Your Farm & Commercial Auto policy at Farmers Alliance provides coverage in several key categories: Physical Damage (when YOUR vehicle is damaged), Liability & Medical Payments (when you damage someone or something else with your vehicle), and other optional, miscellaneous coverages. While a minimum level of auto insurance is mandatory in most states, the benefits of this coverage are well worth the cost. Here’s a little more detail:
Collision – If you are in an accident and your own car is damaged, collision insurance pays for the repairs. It covers the cost of repairs, less your deductible, up to the vehicle’s actual cash value, which includes depreciation. When financing a new or used car, a bank will generally require this coverage.
Other Than Collision – This coverage protects your vehicle from Other than Collision related damage. Perils, such as fire, theft, hail, as well as broken glass, and damages resulting from contact with an animal or falling objects, are all covered under Other Than Collision. This coverage will pay, less your deductible, for repairs up to the vehicle’s actual cash value, which includes depreciation.
Bodily Injury Liability – Protects you if the negligent operation of your vehicle causes injury to someone else- a pedestrian, or a person in another vehicle.
Property Damage Liability – pays if you negligently cause damage to another person’s property, a building, a car, a telephone pole, etc.
No-fault – no-fault pays for your injuries regardless of who caused the auto accident. Some states require no-fault auto insurance. Ask your Farmers Alliance agent if your state has such a law. In those states, Personal Injury Protection (PIP) coverage is required and there are limitations on liability suits.
Medical Payments – We will pay reasonable expenses incurred for necessary medical services because of “bodily injury” caused by an accident and sustained by an insured.
Uninsured / Underinsured Motorist – Protects you, members of your household, or occupants of your vehicle if injured by an uninsured or underinsured motorist, or in a hit-and-run accident.
Towing and Labor – This coverage pays towing and labor costs incurred for mechanical labor at the place of breakdown or towing to the nearest repair shop if the vehicle does not run. There are several coverage amounts available.
Hired and Non-owned Liability and Physical Damage – This endorsement coverage can be added to your policy to provide coverage for non-owned or hired autos for liability and/or physical damage. You can select just liability coverage, or also cover physical damage for autos that are eligible.
Your Farmers Alliance agent is the best source of information regarding these coverages. Talk with them about your specific situation, and they’ll know just what you need!