Personal Insurance
Auto Insurance

Why do I need auto insurance?

Your car is probably one of the most expensive things you own. Insurance protects your investment and guarantees you a way of coping with the expense of accidents, theft or damage, as well as securing your financial responsibility to the bank or other institution lending the money to buy your vehicle.

When you drive, you are responsible for the safety of your passengers, your fellow drivers, other people's property, pedestrians and yourself. Insurance helps you live up to that responsibility by ensuring your ability to cover the costs of potential damages or injuries.

In most states, you are also required by law to be financially responsible, usually satisfied through your auto insurance coverage. Often, auto insurance is even a prerequisite to registering your car. So if you want to drive your own vehicle, you must be insured.

What does auto insurance cover?
As a driver, you should purchase enough coverage to protect your assets and ensure that you can be financially responsible if you injure someone in an accident or cause damage to their property. The terms and jargon used by the insurance industry can be unfamiliar to many. That’s why it is important that you choose a sound, reputable agency such as Statewide Insurance Group who will help you understand your options and explain the details of your coverages. Here are some of the terms we often use. (Most policies are a combination of several or all of these coverages.)

These coverages protect your passengers and fellow drivers:

• Liability Coverage
  This coverage protects you from expenses related to bodily injury or property damage you or your car cause in an accident. When choosing liability coverage, consider things like how much money you make and the property you own. Your liability coverage limits should be high enough to protect you and your assets if you are sued after an accident.
   
• Medical Payments Coverage
  This provides coverage for reasonable medical expenses for you and your passengers that result from an accident or are incurred within three years of an accident. If you frequently have a lot of passengers, you should consider carrying a higher coverage limit.
   
• Uninsured Motorist Coverage
  This coverage protects you and is usually required by most states. It pays for expenses associated with bodily injury and property damage from an accident caused by a driver who does not have auto liability insurance. It also covers a hit-and-run driver who is at fault.
   
• Underinsured Motorist Coverage
  This coverage protects you by paying for expenses associated with bodily injury or death from an accident caused by a negligent driver who has auto liability coverage, but with insufficient limits of coverage to pay for damages for which they are responsible. This coverage is usually added to the policy to supplement the uninsured motorist coverage.

These coverages protect your vehicle:

• Collision Coverage
  This pays to repair the damage done to your car due to an accident. The Personal Lines Specialists at Statewide Insurance Group can assist you in determining the proper amount of coverage needed based on the make, model, and value of your vehicle. The higher the deductible, the lower the premium.
   
• Comprehensive Coverage
  In most situations, this pays for damage done to your car in some way other than a collision. For example, if your car is stolen or vandalized. This also includes loss from fire, cracked windshields, floods, falling objects, and wind. The higher the deductible, the lower the premium.
   
• Towing / Rental and Labor Coverage
  This coverage is optional and added by endorsement to your auto policy. It covers towing and labor costs each time your car is disabled and provides you a rental car if your car is damaged by an accident covered by comprehensive or collision coverage if your car is out of service for more than 24 hours. Both coverages carry a maximum benefit limit.