Paul Sanchez
State Farm offers a range of auto insurance options, including comprehensive coverage, liability coverage, and collision coverage. Comprehensive coverage helps pay for repairs or replacement of a covered vehicle in the event of a non-collision-related incident, such as weather damage, theft, or vandalism. Liability coverage, on the other hand, protects you financially if you are responsible for someone else's injuries or property damage during an accident. Collision coverage assists in paying for repairs or replacement of your car if it's damaged in a collision with another vehicle or object. Understanding what your State Farm auto insurance covers is essential for knowing how you're protected in case of an accident or unexpected event.
| Characteristics | Values |
|---|---|
| Collision coverage | Helps pay to fix or replace a car that's been damaged in a collision with another vehicle, object, or a rollover |
| Comprehensive coverage | Helps pay to repair or replace a covered vehicle from a loss not caused by a collision, including theft, glass claims, and windshield repair |
| Liability coverage | Protects you financially if you're responsible for someone else's injuries or property damage during a covered accident or event |
| Rental car insurance | Collision damage waiver, liability, personal accident insurance, personal effects coverage, and roadside assistance |
What You'll Learn
Comprehensive coverage
Additionally, comprehensive coverage includes glass claims and windshield repair. However, it is important to note that comprehensive coverage does not include collisions with objects such as trees or buildings. If you are responsible for an accident, you will need separate coverage.
The cost of comprehensive coverage depends on the deductible you choose. A deductible is the amount you agree to pay upfront when making an insurance claim. Higher deductibles lower your premium but increase the out-of-pocket expense in the event of a loss.
While comprehensive coverage is not required by law in most states, it may be required by your lender or financing company if you lease or loan your vehicle. They want to ensure their investment is protected in case anything happens during the lease or loan term.
Leasing a Car? Prepare for Higher Auto Insurance Premiums
You may want to see also
Collision coverage
It's important to note that collision insurance does not cover damage from injuries to other people or their property. It also does not cover damage from weather conditions, car theft or vandalism, hitting or being hit by an animal, fires and explosions, or violence from civil unrest or riots. For coverage against these types of incidents, you would need comprehensive coverage.
The term "full coverage" can vary across providers, but it generally includes liability, collision, and comprehensive insurance. While collision coverage is not legally required, it is often a good idea to have it to protect yourself financially in the event of an accident. The cost of collision coverage will depend on factors such as your vehicle's value, your chosen deductible, and your state's requirements.
Erie Insurance: Gap Insurance Coverage
You may want to see also
Liability coverage
Liability insurance for automobiles is divided into two categories: Bodily Injury (BI) coverage and Property Damage (PD) coverage. BI coverage comes into effect when your actions result in injuries to another person, and you are legally held liable. It helps cover the injured person's medical expenses and can also assist with defence and court costs if a lawsuit arises.
On the other hand, PD coverage addresses situations where your actions lead to damage to someone else's property, such as their car, house, or other possessions. This coverage helps pay for the necessary repairs or replacements. For instance, if you accidentally crash into someone's garage door, PD coverage would contribute to the cost of repairing the door.
It's important to note that liability coverage does not extend to your own vehicle repairs or your personal injuries in the event of an accident. To safeguard yourself financially in such cases, you would need to opt for additional coverages like collision coverage, comprehensive coverage, and medical payments coverage.
The minimum amount of liability coverage mandated by law varies from state to state, and it's recommended to consider purchasing higher coverage limits to provide more comprehensive protection. By choosing higher liability coverage, you can gain greater peace of mind, knowing that you are better equipped to handle the financial consequences of accidents.
To summarise, liability coverage is an essential safeguard that helps protect you from financial hardship if you inadvertently cause harm to others or their property while driving.
Auto Theft Insurance: What's Covered and What's Not
You may want to see also
Rental car insurance
State Farm's rental reimbursement coverage, or rental car coverage, helps pay for the cost of a rental car or commercial transportation expenses while your car is being repaired due to damage covered by your comprehensive or collision insurance. This coverage is indicated by the letter "r" on your insurance card.
State Farm's rental coverage includes the daily rental charge, which consists of the daily rental rate, mileage charges, and related taxes, subject to the limits indicated in your policy. The coverage limits are specified by two numbers following the "r" on your insurance card. The first number represents the maximum daily rental charges and associated taxes covered, while the second number denotes the total expenses covered per claim.
If your vehicle is not drivable, unsafe, or not legal to drive, your rental coverage begins immediately. On the other hand, if your vehicle is safe to drive, the coverage starts on the day repairs commence and ends when the repairs are completed or when you reach your rental policy limit. In the event that your vehicle is deemed a total loss, you may have additional days of rental coverage while you search for a replacement vehicle, subject to your policy limits.
State Farm has agreements with Enterprise and Hertz to provide rental vehicles at rates that may be lower than retail prices, and they can bill State Farm directly. However, you are free to choose any rental provider, although you may incur additional out-of-pocket costs with companies other than Enterprise or Hertz.
It's important to note that rental car coverage typically does not include expenses such as gas, mileage, additional coverage, or security deposits. These may be considered out-of-pocket costs.
Auto Insurance Requirements in New Hampshire: What You Need to Know
You may want to see also
Non-owner insurance
In some cases, non-owner insurance may be necessary for employees who occasionally use their personal vehicles for business purposes. Non-owned car insurance can extend the liability coverage on a commercial policy to employees' vehicles, providing protection in the event of an accident. However, it is important to list all vehicles owned or used regularly by the business on the commercial auto policy.
U.S.AA. Auto Insurance: Understanding the Stolen Auto Locator Discount
You may want to see also
Frequently asked questions
Comprehensive coverage helps pay to repair or replace a covered vehicle from a loss not caused by a collision. This includes damage from weather conditions, fires and explosions, car theft and vandalism, hitting or being hit by an animal, and violence from civil unrest or riots.
Collision coverage helps pay to fix or replace a car that's been damaged in a collision with another vehicle, object, or a rollover. This includes temporary substitute cars and cars you're using that aren't owned by anyone in your household or your employer.
Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage during a covered accident. Bodily Injury Liability Coverage (BI coverage) helps pay for bodily injury for which you are legally liable, including defence and court costs if you are sued. Property Damage Liability Coverage (PD coverage) helps pay for damage to another person's or company's property, as well as the loss of use of that property, and also includes defence and court costs if you are sued.
Collision coverage does not cover injuries to other people or damage to others' property. It also does not cover damage from weather conditions, car theft or vandalism, hitting animals, fires and explosions, or violence from civil unrest or riots.
If you have collision coverage and comprehensive coverage under your personal State Farm auto insurance policy, it often extends to rental cars as long as you rent the vehicle for personal use and within the specified geographic areas. However, it is recommended to check your personal policy to avoid paying for duplicate coverage when renting a car.
