Definition of Terms
July 1, 2008 5:04 am General Information
We feel that just because we have automobile insurance we are already protected from all eventualities. The truth is because we fall into a false sense of security, we do not take the time to find out the details or understand what is actually covered by the policy that we paid for.
Here are common definitions of automobile insurance terms to help you understand just what you are paying for:
1.Bodily Injury Liability � this is for injury sustained by another person caused by the driver of the vehicle.
2.Property Damage Liability � primarily covers damage to other cars or property caused by the driver of the vehicle.
3.Uninsured Motorist � covers involvement in a hit-and-run or an uninsured driver hit your vehicle and caused damage to it.
4.Medical Payments (Personal Injury Protection) � PIP covers medical expenses of the policyholder or the driver of the insured car in case a different person. The coverage also includes passengers and other persons involved in the accident.
5.Collision � pertains to the damage sustained by your vehicle in the accident. The policyholder has a deductible share.
6.Comprehensive � covers your vehicle against eventualities not covered by Collision and provides insurance against theft.