The abbreviated outlines of
coverages used throughout
this website are not intended
to express any legal opinion
as to the nature of coverage.
They are only visuals to a
basic understanding of
coverages. Please read your
policy for specific details of
coverages.

What Should You Do In The
Event Of An Auto Accident?

This information, prepared by the Independent Insurance Agents of America, contains helpful tips so you know what to do if you are involved in one of these unfortunate incidents.

Liability
The liability coverage of the personal auto policy provides protection against legal liability arising out of the ownership or
operation of an automobile. The insuring agreement agrees to pay damages for bodily injury or property damage for which
the insured is legally responsible because of an automobile accident.

The liability limit can be written as a single limit that applies to both bodily injury and property damage. The policy can also be
written with split limits in which the limits of insurance for bodily injury and property damage are stated separately.

The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the
insurer also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.


Medical Payments
The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred
by an insured because of bodily injury caused by an accident. Payment can be made for expenses incurred within three years
from the date of the accident. The insured is the named insured and family members, and any other person injured while
occupying a covered auto. Pedestrians or cyclists are also considered the insured when struck by a vehicle. These
payments are made without regard to fault.


Uninsured / Underinsured Motorist Coverage

• Uninsured Motorist Coverage
This insuring agreement pays for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or
a driver whose insurer becomes insolvent. Some states offer coverage for property damage as part of the uninsured motorist
coverage. Usually when property damage is added a deductible would apply.

• Underinsured Motorist Coverage
This coverage can be added to the policy to supplement the uninsured motorist coverage. The coverage must be added to
all automobiles listed on the policy, and it must be added for the same limit as the Uninsured Motorist Coverage. Underinsured
motorist coverage applies when a negligent driver has liability limits at the time of an accident, but the liability limits carried may
be insufficient to pay for damages that the negligent driver is responsible for. This is when the insured's underinsured motorists
coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not
overlap or duplicate each other. An insured can collect under one coverage or the other depending on the situation, but not
under both.


Physical Damage

• Collision Coverage
This coverage provides protection against the upset of your auto or non-owned auto or a collision with another vehicle or
object. Collision losses are paid regardless of fault.

• Other Than Collision / Comprehensive Coverage
This coverage provides protection against any loss or damage to a covered auto resulting from loss other than a collision or
upset, or a loss specifically excluded. This coverage also provides for supplemental payments for transportation expenses in
the event of total theft of a covered auto or a non-owned auto. The auto must be insured for comprehensive or specified
cause of loss coverage. Coverage begins forty-eight hours after a theft of a covered auto. Payments end when the auto is
returned to use or the insurer pays for its loss.


Endorsements

• Extended Transportation Expense Coverage (Rental Reimbursement)
This coverage applies when a covered auto or non-owned auto is withdrawn from use more than twenty-four hours due to
a loss, other then theft. The insuring agreement agrees to pay up to the stated amount for expenses incurred in renting a
vehicle. The coverage carries a per day limit and a maximum amount limit with options available at $15/450, $30/900 and
$50/1500.

• Towing and Labor Coverage
This coverage pays for towing and labor cost each time a covered auto or non-owned auto is disabled, up to the stated
amount. Limits are available at $25, $50 and $100 per incident.

As always, we highly recommend that you sit down with one of our experienced account executives to discuss your specific
needs, after which we will provide a detailed insurance strategy and quote for your business.

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