Auto insurance pays for damages, injuries, and other losses that are detailed in your policy. Depending on the type of coverage, auto insurance can either pay for your damages or another driver’s damages, or a passangers damages. The most common types of auto insurance are:

LIABILITY pays for damage caused by you to another person or another person's vehicle or other property as a result of an automobile accident. Types of liability coverage include:

Bodily Injury (BI) If you injure someone in an auto accident for which you are legally to blame, this coverage will pay claims for injury or death against you and the cost of legal defense.

Property damage (PD) pays for damage that you cause to someone else's vehicle or property for which you are legally liable. This does not cover your car or property.

Medical payments pays for medical, hospital or funeral expenses for you and others injured or killed while riding in your car, regardless of fault. It also covers you and family members if struck by a car as a pedestrian or if riding in another car.

PHYSICAL DAMAGE pays for a loss resulting from damage to your vehicle or a vehicle operated by you. Physical damage also provides coverage if your vehicle is stolen. Types of physical damage coverage include:

Collision (BI) pays for damage to your car from an accident regardless of fault. It usually includes a deductible and the insurance company pays the rest. Selecting a larger deductible can lower your collision premium.

Other Than Collision (Comprehensive) pays for damage to your car caused by most anything other than a collision. Glass breakage, theft, fire, explosion, impact with an animal, vandalism and flood are some of these hazards. This coverage is also available with deductibles to lower your premium.

OTHER COVERAGE Other types of auto coverage include:

Uninsured Motorists (UM) Unfortunately, not everyone purchases auto insurance. If you or your passengers are injured by someone who does not carry auto insurance, UM coverage will pay for injuries up to your policy limits. This includes medical expenses, loss of wages, and related expenses. UM coverage also applies if you are a victim of a hit-and-run driver. .

Underinsured Motorists (UIM) Just as some drivers don't carry any auto insurance, other's don't carry enough to pay for damages from their accidents. UIM coverage pays for death and injury expenses to you or occupants of your car when the other person's insurance is inadequate.

Homeowners insurance provides you financial protection in the event that your home is destroyed or damaged due to unforeseen or catastrophic event. In addition to your home, homeowners insurance also covers your belongings (or personal property) and can reimburse you for medical expenses and liability claims resulting from property damage and personal injury to other people caused by you or members of your family. There are two basic types of homeowners coverage:

ALL RISK POLICY - offers broad protection and covers all perils unless they are specifically excluded by the policy, and

NAMED PERILS POLICY - offers narrower protection than an all risk policy and covers only those perils specifically named under the policy. A named perils policy will also contain exclusions to perils named under the policy.

Policies also offer different methods of repairing or replacing your property:

REPLACEMENT COST - pays for all necessary expenses associated with rebuilding or repairing damaged property, up to the policy limits, less any applicable deductible amount.

ACTUAL CASH VALUE - factors in depreciation costs to your claim and pays you the costs to replace or repair the damaged property, less this depreciation and less any applicable deductible amount.