Auto Insurance Terms to Know (Part 2)

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:

Medical Payments Coverage: Typically provides protection for reasonable and necessary medical expenses incurred as a result of bodily injury sustained by you** in a covered accident.

Personal Injury Protection (PIP): Typically provides coverage for certain expenses incurred by you** due to an accident, such as medical, hospital and funeral expenses. Lost wages benefits may also be included.

Uninsured/Underinsured Motorist Bodily Injury Coverage: Typically provides coverage if you** are injured or killed in an accident caused by a negligent driver without applicable or adequate insurance to cover your damages.
(**includes covered drivers and passengers)

To see more insurance terms check out Auto Insurance Terms to Know (Part 1)

Auto Insurance Terms to Know (Part 1)

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)