SIAA Insurance Choices

Frequently Asked Questions about Auto Insurance

Q:	Am I covered for rental car expenses if my car is inoperable?
A:	Only if you have rental car reimbursement coverage added to your policy.

Q:	Will my teenage son/daughter be covered if he/she drives my car?
A:	Yes, as long as they have a valid drivers license and have been added to your policy.

Q:	If I let a non-family member drive my car is he/she covered in the event of an accident?
A:	Yes, as long as they have a valid drivers license.

Q:	What is the difference between collision and comprehensive coverage?
A:	Collision covers physical damage resulting from accidents with another vehicle or a fixed object. Comprehensive covers losses other than collision, subject to policy exclusions.

Q:	What does liability coverage mean?
A:	Liability Coverage protects you from lawsuits in the event you are involved in an accident. This coverage provides protection even if you are driving another person's vehicle. There are three main types of Liability Coverage: Bodily Injury Bodily Injury Coverage is typically sold as split limits, a limit for each passenger and an overall limit for the accident. For example, if you elect to purchase $100,0000/$300,000 coverage, you have the following coverage maximum payouts in the event of an accident: $100,000 maximum payment to any individual involved in the accident $300,000 maximum payment for all individuals involved in the accident The minimum limits for BI vary by state and it is suggested that you purchase $100,000/$300,000 unless you are a non-standard driver that has very expensive insurance rates. Always check with your insurance agent about the risks associated with purchasing lower or minimum liability limits. Medical or Personal Injury Protection(PIP) This coverage provides protection for medical and/or funeral costs for you in the event of an accident. States are either Medical states or PIP states depending on their state law. Please check with your agent for a complete description on Medical Coverage and its relation to other existing Health/Life Coverage you may have. Property Damage As the name implies, property damage protects you from any damage resulting to a person's car or other property in the event of an accident. For example, if you purchase $100,000 of Property Damage, the maximum amount paid for damage to other individual's property would be $100,000 for the accident. Uninsured/Underinsured Motorist Uninsured Motorist provides coverage for you in the event the other driver does not have insurance at all. Underinsured Motorist provides liability coverage for you in the event the other driver does not have enough insurance coverage.

Q:	What does collision and comprehensive coverage mean?
A:	These two coverage options provide compensation for damage inflicted to your vehicle in the event of an accident. Collision provides coverage in the event of an accident. Comprehensive provides coverage in the event of car damage from other perils such as storms, theft and some other non-accident damage inflicted to your car. Comprehensive and Collision are sold with deductibles. A deductible is the amount you pay first. After the deductible has been reached, the insurance coverage provides payment for the additional amount of repairs/replacement needed. A typical deductible for Comprehensive and Collision is: $100 Comprehensive $250 Collision It is very important that you consult with your agent to determine the best coverage for you. Depending on your vehicle, age, driving record, income and many other factors, the right coverage will vary. Disclaimer: This information is intended to provide a brief overview of insurance coverage, and is not a substitute for reading the details of your insurance policy and/or consulting with an agent.

Q:	My car insurance seems expensive. How can I reduce the cost?
A:	There are tools you can use to reduce your costs. A few things to consider include: Vehicle Choice Premiums vary by vehicle - some are theft targets or expensive to repair. Check the insurance rates before you make a purchase. Deductibles Choosing higher Comprehensive and Collision deductibles can reduce premiums. Collision Coverage As your vehicle ages and the value declines, it might be a good idea to drop Collision Coverage to save money. Account Credit Many companies provide discounts if your home and auto are insured together. Ride Share If you commute, look into ride share vans or alternatives to driving to work every day. Decreased usage may translate into a lower rate class.

Q:	Why should I package all my insurance?
A:	By packaging all of your insurance policies you can achieve significant savings.