State Farm Auto Insurance Policy
State Farm operates in many states and is subject to the regulations of each state in which it operates. Because of this, State Farm's auto policies are not exactly the same from state to state. Most are similar regarding the types of coverage offered, but you must read your state's specific policy to determine exactly how you are covered.
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Definition of Insured Person
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Generally, the State Farm policy covers you (the insured person), your spouse, relatives and other licensed drivers living in your home. In many states the policy will also cover those living outside your home who are driving your insured vehicle with your permission.
Deductible
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State Farm defines a deductible as "the part of a covered loss that you have agreed to pay with your own money." The deductible typically applies only to claims regarding your own vehicle, not damage caused by you to someone else's property. You choose the size of your deductible when you buy the policy. Typically, larger deductibles will result in smaller premiums.
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Liability Coverage
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Liability coverage pays for bodily injury and property damage for which you are legally liable after an auto accident. This includes non-tangible losses such as "pain and suffering." Liability settlements are subject to the policy limit you choose at the time of purchase.
Physical Damage Coverage
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Collision and comprehensive coverages pay for damage sustained by your own vehicle whether by collision, theft, vandalism, or any other covered cause of loss. These settlements will be subject to your deductible and will have a maximum settlement amount equaling the market value of the vehicle at the time of loss.
Personal Injury Protection
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Some states offer personal injury protection (PIP), which pays for bodily injuries sustained by you and your passengers after an accident regardless of fault. There is often a medical payments coverage available for the costs not covered under the PIP.
Uninsured/Underinsured Motorist
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Uninsured/Underinsured motorist coverage (UM) pays for your injuries for which another driver is responsible but does not carry sufficient liability coverage to satisfy the claim. In some states property damage coverage is also available for UM.
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References
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