Personal Auto
What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.
Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.
Why do you need auto insurance?
It's really all about protecting yourself financially.
If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
If you or any passengers are injured in an accident, medical costs can be extremely expensive.
If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.
Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.
Coverages (What is covered on a personal auto policy?)
Bodily Injury Liability Coverage - Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued.
Common Exclusions (Bodily Injury): No coverage for (1) bodily injury/death when you are using your vehicle to carry persons or property (including magazines, newspapers, food) for compensation or a fee; (2) liability assumed under a contract; (3) bodily injury/death to an employee; (4) bodily injury/death caused by an intentional act; (5) property owned by, rented to, or in the charge of an insured person; (6) bodily injury/death to you or relative; (7) bodily injury/death or property damage resulting from a relative's use of a vehicle, other than a covered vehicle, owned by a person who resides with you; or (8) bodily injury or property damage resulting from your operation or use of a vehicle owned by you, other than a covered vehicle.
Collision Coverage - Pays for loss to your covered vehicle when it collides with another object or overturns. It will also pay for a collision loss to any non-owned vehicle, or to a vehicle you have rented other than a vehicle rented for use in connection with your business or employment, while that vehicle is in your custody, or while you are operating it.
Common Exclusions (Collision): No coverage for damages or loss (1) to a vehicle while being used to carry persons or property for compensation or a fee; (2) resulting from intention acts, racing, or preparing for a race or stunting activity; (3) customs parts or equipment, including electronic equipment, in excess of the value declared in the application; or (4) to tapes, compact discs, other media or their carrying cases.
Comprehensive Coverage - Pays for loss or damage to your covered vehicle caused by any event other than collision. This includes damages due to events such as fire, theft, windstorm, flood, and vandalism. We will also pay transportation and loss of use expenses under this coverage if your motor vehicle is stolen.
Property Damage Liability Coverage - Pays when an insured person is legally liable for damage to the property of others caused by your vehicle your operation of most non-owned vehicles. This coverage also pays for your legal defense costs if you are sued.
Common Exclusions: Same as Bodily Injury Liability Coverage exclusions, but the exclusions apply to damage to property.
Underinsured Motorist Coverage - Protects you, your resident relatives, and occupants of a covered vehicle if any of these insured sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have enough insurance.
Common Exclusions: No coverage for bodily injury/death sustained by any person while using or occupying a (1) covered vehicle while being used to carry persons or property for compensation or a fee; (2) a covered vehicle without the permission of you or a relative; or (3) a non-owned vehicle without the permission of the owner.
Uninsured Motorist Property Damage Coverage - Available in some states as an alternative to Collision Coverage. This coverage pays you for damage to the covered vehicle that has been sustained in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance.
Common Exclusions: No coverage for property damage sustained by a covered vehicle while (1) being used to carry persons or property for compensation or a fee; or (2) a covered vehicle without the permission of you or a relative.
---------------------------------------------------------------------------------------------------------------------------------------------------
We represent a number of insurance companies that write automobile insurance. We have a unique advantage to "shop" your insurance for you and match the best price with the best coverage available for your specific risks. As your agent we will represent you and act as your representative in all company matters.
Insurance rates are not the same for every customer - a variety of factors are evaluated to determine fair and accurate rates. Below are a number of the terms that will be used when underwriting and rating your policy.
These definitions provide a brief description of the coverage’s many companies offer and some of the terms and phrases used in connection with vehicle insurance. These definitions are not applicable in all states or for all products. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read your policy for full details about the coverage’s. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.
---------------------------------------------------------------------------------------------------------------------------------------------------
Car insurance is required in the state of Oklahoma. It protects you financially in the event of an accident or other insurable event. Car insurance is a valuable asset; however, there are a lot myths associated with it. Agencies want to dispel these myths so the clients are protected and prepared for the road ahead.
Full Coverage is a common term people use when referring to what their auto policy covers, however, it is very misleading as there isn’t a policy that covers all accidents in full. Auto policies will include limits for the amount they will pay for damages caused to others. In addition, most auto policies will only pay Actual Cash Value in the event your own vehicle is totaled. Actual Cash Value is equivalent to the amount you could sell the vehicle for prior to the accident. It has nothing to do with what it would cost to replace your vehicle.
Anyone over 25 is covered to drive my vehicle. Who is covered to drive your automobile can differ from policy to policy. However, a typical auto policy will only provide coverage for individuals listed on the policy and for occasional drivers that have permission to drive the automobile.
Red cars have higher insurance rates. The myth began when people began to believe those with red cars were more likely to get a speeding ticket as their vehicle was easier to spot by police officers. While yes, speeding tickets can affect insurance rates, the color of your vehicle doesn’t.
If I lend my car to a friend and the friend wrecks my car, his or her insurance will pay. It will depend on the state you live in. Some states will require the friend driving the vehicle to reimburse the insurance company if the vehicle is damaged due to their fault. Overall, insurance generally follows the car and not the driver.
I can purchase auto insurance after the accident and I’ll be covered. Insurance is designed to cover unforeseen accidents. This philosophy could be compared to buying a lottery ticket after the numbers were announced and expecting to win.
My loan will be paid off if my car is totaled. As mentioned earlier, most insurance policies will only pay the Actual Cash Value of the vehicle, which is defined as what the car costs new less depreciation. If you owe more money to the lender than the Actual Cash Value, you very well may end up owing on a vehicle that is no longer drivable. Many policies offer gap insurance which will in turn pay off what you owe on the car regardless of what it is worth. Make sure you ask for this coverage if you are upside down in your car.
If I have any personal property in my car, my car insurance will cover it. Auto insurance is designed to cover the automobile, not personal property in the automobile. Personal property in the vehicle can be covered on a renters or homeowner policy.
I don’t want to list my teen driver on my policy because I don’t want to be held liable if they get in an accident. Parents are responsible for the actions of their children. The auto policy does not create the liability, it provides coverage to the parent for that liability. If the teen is not insured, the parent will still be responsible for any accidents they cause.
The only way to get coverage to drive any car is by purchasing “non-owner” insurance. Auto insurance was designed to provide coverage for the vehicle owner, not the car. The car isn’t going to be the one in court in the event a lawsuit results from a car accident; it will be the vehicle owner. Therefore, in most cases with some exceptions, the auto policy will provide coverage for the policyholder when they are driving other people’s vehicles.
There are several myths regarding auto insurance. It is better to bust these myths with your Trusted Choice agent so you are not caught in a bind when buying auto insurance. Breaking these myths will keep you better informed and armed against misconceptions before purchasing auto insurance.