Auto Insurance

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We provide coverage for most types of vehicles. We also can coordinate your entire insurance program to include your home, business, and other property.

Auto Insurance Coverages

Bodily Injury

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. Both yourself and any 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.

Medical Payments (PIP)

This coverage is necessary to protect those who could be injured in your car. This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, personal injury protection, or 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.

Property Damage

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.

Collision
This 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.

Comprehensive
This 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. It will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

Leasing & Gap coverage

If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage.

You’ll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.

Collision covers the damage to the car from an accident with another automobile or object.
Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a large animal.
The leasing company may also require “gap” insurance. This refers to the fact that if you have an accident, and your leased car is damaged beyond repair or “totaled,” there’s likely to be a difference between the amount that you still owe the auto dealer and the check you’ll get from your insurance company. That’s because the insurance company’s check is based on the car’s actual cash value which takes into account depreciation. The difference between the two amounts is known as the “gap.”

On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don’t actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a “gap waiver.” This means that if your leased car is totaled, you won’t have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.

If you have an auto loan rather than a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you’ve finished paying for it. Ask your insurance agent about gap insurance or search the Internet. Gap insurance may not be available in some states.

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Uninsured & Underinsured Motorist

This 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.

Pull a Trailer With My Vehicle

In most cases, if the vehicle pulling the trailer is covered under the policy, the liability coverage will be extended to the trailer if you own the trailer. However, physical damage (comprehensive or collision) must be purchased separately. You will need to review your policy for exceptions.

International Coverage

Most personal auto policies provide coverage for driving in Canada. However, we recommend that you check with us before taking your car across the border.
Mexican law requires that you purchase separate liability coverage from a Mexican insurance company prior to operating your vehicle in Mexico. Your personal auto policy may provide some limited coverage but this coverage must meet the insurance requirements of the Republic of Mexico. Failure to purchase the proper Mexican liability insurance could result in a substantial fine if you are involved in an accident while driving in Mexico. Again, we suggest that you check with our office prior to taking your vehicle across the border.

Carpooling

Drivers involved in car pools and other group arrangements may wonder if the situation is covered under their auto policy. This concern is valid as many auto policies have restrictions.
Typically, liability coverage under personal automobile policies does not apply to “liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance.”
Environmental concerns, traffic congestion, convenience, desire to relieve driver stress, poor public transportation, lack or expense of parking are all factors that contribute to commuters forming driver groups or carpools. Parents use such arrangements to transport children to school, sports events, and extracurricular activities. It is also common for a student owning a car to carry classmates back and forth between home and school.
Regardless of the name, driver groups, share-the-ride arrangements, or carpools are a permanent part of the American scene. Typically, several drivers take turns assuming the responsibility for driving their companions. It’s common for the turns to last a week and may be switched on a rotating basis. These people frequently live in the same area and work in the same office or plant. They may take turns driving or may regularly ride in one car and pay the owner a reasonable fee for gasoline, maintenance, and wear and tear.
The practice of a parent taking a group of children on an outing, to a “Little League” baseball game, and the like is commonplace. Other examples of group driving exposures are plentiful:

    • Church group activities
    • Club members driving to their regular meeting or outing
    • Coaches taking players to practices or games
    • Employees traveling together to league games or practices, etc.

Liability Insurance Exclusion
Drivers involved in car pools and other group arrangements may wonder if the situation is covered under their auto policy. This concern is valid as many auto policies have restrictions. Typically, liability coverage under personal automobile policies does not apply to “liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance.” (A public conveyance is a vehicle used indiscriminately in transporting the public without being limited to certain persons or occasions. A livery vehicle is one that is offered for rental.) There is slight variation in language among policies issued by various insurers, but the intent is the same: to exclude the use of a personal auto for transporting people or property for income. However, this exclusion does not affect coverage for car pool, driver group, or share-the-ride arrangements.

You have already learned that many drivers use different ride-sharing arrangements. The typical automobile insurance policy covers these arrangements because the driving exposure is essentially the same. The common policy exclusion that refers to “public or livery conveyances” is to prevent coverage for business situations. Using a car or SUV that is insured by a personal auto policy to transport people or goods for hire is unfair to insurers. The premium a company charges for personal use is inadequate to cover “public or livery conveyances” that are typically:

    • Driven more miles
    • Exposed to worse (i.e., high density) traffic situations
    • Driven under more pressure to meet delivery schedules
    • Exposed to poorer driving conditions

In other words, such use calls for more careful underwriting, different or special coverages, and a higher premium. However, group-driving arrangements are another form of personal use such as using a car for commuting, vacations, personal errands, etc. The result is that a “personal” premium compensates an insurer for most pool arrangements.

