If you have looked at your insurance policy you have probably seen these words and maybe you have heard your insurance agent use them. Read on if you really want to understand there meaning.
Bodily Injury Liability – Insurance that pays for another person’s bodily injury or death in an automobile accident that you caused.
Property Damage Liability – Insurance that pays for damage you cause to someone else’s property in an automobile accident.
Medical Payments – Insurance that pays the medical and funeral expenses, up to the limits purchased, for you or any passengers riding in your car at the time of an accident. Medical payments will provide coverage whether you or someone else caused the accident.
Collision – Insurance that pays for damages to your own car if it is involved in a collision, regardless of who is at fault. Collision coverage may carry a deductible – a stated amount that you must first pay out of your own pocket.
Comprehensive – Insurance that pays for non-collision losses to your car such as fire, theft, flood, hail, vandalism, glass breakage, and falling objects. Comprehensive coverage may also carry a deductible. (Note: if your car hits an animal, some insurance companies will treat it as a collision claim, while others will treat it as a comprehensive claim.)
Uninsured Motorist Bodily Injury – Insurance that pays for bodily injury or death to you and your passengers if an uninsured driver strikes your car. This coverage does not pay for damages to your car. If you do not have collision insurance, you may purchase uninsured motorist property damage coverage. This coverage offers very limited protection and should be discussed with your insurance agent.
Don’t forget in addition to making sure you are properly insured we recommend an umbrella policy. Contact us if you would like to know more about how these affect your insurance.