Personal Automobile Insurance is coverage that an individual would purchase for their personal car, truck, or any other vehicles that they may own. The main function of this coverage is protection against any losses that may occur as a result of owning and operating any specific automobile or vehicle. The main coverages that fall under the spectrum of Personal Auto Insurance are: Liability Insurance, Collision Insurance and Comprehensive insurance.

Liability Insurance covers the insured party if any property damage to third party or bodily injury is caused by the owning or operating of an automobile or vehicle. Some examples of what Liability Insurance may cover would be an insured driver, an injured third party, and a damaged third party vehicle.

Example: Joe had a collision with an oncoming vehicle. He was not harmed in the accident but the driver of the other vehicle suffered some injuries and was hospitalized. Fortunately for Joe, his personal automobile liability insurance will greatly assist him in any possible lawsuits or medical expenses he will incur as a result of the other motorist’s injuries.

Collision Insurance covers any damage sustained to the insured’s automobile or vehicle as result from contact or collision with another inanimate object.

Example: Even though Joe was not injured in the collision he had with another motorist, his vehicle was badly damaged. Thankfully, he had Collision Insurance in place, and was able to have his car repaired by professionals in a timely fashion.

Comprehensive Insurance covers an insured’s automobile or vehicle for damages (other than damages covered under Collision insurance) that may occur. These damages may include vandalism, theft, fire, flood, wind, hail, or a collision with an animal.

Example: Two weeks after Joe’s vehicle was repaired, he struck a deer on a dark road late at night. Fortunately, Joe had comprehensive insurance and was able to recoup much of the money that had to be spent in order to, once again, repair his vehicle.

Life Insurance is a type of protection that guarantees a certain sum of money be paid to a specific beneficiary upon the death of an insured.

Example: When Alfred’s beloved Jane passed on, he was faced with not only the enormous amount of grief from losing his life-long partner, but also a substantial amount of medical and funeral expenses. Thankfully, Jane had the foresight to make sure that the life insurance plans she had obtained for Alfred and herself were comprehensive enough to cover all the arrangements that would be necessary in the event of either one of their passing.

Health Insurance: is coverage that protects the policy holder against any medical expenses that may occur in the event that they become sick or ill.

Example: Prior to having Health Insurance, Bryan would have to pay anywhere from 100-200 dollars per visit to the doctor, simply for a routine checkup. This did not include any testing, procedures, x-rays, or even medication when it was necessary. Since he has purchased health insurance, his cost has been significantly reduced for each appointment, with much of the testing and procedures encompassed within the copay. The cost of medication has also been significantly reduced as a result of his insurance.

Homeowners Insurance is coverage that protects the insured’s privately owned home. There are many different types of homeowners insurance that cover a broad spectrum of possible events and occurrences, but the primary purpose of homeowners insurance is to protect residents of the household and the house itself against a large variety of potential perils including, fire, personal liability, theft, etc.

Example: John and Susie have recently purchased their first home. Due to faulty wiring behind their electric stove, a fire broke out inside the walls of the house and burnt the structure to the ground. Had they not had homeowners insurance, they would be stuck with the re-building costs to restore their home solely out of their own pockets.

Renters Insurance is a form of coverage that protects those who rent their dwelling from a third party. Renters insurance not only protects the policyholder personal property but also their personal liabilities. Renters insurance would protect the insured party against fire, theft, natural disaster or if someone were hurt or injured in the covered dwelling.

Example: Ethel’s apartment was burglarized resulting in the loss of her many valuable possessions and heirlooms. Fortunately, because she had renters insurance, Ethel was able to receive substantial compensation for many of the belongings she had lost as a result of the robbery.

Disability Insurance is coverage that serves to supplement the loss of wages that may occur in the event that the policy holder is unable to work and, therefore, unable to earn income.

Example: Mike fell off of a scaffolding while at his construction job and broke his leg. He has been unable to work due to the injury and the rehabilitation process but has continued to earn income because of his disability insurance policy.

Flood Insurance is a type of coverage that protects the insured against property loss or damages that may result from a *natural* flood.

Example: Alyssa lives in an area that is relatively close to a large river and has had a history of flooding. After a large rainstorm several years ago flooded her basement, she realized that her Homeowners policy did not cover any flood damages. She quickly purchased a flood insurance policy and has slept better ever since.

Umbrella Insurance is insurance that extends above and beyond the coverages that you may already currently have in place. It is referred to as “umbrella” insurance because it broadens and extends the spectrums of the policies underneath it, whether they are homeowners, automobile insurance, etc.

Example: Carolyn has auto liability insurance that covers her for $500,000.00 and a personal umbrella policy that has a $1 Million limit. She is sued after a recent accident by the other motorist for 1 million dollars in punitive damages for injury, pain, and suffering. Carolyn’s insurance will cover the first $500,000.00 of the settlement from the lawsuit, but she must come up with the other $500,000 on her own. This is where the personal umbrella coverage will pick up the slack.