auto Insurance

Auto insurance can protect your financial well-being. If your vehicle is lost or damaged, auto insurance can help put things right. If you're sued, your auto insurance will help protect you. And taking care of all that worry should be a weight off your shoulders -- not to mention 48 of the 50 states require at least minimum insurance coverage to drive. But even if you call New Hampshire or Wisconsin home, quality auto insurance is practical for any driver who wants to avoid lawsuits and large repair bills.

Auto insurance generally covers property, liability and medical coverage. So if your vehicle is lost or stolen or damaged, insurance will pay for it. If you inflict bodily injury or damage someone else's property, your liability coverage will protect you by ensuring your legal responsibilities have been met. Depending on how extensive your medical coverage, it may cover everything from the cost of treating injuries to rehabilitation to lost wages and funeral expenses. Let's break it down to the specifics.

coverage types

Auto insurance is generally laid out in six different coverage types. Usually each type is priced separately and not all areas are required to be covered by state law. Laws vary state by state, but the damage possible in a serious accident could threaten your home and savings. We recommend considering more coverage than the minimum state requirements to ensure all your assets are protected even in the worst case scenario.

Bodily Injury Liability: Covers injuries you, the driver or policyholder, inflict on someone else. (This area is especially important when choosing coverage because if you are sued for a large sum of money, liability coverage will protect your assets.)

Property Damage Liability: Covers damage you, the driver or policyholder, cause to someone else's property. This coverage usually also protects someone driving your car with your permission.

Medical Payments/Personal Injury Protection (PIP): Covers the costs of medical treatment for the injuries of the driver and passengers of the policyholder's car. (Extensive coverage in this area may even include lost wages and funeral costs.)

Collision: Covers the cost of repairs to your car from a collision with another vehicle, object or flipping over. Generally, collision coverage comes with a deductible from $250 to $1000. The higher the deductible, the lower your monthly premium. Even when you are at fault in an accident, the insurance company will cover the repair costs MINUS your deductible. For example, if you have a $500 deductible and $2000 worth of damage to your car, insurance will only cover $1500 worth of the repairs.

Comprehensive: Reimburses you for loss of your vehicle due to theft or damages caused by means other than collision, like fires, vandalism, riots or runs in with local wildlife such as birds or deer. Often comprehensive coverage will replace your cracked windshield though some companies offer a separate "glass insurance." (Some lenders insist on comprehensive coverage on new vehicles until the loan is repaid.)

Uninsured and Underinsured Motorist Coverage: Covers your losses if you are hit by an uninsured or a hit-and-run driver. Also covers the difference when the at-fault driver has insufficient insurance to cover your entire loss.

A few words on Liability

The damages you might inflict on someone else are covered by liability coverage with limits and usually presented as a series of three numbers. For example, your auto insurance policy might be stated as 20/40/10. What this means is that you are covered for $20,000 in bodily injury coverage per person, $40,000 in total bodily injury coverage per accident, and $10,000 in property damage per accident. Even if you are at fault in an accident, liability coverage will take care of any property damage, bodily injury, and any legal bills.