Automobile Insurance Terms

Accident
A sudden event or happening and is unplanned. A sudden and unexpected,unforeseen event resulting in a loss that that is not under the control of the insured.


Comprehensive Coverage
Physical Damage coverage for insured autos which covers all risk other than those perils excluded including collision and overturn. Direct and accidental damage to a vehicle caused other than by collision.


Collision Coverage
Physical Damage Coverage for covered autos for damage caused from collision with another vehicle or object. Includes overturning of the vehicle, upset or collision of a vehicle with another object.


Deductible
Amount of loss not covered by insurance. The first dollar amount of the loss which is paid by the insured and not reimbursed by insurance. The portion of a loss considered the responsibility of the insured.


Garaging
Location of vehicle storage when not in use.


Liability
Insurance coverage that provides coverage when the insured is legally obligated to pay for bodily injury, damages to property or financial loss to others due to the insured's negligence.


Lienholder
A legal claim holder on property as security for a debt or loan.


Medical Payments
Coverage on the auto policy that reimburses insured's expenses for medical care as a result of automobile accident whether insured is in a vehicle or a pedestrian.


Negligent Entrustment
The owner or any other party having control of a motor vehicle may be liable If he or she entrusts the motor vehicle to one who is unskilled in its operation or otherwise incompetent to operate it.


Personal Injury Protection
Coverage to pay basic expenses for an insured and his or her family when there is an automobile accident. It covers loss wages and medical expenses for those residents of the household that are not excluded.


Physical Damage
Damage to property which may impair it's operation or reduce its value. Physical Damage Coverage provides coverage to damage to vehicles.


Property Damage
Damage to property of others, not belonging to the insured. Property Damage is often measured in dollar amounts of damage that may be the dollar amount it would cost to repair or replace the damaged property.


Uninsured Motorist
An operator of a motor vehicle that has no liability coverage.


Uninsured Motorist Coverage
Auto coverage that pays for bodily injury damages the insured would be entitled to recover from the operator of an uninsured auto caused by an accident arising out of the ownership, maintenance or use of the vehicle. May also include coverage when vehicle that caused the injuries is underinsured due to due to lack of adequate limits.