IFA Auto Insurance Policy Information

The Policy Number is how we identify your policy. If you ever have to contact us having your policy number available will make all dealings with us faster and simpler. If you have your Policy Number we can pull up your account and all pertinent information about you and your car.

The Named Insured and Address is typically who is covered by your auto policy. There may only be one or two names listed under the "Named Insured" section, even though some people who aren't listed are also covered. Coverage is typically extended to the following people:

• Your spouse, if he or she lives in your household
• Other family members related by blood, marriage or adoption who reside in the household
• A son or daughter who is away at college, but still considers the address on your policy as "home" - i.e., he or she intends to return there in the future

It is very important to check your policy terms in order to fully understand who is covered and what restrictions and limitations apply to that coverage.

The Effective Dates are very important dates that define the coverage period of your policy. Your auto policy will renew automatically so long as you remain eligible for the voluntary market and have continued to make policy payments. It is a good idea to be aware of your policy's effective dates to make sure you are always covered.

Model Year refers to the year your automobile was produced.  Automobile companies often produce the same model and body type for more than one year. The year in which your car was manufactured is another level that will be factored into your premium.

Trade Name is often referred to as the "brand" of the car.  Actually the Trade Name is the name of the company that manufactured the car.

The specific Body Type/Model further defines the type of car you own. Auto manufacturers design many different kinds or styles of car. For example, the car covered under this sample policy is a Ford Windstar. Ford also makes other models, such as the Taurus or F150. The "body type" provides information that further defines the model of the car. Is your car a coupe or sedan? Is it a 2 or 4 door model? Does it have four cylinders or six?

The Vehicle Identification Number is a 17 digit number unique to your car. This number is encoded with the make, model, body type and year of the insured vehicle.

Liability Class or Usage refers to the risk of insuring a vehicle and driver related to what the vehicle is primarily used for. Knowing how you use your car helps insurance companies assess you as a risk. Insurers typically classify your vehicle usage as follows:

• Pleasure (or occasional use) - if you don't use the car in your occupation, profession or business. There are often annual mileage restrictions (less than 7,500 miles) that go along with this classification.
• Work/School - if you use your car mainly to commute to work or school. Usually, the insurance companies also want to know how many miles your round trip commute is.
• Business - if you use the car in your occupation, profession or business.
• Farm - if you use this vehicle on a farm or ranch.

A Physical Damage class is assigned to each car. This classification is a general indication of the cars safety and cost to repair if it is in an accident.

DRSP is the number of DMV violation points on your driving record.

Liability pays for injuries and losses to other people caused by your car. It pays for their medical/funeral expenses, loss of income as well as providing compensation for pain and suffering. This coverage also pays for your legal defense when you're charged with causing harm to other people with your car.

In the sample policy above, $250,000 is the maximum amount of bodily injury liability coverage that your policy provides to any one person for a given accident. That means that if one person has a $300,000 claim against you, your policy will only pay up to $250,000, and you will be responsible for the remaining $50,000.

In the sample policy above, $500,000 is the maximum amount of bodily injury liability coverage that your policy provides per accident for a given accident.

Property Damage Liability is the portion of your policy that covers both your legal costs and the cost of property damage to others that you've caused with your auto.

In the sample policy above, $100,000 is the maximum amount of actual property damage and legal fees relating to property damage that your policy will pay for a given accident. If the claims against you exceed this limit, you are personally responsible for any amount your policy does not cover.

Medical Payments covers you, your family members and other passengers in your car for medical/funeral payments necessary because of injuries sustained in an accident in the covered car no matter who caused the accident. Depending upon your particular policy, medical payments insurance may also cover you or members of your family if you or they were struck as pedestrians by another car.
There are typically exceptions to this type of coverage. It's important to carefully review your specific policy for a complete list of rules, limitations and exemptions

Uninsured/Underinsured Motorist coverage pays for your loss of income, and pain and suffering which was caused by an uninsured (or underinsured) driver.
Uninsured/Underinsured coverage is most often sold in "split limits" like Bodily Injury Liability and Property Damage Liability. But unlike those coverage’s, Underinsured/Uninsured Motorists coverage protects you, your car, your passengers and your assets -- not others whom you have injured.
Although it is against the law to drive without insurance, it's estimated that 10% of the drivers in the U.S. do not have liability coverage. Many others carry only the minimum amount of liability coverage required by state law. Minimum limits (15,000/30,000) can be quickly used up by the cost of a totaled car. Your Uninsured/Underinsured Motorists coverage protects you and the people you love from a run-in with someone who is less responsible and less insured than you are.
There are typically exceptions to this type of coverage. It's important to carefully review your specific policy for a complete list of rules, limitations and exemptions

Collision coverage protects you from losses caused when your car hits another object or overturns. It covers physical damage to your car.
Collision coverage is often one of the most expensive components of an auto policy, and people with older cars sometimes opt not to carry it. Instead, they choose to self-insure. This can be a sensible decision if the car's actual cash value isn't great enough to justify the cost of collision coverage, because the insurance will never pay more than the car is worth. Collision coverage is important on a new or leased car.

Other than Collision or Comprehensive covers damages caused by forces of nature that usually include earthquakes, fire, wind, hail, water and floods are covered. Losses from riots, vandalism and larceny are also covered by comprehensive insurance, as is damage caused by contact with a bird or an animal. And if your car is stolen, its loss would be covered by Comprehensive coverage.
Also, keep in mind that some policies exclude specific perils from comprehensive coverage. Double-check the Exclusions area of your policy to be sure you understand its limitations in this area.

Towing pays the cost of having your car towed up to specified limits that you select.

Rental Reimbursement coverage is an optional coverage that pays you back for money spent on a rental car (up to a specific limit you select) if you must rent a car because your own car was out of service due to a covered loss. Be sure to review your policy for any restrictions.

Personal Injury Protection / First Party Benefits pays for the medical expenses and other basic expenses of the driver and all passengers of the covered vehicle that occur as a result of an accident.

N.J. Property-Liability Insurance Guaranty Assn Surcharge is an organization that pays any claims for insurance companies that go out of business. The surcharge is a tax mandated by the State.

Loss Payee/Additional Insured is the lien holder, or institution responsible for the financing of your car. The reason the lien holder is named on the policy is in the event that the car were ever declared a total loss, the lien holder could be due money.

Full Policy Premium is the total cost of your auto insurance coverage for the specified effective dates. In this example, the policy is effective for 1 year, so the premium buys a year's worth of coverage.

Auto Insurance Discounts
You could be eligible for premium discounts if something about you or your car makes you a better-than-average risk for the insurer. The discounts listed below are typically "built in" to your premium, instead of being listed separately, but it's always good to be aware of anything that affects your premium.

• a mature driver (typically ages 50 - 65)
• not driving a "sports" car
• a long time customer of IFA
• taken an approved defensive driver course
• a good student
• Safety enhancements in your car, such as automatic seat belts and driver-side and passenger-side airbags, reduce your risk of being injured in a collision. IFA recognizes this by discounting your premium.
• If you have an approved anti-theft system to protect your vehicle, you've lowered the insurance company's risk, and that's worth a premium discount. You should be aware that there are both active and passive anti-theft systems. The passive systems typically save you more than the systems that you have to turn on.