What Do The Coverages Mean?
In Alabama, liability coverage is mandatory. All other coverages are optional. If your car is leased or financed, you may be required to buy certain coverage limits. Talk through your insurance needs with your Guide Insurance agent or broker to be certain you have the coverages you need.
> Collision
Collision coverage pays for damages if your vehicle overturns or if it collides with another vehicle or object.
Collision coverage is subject to a deductible amount that you choose. The most frequently selected deductible amount is $500. Select a deductible amount that you are comfortable with -- if there is a Collision claim on your policy, this will be the amount you'll generally be required to pay.
> Comprehensive
Comprehensive coverage pays for damage caused by an event other than a car collision, such as a fire, theft, vandalism, hail or flood. Comprehensive also covers damage from hitting an animal and covers the cost of a rental if your car is stolen. Comprehensive coverage is also subject to a deductible amount -- usually the same amount you choose for Collision coverage.
> Liability
Bodily Injury and Property Damage (BI/PD) liability covers your legal liability, up to the limits you select, for damages caused in a covered vehicle accident. If we cover an accident for which you're sued. we pay for a lawyer to defend you.
You choose your liability limits as either Split Limits or a Combined Singe Limit (CSL). Split Limits divide Bodily Injury liability limits per person and per accident. (For example, $100,000/$300,000 means that we will pay for up to $100,000 for Bodily Injury per person in a covered accident and up to $300,000 per accident.) For Property Damage, we will pay up to the limit you select per accident. CSL combines your liability coverage into one total limit per accident ($300,000.)
> Medical Payments
Medical Payments coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as a result of a car accident.
> Uninsured/Underinsured Motorist
Uninsured/Underinsured Motorist coverage pays for damages that you are legally entitled to recover for your bodily injury. In general, this coverage provides what you would have received from the other person's insurance company if that person had insurance. This coverage may also protect you if the person who caused the damage does not have enough insurance.
> Rental Reimbursement
If you buy Rental Reimbursement coverage, you will be reimbursed for your rental car charges incurred while your vehicle is being repaired after a covered accident. You can only buy Rental Reimbursement coverage if you buy Collision and Comprehensive.
> Roadside Assistance
Roadside Assistance covers labor costs incurred at the place where your vehicle becomes disabled as a result of a mechanical/electrical breakdown, dead battery, flat tire, and/or lock-out. It will also help if you run out of gas or other fluid or become stuck in snow, or mud within 100 feet of a road or highway. If necessary, Roadside Assistance will cover towing to the nearest qualified repair facility.
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