Auto Insurance
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, individuals pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage. If there is a total loss, that dollar amount is what is paid. There is no depreciation or unwelcomed surprise. This coverage is also known as the stated value. Specialty marine agents recommend agreed value because it provides fuller protection than an actual cash value policy, which deducts for depreciation. For a new boat, your agent may recommend replacement cost coverage.
What Does Auto Insurance Cover?
Depending on your policy, your coverages may include:
Bodily Injury Liability for injury or death resulting from a collision caused by the insured.
Collision coverage for damage caused by a collision.
Comprehensive coverage for damage not caused by a collision.
Liability coverage for damage to property resulting from a collision caused by the insured.
Medical payments insurance for treatment of injuries resulting from a collision caused by any party.
Rental reimbursement for payment of a rental car while the insured's car is being repaired.
Towing and labor for towing the insured's car to a garage and minor repairs but not the parts.
Underinsured motorist coverage for charges exceeding the other party's insurance limit.