Auto Insurance coverages explained

It is important that you are aware that  ALL HOUSEHOLD MEMBERS age 15+ MUST BE LISTED on your auto insurance policy, regardless of whether they even have a driver's license. If the driver does not have a license or ever drive your vehicle you can simply exclude them so they have no bearing on the premium, but because they are physically able to potentially get behind the wheel you are required to add or exclude them on your policy.

Full Coverage - There IS NO SUCH THING as "full coverage".  Every policy has limits and deductibles. This term gives the false idea that everything will magically be taken care of in the event of a claim, and this is just not the case. This term generally refers to the comprehensive and collision coverage on your policy. 

Comprehensive - Comprehensive auto insurance coverage is coverage for a loss resulting from anything other than an accident. For example, cracked windshield, broken windows, a tree falling on your car, an animal running into it, lightning striking it, etc. It is recommended that you have a low enough comprehensive deductible that you are comfortable paying out in the event of any of these losses. If you have a $1,000 comprehensive deductible and a rock damages your windshield that could easily be a $1,000 to replace it; due to your deductible this would be entirely an out of pocket expense. The lower the deductible the better for you!

Collision - Collision auto insurance coverage applies when you collide with, or have an accident with, another motor vehicle or object.  The same applies here for deductibles. Accidents DO HAPPEN, and when you are involved in one you need to be prepared to be out of pocket your deductible amount or you could be in a tough spot. 

Uninsured/Underinsured motorists - This coverage can protect you if you are hit by someone that does not have insurance, or does not have adequate insurance. This can pay for your medical bills and property damage if applicable. This coverage  has a $200 deductible; this can sometimes be lower than your collision deductible. This coverage is OPTIONAL, and you are covered if someone hits you without insurance even if you do not have it. You would just have to file it on your collision and have your normal deductible. 

Rental Car Coverage - Do you have another vehicle to drive to work if yours is rendered not drivable due to a loss? If not, you need rental car coverage. This coverage only applies to covered losses, and does usually have a daily limit as well as an overall limit for the loss. For example, if you have $40/day up to $1,200 total this would pay out up to $40/day on a rental car coverage up to $1,200 total, or 30 days. You will be responsible for the difference if the rental costs more than $40/day. Some insurance companies will work with a rental car agency to pay the costs upfront, whereas others offer reimbursement only. 

Roadside Assistance - If you ever find yourself broken down due to a tire, a dead battery, being out of gas, stuck in mud, etc. and cannot afford a couple of hundred dollars to call a tow truck you just might need to pay for roadside on your policy. This applies in all situations excluding accidents, roadside does not cover towing/roadside. 

Medical Payments - This coverage can help pay for medical expenses for you or your passengers, even if you're at fault. If you are not sure how you could pay for your medical bills following the accident, let alone your passengers' medical bills, this might be something you want to have.