Are you confused when talking with your insurance agent? Do you wonder what your declarations page is telling you about the coverage you are paying for? Here are some basic terms you should know:
Bodily Injury Liability Protection: Typically provides coverage if you are legally liable for damages resulting from a covered auto accident
where others are injured or dead. The
Michigan State Minimum is $20,000/$40,000.
Collision Coverage: Helps pay for damage to your insured vehicle caused by a covered accident with another vehicle, a rollover, or a collision with almost anything else, such as a tree. The Deductible is your responsibility to pay before insurance company coverage kicks in.
Comprehensive Coverage: Helps pay for damage to your insured vehicle caused by falling objects, fire, theft, vandalism, hitting a deer and certain other
non collision losses. This deductible is also your responsibility to pay before insurance company coverage kicks in.
Property Damage Liability Protection: Typically provides damage coverage if you are legally liable for damages to
an other's property resulting from a covered auto accident.
For more insurance terms see our post at
Auto Insurance Terms to Know (Part 2)
