The coverage that your personal auto policy (PAP) provides can be tailored to meet your specific needs. Aside from any required minimum coverages that may apply (and subject to financial concerns), you can select the coverages and amounts you'd like. In addition to the various coverage options, there are also general policy options. Within certain parameters, you can make decisions here as well.

Choosing the policy period
Your PAP is only in effect during the policy period. This period of time is determined when you enter into the contract with the insurer. Typically, auto policies are in effect for one year. You may also be able to purchase auto insurance for longer or shorter periods of time.

Generally speaking, your premiums should be slightly lower when you purchase a policy with a longer period. With longer policies, the insurer can spread out the administrative costs of writing the policy over a longer period of time.

Canceling the policy
Although you can cancel your PAP at any time before the expiration date of the policy, insurers have procedures that must be followed in order to do so. If you ever cancel before the end of the policy agreement there may also be a cancellation fee or penalty.  Therefore, it's advisable to check first if you ever find yourself considering early cancellation.

Paying your premium
Insurers typically give you three general options for paying your insurance premium:

• Pay the entire annual premium up front,
• Make a down payment on the premium and then divide the remainder into monthly installments, or
• Pay an equal monthly amount for 10 or 12 months.

Each method has pros and cons. Paying the entire amount up front might be financially impossible for you, but if you can afford it, you can expect to receive some savings. A payment plan, for most, is the preferred approach, but you can expect to pay an additional small service fee in order to enjoy this convenience.

Towing and labor coverage
Optional towing and labor insurance provides coverage for emergency road service and towing. Under this coverage, the insurer will pay towing and labor costs incurred each time your "covered auto" or any "non-owned auto" is disabled, up to the policy limit. This coverage is available any time your vehicle breaks down and is not limited to accidents covered under your physical damage coverage.

The insurer will typically only pay for labor (such as changing a tire or jump-starting your car) performed at the place where your vehicle is disabled, not the repair work done at a service station.

• Covered auto: This term includes all vehicles listed on the Declarations page of your policy. It also includes any passenger vehicles that you purchase during the policy period, assuming you give notice to your insurer typically within 30 days after you become the owner.
  
• Non-owned auto: A non-owned auto is a vehicle that either you borrow or use as a substitute for your "covered auto." A borrowed vehicle is covered as long as it is not furnished or available for your regular use. (If a vehicle is furnished for your regular use, you should be listed on that owner's policy.) Substitute vehicles are covered when your "covered auto" is out of normal use because of breakdown, repair, servicing, loss, or destruction.

Transportation expense (rental car) coverage
This optional coverage pays a set amount per day for transportation expenses (including a rental car) if your car is being repaired because of an accident. This coverage is often limited, and does have a maximum amount of coverage stated in the policy. For an additional premium, the per-day and maximum limits can usually be increased.

Typically, the coverage applies only if your vehicle is unusable for more than 24 hours. The payment is further limited to the period of time reasonably required to repair your vehicle.

In order for the rental benefit to take effect, the theft or accident has to be one that is covered under the physical damage section of your policy. Depending on your policies specific details, this coverage may or may not apply to stolen vehicles.

Learn More...

Auto Insurance Overview | Understanding The Basics | Coverage Options
Safety & Tips | Choosing A Policy | Filing A Claim | Car Rentals & Motorcycles
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Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.