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Definitions for Auto Insurance

Basic Coverage’s
Understanding coverage’s may help you determine what you need:

Bodily Injury Protection: Protects you against financial loss if someone is killed or injured by your auto and you are found liable. Your legal expense and court costs would also be included for a covered suit, as would your bail bond expenses.
Property Damage Liability: Covers you against financial loss if you are found liable for damage to other people's property caused by your auto.
Uninsured Motorist Coverage: Pays damages for bodily injury or death caused by an uninsured driver or hit-and-run driver who is legally responsible for the accident.
Underinsured Motorist Coverage: This coverage pays benefits for bodily injury or death caused by an insured driver whose Liability Insurance limit is insufficient to cover the losses incurred. We pay these benefits to you and passengers in your vehicle, or to any pedestrian you injure.
Medical Payments: Often included in Personal Injury Protection Coverage and pays up to your policy limit for reasonable medical expenses incurred within three years of an accident. Medical Payments Coverage applies to everyone in your auto. It also applies to you, and relatives living in your household who are insured in other automobiles or who are struck by a vehicle. In many states you may choose your own Medical Payments Coverage limit.
Collision: Pays for the actual cash value of damages to your covered auto (up to the auto's actual cash value) caused by an impact with another vehicle or stationary or moving object. The amount of your deductible will be subtracted from any settlement. You may want to consider this coverage if your auto is seven-years-old or newer.
Comprehensive ("Other Than Collision" coverage): Pays for losses to your covered auto (up to its actual cash value) which are not caused by collision. This includes damage caused by fire, theft, glass breakage, riot, windstorm and hail. The amount of your deductible will be subtracted from any settlement.
Towing and Labor Coverage: If your car becomes disabled, this coverage pays for towing and labor to repair your car, up to your policy limits.
Rental Car Reimbursement Coverage: If your car becomes disabled and you need to rent a substitute, this coverage pays the cost of the rental car, up to your policy limits.