this coverage including a disability benefit,
a funeral expense benefit, a medical expense benefit, a rehabilitation benefit,
a substitute services benefit, and a survivor benefit. These benefits are outlined
in detail in the policy of insurance and are legislated by the state of Kansas.
Medical payments coverage may be added to the policy in Kansas in addition
to PIP coverage to complement and enhance the coverage limits.
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Excess Medical Payments:
This optional coverage provides payment for
only those reasonable and necessary medical expenses, up to the policy
limit, which are not covered by another source (except Medicare), such as health
insurance or another person's auto insurance. This coverage pays up to the policy
limit per person, for medical expenses as outlined above, regardless of fault, if
you or the occupants of your covered vehicle are injured. This coverage may also
protect you and the relatives living in your household if injured in someone
else's car, or by a car as pedestrians under the same coverage conditions.
This coverage is designed to complement your health insurance as most medical
insurance policies carry co-insurance and/or deductible provisions.
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Uninsured Motorist:
This coverage is commonly referred to as UM coverage. This coverage is important
and is required in many states because even in mandatory insurance states there
are still vehicles without insurance coverage in force at some time during the
year. This coverage pays for injuries up to the coverage limit, caused by a
driver who is uninsured, or an unidentified hit-and-run driver who is legally
liable for those injuries. This coverage also protects relatives who live with
you, the occupants of your insured car, and you as a pedestrian.
Please note that uninsured motorist coverage does not pay for damage to your
car that was caused by an uninsured motorist. Damage to your car would be
covered under collision coverage or uninsured motorist property damage coverage
if it is allowed in your state and you carry it on your vehicle.
The Uninsured Motorist coverages and limits vary by state.
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Uninsured Motorist Property Damage:
This coverage provides payment up to the policy limit, for the repair of your car
if it is involved in an accident with an uninsured driver or with an
unidentified hit-and-run driver who is legally responsible for the damages to
your car. The policy limits vary by state.
This coverage is not available in Kansas or Missouri.
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Underinsured Motorist:
This coverage is commonly referred to as UIM coverage. This coverage will apply
if another driver, who is legally responsible for an accident that injures you,
is required to pay more than their bodily injury liability coverage limits.
This coverage will pay up to the coverage limit, but only after all of the
liable person’s coverage limits have been exhausted. This coverage also
protects relatives who live with you, and as a pedestrian.
The Underinsured Motorist coverages and limits vary by state.
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Economic Only Uninsured Motorist:
This coverage is the same as uninsured motorist coverage except that it covers
only the actual costs of injuries to you and the occupants of your vehicle.
This coverage is available in Louisiana.
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Accidental Death & Dismemberment:
This optional coverage will pay benefits, subject to policy exclusions, in the event of the
loss of a foot or hand, whole thumb or finger, all sight, or death of the
named insured or a family member. This loss or death must be as the direct
result of an accident while occupying your covered auto or when stuck by a
land motor vehicle or trailer. The death or loss must occur within 90 days
of the accident.
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Comprehensive:
This optional coverage applies if your car is damaged by fire, theft, vandalism,
glass breakage, windstorm or even contact with an animal. The coverage provides
payment to repair your car, or pay the actual cash value if the car is deemed
to be a total loss, less your deductible. Comprehensive coverage does not cover
wear and tear, engine failure, or other mechanical difficulties. When you are
financing your car, comprehensive coverage may be required by the lienholder.
Higher deductibles mean lower premiums. However, when choosing deductibles you
should consider the amount that you will be able to pay on short notice, should
a loss occur.
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Collision:
This optional coverage provides the payment to repair your car, or pay the actual
cash value if the car is deemed to be a total loss, if it is overturned or
damaged in a collision with another car or object. This coverage would pay for
damages to your covered vehicle regardless of who is at fault. This coverage
is subject to a deductible. As with comprehensive coverage, if you are
financing your car, the lienholder may require collision coverage.
Higher deductibles mean lower premiums. However, when choosing deductibles you
should consider the amount that you will be able to pay on short notice, should
a loss occur.
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Rental Reimbursement:
This optional coverage is important if you have a covered loss and you do not have
another car to use while yours is being repaired. This coverage is available
for purchase if you carry collision or comprehensive coverages on the vehicle.
We will reimburse you, up to the policy limit, for rental car expenses incurred
when the covered vehicle is not drivable or is in the shop for repairs during a
reasonable period due to a covered loss. The policy limits are a per day dollar
limit up to a total dollar limit per accident. Several limit combinations are
available.
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Replacement Cost:
This optional coverage will alter the maximum amount paid for losses caused by
things other than fire, theft, or larceny to the cost of a new auto of the same
make if possible. The amount we will pay for loss under these circumstances will
be the lesser of: the reasonable cost of repair with parts of like kind and
quality or the cost of a new auto.
For example, if your insured one year old Dodge Caravan is damaged in a
collision and has this optional coverage, the amount paid on the loss would be
the lesser of: the amount of damages or the cost of a new Dodge Caravan.
Eligible autos may not be more than three years old, meaning the current model
year and newer and two preceding model years. Once issued, this coverage may
continue until automatically removed at the first renewal after the auto is
four or more model years old.
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Loan/Lease
This optional coverage is important if you have a vehicle loan with little or no
equity or if you lease a vehicle with a large lease obligation. This coverage
will pay the outstanding balance of your loan, even if the actual cash value
of your stolen or damaged vehicle is less than your outstanding loan balance.
An example if you purchase a new vehicle and add this coverage: Your
car is damaged beyond the actual cash value in a hailstorm with damage to
every panel, and the vehicle is declared a total loss. Your loan balance is
$22,000 because the car is only six months old and you put very little money
as a down payment. Because the car has been driven for six months and it is
no longer new, the car has depreciated and is now only worth $19,300. Under
this coverage, the policy would pay the $22,000, less your deductible, to
satisfy your outstanding loan balance.
Some conditions apply to be eligible for this coverage. The auto must be new, the
coverage must be added within 30 days of leasing or financing, the vehicle
must carry both collision and comprehensive coverage, and the loan must be
from a financial institution. This coverage is not available for antiques,
classics, trailers, recreational use vehicles, and heavy farm use vehicles.
Additional exclusions may apply.
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Custom Equipment Cost:
This optional coverage is very important for pickup trucks, vans, or autos with
custom furnishings and equipment. Without this coverage, the items that were
not installed by the vehicle’s original manufacturer would not be covered
against loss or damage.
The custom equipment includes, but is not limited to: special carpeting and
furnishings, electronic entertainment equipment, sound reproduction equipment,
specialized tires and wheels, camper bodies, anti-theft equipment, custom paint,
and engine accessories.
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