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Insurance Basics
Auto Insurance

What is Auto Insurance?

Auto Insurance is a contract between you and your Insurance Company. It can provide coverage for your owned vehicles as well as legal responsibilities you may incur as a result of injury or property damage you or members of your family may cause to others. In exchange for your premium payment, your Insurance Company agrees to pay losses as defined in your policy.

What types of coverages are available in an Auto Insurance policy?

Bodily Injury and Property Damage Liability

Required in most states, Liability insurance pays for covered damages if you cause an accident, damage someone’s property, or injure someone. Liability insurance can also provide legal defense if you’re sued as a result of a covered loss.

Collision

Collision Coverage pays for covered damage to your vehicle if you’re in an accident. This coverage is usually required if you have a loan or lease on your vehicle.

Comprehensive

Comprehensive Coverage pays for covered damage to your vehicle resulting from something other than a Collision. (Examples might include: theft, fire, vandalism, windstorm, or impact with an animal.) This coverage is usually required if you have a loan or lease on your vehicle.

Medical Payments

This coverage provides immediate medical payments to you, your passengers, and other parties, regardless of fault. In some states Medical Payments are covered under Personal Injury Protection (PIP).

Uninsured Motorist (UM) and Underinsured Motorist (UIM)

UM and UIM provides coverage for you, your passengers, and your vehicle for injury or damage caused by another party who carries insufficient or no liability insurance.

Additional Coverages

Can include towing, labor, temporary replacement vehicles, and loan/lease ‘gap’ coverages.

While not all coverages are required by most states, your Insurance Agent can help you determine what coverages, limits, and deductibles are most appropriate for your individual situation.


The content available via Grange.com is for informational purposes only and may not be used for any other purpose. Content provided or expressed on Grange.com, including that of third parties, may not reflect Grange Insurance Association’s (GIA) policies or conform to any agreement you may have with GIA and its subsidiary companies. Please contact a licensed insurance agent to obtain particular advice.

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