Swingle Collins & Associates
Personal Auto Insurance
A personal automobile policy provides coverage for private passenger type autos owned by individuals. The insurance policy provides financial protection against physical damage and/or bodily injury of the named insured resulting from a traffic collision. The policy is also designed to protect against liability owed to a third party from such an accident.
Here’s What You Need to Know About Personal Auto Insurance:
Personal Auto Policies provide bodily injury coverage, property damage coverage, uninsured/underinsured motorist coverage, and physical damage coverage to your vehicle.
If collision and comprehensive coverage is provided there is physical damage coverage for your vehicle. The most common comprehensive coverage would be hail damage or theft of a vehicle.
Most personal auto policies provide actual cash value for your vehicle. There are some insurance companies that will offer agreed value coverage. Agreed value is perfect for high value, low mileage vehicles.
Most personal auto policies provide coverage for permissive users but there are exclusions for drivers who are provided a vehicle for regular use. It is best practice to list all regular use drivers to the personal auto policy.
Additional coverages such as rental reimbursement, towing coverage, and lease gap coverages can be added by endorsement to a personal auto policy.
It is a best practice to carry combined single limit coverage. This is a more comprehensive type of coverage that is not limited to per person, per accident, or property damage. There is a total amount that can be applied to where it is necessary.
Some common exclusions on a personal auto policy may include wear and tear, mechanical issues, animal damage, and racing.
Some credits that can be applied to the premium are low mileage vehicles, good driving records, completion of defensive driving course, and good grades for student drivers.
There could be some coverage gaps if the titled owner of the vehicle does not match the named insured of the policy. An example of this could be a company owned vehicle on a personal auto policy or vice versa.