Consider the following three questions with the help of your agent:

• How high should my liability coverage limits be

No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits.

The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages.

• How high or low should my collision and comprehensive deductibles be?

Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you would be willing and able to pay on short notice in order to save on your premium.

• Should I carry collision and comprehensive coverage?

You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. Once you have paid off your car, and its value decreases, you might consider dropping these coverages to save money on premiums. Consider, though, whether the savings would be enough to offset the risk of having to pay the entire cost of repairing or replacing the vehicle.

The cost of car insurance varies by insurance company and by:

• What you buy
• How many coverages you buy
• The deductibles
• What kind of car you drive

If you are buying or selling a car, you will need to re-evaluate your auto insurance needs.Generally, the more expensive the car, the more you pay.

• Where you drive

Generally, due to higher rates of vandalism, theft, and accidents, urban drivers pay more for auto insurance than those in small towns or rural areas.

• How much you drive

People who use their car for business and long-distance commuting normally pay more than those who drive less.

• Your age, sex and marital status

Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.

• Your driving record

Drivers who cause accidents generally must pay more than those who are accident-free for several years.

• Your credit history

Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's rate.

What can I do to save money on my auto insurance?

• If you're shopping for a car, consider how your choice will affect premiums.
• Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.
• Ask about discounts for good students, insuring more than one vehicle, accident-free driving, and others.
• Consider joining a car or van pool, or finding other transportation to work. If you reduce your driving mileage enough, you may lower your premiums.
• Drive carefully.

What Is a Deductible?

A deductible is the part of a covered loss that you have agreed to pay with your own money. If you file a claim against your insurance, you will pay only the amount of the deductible. Your insurance provider will pay the rest - up to your coverage limit. When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim. Typically, higher eductibles mean lower premiums.

Who Does My Auto Insurance Policy Cover?

An Auto Insurance policy typically covers:

• You and your spouse
• Relatives who live in your home
• Other licensed drivers who have permission to drive your insured vehicle.

Types of Auto Insurance Coverage

An Auto Insurance policy generally consists of several kinds of coverages. Because all 50 states have different laws when it comes to Auto Insurance, the following coverage descriptions are simply general information. They are not statements of contract. To learn more about auto insurance in your area, contact an agent.

Most Common Coverages:

• Liability - Auto liability coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident. Auto liability coverage falls into two categories:
• Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
• Property Damage Liability - which covers damaged property, and may include loss of use.

Liability coverage also pays legal defense and court costs. State laws usually dictate the minimum amounts of insurance required, but higher amounts are available.

Personal Injury Protection (PIP) - This coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident. It may also pay for:

• Rehabilitation
• Lost earnings
• Replacement of services (For example, child care if a parent is disabled.)
• Funeral expenses

Medical Payments

This coverage is available in most states. It pays medical and funeral expenses for covered persons when those expenses are related to an auto accident.

Collision

This coverage helps pay for damage to a covered vehicle caused by:

• Collision with another vehicle
• Collision with an object
• A vehicle rollover

A deductible is required.

Comprehensive

This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Examples of this type of damage or loss include:

• Fire
• Wind
• Hail
• Flood
• Vandalism
• Theft
• Hitting an animal

A deductible may apply.

Uninsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance. In some states this coverage may also pay for property damage. This coverage varies by state and depends upon policy provisions.

Underinsured Motorist

This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance. Application of this coverage varies by state and depends upon policy provisions.

Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident. Daily allowances or limits vary by state or policy provisions.

Emergency Road Service

This coverage pays for having your auto towed due to a breakdown. Towing limits vary by state or policy provisions. This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements.