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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.

What is in a Standard Auto Policy?

Bodily Injury

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. Both yourself and any family members listed on the policy are also covered when driving someone else's car with their permission.
It's very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

Carpooling

Environmental concerns, traffic congestion, convenience, desire to relieve driver stress, poor public transportation, lack or expense of parking are all factors that contribute to commuters forming driver groups or carpools. Parents use such arrangements to transport children to school, sports events, and extracurricular activities. It is also common for a student owning a car to carry classmates back and forth between home and school.
Regardless of the name, driver groups, share-the-ride arrangements, or carpools are a permanent part of the American scene. Typically, several drivers take turns assuming the responsibility for driving their companions. It's common for the turns to last a week and may be switched on a rotating basis. These people frequently live in the same area and work in the same office or plant. They may take turns driving or may regularly ride in one car and pay the owner a reasonable fee for gasoline, maintenance, and wear and tear.
The practice of a parent taking a group of children on an outing, to a “Little League” baseball game, and the like is commonplace. Other examples of group driving exposures are plentiful:
• Church group activities
• Book club members driving to their regular meeting or outing
• Coaches taking players to practices or games
• Employees traveling together to league games or practices, etc.
Are there any coverage considerations?  A personal auto policy is not designed to cover vehicles transporting the public for a fee.  Carpooling, however, does not apply and the policy will cover your ride-sharing arrangements.  If you are regularly carpooling, call us to discuss your limits