Auto Coverage | (top)
Auto insurance is there to protect you just as much as it is your vehicle. A substantial amount of damage can be done traveling down the highway at 70 mph, so ensuring you have the proper protection in place before any unfortunate event occurs is important.
If you drive your own vehicle, in most states, you must obtain an auto insurance policy. Auto insurance provides financial and liability security for any possible auto-related damages, injuries or losses. It protects you, your passengers, pedestrians and even your car. Not to mention, it can also help protect you in the event of an automobile-related lawsuit.
Auto insurance provides you with the following basic coverages:
- Liability coverage protects you against claims or lawsuits for bodily injury or property damage arising out of the operation of an auto.
- Medical payments coverage compensates for reasonable and necessary medical and funeral expenses because of bodily injury to you or passengers caused by an auto accident. This is a component of personal injury protection (PIP) in certain states.
- Personal Injury Protection (PIP) or No-Fault Coverage compensates you for expenses resulting from injuries sustained in an accident. The expenses may include your medical costs, wage loss, replacement services, and in the event of death, funeral expenses. This coverage is only available in no-fault insurance states such as Minnesota.
- Physical damage coverage compensates for damage to a covered auto and to certain non-owned autos. This includes collision and other than collision coverage (also known as comprehensive coverage).
In addition to the basic coverages above, an auto insurance policy can be customized to include additional coverage. If you finance or lease your car, your lender may require you to purchase comprehensive and collision coverages.
- Uninsured Motorists Coverage pays for injuries to you or passengers in your vehicle arising from an accident caused by an uninsured vehicle or a hit-and-run vehicle. This coverage includes compensation for items such as medical bills, loss of income, or pain and suffering, but does not pay for the damage to your vehicle.
- Underinsured Motorists Coverage pays for injuries to you or passengers in your vehicle arising from an accident caused by a vehicle without sufficient liability limits to pay for all of the injuries sustained. This coverage includes compensation for items such as medical bills, loss of income, or pain and suffering, but does not pay for the damage to your vehicle.
- Collision Coverage covers damage to your car resulting from a collision with another car, object, or as a result of flipping over. Coverage is included whether you are at-fault or not at-fault.
- Other Than Collision (Comprehensive) covers damage to a vehicle caused by miscellaneous hazards other than collision, such as fire, theft, explosion, windstorm, hail, water or contact with an animal.
- Rental Reimbursement Coverage pays for a rental car if your auto is damaged in an accident.
- Roadside Assistance pays for towing services, fuel delivery, battery jumpstarts, flat tires, lockouts, and other minor repairs.
Not sure what coverages you need? Take our Needs Assessment to view suggested coverages just for you. When in doubt, lean towards coverage for the worst-case scenario to ensure that you are covered sufficiently… it’s better to be safe than sorry!
Glossary | (top)
Auto insurance policy:
A standard auto insurance policy is a contract between you and the insurance company. You agree to pay a premium and the company agrees to pay losses that are defined in your policy, less any applicable deductible.
Bodily injury liability:
Bodily injury liability coverage pays for injuries (including medical bills, loss of income, or pain and suffering) you cause to other individuals in the event of a motor vehicle accident. The limit for bodily injury coverage is generally expressed as a split limit. For example, when you see $100,000/$300,000 for bodily injury coverage, this means you have up to $100,000 of coverage for each person injured in an auto accident and the maximum amount of coverage for bodily injury arising from any one auto accident is $300,000.
Cause of loss:
The means by which property is damaged or destroyed, such as wind, hail, theft, etc.
Collision coverage provides physical damage coverage for your vehicle as a result of your vehicle colliding with another vehicle or object or the ground. When you pay a premium for collision coverage, this coverage is afforded to you whether you are at-fault or not-at-fault.
Also known as Other Than Collision coverage, this provides physical damage coverage for your vehicle caused by miscellaneous perils other than collision, such as fire, theft, wind, hail, water, falling object, or striking an animal.
A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions.
A policy provision that eliminates coverage for specified exposures such as certain risks, people, property classes or locations.
Extended nonownership liability endorsement:
This extends your personal auto liability coverage to a car that you drive regularly, such as a company car.
An automobile insurance option, available in some states, that covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. This coverage must be written in conjunction with comprehensive and/or collision coverage.
Generic auto parts:
Auto crash parts produced by firms that are not associated with car manufacturers. Insurers consider these parts, when certified, equivalent to those that come from the original equipment manufacturer (OEM).
A condition that increases the frequency or severity of a loss, such as faulty brakes (auto hazard) or a cracked sidewalk (home hazard).
