Understanding Auto Insurance

Understanding Auto Insurance

Auto Liability – Commercial auto liability covers your financial responsibility if you are at fault in an accident (work-related or personal) and people are injured or property is damaged. It also pays for attorney’s fees to defend you from accident-related lawsuits.

Auto Medical Payments – Pays for the injury-related expenses or medical bills you incur as a result of an auto accident, up to the limits on your policy. It’s not meant to replace your health insurance, but rather supplement you in the event some of your expenses may not be covered by your health insurance policy.

Uninsured Motorists Liability (UM) – Provides bodily injury protection for the driver and passengers if a driver of another vehicle is legally responsible for an accident causing injury but fails to carry auto liability insurance.

Underinsured Motorists Liability (UIM) – Provides the same protection as UM coverage, except that it’s meant to cover the gap in payments you can recover when the other driver fails to carry a high enough limit.

Physical Damage – Collision – Collision coverage provides protection against loss or damage to a covered auto resulting from the impact with another vehicle or object. Collision losses are paid regardless of fault.

Physical Damage – Comprehensive – Comprehensive coverage provides protection against loss or damage to a covered auto resulting from a cause other than a collision or upset of the vehicle.

For each of the coverage types above, the following number symbols and definitions are utilized in quotes and policy forms to designate categories of vehicles that will be insured.

Symbol 7 – indicates that coverage applies for those autos specifically described on the policy. Auto liability coverage also applies to temporary substitute vehicles you do not own if a described vehicle is out of service due to loss or damage, breakdown, repair, or servicing. This symbol also provides coverage for newly acquired or replacement autos so long as they are reported to the insurance company within 30 days.

Symbol 8 – indicates that coverage applies for hired, leased, rented or borrowed autos.

Extra Coverages Available For Members:

Commercial Auto policies also may feature the following additional protections:

  • Extra Expense Coverage for Return of a Stolen Auto
  • Rental Reimbursement Coverage with a daily allowance up to 30 days
  • Electronic Equipment Coverage
  • Hired Auto “Loss of Use” Coverage
  • Blanket Waiver of Subrogation (sometimes required by work contracts)

Additionally, if you purchase physical damage coverages (see above) for your covered auto(s) you may select:

  • Hired Auto Physical Damage Coverage. Coverage does not extend to autos leased under an agreement where the lessor agrees to provide physical damage coverage
  • Towing & Labor Costs Coverage
  • Accidental Airbag Discharge Coverage
  • Glass Coverage – eliminates any deductible for glass that is repaired vs. replaced

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