Understanding your Auto Policy Coverage

auto policyBI? UM? PIP? PD? Do you know what these mean?  These are common terms you will see on your Auto Policy as coverage options.  Here we will cover the basics of your Auto Policy to make better sense of it for you.

Comprehensive and Collision

Collision: Covers damage to your car when your car hits or is hit by another vehicle or other object.  Collision pays to repair your vehicle, less the deductible.

Comprehensive: Covers your vehicle, and sometimes other vehicles you may be driving, for losses resulting from incidents other than a collision.  Damage such as flood, fire, falling objects or animals.

Liability Protection:

BI: Bodily Injury- this covers injuries that you cause to someone else. BI includes medical bills, loss of income, or pain and suffering.

PD: Property Damage- this covers you or someone driving the car with your permission if the car damages some else’s property. Example: fence, telephone pole, house etc.

PIP or MP: Personal Injury Protection or Medical Payments- this is a no-fault coverage that provides expenses to you and your passengers injured in an accident. Medical payments may also cover policyholders and their family members when injured while riding in someone else’s car.

UN or UIM: Uninsured and Under-insured Motorist Coverage-this coverage will reimburse you, a member of your family or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Under-insured mortorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your loss.

Liability Limits:

Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance. In the event of a serious accident you want enough insurance to cover a judgement against you in a lawsuit, without jeopardizing your personal assets.

Whether your car is new or used, it’s important to protect yourself with proper coverage. Contact our office today for a no obligation quote.  Protecting YOU is our Job

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