Auto Insurance

Chances are if you own a car, you also have an auto insurance policy. Most states, including Pennsylvania, require you to have auto insurance if you have a car registered. Many people pay thousands of dollars a year for their policies. Whether you pay hundreds or thousands on your policy, it is important for you to understand how your policy works and what benefits are available to you. Here is an explanation of coverage and the protection provided for in a typical Pennsylvania Auto Insurance Policy.

Liability Coverage
Bodily Injury Protection provides coverage if you or a covered driver are legally liable in an auto accident in which others are injured or killed.

Property Damage Liability Protection provides coverage if you or a covered driver are legally liable for damages to another’s property resulting from an auto accident.

Who is covered? You, or resident relatives are covered by your policy when driving your own vehicle and while driving other vehicles with the permission. Others are covered when driving your car with permission.

What you as a driver are covered for. Certain defense cost, costs of bail bonds, and emergency first aid for others are covered.

Pays others for what? Death, injury, sickness, disease, loss of services, medical services, loss of income and property damage are included in what can be paid out to others.

Uninsured Motorists Coverage
This coverage applies if you or a covered person are injured or killed in an accident involving a legally liable uninsured driver.

Who is covered? You, resident relatives, and covered passengers are all covered.

Pays covered persons for: Injury, death, sickness, and disease.

Underinsured Motorists Coverage
This coverage applies if you or a covered person are injured or killed in an auto accident involving a legally liable underinsured driver.

Who is covered? You, resident relatives, and covered passengers.

Pays covered persons for: Injury, death, sickness, and disease.

Medical Payments Coverage
Provides payment for medical and hospital expenses sustained in an auto accident, regardless of the liability of insured.

Who is covered? You, resident relatives, and covered passengers.

Pays covered persons for: X-rays, surgical, ambulance, physician, hospital and many other expenses.

Personal Injury Protection
Who is covered? You, resident relatives, and covered passengers.

Pays covered persons for: Medical services, loss of income, loss of service, and funeral expenses.

Collision Coverage
This coverage applies if your vehicle is damaged in an accident. It provides coverage for repair or replacement of your vehicle.

What is covered? Your insured vehicle is covered.

Pays covered persons for: Repair or replacement of your vehicle up to actual cash value, minus your deductible.

Comprehensive Coverage
This coverage applies if the damage to your vehicle is not caused by a collision. This coverage pays persons covered for damage caused by the following: falling objects, fire, theft/vandalism, explosion, earthquake, and many other hazards.

Who is covered? Your insured vehicle is covered.

Pays covered persons for: Repair or replacement of your vehicle up to actual cash value, minus your deductible.

Both Collision and Comprehensive coverages allow you to choose from a broad range of deductibles.

Optional Coverages
Others coverages include: Sound system, rental reimbursement, towing and labor, death indemnity and disability income.

As you can see, your auto insurance policy is designed to provide a very comprehensive plan or protection. By understanding and evaluating your insurance needs, you can tailor your policy to fit your individual needs. Also, by coordinating other insurance plans you now have, you may realize a substantial savings.

If you have questions about your policies, and would like free comparisons, your AAA insurance agency is here to help. As an independent agency representing many excellent companies, we can evaluate your needs and offer extremely competitive programs.

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Published in the June 2001 issue of the AAA Traveler.