Automobile Insurance 101

Auto Insurance Coverage: Liability
(Bodily Injury & Property Damage To Others)

Let's face it, if you have an auto accident the costs could be devastating. Not all auto accidents involve just your vehicle. There are many other circumstances that could potentially occur. That's why you should consider Liability coverage. This coverage helps protect you in an auto accident from the damages done to the other driver's property, including bodily injury. The bodily injury or property damage must be accidently caused by you or a resident family member while driving your (or any non-owned) car. It also covers anyone else driving your car with your permission. However, this coverage applies only if the driver is considered at-fault and legally responsible (liable) for the damage. Please also note that Liability coverage for property damage does not apply to the damage done to your car or other property you own. This coverage is subject to the applicable policy limit, but deductibles do not apply to coverage.

Liability coverage may include:

• Claims for medical expenses, lost wages and pain and suffering
• Damage to other vehicles
• Damage to others property such as buildings, walls, fences and equipment

Let's say you're involved in litigation because of the driver's role in an accident. We will also defend you, at our expense, under your coverage.

Find the Level and Type of Coverage that's right for you.

Most states require that all motorists maintain some form of Liability insurance. Each state has laws regarding how much Liability insurance its residents are required to maintain. SunState representatives know the minimum requirements for each state, and are ready to help you make sure you have at least the minimum amount of Liability insurance required by your state.

When you select your Liability coverage, you choose limits that determine the maximum amount your policy will pay if there is a covered accident. Limits are generally described either as split limits or as a combined single limit.

An Example of Split Limits:

For bodily injury, split limits describe (1) the maximum payment per person and (2) the maximum payment for all persons injured in an accident.

With bodily injury split limits of $25,000/$50,000, your Liability insurance would pay up to $25,000 for each person injured in the accident up to a total of $50,000 if more than one person is injured in the accident.

If split limits are selected, there is a separate additional limit for property damage. The separate additional limit describes the maximum payment for all damaged property of others in a covered accident. For example, if the separate limit for property damage is $25,000, then the maximum payment for all damage to the property of others in the accident, including their car, would be $25,000.

An Example of Combined Single Limit:

With a combined single limit, one limit is used for both bodily injury and property damage coverage. In this case, there is no specific limit for each injured person, just one limit applicable for all injuries and property damage for which you are found legally responsible.

For example, if you have a combined single limit of $300,000, your insurance company would pay up to $300,000 for all injury-related bills and all property damage costs that resulted from a covered accident.

If you find yourself in a serious accident, you'll want to have enough insurance to cover a judgment against you in a lawsuit, without putting your bank account and other assets at risk. You should choose the amount and type of limits that best suit your needs.

Supplement Your Basic Liability Coverage:

Umbrella insurance is not just for the wealthy, you don't have to be a millionaire to be sued like one. SunState Umbrella policy broadens your underlying auto, home, or boat coverage. So, if you are involved in a lawsuit, you have the security of an extra $1 million to $5 million in liability protection.

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Auto Insurance Coverage: Medical Payments

The last thing you need to worry about at the time of an accident is your medical insurance. The Medical Payments portion of an auto insurance policy covers you, your family members and any other passengers in your car for any necessary medical and dental services due to bodily injury caused by an auto accident. This coverage applies regardless of who caused the accident. Medical Payments coverage also covers you or your family members if you are involved in an accident as a pedestrian.

An Example of Medical Payment Coverage:
Let's say you are injured in an accident where your car slid into a ditch. The result is $2,000 in medical bills. When you called for your auto insurance quote, you selected $1,000 in Medical Payments coverage. If you didn't have health insurance, you could use your Medical Payments coverage, up to the $1,000 limit you selected, to help pay the resulting medical expenses. You would then only be responsible for the remaining $1,000 in medical bills.

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Auto Insurance Coverage: Uninsured Motorists Coverage and Underinsured Motorists Coverage

While you must feel safer on the road knowing you've insured your vehicle, it's a scary thought to realize that other drivers out there may not have done the same. You can be even more comfortable if you've selected uninsured motorists and underinsured motorists coverage.

Uninsured Motorist Coverage covers:

• Injury expenses incurred by you, your family members or passengers due to an accident with an uninsured motorist.
• This coverage applies even if you are a pedestrian hit by an uninsured motor vehicle.

Underinsured Motorists Coverage helps when the other driver is found legally responsible for an accident but has insufficient car insurance coverage to cover the expenses for injuries to you, your family members or passengers.

Protect your vehicle too

Uninsured Motorists Coverage varies by state. In most states, this coverage applies only to bodily injury. However, in some states you can add uninsured motorist property damage coverage to your policy as well. Make sure to ask your representative about the coverages available in your state.

An Example of How Uninsured Motorists Coverage Works:

A driver with no insurance rear-ends your car while you sit at a red light. As a result, your car has $1,000 in damages and you have neck pain. After going to the Doctor your medical bill equals $200. You purchased Uninsured Motorist Coverage that included Uninsured Motorist Property Damage coverage. Your Uninsured Motorist Coverage limits are $20,000/$40,000/$15,000. The $1,000 in damage to your vehicle and the $200 in medical bills fall well within your limits and would be covered by your uninsured motorist coverage.

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Auto Insurance Coverage: Collision

Collision coverage pays for damage to your vehicle caused by any accidental impact with another vehicle or object, and includes if your vehicle overturns. The maximum amount you'd receive under Collision coverage is the actual cash value of your vehicle minus the deductible you chose for this coverage.