Are there other coverage considerations?
Yes. Car owners may worry if their insurance is affected if another member of a pool is driving their car. The answer is that any person using the vehicle with the car owner’s permission is covered along with the car owner.
Persons who drive in carpools may want to discuss the details with their insurance agent. An insurance agent may recommend that you carry higher bodily injury liability insurance limits. Higher medical payments limits may also be in order. Providing full details can help an agent make sure that any fees involved in the arrangement represent coverage for the driver’s operating expenses and not additional income.
In most instances, using a car in a typical share-the-ride arrangement or carpool will not affect the protection under the personal auto policy. The fact that passengers pay a small amount of money to help cover the expense of automobile operation is unlikely to eliminate their driver’s insurance coverage since the car is not being used as a “public or livery conveyance.” However, any fees received by a driver from car pool passengers should only reflect a reasonable share of the gas and oil expense and depreciation on the car.

AUTO SAFETY

It is time to stop pointing fingers. Let’s put our hands back on our steering wheels. Regardless who is at fault, the number and severity of accidents and road tragedies are increasing. The only thing that is under your control is your own driving behavior.

American drivers are pointing fingers again. A recent survey bears some grim news: the other guy or gal behind the wheel is ruder, more aggressive, and is causing more accidents. A recent survey sponsored by several motorist and insurance organizations discovered that:

    • Most drivers have recently operated their car, truck, or SUV in a risky manner
    • Many drivers think that other classes of drivers should have their driving skills regularly tested
    • The majority of drivers think that their driving habits are fine—everyone else is the problem
      It is time to stop pointing fingers. Let’s put our hands back on our steering wheels. Regardless who is at fault, the number and severity of accidents and road tragedies are increasing. The only thing that is under your control is your own driving behavior. While you can’t predict what another driver is going to do, you can make a stronger effort to make the roads and streets safer.

Obey traffic lights, signs, and road markings. All of these are important methods to control traffic and minimize accidents. Just try to figure out how much time you “save” by tailgating, lane changing, and running traffic lights. If you save anything, it’s seconds, not minutes. Also, if you are involved in an accident, you’ve just lost any time ever gained by risky driving. Insurance paperwork and accident reports can claim hours and days of your life. If time is important to you, then take the time to pay attention to the rules of the road.

You will also find it healthier and safer to avoid paranoia. The other drivers in the other cars and trucks are not out to get you. Don’t take things personally since the silly things that happen in cars are usually mistaken or mindless, not malicious. Just relax and concentrate on your own driving. Yield right of way to others, stop for school buses, and watch for pedestrians and bicyclists. The more patient, respectful, and attentive drivers there are on the road, the better it will for all of us (and our insurance rates).

If you are in an accident or your car breaks down, safety should be your first concern. Getting out of the car at a busy intersection or on a highway to change a tire or check damage from a fender bender is probably one of the worst things you can do.

The Insurance Information Institute (I.I.I.) recommends the following precautions when your car breaks down:

    • Never get out of the vehicle to make a repair or examine the damage on a busy highway. Get the vehicle to a safe place before getting out. If you’ve been involved in an accident, motion the other driver to pull up to a safe spot ahead.
    • If you can’t drive the vehicle, it may be safer to stay in the vehicle and wait for help or use a cell phone to summon help. Under most circumstances standing outside the vehicle in the flow of traffic is a bad idea.
    • Carry flares or triangles to use to mark your location once you get to the side of the road. Marking your vehicle’s location to give other drivers advance warning can be critical. Remember to put on your hazard lights!
    • In the case of a blowout or a flat tire, move the vehicle to a safer place before attempting a repair even if it means destroying the wheel getting there. The cost of a tire, rim, or wheel is minor compared to endangering your safety.

If you regularly carry young passengers in your auto, have you done everything possible to make sure they’re safe? Are you familiar with what is involved in keeping children safe? If you’re not, read on for some tips on what’s necessary to protect the persons most vulnerable to injuries during car accidents.

