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Auto Insurance Basics

Auto insurance is an important coverage that will protect you against financial loss in the event of a theft or accident. The insurance company will pay for the damage or loss that is written in your policy in exchange for you paying a premium.

While auto insurance is required in most states, there are different coverages you can add to customize your policy to your needs. Auto insurance covers property, liability, and medical.

  • Property – covers damage or theft to your vehicle.
  • Liability – covers your legal responsibility when property damage or bodily injury happens to others.
  • Medical – covers costs associated with injuries.

Who Auto Insurance Covers

An auto insurance policy will cover anyone who is named on the policy. This coverage applies whether you are driving your own vehicle or someone else’s if you have their permission. This means someone who has your permission to drive your vehicle is covered in your policy.

However, if you use your personal vehicle for commercial purposes, such as food delivery services, your policy will not provide coverage. If you use your vehicle for ride-sharing, some auto insurers provide additional coverage for drivers. You can add supplemental insurance that will cover when you work.

Additional Coverages

Most auto insurance covers the damage your vehicle causes, but not the damage to itself. There are supplemental coverages that
can cover damage to your car.

  • Collision – this coverage pays for damage done to your vehicle that occurred from a collision with another vehicle.
  • Comprehensive – provides coverage for any other damage not caused by a collision. This will also cover theft of your vehicle.
  • Glass Coverage – covers windshield damage.

Gap Insurance

Gap insurance pays the gap between what you paid for your vehicle and its current market value. If your car is totaled years after you purchased the vehicle, there may be a “gap” between what you paid and what the insurance company offers.

Call or email us to get a quote from any of our A-rated 35+ carriers on auto and supplemental insurance.

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

Ready to Learn More?

Connect with one of our insurance specialists today.

Why Choose FBC Insurance Services?

At FBC Insurance Services, we are committed to providing our clients with outstanding customer service. We have access to many different A-rated insurance carriers that are able to provide coverage across the country. This means we will shop them all and find the best insurance offer whether it’s for your home, flood, auto, motorcycle, boat, recreational vehicle, or personal policy. We also offer bundling of policies to provide you further discounts and savings.

All information presented is for educational purposes only and not intended as financial advice.

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