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Coverages
The coverages below is intended to provide you a basic understanding
of the different types of coverages that AIG Hawaii offers on its
business automobile insurance policy. For complete coverage definitions
as well as any conditions, limitations or exclusions, please refer
to the actual policy contract.
Mandatory Coverages
- Bodily Injury Liability Coverage
- Property Damage Liability Coverage
- Personal Injury Protection
Optional Coverages
- Uninsured Motorists Coverage (UM)
- Underinsured Motorists Coverage (UIM)
- Stacked UM & UIM Coverage Limits
- Other than Collision (OTC) Coverage
- Collision Coverage
- Towing Coverage
- Drive Other Car Coverage
- Rental Reimbursement
- Non-Owned Automobile
- Hired Auto
- Wage Loss
- Alternative Care
- Funeral Expense
- Death Benefits
Bodily Injury Liability Coverage (Minimum
$20,000 per person / $40,000 per accident)
Pays for medical, rehabilitative and other services to other injured
parties in the event you or the driver of your car is at fault in
an accident and the other party is seriously harmed. This coverage
also provides payment for "pain and suffering" of the injured
party.
Property Damage Liability Coverage (Minimum $10,000)
Pays for damages to someone else's property in the event you or the
driver of your car is at fault in an accident.
Personal Injury Protection (Minimum $10,000)
Pays for medical and some chiropractic care when you or your passengers
are injured in an accident.
Uninsured Motorists Coverage (UM) (Minimum $20,000 per person /
$40,000 per accident)
Pays you or your passengers' medical, rehabilitative and other economic
losses if another driver is at fault and is uninsured. This coverage
applies only if the injured party is seriously harmed and also provides
payment for "pain and suffering" of the injured party.
Underinsured Motorists Coverage (UIM) (Minimum $20,000 per person
/ $40,000 per accident)
Pays for medical, rehabilitative and other economic damages to
you and your passengers if injured by another at fault driver. This
coverage applies if the injured party is seriously harmed and the
wrongful driver's Bodily Injury coverage limit is not enough to compensate
the injured party. This coverage also provides payment for "pain
and suffering" of the injured party.
Stacked UM & UIM Coverage Limits
Stacked coverage means that in the event of a covered UM or UIM loss,
your total coverage will be the sum of the UM or UIM coverage limits
for all autos covered under your policy (even though only one covered
auto was involved in the accident).
For example, if you purchase Stacked UM coverage for $50,000 and insure
three autos under your policy, your total available UM coverage is
three times $50,000 or $150,000. Stacked UIM coverage limits apply
the same way.
Stacked UM and/or UIM coverage can be purchased if you insure more
than one auto under your policy. Because Stacked UM and UIM coverages
increase your coverage limits, they cost more than non-stacked UM
and UIM coverages.
Other than Collision (OTC) Coverage
OTC (Sometimes called Comprehensive) pays for accidental losses to
your auto such as fire, theft, vandalism, broken windshield, etc.
OTC is optional unless your auto is financed. It is written with a deductible.
The deductibles we offer for Other Than Collision coverage are:$50,
$100, $250, $500, $1,000, $1,500 and $2,000. If you have an OTC loss,
you pay the deductible and we pay the actual cash value for damages
over that amount.
Collision Coverage
This coverage pays for damage to your auto caused by upset or collision
with another object. Collision coverage is optional unless your auto
is financed, and you must have OTC to be eligible to purchase this
coverage. It is always written with a deductible, and the deductibles
available for Collision coverage are the same as those available for
Other Than Collision coverage. If you have a Collision loss, you pay the
deductible and we pay the actual cash value for damages over that
amount.
Towing Coverage (Optional Coverage)
This coverage pays towing costs, or roadside service expenses if your
car is disabled. Eligible services can include jump starts, gasoline
delivery, and locksmith services.
Drive Other Car Coverage (Optional Coverage)
Provides liability and physical damage coverage for any auto you do
not own when used by any named insured or by his or her spouse.
Rental Reimbursement Coverage (Optional Coverage)
Pays for rental of a replacement auto because of loss to a covered
auto.
Non-Owned Automobile Coverage (Optional Coverage)
Provides liability coverage when employees use their autos for business
purposes.
Hired Auto Coverage (Optional Coverage)
Provides liability coverage when using a leased or rented vehicle
Wage Loss (Optional Coverage)
This coverage is paid when the covered person's injuries prevent the
person from engaging in the employment he/she was engaged in immediately
prior to the accident.
Alternative Care (Optional Coverage)
This coverage provides naturopathic, acupuncture, and nonremedial
care and treatment rendered in accordance with the teachings, faith
or belief of any group which relies upon spiritual means through prayer
for healing.
Funeral Expense (Optional Coverage)
This coverage pays up to $2,000 of funeral expense in the event of
death resulting from an auto accident.
Death Benefits (Optional Coverage)
This coverage pays death benefits to a named beneficiary or beneficiaries
in the event of death resulting from an auto accident. If there is
no named beneficiary, payment will be made to the estate.
Bill Payment
AIG Hawaii's Business Automobile policy provides flexible premium
payment plans for our policyholders. We offer the following payment
plans based on the amount of your annual policy premium:
Premium Amount |
Payment Plan |
Less than $800 |
Full payment due on effective
date of policy |
Greater than $800 Less than $2,500 |
3-pay plan* - 40% due on effective date of
policy; balance due in two equal installments |
Greater than $2,500 Less than $5,000 |
6-pay plan* - 25% due on effective date of
policy; balance due in 5 equal installments |
Greater than $5,000 |
10-pay plan* - 19% due on effective date of
policy; balance due in 9 equal installments |
*A $5 service fee is charged with
each installment including the initial down payment |
Lowering Insurance Costs
What can you do to adequately protect yourself and keep costs down?
Here are a few suggestions.
Increase your deductibles. A deductible
is the amount you are responsible for paying in any claim. The
higher your deductible, the lower your premium will become since
you are assuming a greater piece of the risk. Deductibles are
usually taken when Comprehensive and/or Collision coverages are
purchased. Most auto insurers offer deductibles as high as $2,000
at a substantial savings.
Consider removing Comprehensive and/or
Collision coverages from older vehicles. The cost for these coverages
may sometimes be more than the value of your car.
Drive safely. This seems obvious but the
discounts insurance companies offer for safe driving really pay
off. Conversely, the premium increases associated with a moving
violation, accident or DUI can run into the thousands of dollars
per year.
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