Drivers Ed. Insurance Terms

Property Damage Insurance

A type of liability insurance that covers drivers who are at fault for damages to another persons property up to specified limits.

Bodily-Injury Insurance

A type of liability insurance that covers drivers who are at fault for injuries to other people up to specific limits.

Comprehensive Insurance

Coverage to your vehicle for damage other than collisions. This coverage is optional.

Under insured Motorist Insurance

Covers cost that will exceed what the other person's insurance company will pay as a result of collisions

Uninsured Motorist Insurance

Covers cost up to a certain amount if you are struck by an uninsured driver

Claim

Formal requests for payments related to injuries to other people.

Collision Insurance

Protects damage to your vehicle if it is your fault. This coverage is optional

Liability Insurance

Provides coverage for damage caused to other's property. This coverage is mandatory.

Financial Responsibility Law

Requires you to prove that you can pay for damages you may cause with your vehicle

Deductable

Set amount of money you personally pay for damages that is not paid by your insurance company

Premium

Specified amount you pay to an insurance company. Determined by age, work, home, last 3 years of driving, and value of your car.

No-fault Insurance

Type of insurance that is not concerned with who is any fault

Policy

Written agreement between you and your insurance company

Medical Insurance

pays medical and funeral expenses

Assigned-risk Insurance

provides minimum coverage for high-risk drivers