Your auto policy may include six coverages. Each coverage is priced separately.
Bodily Injury Liability — This coverage applies to injuries you, the designated driver, or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance.
Medical Payments or Personal Injury Protection (PIP) — This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
Property Damage Liability — This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings, or other structures your car hit.
Collision — This coverage pays for damage to your car resulting from a collision with either another car or an object or as a result of flipping over. It also covers damage caused by potholes. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.
Comprehensive — This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
Uninsured and Underinsured Motorist Coverage — This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
Aspire FCU also offers two ways in which you can protect your vehicle. Mechanical Breakdown Protection (MBP) provides protection against mechanical breakdowns above and beyond the original manufacturer’s warranty and Guaranteed Asset Protection (GAP) covers the deficiency balance on your loan in the event of a total loss. If you would like to learn more, visit www.aspirefcu.org/buyacar.htm.
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