Auto Insurance Terms
Here are some basic terms to help you decide which coverages best suit your needs.
BODILY INJURY LIABILITY (BI) - The policy pays when you are legally liable for an automobile accident.
PROPERTY DAMAGE LIABILITY (PD) - The policy pays when you are legally liable and cause damage to the property of others.
UNDERINSURED MOTORISTS - BODILY INJURY (UIM-BI) - The policy pays for injuries you receive from an uninsured or underinsured motorist.
UNDERINSURED MOTORISTS - PROPERTY DAMAGE (UIM-PD) - The policy pays for damages to your property from an uninsured or underinsured motorist.
PERSONAL INJURY PROTECTION (PIP) - The policy pays medical expenses, income loss and benefits for extra expenses for you, members of your household and guests in your car in case of accidental injury or death (you must have liability coverages to purchase this coverage).
COLLISION - This coverage pays for damage to your car from collision or upset regardless of fault, subject to your deductible.
COMPREHENSIVE - This coverage pays for damage to your car other than collision or upset, subject to your deductible and includes fire, theft, vandalism and glass breakage.
TOWING AND LABOR - The policy pays for towing and labor when your car will not operate under its own power. (Some companies don't offer this coverage).