A risk management technique that transfers the potential financial consequences of certain specified loss exposures from you to an insurance company.
A contract that states the agreement of rights and duties between the insurance company and you.
Limits of liability:
Many of your property and liability coverages have limits which are the maximum amount of insurance provided for that particular coverage. These limits are generally found on your declarations page.
Medical payments coverage pays your medical bills if you are injured in an auto accident, regardless of which driver is at fault. This coverage also protects you if you are injured by a vehicle while you are walking or when you are a passenger in another car. If your state has 'no-fault' auto insurance, your injuries may be covered by personal injury protection rather than medical payments coverage.
Personal Injury Protection:
Personal Injury Protection (PIP) coverage pays for medical expenses and lost wages, within the stated limits, for you and members of your household. This coverage is also referred to as ‘no-fault’ coverage, as these costs are paid no matter who is at fault. This is a mandatory coverage in all no-fault states. In Minnesota, you may elect stacking protection for this coverage, which increases your selected limits by the number of vehicles you are insuring.
Property damage liability:
Property Damage Liability Coverage pays for the damage you cause to the property of others. The most common form of property damage is someone else’s auto, but it would also include a building or any other property damaged in an auto accident. Your property damage limit used is the maximum amount of coverage for property damage arising from any one auto accident.
This coverage pays for a rental car if your auto is damaged in an accident.
Towing and labor:
This pays for emergency road service and towing of your car when it becomes disabled.
Underinsured motorists coverage:
Underinsured motorists coverage pays for injuries to you or passengers in your vehicle arising from an accident caused by a vehicle without sufficient liability limits to pay for all of the injuries sustained. This coverage includes compensation for items such as medical bills, loss of income, or pain and suffering, but does not pay for the damage to your vehicle. The limit for underinsured motorists coverage is generally expressed as a split limit. For example, when you see $100,000/$300,000 for underinsured motorists coverage, this means you have up to $100,000 of coverage for each person injured in an auto accident and the maximum amount of coverage for underinsured motorists arising from any one auto accident is $300,000.
Uninsured motorists coverage:
Uninsured motorists coverage pays for injuries to you or passengers in your vehicle arising from an accident caused by an uninsured vehicle or a hit-and-run vehicle. This coverage includes compensation for items such as medical bills, loss of income, or pain and suffering, but does not pay for the damage to your vehicle. The limit for uninsured motorists coverage is generally expressed as a split limit. For example, when you see $100,000/$300,000 for uninsured motorists coverage, this means you have up to $100,000 of coverage for each person injured in an auto accident and the maximum amount of coverage for uninsured motorists arising from any one auto accident is $300,000.
FAQ's | (top)
A: No-Fault claims in the state of Minnesota must be made within six months of the accident.
A: No, no-fault coverage usually does not apply to accidents when you are riding your motorcycle or snowmobile. You must purchase a separate insurance policy covering these vehicles, and the policies will not include personal injury protection.
A: Actually, almost every state requires you to have auto liability insurance. All 50 states have a financial responsibility law, which means even if your state does not require liability insurance, you need to have adequate assets to pay claims if you would cause an accident. If you do not have enough assets to meet the requirement, you must purchase the state minimum amount of insurance.
A: If you lease your car, you will still need to buy your own auto insurance policy. You will be required to buy collision and comprehensive coverage by the auto dealer or bank that is financing your car. In addition, you will need to buy liability insurance and any other coverages that may be mandatory in your state.
A: Before renting a vehicle, check your personal auto policy and with your agent. In most cases, the coverage and deductibles you have on your own car apply when you rent a car. If your rental car is stolen or damaged in an accident, you must have comprehensive and collision coverage to be covered. Also check to see whether your insurance company pays for administrative fees, loss of use or towing charges.
A: Insurance on your vehicle is based on an actual cash value basis (the amount that the vehicle is worth at the time of the loss). This is the maximum amount your insurance company will pay for your vehicle in the event of a total loss.
A: Comprehensive coverage provides coverage for direct auto physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded. Comprehensive coverage includes damage caused by fire, theft, explosion, windstorm, hail, water or contact with an animal.
Collision coverage provides coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn.
A: Other people are covered when they drive your vehicle if they have the permission to do so. All insurance will follow the vehicle, so any damages would be paid by your company (up to the policy limit).
A: Medical Payments coverage pays for medical expenses (up to the policy limit) for you or your immediate family while either in a car you own, while riding in another individual's vehicle, or as a pedestrian. This coverage also pays medical expenses for any person injured while occupying your coverage auto.
