The personal auto insurance policy covers non-commercial vehicles including private passenger cars and any pickup truck or van weighing less than 10,000 pounds that is not used for freight or business deliveries. This policy will also cover a leased vehicle as long as the lease term is greater than six months. There are four basic areas of coverage in the personal auto insurance policy:

• Liability Coverage: This coverage provides payment for Bodily Injury and Property Damage resulting from the negligent use of a car for which the insured becomes liable.
• Medical Payments: This coverage provides necessary medical and funeral expenses for the insured, family members and passengers regardless of who is at fault.
• Uninsured Motorist Coverage: This coverage generally pays for damages which the insured is entitled to recover from an owner of an uninsured auto.
• Physical Damage Coverage: This coverage is split into collision or comprehensive coverage. Collision applies when the damage is caused by another vehicle or object. Comprehensive coverage is the loss from something other than a collision including things like fire, theft, hail etc.

In addition to the coverages noted above, there are additional policy endorsements that can be purchased if you desire. A good example would be towing and labor costs. Such an endorsement covers the additional cost of having a vehicle towed to the service center after an accident. You can also purchase an endorsement for rental coverage that would pay for a rental car while yours is being repaired after an accident. Auto insurance policy rates vary widely so be sure to shop around and compare rates. You can compare car insurance rates by using the links in the right margin or on our home page.