Auto insurance is designed to help protect you and your car in the event of an accident, as well as providing for injured parties in an accident where you are at fault. Vermont's Personal Auto policy provides coverage availability for liability, medical payments, uninsured or underinsured motorist liability, comprehensive (“other than collision”), collision, rental reimbursement and towing.

The majority of auto policies settle claims on an Actual Cash Value basis. The value of the motor vehicle is the value of the vehicle at that time of the loss or what it would cost to replace your vehicle with one in similar condition in your area. This may not be the same figure as the selling price of a vehicle of the same year and model because mileage, prior damage, wear and tear are considered when arriving at the actual cash value of the damage vehicle. There are some policies that will offer Agreed Value, which means there is a set value of the vehicle, and the premium is based on that amount. These types of policies are typically more expensive. Consult your agent to find out whether this type of coverage is available from your carrier.

The liability portion of the auto policy has two parts. The Bodily Injury liability coverage applies to injuries you or anyone insured under your policy becomes legally responsible for as a result of an accident. Medical payments coverage pays for reasonable medical expenses incurred by you or by your passengers in your vehicle regardless of who is at fault for the accident.

“Collision” and “Other Than Collision” coverages apply to your vehicle. Collision coverage pays for damage to your vehicle as a result of its impact with an object or its upset. “Other than collision” coverage applies to damage of your vehicle cause by vandalism, theft, glass breakage, falling objects, fire, explosion or earthquake, windstorm, hail, water or flood, or contact with bird or animal.