By: Melissa Jordan
Here at BIG Agency, we use some terms on a daily basis that are customers might not be familiar with. We want you and your family to not only be insured, but be educated about the insurance you have. Here are some common Auto Insurance terms you may (or may not!) be familiar with.
Full Coverage: Auto insurance policies that carry “comprehensive” and “collision” coverage.
Liability Coverage: Auto insurance policies that do not carry “comprehensive” or “collision” coverage. Instead, these policies offer “Bodily Injury” and sometimes “Uninsured Motorists” and “Uninsured Motorists Property Damage”. Covers damage your vehicle causes to others.
Bodily Injury Coverage: This covers Physical Injury/Sickness to a person. This coverage will pay for medical expenses and damages for which you are liable to other individuals in an accident.
Medical Payments: This pays for reasonable medical expenses to anyone covered under your policy in the event of an auto accident, regardless of fault.
Collision: This coverage is part of what we consider “Full Coverage”. This covers damage to your vehicle caused by your vehicle coming into contact with something else, like a vehicle, tree, or phone pole.
Comprehensive: This covers damage to your vehicle that was not caused by a collision. For example fire, theft, vandalism, or weather events. Also includes a collision with an animal, people, birds, or falling objects. (Could also be called Other Than Collision)
Uninsured/Underinsured Motorists Bodily Injury: This coverage protects you against damages caused by another driver who did not carry insurance or insurance limits are insufficient.
Uninsured/Underinsured Motorists Property Damage: Covers damage to your vehicle caused by another driver who did not carry insurance or their insurance limits were too low.
Deductible: The portion of a covered loss that you are responsible for. It is an agreed upon number between you and your insurance company. Higher deductibles mean lower premiums because you are responsible for a larger portion of a claim.
Exclusion: Could be a driver, damage, or other coverage your insurance policy lists as something that is not covered by your insurance policy.
Claim: When you are involved in an accident or have other damage done to your vehicle, you submit a request to your insurance company to reimburse you for your losses.
SR-22: A requirement sent to you by your state to carry insurance. An actual SR-22’s purpose is to report to the state that you have insurance. The state is notified upon cancellation.
Non-owner policy: This is a type of insurance policy that covers a driver but there is no vehicle listed on the policy.
MVR Report: Your record of your driving history, as reported to the State BMV, that includes details of accidents and violations.
Additional Insured: A person, a bank, or another party that holds an interest in your vehicle.
Lienholder: A bank or person that holds a loan against your vehicle.
March 27th, 2015 by