VITAL COVERAGES
Liability - Bodily Injury
(BI) / Property Damage
(PD) Coverage
▪ Pays for bodily Injuries to
other people or damage to their property, if the insured is liable as a
result of a covered loss.
▪ Includes medical expenses and lost wages.
▪ Coverages are subject to the limits and
conditions of the policy.
Uninsured Motorist / Underinsured Motorist (UM /
UIM)
▪ Pays for bodily injuries, but not property
damage, the insured, qualified family member, and any other person
occupying the covered auto sustains, cause by an uninsured motorist,
underinsured motorist or a hit-and-run driver.
▪ Also applies to household members as
pedestrians.
▪
Includes payment for medical costs, lost wages and pain and suffering.
▪ Coverage amounts should be equal to
liability limit.
Medical
▪ Pays insureds medical bills and funeral
expenses as well as their passengers while riding in their vehicle.
▪ Extends to the insured or their family
members when riding as a passenger in someone else's vehicle or when
struck by a vehicle as a pedestrian.
Personal Injury Protection
(PIP)
▪ Pays a broader range of medical costs
than does Medical Payments coverages.
▪ Covers lost wages and the replacement of
the services of someone injured in an accident.
▪ Coverage includes: medical expense w/no
time limit, loss of income for 52 weeks, loss of household services for
365 days, funeral expenses and survivors benefit.
CONVENIENCE COVERAGES
Comprehensive (Other than
collision)
▪
Protects your vehicle by paying for losses resulting from fire, theft,
falling objects, riots, storms, earthquakes, floods, collision with a
bird or animal and other natural occurrences.
▪ Like Collision coverage,
Comprehensive coverage generally includes a deductible.
▪ Coverage is normally required if your
vehicle is leased or if there is an outstanding loan on the vehicle.
▪ Provide coverage for broker windshields.
Collision
▪ Covers all accidental damage to your
insured's car caused by Collision with any object or by the vehicle
overturning.
▪ Pays up to the actual cash value of
their vehicle, less the selected deductible.
▪ Coverage is normally required if a vehicle is leased or if
there is an outstanding loan on the vehicle.
Farmers
Emergency Roadside Assistance and Towing Service
▪ With one toll-free call, Farmers
Service Representatives across the United States and Canada will help
you get back on the road quickly safely.
▪ Towing to the nearest repair facility.
▪ Up to one hour of mechanical labor at the place of your breakdown.
▪ Locksmith service if you are locked out.
▪ Assistance in changing a tire.
▪ Deliver of needed gas, oil, etc. (Delivery is covered. Cost of gas,
oil, etc. is not).
▪ Sign & drive for reasonable and necessary services up to $150.
Amounts over $150 are submitted for approval.
Uninsured Motorist Property Damage
▪ Covers vehicle damage as a result of an
uninsured motorist or hit and run driver. UM Coverage does not apply (it
is only for injuries).
▪ Insured can utilize their collision coverage but must pay the
deductible. This coverage is recommended for vehicles with no
comprehensive or collision coverage.
Glass Deductible
Buy-back
▪ Reduces the
comprehensive deductible to $100 for glass.
Deductibles
▪ The deductible is the
amount of the loss an insured agrees to pay in the event of a claim or
accident. Let's say you have a $500 deductible. If you have a
fender-bender, and the bodywork costs $1150, you will have to pay the
deductible. Farmers will pay the balance $1150 - deductible = $650
FREQUENTLY ASKED QUESTIONS
Am I covered if I drive someone else's vehicle?
Generally speaking, the insurance goes with the car. For example, if
you have an accident while driving someone else's car, the owner's
insurance would apply first toward damages. Your auto insurance would
generally apply in the event the owner of the vehicle had no auto
insurance or did not have enough auto insurance to pay the damages.
What does full coverage mean?
The term full coverage generally means that the insurance policy has
both liability coverage and coverage for damage to your vehicle. The
term full coverage does not mean that everything is covered no matter
what happens.
Your auto insurance policy declaration page lists the coverages you have
selected.
Will my policy be cancelled if I have an accident?
Generally, being in an accident will not cause your policy to be
canceled. However, after the facts of the situation are reviewed, you
may be required to pay a higher premium for your policy upon renewal.
What is Optional/Add-on Equipment coverage?
Under the Comprehensive and Collision portion of your policy, optional
equipment (a CD player for example) is covered only if permanently
installed in the opening of the dash where the manufacturer would
normally install such equipment.
An endorsement is available to provide coverage for optional equipment
not permanently installed in the dash and for theft of items such as
tapes, discs or other equipment designed for the reproduction of sound.
Why Do Auto Insurance Premiums
Change?
Ever
wonder how insurance companies determine your premium? Auto insurance
premiums change for the same reasons that the price of other goods and
services you buy change.
The prices of the goods and services that insurance companies buy affect
the prices they charge. Costs affecting the ultimate price of auto
insurance are:
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Medical costs to treat injuries |
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Auto repair costs |
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Costs to adjust claims |
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Inflation |
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Uninsured drivers (your policy pays when the other driver doesn't
have an auto insurance policy if you purchase Uninsured Motorist
coverage) |
Although insurance companies can't directly control these costs, we
regularly monitor them to see how they are affecting the costs of the
claims we pay. As they change, auto premiums must be adjusted. These
costs can affect your auto insurance premium whether or not you
individually have had an accident or claim.
Changes you make to your auto insurance policy or coverage's may also
change the premiums. Adding or removing a driver, buying a new car,
moving to a new location or changing how you use your car may influence
the cost of your auto insurance.
What is Farmers doing to control auto insurance costs?
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We have a network of reliable auto repair facilities for the
highest quality repairs at competitive prices. |
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We vigorously oppose frivolous lawsuits. |
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We have an active Anti Fraud Unit. |
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We offer a youth driving safety education program to all parents
of young drivers. |
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We actively support organizations devoted to auto safety,
including funding anti-drunk driving efforts and those dedicated
to improving youth driving safety. |
What can you do to help control your auto insurance costs?
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Take advantage of the Farmers Friendly Review offered by our
agency to review your auto insurance coverages and the
rest of your insurance needs. |
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See that your young driver, if you have one, completes the Y.E.S
program (You are Essential to Safety). Better yet, complete it
along with your teenager. |
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Drive defensively and avoid putting you or your vehicle in harms
way. Also, lock your car when you leave it. |
We would be happy to answer any additional questions you may have. And,
of course, we are always ready to provide you with a personal Farmers
Friendly Review.
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