A: Generally, insurance on your teen driver will make your premium increase. This is due to the risk associated with having an inexperienced driver in your household. Studies show that teenage drivers have more at-fault accidents than experienced drivers due to lack of experience and distractions.
A: Insurance companies usually charge for at-fault accidents, as well as other driving violations for each driver. Some chargeable violations include speeding, careless driving, or alcohol/drug violations.
A: Pet coverage varies from company to company. Some companies will pay $500 for any veterinarian bills, including medication, resulting from injuries sustained while the pet is a passenger in your vehicle.
Why IMT? | (top)
IMT is proud to offer a state-of-the-art personal auto insurance policy that sets itself apart from others as it focuses on greater market segmentation, allowing each policyholder to receive a more accurate premium rate based on their specific situation. Our multi-tiered rating system looks beyond standard rating factors and allows you to receive a great product for a competitive price.
For no additional charge, your Auto Policy from IMT includes many coverages for which most other companies charge extra:
- Rental Car Coverage - if at least one vehicle on your policy carries either “Other than Collision” or Collision Coverage, we will pay all reasonable expenses you incur resulting from a covered accident or other covered loss to a car that you rent from a commercial rental car agency. Specifically, this coverage enhances your current rental car coverage by waiving your applicable deductible as well as agreeing to pay the rental car agency for their full “loss of use” and any reduction or diminution of value in the rental car.
- Identity Recovery Coverage - combines $15,000 of identity theft insurance with services that help victims restore their credit history and identity records.
- New Car Replacement Coverage - this coverage applies to vehicles that are new up to one year old with less than 15,000 miles on the odometer. If the vehicle is totaled due to a covered loss, we will replace it with a current model year vehicle of the same make, model and covered equipment without subtracting for depreciation.
- Lock Replacement Coverage - if your vehicle keys are stolen, we will pay up to $250 for the replacement of your locks and keys.
- Locked Vehicle Coverage - if you lock the keys in your vehicle, we will pay up to $100 to have your vehicle unlocked.
- Increased Transportation Expense Coverage - if your vehicle is disabled, due to a covered accident, we will pay you up to $30 per day with a maximum reimbursement of $900 for the cost of renting a replacement vehicle. This coverage is standard with most auto policies, but at a lower daily reimbursement rate. Higher optional limits of daily reimbursement are also available.
- Pet Injury Coverage - if your pet is injured from a collision while riding in your vehicle, we will pay up to $500 for any applicable veterinarian bills including medication.
- Theft of Clothing, Luggage, Camping Gear and Other Sporting Equipment - if your vehicle is stolen, we will pay up to $500 for your clothes, luggage, camping gear, and other sporting equipment inside the stolen vehicle.
- Air Bag Coverage - reimburses you for the cost of reinstalling a factory installed air bag if it deploys without the auto being involved in a collision or other than collision occurrence.
- Glass Repair - if your vehicle glass is repaired instead of replaced, we will waive your deductible and pay for the full cost of the repair.
- Guaranteed Auto Repairs - we will guarantee your repairs to be of the quality generally acceptedin the automobile repair industry. Our guarantee will last for as long as you own the vehicle and are insured with our company.
This is a summary of coverage. Review the actual policy for details on all coverages, terms, limits, conditions and exclusions.
In addition to our competitive rates, there are many discounts available. The following is a list of discounts offered by IMT:
- Paid in Full - paying your policy premium up front in one lump sum offers a substantial discount.
- Financial Stability - individuals with a favorable credit history will receive a discount.
- Customer Loyalty - applicants who have maintained insurance continuously with their prior insurance carrier for two years or more and are at-fault accident free during this time period will receive a discount.
- New Model - vehicles less than five model years old receive a discount.
- Accident Free - drivers who have been at-fault accident free in the past three years and have been licensed for the past three years will receive a discount.
- Multi-Policy - individuals who maintain their homeowners insurance with IMT Insurance are eligible for a discount.
- Multi-Car - policies with more than one vehicle insured will receive a discount.
- GPS Tracking - vehicles with a global positioning system to track the location of the vehicle are eligible for a discount.
- Good Student - high school, vocational, or college students who maintain a “B” average or higher, are in the upper 20% of their class, or are included on a “Honor Roll” are eligible for a discount.
- Accident Prevention Course - drivers age 55 and older who have completed an approved motor vehicle accident prevention course in the past three years are eligible for this discount.
We would encourage you to find out more about all of our insurance products and obtain a free quote by contacting a local insurance agent today!