Auto insurance, or “car insurance” as most people call it, is required by all states as part of the licensing process. Most states, however, require limits of insurance that are very low compared to your real exposure. Properly insuring your liability risk, as well as covering the risk of physical damage to your own vehicle, should be part of every family’s financial plan.
Liability is your responsibility for bodily injury or property damage done to someone else. In the realm of auto insurance, this usually means that you backed into someone’s car in the parking lot, or rear-ended them at a stoplight.
Auto liability limits are often expressed as three numbers, such as “100/300/100.” This refers to coverage of $100,000 per injured person per accident, up to a maximum of $300,000 total per accident, and $100,000 for property damage. Obviously if you get in an accident involving more than one car, it’s pretty easy to do more damage than that, so we recommend that customers carry higher limits if possible.
This is often referred to as “comprehensive” and “collision” coverage, with different deductibles for each. Most policies don’t actually use these terms anymore: more often they use “collision,” and “other than collision,” or OTC. As you might imagine, a collision loss is when you collide with another vehicle. An OTC loss is when, for instance, a tree falls over on your car.
Types of Vehicles
Vehicles of almost any kind are excluded under the homeowners policy, so anything you own with a motor should be covered on its own vehicle policy unless it is used only to service the premises, like a lawnmower, or coverage is specifically provided under your howeowners policy, like a jon boat with a trolling motor.
We write coverage for cars, trucks, vans, motorcycles, trailers of all kinds, boats, RVs, ATVs, golf carts… you name it.