GUIDANCE FROM CHILD RESTRAINT LAWS?
While you might think it would be safe to comply with your state’s child safety or restraint law, you would be wrong in many states. The National Safe Kids campaign recently reviewed the states’ child restraint laws and found them to be quite inadequate. Based upon the guidelines of its own model child restraint law, nearly every state inadequately protects its children. How? In most instances state laws fall short in the following areas:

Penalties for restraint law violations are too low to encourage compliance
Rarely establishes restraint guidelines for children older than eight
Too many exceptions to the restraint laws exist
Few states offer child-seat loaner or assistance programs

HOW ARE CHILD PASSENGERS BEST PROTECTED?
While you’re likely familiar with the needs of infants and toddlers, the focus of protection usually is upon a child’s age or whether a safety appliance exists. Here are some considerations for protecting young auto passengers:

Infants – Should be in well-constructed and padded infant carrier that should be located in a rear seat. Infant seats should be of the type that is made to face the rear of the seat and not the front of the passenger area. Infants must be protected from the chance of being thrown forward into hard surfaces.
Toddlers – Should be in well-constructed, padded child carriers that, while facing forward, should only be placed in the rear passenger seats. Again, this is to minimize the chance of hitting hard surfaces (such as a dashboard or a windshield) and to avoid air bags which are designed to protect adults.
Pre-schoolers – May move from child carriers to well-constructed and padded booster seats. The purpose of the boosters is to make sure that the seat belts fit properly. As with child carriers, these restraints should be installed in rear passenger seats.
Older children – Around age 12, it should be safe to allow children to ride in a car’s front seat. However, the age guideline assumes that a child has become tall and heavy enough to be properly secured by regular restraints. Be careful that shoulder straps either fit these children properly or are properly tied-down so they don’t represent a hazard. Also, be realistic. Age is a secondary consideration to body size. If a child’s small build results in a poor fit for regular seat belts and shoulder straps, continue placing the child the rear with a secure seat belt.
A disconcerting fact from the National Safe Kids campaign survey is the high incidences of children who are allowed to ride in cars without restraints or while improperly secured. This sad fact results in hundreds of thousands of serious injuries and deaths. Every passenger in a vehicle should use restraints that are appropriate for his or her age and size. Don’t depend on a law; depend on what’s needed to keep everyone safe.

All drivers continue to age and, eventually, driving skills will be lost. It is up to us as individual drivers to address how we handle our ability to drive a car, van, truck, or SUV. It is important to recognize that older drivers can make adjustments.

Most of the problems associated with traffic accidents are often related to extremes in ages of drivers. The biggest concern has always been new drivers. Teens will always cause more than their share of accidents because they don’t have the experience or maturity to drive with as much care as they should. But, inevitably, time passes and their driving improves. However, that improvement doesn’t last forever.

All drivers continue to age and, eventually, driving skills will be lost. It is up to us as individual drivers to address how we handle our ability to drive a car, van, truck, or SUV. It is important to recognize that older drivers can make adjustments. It probably comes at no surprise that the easiest way to adjust driving habits is to pay greater attention to traffic signs, signals, and speed limits. Obeying posted instructions will decrease the chance that an older driver will have to rely on deteriorating eyesight and slower reflexes to avoid an emergency situation.

Some states have laws that increase requirements for older drivers to renew their driving privileges. However, such requirements, such as shorter licensing periods and mandatory driving tests don’t occur until drivers are well past 70 years of age. It makes more sense for drivers to change their habits as well as look for ways to objectively assess their current driving skills. Mature drivers should consider the following:

  • Consider restricting driving to non-peak hours whenever practical
  • Avoid driving in poorer weather
  • Stop driving at night
  • Be aware of how any prescription medicines may affect vehicle operation
  • Voluntarily take driving tests so an objective party can evaluate skills
  • Search websites, such as those sponsored by state motor vehicle departments, senior associations, or driving clubs which offer self-assessment questionnaires
  • Reduce distractions while driving; choose minimal or no use of cell phones, audio devices, etc.
  • Be more sensitive to feelings of fatigue and don’t drive while tired
  • When circumstances call for it, consider giving up your license and depend on other means of transportation

Stay informed on how to be safe on the road.

We want to help teens to learn to be safe and to drive safely with articles and videos targeted to both teens and parents.

FAQ

Can I Drive Into Another Country?
Most personal auto policies provide coverage for driving in Canada. However, we recommend that you check with us before taking your car across the border.

Mexican law requires that you purchase separate liability coverage from a Mexican insurance company prior to operating your vehicle in Mexico. Your personal auto policy may provide some limited coverage but this coverage must meet the insurance requirements of the Republic of Mexico. Failure to purchase the proper Mexican liability insurance could result in a substantial fine if you are involved in an accident while driving in Mexico. Again, we suggest that you check with our office prior to taking your vehicle across the border.

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