Auto Insurance FAQs

A personal auto insurance policy has four common areas:

• Liability which is injury or damage to another person and/or their property

• Uninsured and Underinsured for damages you sustain from another driver if their policy is not adequate to cover your expenses

• Medical Expenses for injury to an owner/occupant of your vehicle

• Physical damage to your vehicle

If you injure or damage another person’s property you are likely responsible for their loss.  Liability insurance provides for bodily injury expenses such as a hospital stay and property damage such as damage to a vehicle or building.  In the event you are responsible for these expenses, your insurance company will also pay for an attorney to defend you and provide support to settle claims.

We get this question often. Let start with the basics, auto insurance liability is broken down in three ways: bodily injury per person, bodily injury per accident and property damage.  Some insurance carriers will offer to combine these limits so you have a pool of funds rather than split limits.

Unfortunately, no one really knows the correct answer on what limits.  The state of Iowa requires all drivers carry at least $20,000/$40,000/$15,000.  Healthcare costs increase each year so $20,000 per person does not go far.  Think about the most expensive vehicle you drove by today.  We believe that having the right protection is more important than the cheapest policy. We want our clients to understand that a slight increase in premium could ultimately save them thousands.

Physical damage to your vehicle is split between two coverage options: comprehensive and collision coverage.

Collision insurance: This includes damage caused by your vehicle colliding with another object. For example, an accident with another vehicle.

Comprehensive auto insurance: It protects against other than collision claims such as those resulting from hail, fire, vandalism, theft or animal.

Roadside assistance and towing coverage are two optional coverages that provide a peace of mind.  Roadside assistance provides for towing, battery jump-start, and flat-tire repair.  Rental reimbursement pays for a vehicle while your vehicle is being repaired following an accident.

“Full coverage” is not a defined insurance term so be sure to understand what is and is not included.  Often the term “full coverage” refers to a policy that contains liability, medical payments, and physical damage coverage.  Towing and Roadside may not be included.

We recommend you do, but there may be options for coverage under your policy.  Each insurance company is unique so be sure to check your policy or with our office before you assume you have coverage.