WEDNESDAY, NOVEMBER 18, 2020
Auto Insurance Coverage Definitions
Liability Limits- The maximum amount which a liability insurance company agrees to pay as a result of a single accident or injury to a single person.
Uninsured/Underinsured Motorist Coverage- It's an Insurance policy provision which extends coverage to include property and bodily damage caused by a motorist who has insufficient auto insurance of their own. Underinsured motorist coverage is designed to provide the injured party with compensation above the limit of the at-fault party's policy. Underinsured coverage is not the same as uninsured coverage, which includes cases where the at-fault driver had no insurance at all.
Personal Injury Protection- Personal injury protection (PIP) is an extension of car insurance that covers medical expenses and, in some cases, lost wages and other damages.
Medical Payments Coverage- helps cover medical expenses associated with auto accidents. If you, your passengers or any family members driving at the time of an accident are injured, medical payments coverage can help protect you-no matter who's at fault.
Comprehensive Coverage- It covers uncontrollable acts of nature such as fire, theft, windstorm, flood, and vandalism, but not loss by collision or upset.
Collision Coverage- Refers to auto coverage for vehicle damage caused by a collision with another vehicle or an object. It pays for the damage even if it is the fault of the insured. The insurer will pay for the damage, with the insured paying a deductible.
Towing/Roadside Assistance- Pays the cost of towing your car to a repair shop when it is unable to be driven up to policy limits. It can also cover a specified amount of necessary labor charges at the place of the breakdown.
Rental Car Reimbursement- Covers renting a car as a substitute for your vehicle when it is being repaired after a covered accident. Daily rental allowances or limits are subject to the terms of your car insurance policy.
All Coverages are subject to the terms and conditions of your insurance policy.
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