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Auto Insurance Coverage Definitions

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One of the reasons why people do not alter their auto insurance coverages is because they do not understand the coverage options or what their individual coverages mean. In order to understand whether or not you are paying too much for auto insurance you must understand the definitions of terms. Read the definitions below to better understand your auto insurance coverage and be more comfortable in making modifications to your auto policy.

1.  Comprehensive coverage – This covers damage to your vehicle or loss of the auto that is not related to any type of collision. This can include such things as when your vehicle is stolen or flooded out.



2.  Collision coverage – This coverage will reimburse the driver in the event his or her vehicle is either hit, or involved in an accident where damage to the vehicle has occurred. Collision coverage can pay for the damage to your vehicle to be fixed up to a total value of your entire vehicle as determined by the auto insurance company.

3.  Bodily Injury Liability – This type of auto insurance coverage will cover injury against other people involved in an accident with your vehicle. This can cover medical bills, lost income, or lawsuits resulting from accidents.

4.  Property Damage Liability – Property damage liability protects you financially if your vehicle gets involved in an accident that damages another person’s property including their car, home, or land. It is best to get enough property damage liability that you think you may need in the event of damaging someone else’s property.

5.  Uninsured motorist bodily injury – This insurance covers you and your insured family members from injuries that occur due to accidents caused by other motorists who have no insurance at all. Since their auto insurance will not cover you, your uninsured motorist bodily injury protection will.

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