This section will cover the basic components or coverage parts that make up a typical Personal Auto Policy. It is important to note here that, if you vehicle is used for any business or commercial purpose, you may need a type of policy other than a Personal Auto Policy. We will only cover the basics of a Personal Auto Policy here, but your agent or insurance company can help you if you need coverage for business or commercial risks.

An auto insurance policy is a combination policy that "twists" together more than one basic kind of insurance coverage. The following is a description of the various components that make up the Personal Auto Policy:

Bodily Injury Liability - this coverage protects you against the risk of financial loss due to injuries that you, or a person who drives your vehicle with your permission, cause to someone else. These losses may include claims for medical expenses, lost wages, pain and suffering or funeral expenses.

Property Damage Liability - this coverage pays for any damage you may cause to someone else’s property. In most cases, this involves damage to someone else’s vehicle, but it could also include damage to a fence, mailbox or structure. Loss of use of the property is also covered. For example, it might be necessary to pay for substitute transportation while someone’s car that you caused damage to is being repaired.

Uninsured Motorist - this coverage provides payment to you if you are involved in a crash with another person who is liable for injuries caused to you, but who is a hit-and-run driver, does not have any bodily injury liability insurance or the person's company refuses or is unable to pay.

Underinsured Motorist - this coverage can be added to the uninsured motorist coverage to provide payment to you for injuries caused to you by another person whose auto insurance policy limits are not high enough to cover the cost of the injuries they are liable for. Usually, the other person's auto policy limits must be less than the limits you have chosen for your policy for this coverage to be available.