Home and Auto Insurance Policy Basics

Summer is a busy time when people are on the move. But even if you aren’t getting a new address, it’s the perfect time to review home and auto insurance basics to make sure you have the right insurance coverage for you. 

Before you get started, it’s helpful to understand home and auto insurance basics. We’ve outlined them for you below so you will be in-the-know when you talk to your SelectQuote licensed agent. 

Auto Insurance

Comprehensive Coverage

Sometimes accidents happen. Maybe it’s a natural disaster, such as a flood, tornado or earthquake. Or maybe your car was damaged while parked at the store, stolen or vandalized. Whenever damage occurs, such as non-impact physical damage, theft and unoccupied accidents, comprehensive coverage covers your loss

Liability Coverage

Liability only is when a policy only includes coverage for bodily injury liability and property damage liability. It protects the people in the other car when you are at fault. This SQ Blog post has liability requirements for each state so you can figure out how much coverage you will need. 

Collision Coverage

More than 6 million car accidents happen each year in the U.S. The average cost of repair is $7,500. Collision insurance covers the insured’s vehicles losses involving impact. 

Bodily Injury Liability

If you’re found responsible for an accident, this type of coverage pays for the costs associated with the treatment to others. This plan will pay legal and settlement fees if a lawsuit occurs as the result of an accident you caused.

Property Damage Liability

Like bodily injury liability, this type of coverage is in effect when a car accident is your fault. Property damage liability covers parts and labor for car repairs, property inside the other party’s vehicle, and any items that you may have hit. While this plan will also pay certain legal expenses, it does not cover damages to your own vehicle or property

Medical Payments Protection

This insurance pays out regardless of who is at fault in an accident resulting in injuries. It covers medical expenses, and in many cases, lost wages due to injury from a car accident. Whenever damage occurs beyond a driver’s control, comprehensive insurance covers the loss. In most states, it is an optional addition to an auto insurance policy.

Uninsured/Underinsured Motorist Protection

Covers the cost of repairs to your vehicle and medical expenses if you’re injured in an accident with an at-fault driver who does not have liability insurance. It also covers your costs if you’re in an accident with an at-fault driver who does not have sufficient coverage to pay for damages to your vehicle or the medical expenses you may incur if you’re injured in the accident

Home Insurance

Dwelling

This type of insurance covers you from damage resulting from a covered hazard, such as fire, wind, lightning, hail, explosions, vandalism and a few other dangers. It helps pay for rebuilding or repair of your dwelling. Any attached or detached structures on your property, like a shed, are also covered.

Contents

This type of policy covers furniture, clothing, sporting goods, electronics and other noted household goods of value that are damaged or destroyed by a covered cause, like a fire or theft/break in. 

Personal Liability

Coverage from lawsuits for property damage or bodily injury that may result from an accident someone has in your home or on your property. This insurance protects you from legal fees and pays court awards that may follow such events.

Additional Living Expenses

If a fire or natural disaster prevents you from staying in your home, additional living expense coverage will help you pay for expenses while away from your home. It can cover items such as your hotel, animal boarding and restaurant meals.

Renters Insurance

Protecting what you own while you rent is valuable, it covers liability, same as a standard homeowners policy. 

And when you bundle both home and auto insurance, you really maximize your savings. When you’re ready to get a new policy or switch from your existing carrier, SelectQuote is here to help you find a plan that will give you the coverage you need at a price you can afford.

Still have questions about home and auto insurance basics? Your licensed SelectQuote agent will work with you to make sure you have the right kind of coverage by shopping multiple highly rated carriers to find the best coverage available at the best price. Contact us today for your free quote

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