Question | Answer |
Actual Cash Value | What the automobile is currently worth. |
Benefit | How much an insurance company pays when a claim is filed. |
Bodily Injury Liability | Pays medical expenses for injuries to someone else. |
Claim | A policyholder submits a bill to the insurance company to help pay for covered expenses |
Collision | This covers damage to your car when you hit something |
Comprehensive | This covers damage to your car when something hits it. |
Deductible | What you have to pay before the insurance company pays anything when you need to ask the insurance company for money. |
Exclusions | Certain events where the insurance company doesn't pay anything. |
Full Coverage | Your car is covered in the case of an accident when it comes to damage that needs to be repaired. |
Limits | The largest amount of money your insurance company will pay out for your losses |
Medical Payments or Personal Injury Protection (PIP) | Covers medical expenses to you and people in your car. |
No-Fault Insurance | No one driver needs to be identified as the one who caused the accident in order for insurance companies to have to pay out. |
Property Damage Liability | Pays for damage you do to someone else's property with your car. |
SR-22 | Shows that someone has liability insurance. |
Premium | The cost of the policy |
Uninsured Motorist Coverage | This covers medical costs and property damage to you and people in your car when another driver doesn't have any automobile liability insurance. |
Underinsured Motorist Coverage | When the other person's insurance doesn't pay for all of your medical expenses and damage to your property, your insurance will cover what the other company will not pay. |