Getting Collision Coverage

Collision coverage supplements Comprehensive coverage, which protects your vehicle for incidents other than collision (for example, fire, theft or vandalism). In order to purchase Collision coverage for your vehicle, you must also purchase Comprehensive coverage.

If you have a loan or a lease on your vehicle, you are likely required to purchase both Collision and Comprehensive insurance coverage. If your vehicle is fully paid for, then these coverages are typically optional.

Zooming-in on the Small Print

You will need to select a deductible amount for your Collision coverage. This is the amount that you agree to pay out of your own pocket if you should need to make a claim for Collision coverage.

Choosing a higher deductible can help you lower the cost of your insurance. However, because you can't anticipate an accident, you should make sure to choose a deductible that you can afford to pay at any time.

Coverages and limits may vary by state. Check with a SunState representative to find out what's available in your state or begin a free car insurance quote now.

An Example of Collision Coverage in Action:

You're driving down the street and accidentally hit the car in front of you. Your Liability insurance would cover the damage to the other driver's car. Your Collision insurance would cover the damage done to your vehicle, because this was an accident in which you collided with another vehicle.

If you selected a $250 deductible, you would only have to pay the first $250 out-of-pocket to have your vehicle repaired or replaced if necessary, depending on the damage.

Loan Lease Gap Coverage:

If you have a loan or a lease on your vehicle you may want to consider broadening your Comprehensive and Collision coverages with Loan/Lease Coverage, or Guaranteed Auto Protection (GAP) Coverage. This is an optional coverage available for vehicles that are leased or financed. In the event of a total loss to a vehicle, it provides coverage for the difference between the actual cash value of the vehicle at the time of loss and the unpaid principal due on the loan or lease.

Example of loan lease gap coverage:

A policyholder purchases a new vehicle for $10,000 with a 5 year loan and a $200 collision deductible. Two years later the car is totaled in a collision. At the time of loss, the actual cash value of the car is $7,000, but the outstanding loan balance is $8,000.

Your insurance would pay $7,000 minus the $200 deductible under the collision coverage. Under Loan Lease GAP coverage, the company would also pay an additional $1000 (in addition to the $6800 already paid).

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Auto Insurance Coverage:

Personal Injury Protection (No-Fault) Accidents can range from mildly inconvenient to overwhelmingly expensive. Pre-planning can make a huge difference, both financially and emotionally, when you've been injured in an accident. Personal Injury Protection (PIP) is often referred to as "no-fault insurance." PIP coverage not only covers necessary medical and hospital expenses, but it can also help pay for lost wages and loss of services while you're recovering. Examples of loss of services costs are the expenses you've incurred for personal, household or childcare services because of your injury. PIP may also pay for funeral expenses. PIP coverage is subject to a limit of liability, which is specified in your policy. Keep this in mind when receiving free car insurance quotes online.

PIP claims are paid regardless of "fault," or legal liability. This means that you, your family and the other passengers in your vehicle are covered under your policy regardless of who is responsible for the accident. This coverage also extends to help you and your family members in the unfortunate event that someone is hit by a vehicle as a pedestrian. If you are a resident in a state where PIP is required by law, your auto insurance policy should include no-fault insurance. Contact a representative to learn what's required in your state.

We don't Add Insult to Injury

We understand that some injuries can make even the simplest of tasks difficult. That's why we give our customers multiple ways to report a claim. You can report a claim in person, online, or by calling our highly trained claim professionals at our call center.

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Auto Insurance Coverage: Additional Coverage

You get a broad range of coverage with any of our SunState auto policies. However, you can customize your policy to your specific needs by adding one or more of the following additional coverage options. Please note that in some states some of these coverages may already be included in your auto policy:

Towing and labor: pays for towing and labor costs incurred each time your covered auto is disabled. The labor must be performed at the place of disablement. Make sure to ask your SunState representative about the limits for this coverage.

Extended Transportation Expenses: pays for a rental car if your car is damaged in a situation that is covered by comprehensive or collision coverage, and if your car is out of commission for more than 24 hours.

CD/DVD coverage: pays up to a certain amount for loss of CDs/DVDs used with your car's stereo equipment, as long as they are in your car at the time of loss.

Death Indemnity Coverage: will pay a specified amount in event of death of an insured, as a direct result of an auto accident. The payment will be made to a designated beneficiary.

Loan Lease Gap Coverage: or Guaranteed Auto Protection (GAP) Coverage, is an optional coverage available on vehicles that are leased or financed. In the event of a total loss to a vehicle, it provides coverage for the difference between the actual cash value at the time of loss and the unpaid principal due on a loan or lease.

Disclaimer
This description is for informational purposes only. All statements are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the actual policy. Coverages and discounts are subject to individual insured meeting our underwriting qualifications and to state availability.

Hybrid Auto Insurance Discount

You've made a conscious decision to have a positive effect on the environment, and now it's your turn to be rewarded. SunState now offers an industry leading auto insurance discount for purchased and leased hybrid vehicles.

Details Regarding the Hybrid Discount:

• You don't have to purchase multiple policies (i.e. home insurance, renters insurance) from SunState to be eligible for this discount. However, customers can save even more money by having auto insurance as well as other types of policies with SunState.
• The discount for hybrid vehicles does not apply to uninsured motorists and personal injury protection portions of auto coverage.
• A good driving record will have a positive effect on the total cost of car insurance for any SunState customer.

A SunState representative can answer all of your auto insurance questions and help you take advantage of this hybrid discount.*

* NOTE: The SunState hybrid car insurance discount subject to individual eligibility and is only available in the following states:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington and Wisconsin