Auto Insurance

Leland Smith Insurance Agencies issue policies for the auto insurance companies listed on this page. Contact us so that we may help pick the company and policy that is best for you!

There are three primary types of insurance coverage:

  • Liability insurance: Covers the costs associated with injuries and property damage you are responsible for if you cause an accident.
  • Collision: Covers the costs to repair or replace your damaged or destroyed vehicle after an accident.
  • Comprehensive: Formally known as "other than collision," this portion of your policy covers damage to your vehicle from causes such as auto theft and weather damage.

There are also several different types of coverage which may be available to you, including:

  • Medical payments: Covers the costs of injuries for you and others in your vehicle after an accident, regardless of who was at fault.
  • Rental reimbursement: Pays a certain amount daily for a replacement vehicle if yours is in the shop for repairs.
  • Towing and roadside service: Provides emergency roadside assistance and towing to help you get your vehicle back on the road or to a shop for repair.

As you consider your policy needs, it is important to keep the coverage limits in mind. The costs of a severe crash can quickly exceed the limits. If that occurs, you will have to pay for costs out of your own pocket.

As with most types of insurance coverage, everything comes down to your risk. If you are buying a car, most likely gap insurance will be optional and you get to decide. Do you want to prevent the possibility of a large financial burden if something bad happens to your car, or are you willing to take a risk?

Gap insurance for leased vehicles works a little differently. If you lease a new vehicle, most likely you will be required to buy gap insurance in your lease agreement.

Overall, gap insurance is a wise choice if any of these circumstances are true:

  • You are purchasing or leasing a new or slightly used vehicle
  • You are buying a vehicle of significant value
  • You are financing a new or used vehicle without a large down payment, creating a “gap” between your vehicle’s actual value and your loan amount
  • You do not have significant cash savings that would allow you to cover the difference between the amount you owe on your loan and the actual cash value if your car is stolen or totaled

A word of caution: Make sure you read the fine print on your vehicle purchase and financing documents. If you do make a large down payment on your car, or you are buying a car of lesser value, you may not need gap insurance. You don’t want to inadvertently buy gap insurance twice – through your dealer and through your insurance agent.

It is also important to stay on top of your auto loan, because your gap insurance will not pay for any late bank loan or lease agreement payments.

Auto-Owners Buckeye Mutual Encova Erie Goodville Mutual Grange Insurance Hastings Mutual Pekin Progressive Selective