"The Road to Understanding Auto Insurance
It’s probably not a surprise that auto insurance is one of the most common types of
personal insurance. But did you know that not all auto insurance is created equal?

Understanding a few key terms could help you select the best coverage for your specific
needs.

Typically, auto insurance includes two main coverage options: liability and physical
damage.

Liability coverage protects you from claims of bodily injury or property damages caused
by accidents involving your personal vehicle. Property damage liability pays for any
damage you cause to the property of others with your auto. This includes damage to other
vehicles, walls, fences and equipment. Bodily injury liability insurance protects you
against claims of others who are injured in an accident for which you are at fault. Claims
may include medical expenses, lost wages, and pain and suffering.

Keep in mind, if you only carry liability coverage and you’re responsible for an accident,
damage to your vehicle is not covered.

Physical damage coverage includes collision and comprehensive coverage. This type of
coverage protects you from the expense of damages to your vehicle. Collision coverage
pays for damage to your personal vehicle due to accidental collision with an object, such
as another vehicle or a tree. Comprehensive coverage pays for damage to your personal
vehicle for causes other than collision, such as fire, theft, hail, striking an animal or
vandalism.

Keep in mind, the cost of repairing a car can exceed the actual value of the vehicle. In this
instance, insurers will “total” the car and pay you what the vehicle is worth rather than
fixing it. In some cases, an insurer may offer replacement cost coverage, which will
replace your vehicle with a new model in the event of a total loss.+

Your auto insurance policy may include other optional coverages, such as medical
expense coverage, uninsured/underinsured motorist coverage, and auto rental
reimbursement. Your Farm Bureau agent can explain all your options and help you
choose the best auto insurance coverage for your needs.

Source: National Association of Insurance Commissioners “What is auto insurance?”
www.naic.org/consumer_auto_definition.htm, visited August 4, 2008.
+ Replacement cost coverage may not be available in your state. Check with your Farm Bureau agent.

Tips brought to you by Farm Bureau Financial Services. For more information about products and
services, call Tammy at (515) 957-1524 or Chris at (515) 957-1616.

Securities & services offered through EquiTrust Marketing Services, LLC+, 5400 University Ave.,
West Des Moines, IA 50266, 877/860-2904, Member SIPC. Farm Bureau Property & Casualty Insurance
Company+*, Western Agricultural Insurance Company+*, Farm Bureau Life Insurance Company+*/West
Des Moines, IA. +Affiliates *Company providers of Farm Bureau Financial Services

"