Auto Insurance 101

Bodily Injury Liability Coverage
Pays for bodily injury or death to another for which an insured person becomes legally responsible because of an automobile accident.

Collision Coverage
Pays for loss or damage to your covered automobile when it collides with another object or overturns.

Comprehensive Coverage
Pays for loss or damage to your covered automobile caused by an event other than collision. This includes damages due to events such as fire, theft, windstorm, hail, flood, contact with birds or animals and vandalism.

Medical Payments Coverage
Pays expenses for medical and funeral expenses sustained by the insured and certain others as a result of bodily injury or death caused by an automobile accident.

Personal Injury Protection (PIP)
In states with No-Fault Automobile Insurance, this coverage generally pays, within the state specified limits, certain medical, hospital, funeral and/or work loss expenses of the insured, passengers in his vehicle and pedestrians struck by him.

Property Damage Liability Coverage
Pays for property damage to another for which an insured person becomes legally responsible because of an automobile accident.

Underinsured Motorist Coverage
Pays for bodily injury and/or property damage sustained by you, your resident relatives, and occupants of your covered automobile in an accident in which the owner or operator of a motor vehicle who is legally liable does not have enough insurance.

Uninsured Motorist Coverage
Pays for bodily injury and/or property damage sustained by you, your resident relatives, and occupants of your covered automobile in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance.

Additional Interest Insured
Another person or company who may be liable for an accident involving an insured or an insured vehicle and who has been named as an Additional Interest Insured under the policy.

Deductible
An amount that must be paid by the insured before benefits will be paid by the insurer. In general, a higher deductible will result in reduced premium.

Declarations Page
The report from your insurance company which lists:

• the limits you have requested for each coverage;
• the cost of each coverage
• the vehicles covered by the policy;
• the types of coverage for each vehicle covered by the policy;
• the drivers covered by the policy; and
• other information applicable to the policy.

Driver Status
Provides information concerning whether the driver has been rated, listed or excluded on the policy.

Garaging Location
The ZIP code where your vehicle is parked when not in use (generally, your primary residence).

Limits
The most an insurance company will pay for a specific insurance coverage. Generally, you may choose the limits that meet your needs. However, most states have laws that specify the minimum financial responsibility limits you must purchase.

Named Insured
The person in whose name the insurance policy is issued.

Policy Inception Date
The date when your current insurance policy begins. This date can be found on your Application, Declarations Page or insurance identification card.

Policy Expiration Date
The date when your current insurance policy expires. This date can be found on your Application, Declarations page, insurance identification card or recent cancellation notice. This date is not to be confused with the date of your next payment or when your renewal payment is due.

Policy Term
The length of time that the policy is in force. Generally automobile insurance Policy Terms are for periods of six months or one year from the policy inception date.

Premium
An amount of money paid by the insured to an insurance company in return for insurance protection.

Premium Finance
Auto insurance is a major expense for many households. Premium finance allows an insured to stretch the payment of premiums by utilizing payment plans that fit into their budgets and cash flow. Premium finance plans typically include an upfront payment known as a “down payment” and followed by a series of periodic payments all collected within the term of the policy. Premium finance is a loan product, and like other loans has interest and fee charges associated with the loan.

Primary Use
What your vehicle is mainly used for:

• To/From Work: If you use your vehicle to commute to and from your work and/or school.
• Business: If your vehicle is used for one or all of the following:
• used to make sales calls
• used as vehicle for business trips to bank or post office, picking up supplies, going to different locations
• owned or leased by a partnership or corporation that have a business listed as an additional interest on the car
• Farm: If your vehicle is used primarily on a farm, ranch or orchard
• Pleasure: No others apply

SR22
A document required by the state for persons convicted of certain traffic violations that demonstrates proof of financial responsibility.

VIN
The vehicle identification number (VIN) on your vehicle. This number is usually found on the dashboard of your vehicle on the driver’s side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car.

IMPORTANT: These definitions are not applicable in all states. This is not an insurance contract. Other terms, conditions and exclusions apply. If there is any conflict between these definitions and the provisions in your policy, the terms of the policy control. Please read your policy carefully.