Car Insurance Terms and Definitions
The definitions included here are intended to provide a basic understanding of the defined terms. For coverage definitions, please refer to the actual car 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
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 all states.
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
no fault auto 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.
Discounts
Anti-Theft Device Discount
Anti-Lock Braking System Discount
Driver Training Discount
Good Driver Discount (California Only)
Multi-Car Discount
Safe Vehicle Discount
back to top AIR BAGS/AUTOMATIC SEAT BELTS DISCOUNT
- Automatic seat belts are belts that lock in place without assistance.
Savings of up to 30% are available on Personal Injury Protection and/or
Medical Payments coverage if both driver and passenger side have air bags
and automatic seat belts installed. The discount is 20%
off the Personal Injury Protection and/or Medical Payments coverage premiums if
only the driver's side has an air bag. Savings amounts may vary by state.
ANTI-THEFT DEVICE DISCOUNT
- A discount off the Comprehensive coverage premium is available when an active anti-theft
device is present. An active anti-theft device is defined as a system that must be turned
on manually before the system is activated. A discount off Comprehensive coverage
is available if a passive anti-theft device is installed in the vehicle. A passive anti-theft
device is defined as a system that automatically engages when the ignition is turned off.
Savings amounts may vary by state.
ANTI-LOCK BRAKING SYSTEM DISCOUNT
- A discount is available on Bodily Injury (BI) coverage and Property Damage (PD) coverage
premiums for autos with factory installed four wheel anti-lock braking systems (ABS).
Savings amounts may vary by state.
DRIVER TRAINING DISCOUNT
- Drivers under age 25 who complete a state approved driver training course are automatically
entitled to a 10 % discount on Bodily Injury, Property Damage, Medical Payments, Personal
Injury Protection and Collision coverages. Savings amounts may vary by state.
GOOD DRIVER DISCOUNT (CALIFORNIA ONLY)
- Eligibility for the Good Driver Discount is determined through the
assignment of points for convictions and accidents. In order to
qualify for the Good Driver Discount, all operators assigned to that
vehicle must:
- have been licensed to drive for the previous three (3) years.
- not have been assigned a total of more than one point for accidents and convictions in the preceding three (3) years.
The rules regarding point assignment are lengthy. If you want to know if you qualify for the discount please call us and a representative will provide additional detail. The discount is provided on your rate quote automatically if you qualify.
MULTI-CAR DISCOUNT
- When you insure 2 or more vehicles on the same policy you can receive up to a 28% discount on Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection, Comprehensive and Collision coverages. Savings amounts may vary by state.
SAFE VEHICLE DISCOUNT
- Save up to 10% automatically if you drive what we classify as a safe vehicle. These include cars like the Buick Century, Chevrolet Celebrity, Chevrolet Lumina, Mercury Grand Marquis, and many, many more. Savings amounts may vary by state. back to top
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