Binder for State Farm Automobile Insurance Applicant Agent

Reshae and CJ Keith Vanderzwan John A Bartlett

67 Merchants Road 30 Jefferson Ave

Rochester, NY 14609-7864 Fairport, NY 14450

(585) 377-1270

Vehicle

Make: GEO

Model: PRIZM

Bodystyle: 4D SED

VIN:

Customized: NO

PREMIUM

Damage Liability 500/500/500* 232.40

b. Personal Injury Protection (PIP) 50000 98.84

c. Additional PIP Q2 6.20

d. Comprehensive $250 Deductible 34.40

e. Collision $500 Deductible 131.32

f. Emergency Road Service 1.80

g. Car Rental/Travel Expenses $20/day, $400 max 7.60

h. Uninsured Motor Vehicle 100/300* 17.80

i. Full Window Glass 7.20

j. Law Enforcement 1.00

Total 538.56

Total of 6 month premium 538.56

• 
  denotes thousands
  

Aaron, this “binder” or contract with State Farm is for New York and may be a bit different than for Michigan. I’m not sure if you know what each of the items mean (and neither do I, exactly) but I’ll try to explain in my words—

1. 
   This is a must!! It’s the insurance that you need in case you run someone over or smash into someone’s car or other property and you (your insurance) has to pay. This policy gives you insurance up to 500,000 if you cause someone bodily injury, and/or 500K for damage property, and/or 500K if someone sues you. You can probably get other amount coverage as low as 250/250/250 or as high as 1M/1M/1M. You pay less or more, depending on what amount of coverage you want or what is mandatory For example, if you have 250K coverage and someone sues you for 400K, 150K may have to come out of your pocket. . My suggestion is that you cover yourself for more than the minimum (use double the minimum or more as a guide).
   
2. 
   PIP. This is for you personally, I think, in case you get hurt in a car crash you cause.
   
3. 
   This is additional PIP. I do not know what Q2 means, but it adds protection in case of injury.
   
4. 
   This is if someone breaks into your car or steals your car or if your hood flies open (like mine did) and these things cause damage to your car. In my case, State Farm paid for me to have my car, hood and all fixed.
   
5. 
   You have to have this if your car is financed by a bank or finance company. This is in case you crash your car and you are at fault. Like if you slide on ice and ram into a telephone pole and demolish your car. This insurance will pay for that. The bank wants you to have this insurance so that if you demolish your car next week and still owe 15,000 on it, the bank can still collect in case you have the urge walk away from continuing paying for your demolished car.
   
6. 
   This insurance pays for a tow truck to pull you out of the ditch in a snow storm, or if your car doesn’t run any more along the highway and a tow truck needs to come to give you a boost or a tow. You may already have Roadside Assistance through Toyota, in which case you will not need this.
   
7. 
   This insurance is for you if your car is in the body shop and you need to rent a car. It will pay $20/day up to $400.
   
8. 
   This insurance is for you in case an uninsured driver causes an accident but does not have insurance to pay for your car to be fixed…
   
9. 
   If a rock hits your windshield, this insurance will allow you to get your windshield replaced and it will pay for the replacement.
   
10. 
    I have no idea what this is for. Probably something New York-ish.
    

I hope all of this helps for you to decide what insurance you want/need for your new car. 