Bodily Injury Liability Insurance
Protection pays on your benefit to another party for liability that’s incurred by you under Iowa’s tort law system. A payment would be made on your behalf by the insurance company for bodily injury to another party because you were at fault in an automobile accident. It is also possible under this coverage, to have the insurance applied to passengers (who are not immediate family members, residents of your household) if you were at fault for the injury incurred in your vehicle.

Property Damage Liability
Protection pays on your behalf, to the other party for damage to their automobile, house, telephone pole, fence, etc. Of course, you would need to be at fault before the insurance would apply.

(For both bodily injury and property damage, you can have separate limits, or you can have a combined limit that applies to all parties under one gross total. A split limit of $100,000 per person/ $300,000 per occurrence bodily injury and $100,000 property damage, would pay a maximum of $100,000 per each individual, and total maximum of $300,000 for all parties insured. With a combined limit policy, you would have $300,000 of liability for property damage and bodily injury to be paid to one person or to a group of people.)

Medical Payments
Provides coverage to you or to any passengers for injuries in your car regardless of who’s to blame. This may be duplicate coverage, as many people already have a standard health insurance policy. Usually you would like to have at least something here to help pay for the medical deductible. Typical amounts are $1,000, $2,000, or $5,000 for this optional coverage. Medical coverage may be “excess” to any other medical or hospitalization coverage you may have.

Comprehensive Coverage
Pays you for the damage to your automobile less any deductible for broken windshields, hail damage, theft or vandalism to your vehicle. Fire, flood, or a tree falling on your car. In addition, most policies will pay animal collision loss as a comprehensive claim.

Collision
If you damage your car and are at fault, are hit by an uninsured motorist or a hit-and-run driver, you must have collision coverage before you can be reimbursed for the damage done to your automobile. Hitting another car, another car hitting you, putting your vehicle in the ditch, or hitting a fixed object are all collision losses. Normally the insurance company will ask you to get two estimates of repair costs before reimbursing you for the damage to your auto.

Uninsured Motorist Coverage
It is often a misunderstood coverage. It provides protection only for bodily injury to you or any passengers when hit by an uninsured motorist and they are at fault. Often we don’t feel people buy enough coverage in this category. This coverage does not cover your car! You can “stack” this coverage if you have a multi-car policy by paying an additional premium.

Underinsured Motorist
Is kind of a sister to the above protection. It provides coverage for you for bodily injury when the other party is at fault for the accident and does not have enough insurance to pay for your bodily injury. Like the uninsured motorist coverage, it provides coverage for bodily injury only. You can “stack” this coverage if you have a multi-car policy by paying an additional premium.

Towing, Rental Reimbursement, CB Radio Coverage, Death Benefits, Pickup Toppers, Mag Wheels, Bug Deflectors, Non-factory Radio
All are non-standard items for which additional coverage must be purchased. Towing coverage pays for your vehicle to be towed and/or have road repair, which typically costs $5.00 for 6 months on a vehicle that has comprehensive and collision coverage. Rental Reimbursement pays for the cost of renting a car while your car is being repaired from an accident.

Boats, campers, and trailers are not automatically covered, they must be specifically insured for physical damage coverage on an actual cash value basis. CB’s, pickup toppers, mags etc. are considered “extra’s” and must be scheduled to be covered and additional premium paid.

Unless additional premium is paid; livery service (ie. Your child delivers pizza, you transport people for a fee, plow snow for a fee, etc.) is not insured. Also, a vehicle must be titled in the same name as policyholder and/or spouse.

Leased Auto/ New Auto Replacement Cost Coverage
For additional premium, in the event of a total loss, you can insure the difference in the “market value” vs. the “leased value” should there be a deficit. You can also purchase coverage to guarantee a brand new (like model) replacement vehicle regardless of the age of your car (provided your auto can not be repaired and you have purchased this coverage within 90 days of when you initially purchased your new car).

Extended Non-Owned Auto
If you are provided a company car for your regular use, you need to endorse this coverage to provide yourself with personal auto liability protection.

Rating
Insurance companies normally use age, sex, and marital status as part of the basis for rating the cost of your insurance. Young drivers, particularly males, are considered higher risks and will usually pay a higher rate as a result. In addition, students who qualify for Good Student Credit will pay considerably less regardless of male or female. A young driver may pay a 30% lower rate by foregoing his or her own car and sharing the driving with the parents, rather than owning a vehicle. A good driving record always saves. Insurance companies normally will charge a different rate for drivers with accidents, speeding tickets, and other driving violation problems. Of course, if you use your car for business purposes or for commuting a long distance to work, you’ll undoubtedly be charged a higher premium. In addition, the car you choose to drive will have an effect on the physical damage (comprehensive and collision) rates. We can provide you verification as to the rating of the vehicle that you might be interested in buying to determine whether or not it is a high collision and theft rated vehicle.

Many insurance experts suggest that you avoid unneeded options when purchasing automobile insurance. If you already have life insurance, disability insurance, or other towing, you may not want to duplicate these coverage’s. You also can save money by taking a higher deductible. Some car owners have gone as high as $500.00 deductible for collision, and a $250.00 deductible for comprehensive.

We strongly recommend carrying liability limits higher than state mandated minimums. Once you’ve paid basic costs, it costs little additional premium to improve your coverage dramatically.

You should consider a $1 million “umbrella” policy also. This provides liability over your personal (homeowners) and auto insurance. Typical cost is $80 - $150 a year.

DISCLAIMER – this sheet is not an insurance policy. It is to help you better understand your insurance coverage’s. It is important for you to read your policy, as it may vary from the explanations given here. If you have specific questions, please ask us.

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