9 terms

Understanding Auto Insurance

Bodily Injury (BI)
When you inure someone in an automobile accident for which you are legally to blame, this coverage will pay claims for injury or death against you and the cost of legal defense
Property Damage (PD)
This is like bodily injury liability coverage except that it pays for at-fault damage that you cause to someones else's vehicle or property, and for which you are legally liable. This does not cover your car or property
Medical Payments
This coverage pays for medical, hospital or funeral expenses for you and others injured or killed while riding in your car, regardless of fault. It also covers you and family members if struck by a car as a pedestrian or if riding in another car.
Uninsured Motorists (UM)
Unfortunately, not everyone purchases auto insurance. That's why its important to consider uninsured motorists coverage.If you or your passengers are injured by someone who does not carry automobile insurance, UM coverage will pay for injuries up to your policy limits. This includes medical expenses, loss of wages and related expenses. UM coverage also applies if you are a victim of a hit-and-run driver.
Underinsured Motorists (UIM)
Just as some drivers don't carry any automobile liability insurance, others don't carry enough to pay for damages from their accidents. UIM coverage pays for death and injury expenses to you or occupants of your car when the other person's insurance is inadequate. This coverage fills the gap in protection between the at-fault driver's bodily injury liability coverage and your UIM coverage.
Uninsured Motorists Property Damage (UMPD)
This is an option to consider when you only purchase liability insurance coverage. It covers damage to your vehicle if involved in an accident with an at-fault uninsured motorist. When you purchase collision coverage for you auto, this coverage is not available or needed.
Collision coverage pays for damage to your car from an accident regardless of fault. It usually includes a deductible, which means that you pay the first $100, $200, or so for repairs to your car and the company pays the rest. Selecting a larger deductible lowers your collision premium.
Other Than Collision (Comprehensive)
This pays for damage to your car caused by most anything other than collision. Glass breakage, theft, fire, explosion, impact with a bird or other animal, vandalism, flood and earthquake are some of these hazards. This coverage is also available with deductibles to lower your premium.
Towing and Labor
This is an extra coverage that pays up to a stated amount for towing your car and any labor required at the scene when your car becomes disabled. Other coverages may also be available from your insurance company. Always ask what coverage are available and then decide what is best for you.