An auto insurance policy generally consists of several types of coverages.
Because all 50 states have different laws when it comes to auto insurance policies and coverages, the following descriptions are simply general information. They are not statements of contract. To learn more about auto insurance in your state, contact your State Farm agent.
Most Common Types of Auto Insurance Coverages:
Auto Liability Coverage
Auto liability insurance coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.
Auto liability coverage falls into two categories:
1.Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
2.Property Damage Liability -- which covers damaged property, and may include loss of use.
Liability car insurance also pays legal defense and court costs.
State laws usually dictate the minimum amounts of auto liability insurance required, but higher amounts are available.
Personal Injury Protection (PIP)
This auto insurance coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.
It may also pay for:
•Replacement of services (For example, child care if a parent is disabled.)
This auto insurance coverage is available in most states. It pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident.
This auto insurance coverage helps pay for damage to a covered vehicle caused by:
•Collision with another vehicle
•Collision with an object
•A vehicle rollover A deductible is required.
This auto insurance coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.
Examples of this type of damage or loss include:
•Hitting an animal
A deductible may apply.
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this auto insurance coverage may also pay for property damage.
This type of car insurance coverage varies by state and depends upon policy provisions.
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this type of auto insurance varies by state and depends upon policy provisions.
This coverage pays for renting a car when your auto is disabled due to an auto accident.
Daily allowances or limits vary by state or auto insurance policy provisions.
Emergency Road Service
This auto insurance coverage pays for having your auto towed due to a breakdown.
Towing limits vary by state or policy provisions.
This information is only a general description of the available types of auto insurance and is not a statement of contract. All auto insurance coverages are subject to all policy provisions and applicable endorsements.
What is an auto insurance deductible?
An auto insurance deductible is the part of a covered loss that you have agreed to pay with your own money.
If you file a claim against your insurance, you will pay only the amount of the deductible. State Farm® will pay the rest - up to your coverage limit.
When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.
Typically, higher deductibles mean lower auto insurance policy premiums.
Who does my auto insurance policy cover?
An auto insurance policy typically covers:
•You and your spouse
•Relatives who live in your home
•Other licensed drivers who have permission to drive your insured vehicle.