Auto Insurance Coverages

• Liability insurance covers bodily injury and property damages incurred by third parties if you should hit them while driving. Collision coverage is designed to repair your vehicle when you are at fault in an accident. Comprehensive coverage (or "other-than-collision" insurance) is used to repair or replace your vehicle when it is damaged by perils that do not involve a collision or if the vehicle is stolen. Uninsured and underinsured motorist coverage provides property damage and liability coverage to you when you are hit by an uninsured or underinsured driver. Medical payments and PIP coverage provide monetary compensation to you when a covered accident occurs.
  
  

Auto Insurance Discounts

• Multi-car discounts are offered when drivers insure more than one vehicle with the same insurer. Transfer discounts are offered to new customers who have had uninterrupted coverage with their prior insurer. Home and car discounts are given to customers who insure both their home and car with one insurance company. Safe driving discounts are given to drivers who consistently exhibit safe driving. Good student discounts are provided to families who insure one or more students with above-average grade point averages.
  
  

State Law Compliance

• Drivers are required to show proof of insurance when they are pulled over by the police. Those who fail to show proof of insurance could be fined or have their licenses suspended. Offenders who wish to regain their driving privileges may be required to enter a state-monitored insurance program for one to two years.
  
  In many states, the department of motor vehicles is empowered to randomly request proof of car insurance from registered drivers via mail. Drivers who fail to respond with adequate proof of insurance may have their licenses suspended or could be fined. Likewise, many states electronically monitor the insurance compliance of their citizens. If a driver's insurance should lapse, the insurance company will electronically notify the department of motor vehicles and the customer's driving privileges will be automatically suspended. When this occurs, the driver is required to surrender his license plates to the DMV.
  
  

Choosing Appropriate Limits

• Many drivers settle for state minimum limits without understanding the negative implications of such coverage. If an accident occurs and the at-fault driver is under-insured, he will be required to pay any remaining unpaid damages out of pocket. The costs of property damages, bodily injury expenses, medical costs and administrative fees can easily overwhelm the average consumer, so drivers are encouraged to carry the highest limits possible.
  
  Most insurance policies cover bodily injury and property damages for third parties when covered accidents occur. Read your policy summary or "declarations" to see what your limits are. (Your policy limits may be written in the following format: 10/20/5. In this example, the number "10" represents the bodily injury limit available for each person injured, which is $10,000. The number "20" represents the aggregate limit of $20,000, which is the maximum amount that may be paid to all injured parties for bodily injuries in any one accident. The number "5" indicates that there is $5,000 available for property damages.)
  
  

High Risk Auto Insurance

• Drivers who have received tickets for moving violations may find it difficult to obtain insurance coverage from standard insurance companies such as Nationwide, State Farm and Allstate. When this occurs, these drivers may be required to purchase coverage from high risk or "non-standard" companies such as Safe Auto and The General. These companies offer lower rates to drivers with moving violations than their competitors, but may require the driver to accept a policy with lower coverage limits.