Auto Insurance 101

When the first U.S. automobile insurance policy was purchased in 1898, there were barely 100 cars nationally. Horses and carriages ruled the roads and the main concern for both insurers and auto drivers was any injury those noisy new machines might do to horses.

Today, auto insurance is the most widely purchased of all property-casualty insurance, yet few drivers are familiar with the details of their particular policy.  There are several types of auto insurance coverage you should know about:

• General liability covers damage you cause to other people's property and injuries to the people themselves.
• Collision covers damage to your own vehicle in an accident.
• Comprehensive (i.e., fire, theft and other non-collision damage) covers fire damage to your vehicle, break-ins, vandalism or theft, as well as natural disasters (earthquake, hail, hurricane, flood, etc. – unless the vehicle is overturned, then it is considered a collision).
• Medical payments insurance, usually in the range of $5,000 to $10,000, covers medical expenses for injuries. This "good-faith" coverage guarantees immediate medical payments for you, your passengers and other parties, regardless of who is at fault. It also covers you and members of your household in any accident involving an automobile, whether you are on foot, on a bicycle, in a friend's car.
• Uninsured motorist (UM) and underinsured motorist (UIM) coverage protects you if you are injured in an accident with others who themselves carry insufficient or no liability insurance.
• Extra coverage includes expenses for towing, labor, temporary replacement vehicles, etc. These are generally defined as add-ons or “endorsements” to your policy.

Denali Alaskan Insurance offers competitive auto insurance programs to fit your needs. Contact the agency at 257-1625, in Anchorage, or 800/770-1825 from anywhere else in Alaska, to update your auto insurance policy.

Denali Alaskan Insurance is a proud Trusted Choice^® insurance agency, and offers free auto and homeowner insurance tips for members at www.trustedchoice.com.