FAQ / Terminology

BODILY INJURY LIABILITY (BI):

Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it is a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy. It is mandatory in most states.

PROPERTY DAMAGE LIABILITY (PD):

Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

COMPREHENSIVE COVERAGE (OTHER THAN COLLISION, OTC, COMP):

Covers your vehicle, and other vehicles (in limited scenarios) you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. It pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

COLLISION COVERAGE (COLL):

Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

UNINSURED MOTORIST BODILY INJURY (UM):

Covers you, the insured members of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured or hit-and-run driver. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses, up to the limit on your policy.

UNDERINSURED MOTORIST BODILY INJURY (UNDUM):

Covers you, the insured members of your household and your passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of liability listed on your policy.

UNINSURED PROPERTY DAMAGE (UMPD):

Covers your auto when property damage is sustained by an insured and the negligent operator does not possess insurance.

UNDERINSURED MOTORIST PROPERTY DAMAGE (UNDPD):

Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages.

MEDICAL PAYMENTS (MEDPM):

Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. This coverage applies, regardless as to who is at fault. Medical Payments may also cover policyholders and their family members when they are injured while riding in someone else's car or when a car hits them while on foot or bicycling. Coverage is limited to the terms and conditions contained in the policy.

LOAN/LEASE GAP INSURANCE (LLG):

Also referred to as GAP, Loan/Lease Payoff
Loan/Lease Gap Coverage is optional. To buy this coverage, you must have Collision coverage and Comprehensive coverage. You must have a deductible and your car must have a lien holder because it is financed or leased.
This coverage protects you if your car gets damaged and will reimburse you for the difference between the following items:

• The actual cash value of your car at the time of the loss, less the applicable deductible and the vehicle's salvage value (if retained by the owner or insured) and;
• Any greater amount owed on the vehicle at the time of loss, less any unpaid finance charges, excess mileage or wear and tear charges, any other charges or expenses associated with the loan or lease, and the vehicle's salvage value (if retained by the owner or insured).

RENTAL CAR REIMBURSEMENT (RREIM):

Covers renting a car if your car is not drivable or while your car is being repaired because of a covered accident.

TOWING AND LABOR (TL):

Also, referred to as Tow Club, Emergency Road Service, Emergency Roadside Service
Coverage is only available if you purchase Comprehensive and/or Collision Coverage. Some policies limit coverage to pay only when a claim has been issued against your physical damage coverage (an accident). Coverage limits are different for each carrier, but typically, this is what is covered.