Incorporated Insurance Services: Trusted Coverage For A Better Tomorrow

Auto insurance is a contract between you, the policy holder, and the insurance company, where you agree to pay for your premium and the insurance company agrees to cover the financial losses in case of accident as defined in your policy.

Auto insurance provides liability, property and medical coverage if requested:

Liability coverage will cover your financial responsibility to others for bodily injuries or property damage in case of an accident and is legally required for all drivers.
Property coverage will pay for damages or theft of your vehicle and other perils listed in your policy terms.
Medical coverage will pay for the cost of medical expenses, and sometimes for lost wages and funeral expenses as defined in you policy.
An auto insurance policy consists of six different kinds of coverage. Different states have different requirements of mandatory carrying certain coverages. In case of leasing or financing a car, your lender may also have some specific requirements.

Auto insurance policies can have three months to a year terms as stated in your policy. Your insurance company will notify you about your renewals and any changes to the rates in advance.

An auto insurance policy may include six coverages.

Bodily Injury Liability

Bodily injury liability coverage covers the bodily injuries that you, the designated driver, or any policyholder cause to someone else. This coverage can also transfer to other vehicles that you or any policyholder may operate at the owner’s permission. Liability coverage will only pay for bodily injures up to the highest limits stated in your policy, which is why it is very important to carry higher limits other than just state-required minimum. In case of bodily injuries sustained by other party exceeding the limits you carry in you insurance policy, you will be responsible for the remaining and uncovered charges.

Medical Payments or Personal Injury Protection (PIP)

Medical payments coverage covers medical expenses for injuries of the driver and the passengers of the policyholder’s car. The limits of the coverage are stated in the declaration page of your auto insurance policy.

Property Damage Liability

Property damage liability coverage pays for the damages you, any other policyholder, or any person driving your vehicle with your permission may cause to a property that does not belong to you. A damage to someone else’s vehicle, property, and even lamp posts, telephone poles, fences, buildings, or other structures will be covered under this coverage.

Collision

Collision coverage pays for the repairs or replacement of the policy owner’s vehicle, resulting from a collision with another vehicle, object, or as a result of flipping over, no matter whose fault it may be. It also will cover damages caused by potholes. Collision coverage requires a payment of a deductible at the amount stated in your insurance policy. Lower deductibles will increase your premium whereas higher deductibles will lower your premium. Regardless of who may be at fault at an accident, you will have to pay the stated deductibles when a claim is made. In case of the driver not being at fault, the insurance company will try to recover the amount paid from the other driver’s insurance and reimburse the insured for the deductible. Collision coverage may also be required to secure a new loan.

Comprehensive

Comprehensive coverage will reimburses you for damages caused by something other than collision. Theft, fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer are covered perils under comprehensive coverage. Comprehensive coverage requires a payment of a deductible at the amount stated in your insurance policy. Comprehensive insurance will also pay you when your windshield is cracked or shattered. Make sure to check with your insurance company if they offer glass coverage with or without a deductible.

Comprehensive and collision coverages are not required by law but may be required to secure a new loan.

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage will pay for bodily injuries sustained by the insured or its passengers in case of an accident caused by an uninsured driver or a hit-an-run driver. The uninsured motorist bodily injury limits are listed in your insurance policy and can never exceed your liability coverage limits. Uninsured motorist coverage is not required by law in all the states but is highly recommended.