Auto Insurance Terms
Bodily Injury Liability- For your protection, Bodily Injury Liability Insurance is in case someone gets hurt or killed, and the accident was your fault.
Claim- A written request that you submit to your insurance company for payment of damages.
Collision Insurance- This pays for the damage to your car. Unlike liability only, if an accident is your fault, the damage to your car is paid for.
Comprehensive Insurance- Comprehensive is a type of insurance where a collision with another car has not happened. Examples include if your car is stolen or damaged in a hail storm.
Deductible- The initial portion of a covered expense that you must pay before the insurance policy pays its part of the expense.
Emergency Road Service- This service pays for towing expenses. Another example would be if you broke down on the side of the road.
Endorsement- A change to an insurance policy.
Exclusion- Specified hazards listed in a policy for which benefits will not be paid.
Insured- The person buying insurance.
Insurer- This is the insurance company.
Lapse- Termination of a policy due to the policy owner's failure to pay the premium within the grace period.
Medical Insurance- In the event of an automobile accident, this insurance covers medical expenses for you, along with any passengers that may be with you. It also pays any funeral expenses that may occur.
Policy- A contract between you and your insurance company, defining the terms of insurance.
Premium- An amount that must be paid for insurance coverage under your policy for a specified amount of time.
Property Damage Liability- This type of insurance pays for anything that you may damage in an accident, whether it be another car, buildings, road signs, etc.
Uninsured Motorists- This insurance will pay for injuries if you are in an accident with someone who does not have insurance.
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