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Have you ever sat down to read your auto insurance policy contract — not your Dec Page that lists the coverages you purchased, but the actual policy contract that looks like a very long legal agreement?

If not, you're not alone. Many people find this task daunting due to the contract's complexity, so they avoid tackling it.

While we recommend that you read your policy to fully understand specific coverage details, we also know that your policy is written as a legal contract, so it can seem intimidating or confusing.

To simplify the reading of your policy, we've put together a brief overview of the types of coverages in a typical policy contract and how they work.

Elements of an Auto Insurance Policy

Policies are distinguished by the state in which they're issued, and coverages available may vary among states. Your policy simply explains the types of coverage available and how or when they can be used. If you see these coverages in your Progressive policy, here's what they do:

Liability

· Consists of Bodily Injury and Property Damage (BI/PD)

· Covers legal liability (that you select) for damages

Personal Injury Protection (PIP)

· Covers medical bills and lost wages if disabled or unable to work from an accident

 

Medical Payments (MedPay)

· Applies to the cost of necessary and reasonable medical care from a car accident no matter who is at fault

Uninsured/Underinsured Motorist (UM/UIM)

· Provides what you would have normally received from the other person’s insurance.

Collision

· Collision coverage pays for the damage to your vehicle

· It is the amount you are required to pay in the event a claim exceeds the deductible amount

Comprehensive

· This coverage pays for damage caused by an event other than a car collision, such as fire, theft, vandalism, hail, animal collision or flood damage

Custom Parts or Equipment (CPE)

· Collision and Comprehensive coverage each provide up to $1,000 of coverage for custom parts or equipment

Additional Custom Parts or Equipment (ACPE)

· We will pay for custom parts or equipment damaged as a result of a covered incident, up to the amount shown on your Dec Page.

Rental Reimbursement

· Reimburses you for rental car charges incurred while our vehicle is being repaired after a covered accident

· This can only be purchased with Collision and Comprehensive coverage

Loan/Lease Payoff

· Protects you when your covered vehicle has been deemed a total loss and you owe a lender more money than the vehicle is worth

· Will pay the difference between the vehicle's actual cash value and the amount you owe to the lender

Roadside Assistance

· This pays for labor costs if your vehicle disabled from a mechanical breakdown, dead battery, flat tire

· Will also cover towing to the nearest qualified repair facility

 

 

We are happy to answer any questions about your policy today!

For all your insurance needs contact Tom at tomwallaceagency@gmail.com, Brian at Bbates504@yahoo.com, or Jimmie at jimmiehickey17@gmail.com. 
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