Auto insurance basics—Explanation of coverages
Bodily Injury Liability — Covers costs associated with injuries that you or another driver causes while driving your car.
Property Damage Liability — Reimburses others for damage that you or another driver operating your car causes to another vehicle or other property (fence, building or utility pole).
(NOTE: An example of BI and PD as illustrated is 50/100/50. This means $50,000 per person/$100,000 per accident bodily injury coverage and $50,000 for property damage.)
Uninsured/underinsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. Underinsured motorist coverage will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident. (Also illustrated on a per person and per accident basis.)
Medical Payments — Provides reimbursement for medical expenses for injuries to you or your passengers.
Personal Injury Protection (PIP)- Pays for medical expenses and lost wages for you and your passengers who are injured in an accident. It also covers funeral costs.
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Comprehensive (Other than collision) — Optional coverage that provides coverage against theft and/or damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards.
Collision — Optional coverage that reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from wrecking your car.
Glass Coverage — Provides glass coverage with $100 deductible in the event that comprehensive deductible is higher than $100.
Towing and labor costs – If your car breaks down or you get locked out, help is just a phone call away. With this option, you’ll have 24/7 access to services like:
Loss of use - With this option, Farmers will provide a flat sum for cabs, public transit or a rental while your car has a qualified disablement that’s covered by your policy’s comprehensive or collision coverage.
Car rental – Provides reimbursement in the event that car rental is needed when you’re covered vehicle cannot be driven.
Residual debt coverage (GAP)- Covers the additional cost of terminating a finance contract on the insured vehicle in the event of a total loss. If the insured owes more on the vehicle than the fair market value and the car is totaled, residual debt coverage will cover the amount that is owed.
Rideshare coverage - Ride-share coverage is for individuals who use their personal car for ride sharing services such as Uber, Lyft, and Sidecar.
Who is covered—and when?
Your auto policy will cover you and other family members on your policy, whether driving your insured car or someone else’s car with permission. Your policy also provides coverage if someone not on your policy is driving your car with your consent.
Please call us at 903-657-7564 to review your coverages. It is our sincere desire to, not only cover you, but for you to fully understand your coverages when you need them.
Property Damage Liability — Reimburses others for damage that you or another driver operating your car causes to another vehicle or other property (fence, building or utility pole).
(NOTE: An example of BI and PD as illustrated is 50/100/50. This means $50,000 per person/$100,000 per accident bodily injury coverage and $50,000 for property damage.)
Uninsured/underinsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. Underinsured motorist coverage will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident. (Also illustrated on a per person and per accident basis.)
Medical Payments — Provides reimbursement for medical expenses for injuries to you or your passengers.
Personal Injury Protection (PIP)- Pays for medical expenses and lost wages for you and your passengers who are injured in an accident. It also covers funeral costs.
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Comprehensive (Other than collision) — Optional coverage that provides coverage against theft and/or damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards.
Collision — Optional coverage that reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from wrecking your car.
Glass Coverage — Provides glass coverage with $100 deductible in the event that comprehensive deductible is higher than $100.
Towing and labor costs – If your car breaks down or you get locked out, help is just a phone call away. With this option, you’ll have 24/7 access to services like:
- Dead or weak battery jump-start
- Flat tire change
- Locksmith services
- Roadside winching
- Towing services to the nearest qualified repair facility
- Emergency roadside connect to police/fire/medical assistance
Loss of use - With this option, Farmers will provide a flat sum for cabs, public transit or a rental while your car has a qualified disablement that’s covered by your policy’s comprehensive or collision coverage.
Car rental – Provides reimbursement in the event that car rental is needed when you’re covered vehicle cannot be driven.
Residual debt coverage (GAP)- Covers the additional cost of terminating a finance contract on the insured vehicle in the event of a total loss. If the insured owes more on the vehicle than the fair market value and the car is totaled, residual debt coverage will cover the amount that is owed.
Rideshare coverage - Ride-share coverage is for individuals who use their personal car for ride sharing services such as Uber, Lyft, and Sidecar.
Who is covered—and when?
Your auto policy will cover you and other family members on your policy, whether driving your insured car or someone else’s car with permission. Your policy also provides coverage if someone not on your policy is driving your car with your consent.
Please call us at 903-657-7564 to review your coverages. It is our sincere desire to, not only cover you, but for you to fully understand your coverages when you need them.
