Coverage Questions

Auto insurance basics—understanding your coverage

The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.

Protect yourself against uninsured motorists

Despite the legal requirements in 49 states, many drivers in the U.S. remain uninsured. Don't risk your financial health—make sure you're insured, and learn how to protect yourself in the event of an accident with an uninsured motorist.

Insuring your classic car

A classic, custom, collectible or antique car requires insurance that reflects your vehicle’s uniqueness and value. If you own—or are thinking of owning—a special set of wheels, find out about the kind of policy you need.

What is covered by collision and comprehensive auto insurance?

Every U.S. state with the exception of New Hampshire requires its drivers to purchase liability insurance to drive legally. However, collision and comprehensive are optional, even though nearly four out of five drivers choose to purchase these coverages.

 

The i's on insurance: Auto coverage - you're in the driver's seat

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Car Insurance is something every driver needs, but how much do you really know about your auto coverage? Tune in to "Auto Coverage: You're in the Driver's Seat to know more about the different types of automobile insurance, get helpful tips on responsible driving and even learn how to reduce your auto rates by getting the right coverage for your needs.


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Does my auto insurance cover damage caused by potholes?

The good news is, yes, pothole damage is usually covered—providing you have collision coverage. Collision coverage, an optional portion of a standard auto insurance policy, covers damage to a car resulting from a collision with an object (e.g., a pothole, lamp post or guard rail), another car or as the result of flipping over. However, it does not cover wear and tear to a car or its tires due to bad road conditions.
 

Infographic: Types of auto coverage

Some types of auto insurance coverage are required, others are optional, but you’ll want to understand them all because they provide protection against several types of risk. 

 

 

What is gap insurance?

Gap insurance covers the difference between what a vehicle is worth, and what is owed on it.

What is diminished value?

After a vehicle has been involved in a major accident and has been repaired, the resale value may be less than if it had not been damaged.

Does auto insurance cover a rental replacement car after an accident?

If you rely on your car, rental reimbursement is an inexpensive and invaluable option that you'll want to consider adding to your auto insurance policy.

 

On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly. Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they've overlooked the policy option known as rental reimbursement.

 

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