Useful Insurance Terms

Bodily Injury Coverage —Typically provides coverage if you or a covered driver is legally liable for damages resulting from a covered auto accident where others are injured or killed.

Claim —A request for an insurance company to pay for a loss.

Collision Coverage—Typically helps pay to repair or replace your insured car after a covered accident.

Comprehensive Coverage —Typically helps pay for covered damages to your insured car resulting from a peril other than a collision, such as theft, windstorm or flood, to name a few.

Covered Peril —An event causing damage to your home or property that is covered by your insurance. Fire, lightning, and wind and hail damage are some examples of covered perils.

Deductible —The deductible is the portion of a covered loss you pay before the insurance company becomes responsible for payment under the policy.

Liability —Typically helps protect you for damages to others that you're legally obligated to pay.

Limits —A coverage limit determines the most an insurance company will pay for a covered loss under a particular coverage. Some limits apply to each person, and others apply to each occurrence.

Medical Payments Coverage —Typically helps provide payment for the insured, covered family members and covered passengers for their reasonable and necessary medical treatment for bodily injury caused by a covered accident.

Personal Injury Protection —Typically provides coverage for an insured person, covered family members and covered passengers for certain reasonable and necessary expenses, such as medical and hospital expenses, income continuation, loss of services, and funeral expenses for bodily injury caused by a covered accident, regardless of who was at fault.

Property Damage Coverage —Typically provides coverage if you damage someone's property and are legally obligated to pay.