Auto Insurance Terms
No-fault Insurance
A no fault insurance claim, sometimes called a Personal Injury Protection claim (or PIP claim), is one you make against your own automobile insurer for payment of medical bills and lost earnings under your state's no fault laws.
Collision
Collision insurance is a type of auto insurance coverage. Collision Insurance will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. This type of insurance is often added as an extension of a basic policy.
Liability Insurance
Liability car insurance covers damages to another person resulting from an accident you cause. One of the most basic types of auto insurance coverage, liability is also one of the few coverage options that's mandatory in every state—though minimum limits of coverage vary, depending on where you live.
Property Damage Liability
Property damage liability coverage helps pay for the damage that you cause to another vehicle, or other types of property. Read on for more information about property damage liability, and how to determine how much coverage you should buy as part of your auto insurance policy.
Uninsured Motorist
Uninsured motorist coverage protects you if you're in an accident with an at-fault driver who doesn't carry liability insurance. Underinsured motorist coverage, on the other hand, steps in when you're in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses.
Comprehensive Coverage
When people hear the word "comprehensive," they might think "all-encompassing"— but in car insurance terms, the word has a different meaning. Comprehensive coverage may help protect your car against damages that are not related to a collision, such as: Theft. Vandalism. ... Damage done to your car by animals.
Bodily Injury
When you are found legally responsible for a car accident, bodily injury liability coverage is the part of your insurance policy that pays for the costs associated with injuries to the other person or people involved. This coverage also provides a legal defense in the event that you are sued for damages.