Cole Insurance Personal Auto

Automotive insurance protects you against financial loss if you have an
accident. It is a contract between you and the auto insurance agency. You
agree to pay the premium and the insurance company agrees to pay your
losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily
injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation
and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage.
Most states require you to buy some, but not all, of these coverages. If you're
financing a car, your lender may also have requirements.

Most auto policies are for six months to a year.

The six parts of a car insurance policy.
Your car policy may include all 6 coverages or some of them. Each coverage
is priced separately.

Bodily Injury Liability

For injuries the policyholder causes to someone else.

Personal Injury Protection (PIP) or Medical Payments

For treatment of injuries to the driver and passengers of the policyholder's
car. At its broadest, PIP can cover medical payments, lost wages and the cost
of replacing services normally performed by someone injured in an auto
accident.

Property Damage Liability

For damage the policyholder caused to someone else's property.

Collision

For damage to the policyholder's car from a collision. The collision could be
with another car, a light post, fire hydrant, etc.

Comprehensive

For damage to the policyholder's car that doesn't involve a collision with
another car. Covered risks include fire, theft, falling objects, missiles,
explosion, earthquake, flood, riot and civil commotion.

Uninsured Motorist Coverage

For treatment of policyholder's injuries as a result of collision with an
uninsured driver. Underinsured motorist coverage can also be included in
an auto policy. Underinsured motorist coverage comes into play when an at-
fault driver has auto liability insurance, but the limit of insurance is
inadequate to pay for your damages.

Each state requires that you have certain types of coverages with minimum
liability limits. The insurance industry recommends that your bodily injury
liability limits be $100,000 per person and $300,000 per occurrence.

PERSONAL AUTO INSURANCE