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Auto Liability:
Auto liability covers bodily injury and property damage caused by an auto accident. Auto liability limits come in two forms. The first is called "combined single limit" and the second is called "split limits". Typically, personal auto insurance uses split limits while commercial auto insurance uses a combined single limit.
Combined Single Limit Auto Liability:
When you have a combined single limit, that single limit is applied to any bodily injury or property damage until the limit is exhausted or used up.
Split Limit Liability:
When you have split limit liability you have a separate limit for each of the following:
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Auto Medical Payments:
Auto Medical Payments covers medical payments up to a specific limit to any person involved in an auto accident involving an insured auto. The payments are made without regard to legal liability.
They can be used by the insured and by third parties.
Uninsured Motorist Bodily Injury:
Uninsured motorist bodily injury liability covers you for any legal money damages you would have been awarded due to an auto accident if the person had insurance. Uninsured Motorist Bodily Injury coverage also pays in a hit and run situation.
Uninsured Motorist Property Damage:
Uninsured Motorist Property Damage covers your auto up to $3,500 if your auto "does not have" collision coverage. This coverage is based on an at fault percentage basis. This coverage "does not" include hit and run situations.
Uninsured Motorist Wavier of Collision Deductible:
Uninsured Motorist Wavier of Collision Deductible will pay your deductible if you are hit by an uninsured motorist and the accident is that persons fault. This coverage is based on an at fault percentage bases. This coverage does not include hit and run situations.
Comprehensive Coverage:
This coverage covers damage to your car from something other than collision. It excludes wear and tear, mechanical breakdown, tire damage, and other similar items.
Collision Coverage:
This coverage covers damage to your car caused by your car running into something or something running into your car. Just remember if your car hits a tree, it is a collision loss; but if a tree falls on your car, it is a comprehensive loss. Any damage to your car caused by running into or being struck by an animal is also considered a comprehensive loss.
Towing and Roadside Labor:
This covers up to a specified amount to have your car towed due to an accident or breakdown. It also normally covers roadside labor. This coverage is not often offered on a commercial auto policy.
Rental Reimbursement:
This coverage is to reimburse you for monies you pay out to rent a car when your car has been damaged in an accident. It normally has a 24 hour waiting period. The policy contains a daily limit and a total limit per accident. This is another coverage that is not often offered on commercial auto policies.
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Renting a Car:
If you rent a car, you have the same coverage for that car as you do your own car including physical damage coverage under a personal auto policy but not a commercial auto policy. If all of your cars are insured under a commercial auto policy, you need to make sure your policy is endorsed with "Drive Other Car " coverage.
Commercial Non Owned and Hired Auto:
If you own a business and have employees who use their own cars for company business you really do need to have a commercial auto policy. Coverage for this exposure written under a Business Owners Policy or a General Liability Policy are very restrictive and do not offer the protection you really need.
Purchasing Cars:
Any car you purchase has the same coverage your other car or cars have for the first 30 days you own them. To state that backwards you have 30 days to report a new car to your insurance company. The company will charge you premiums based on the date you purchased the car versus the date you report it to the insurance company. |
