Auto Insurance Terms, Definitions and Information
The definitions included here are intended to provide a basic understanding of the defined terms. For coverage definitions, please refer to the actual auto insurance policy for availability and a complete description of the coverage provided as well as any other possible conditions, limitations or exclusions that may apply.
Choose from the following list to go directly to it's definition, or browse by category using one of the option icons above left.
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Anti-Theft Device Discount
Anti-Lock Braking System Discount
Bodily Injury Liability Coverage
Collision Coverage
Comprehensive Coverage
Driver Training Discount
Extended Transportation Expense Coverage
Full Glass Coverage
Good Driver Discount (California Only)
Insurance FAQ
Medical Payments Coverage
Multi-Car Discount
No-Fault Coverage
Personal Injury Protection (PIP) (BRB in CT)
Property Damage Liability Coverage
Safe Vehicle Discount
Towing and Labor Coverage
Underinsured Motorist Coverage
Uninsured Motorist Coverage
Coverages
Bodily Injury Liability Coverage
Collision Coverage
Comprehensive Coverage
Extended Transportation Expense Coverage
Full Glass Coverage
Medical Payments Coverage
No-Fault Coverage
Personal Injury Protection (PIP) (BRB in CT)
Property Damage Liability Coverage
Towing and Labor Coverage
Underinsured Motorist Coverage
Uninsured Motorist Coverage
BODILY INJURY LIABILITY COVERAGE
Protects the insured as the owner or driver of a vehicle for all sums which the insured becomes legally obligated to pay because of bodily injury to an injured third party. This coverage also pays defense costs against legal actions. Bodily Injury Liability limits are usually split with the first figure limiting payments to a single person per accident and the second limiting payment in total for all persons injured per accident.
COLLISION COVERAGE
Collision Coverage protects your vehicle against direct and accidental loss by collision with another vehicle or fixed object.
COMPREHENSIVE COVERAGE
Comprehensive Coverage (also known as Other than Collision coverage) is sometimes referred to as fire and theft. A more accurate description is loss to your vehicle caused by other than collision. This includes coverage against perils such as hitting an animal, vandalism, riot, floods, wind and hail, as well as fire and theft.
EXTENDED TRANSPORTATION EXPENSE COVERAGE
If your vehicle should be temporarily disabled for more than a day, due to a covered auto accident, this coverage will pay $15 per day for up to 30 days, or a maximum of $450 toward the cost of a replacement rental car. Higher limits of $30 per day for up to 30 days, or a maximum of $900 are also available.
FULL GLASS COVERAGE
If chosen, your Comprehensive Coverage deductible may be waived for glass claims. This option is not available in allstates.
MEDICAL PAYMENTS COVERAGE
Medical Payments coverage pays up to a specified amount for injuries sustained by you and covered persons in your vehicle, regardless of who is at fault. Unlike PIP (or no fault) coverage, Medical Payments coverage only pays for medical expenses.
NO-FAULT COVERAGE
See Personal Injury Protection Coverage or No Fault Insurance
PERSONAL INJURY PROTECTION (PIP)
(Basic Reparation Benefits in CT) The extent of coverage varies by state, but it generally pays for medical and rehabilitative expenses, work loss, funeral expenses and replacement services incurred by you, members of your family, passengers in your vehicle, and pedestrians injured by your vehicle as a result of an accident. This coverage is not available in all states and pays for damages regardless of who is at fault in the accident.
PROPERTY DAMAGE LIABILITY COVERAGE
Similar to Bodily Injury Liability but limited to damage caused by you to another person's property, such as an auto, fence, telephone pole, etc.
TOWING AND LABOR COVERAGE
If your vehicle is temporarily disabled on the road, it will pay your actual expense up to $25, $50, or $75 dollars (depending on the option you select) to have your vehicle towed or for roadside labor to repair your auto.
UNDERINSURED MOTORIST COVERAGE
Underinsured Motorist Bodily Injury Coverage pays for your injuries up to the policy limit when the legally liable third party has insufficient limits to cover your injuries. This coverage is not available in all states.
Underinsured Motorists Property Damage protects your property up to your policy limit for property damage that results from an accident with a legally liable underinsured motorist or hit-and-run driver. This coverage is not available in all states, is usually subject to a deductible and can be rejected.
UNINSURED MOTORIST COVERAGE
Uninsured Motorist Bodily Injury Coverage protects you and the occupants of your vehicle for bodily injury up to your policy limits as a result of an accident with a legally liable uninsured motorist or a hit-and-run driver. In some states this coverage can be rejected.
Uninsured Motorists Property Damage protects your property up to your policy limit for property damage that results from an accident with a legally liable uninsured motorist or hit-and-run driver. This coverage is not available in all states and is sometimes subject to a deductible.