Couch Braunsdorf: Glossary of Terms Individual Auto Insurance

This glossary is intended to provide a general overview of policy types and available coverage. Specific policy language must be referenced to determine the exact coverage, terms, conditions, and exclusions contained in that policy.

The Personal Auto Policy is designed to protect both you and your car in the event of accident, theft, injury and other damages.

Bodily Injury Liability provides protection against financial loss should your auto injure others and you are held liable. Includes such expenses as medical bills and lost wages. You are covered up to the policy limit for one individual and an aggregate limit for an accident injuring two or more people.

Collision pays for damages to your auto which are caused by collision with any object or overturn of your auto. It pays to the policy limit, minus the deductible amount you select, or to the actual cash value of the auto.

Comprehensive coverage pays for loss or damage to your auto (other than collision) when caused by theft, wind, fire, vandalism, explosion, or any other covered peril. It pays to the policy limit, minus the deductible amount you select, or to the actual cash value of the auto.

Medical Payments coverage provides protection against financial loss when you or others in your auto are injured. It includes such expenses as medical bills and surgery. You are covered up to the policy limit, regardless of who is at fault.

Personal Injury Protection provides protection in the event you are injured in an auto accident. Expenses such as medical and rehabilitation cost, wage-loss, replacement services, and funeral costs are covered up to the policy limit regardless of who is at fault.

Property Damage Liability provides protection against financial loss should your auto damage the property of others and you are held liable. This includes property such as an auto, house, fence, or building. You are covered up to the policy limit for each separate occurrence.

Rental Reimbursement pays for the rental of an auto, up to a stated limit, when your insured auto is disabled due to a collision or comprehensive loss.

Towing and Labor pays for towing and emergency labor costs when the insured auto becomes disabled while on the road, up to a stated amount.

Underinsured Motorist pays the difference between the amount you are entitled to receive for an injury and the actual amount of insurance carried by the driver responsible for your injuries. You and your passengers are covered up to the policy limit.

Uninsured Motorist Liability pays for expenses that you and your passengers incur as a result of injury caused by an uninsured motorist. The coverage also pays you and your family members up to the policy limit if you are a victim of a hit-and-run accident or are struck by a vehicle as a pedestrian.

Uninsured Motorists Property Damage pays for the property damage to your vehicle caused by an uninsured motorist when he is held liable for damages.