Descriptions of Coverage

Auto Insurance Coverage

Here are the different parts of an automobile policy

(coverages can vary by state)

TermIn terms regular people understandOfficial definition
Bodily Injury Liability(Injury to Others) — If you hurt someone with your vehicle, this part pays for it — and the legal defense if you get suedBodily injury liability will pay for accidental bodily injury, up to the limits you select, which you or the authorized driver of your vehicle causes to someone else if you or a driver of your vehicle are found to be at fault for an accident and held legally responsible for the injuries caused. It will also cover your defense costs.
Property Damage Liability(Damage to Others' Property) — If you're at fault, this part pays to repair other people's property: cars, houses, fences, etc. And let's face it, if you get into an accident with a house, it likely wasn't the other guy's fault.Property damage liability will pay for accidental property damage you or the authorized driver of your car cause to someone else's property when you are found legally responsible. This coverage will pay for the damage to that property up to the coverage limit you select.
Uninsured Motorist Bodily Injury(Injury to You) — Unfortunately, just 'cause someone is driving doesn't mean they have insurance. This part pays for injuries you or your passengers (depends on the state) get from an accident with that scofflaw.A driver who is legally responsible for an auto accident may not have insurance. This option provides coverage for you or a covered person (such as your household member or your passenger, depending on the state) for bodily injuries caused by another driver who does not have insurance. It may also cover damages caused by a hit-and-run-driver (state laws vary).
Underinsured Motorist Bodily Injury(Injury to You) — Okay, so this guy has insurance. Just not enough. This coverage works to help you get money that helps pay for treatment. State variations apply.Drivers who are legally responsible for an accident may not have enough insurance to cover damages they inflict. This option generally provides coverage for you or a covered person (such as a household member or your passenger, depending on the state) for expenses related to bodily injury caused by another driver who does not have enough insurance to cover damages you suffer.
Uninsured Motorist Property Damage(Damage to Your Stuff) — That guy who hit you and had no insurance to pay for your injuries isn't going to be able to pay to fix your car, either. This coverage takes care of that.A driver who is legally responsible for an auto accident may not have insurance. This option provides coverage for damage to your property caused by another driver who does not have insurance. It may also cover damages caused by a hit and run driver (state laws vary).
Underinsured Motorist Property Damage(Damage to Your Stuff) — If the driver who just broadsided you has insurance, but not enough to pay for your brand-new, fully-loaded minivan (those things are expensive), this covers the difference.A driver who is legally responsible for an auto accident may not have enough insurance. This option provides coverage for damage to your property caused by another driver who does not have enough insurance (state laws vary).
Personal Injury Protection(Injury to You) — If you've been injured in an accident, you need to focus on getting better, not worrying if your treatment will be covered. This helps takes care of it for you and your family, no matter who was at fault.Personal Injury Protection (also called "PIP" or "No Fault") generally covers you and your household members for medical costs, income loss, accidental death benefits, essential services costs, and funeral costs that result from an accident — regardless of who is at fault. Policy provisions and limits will apply. Please note that PIP/No-fault coverage and applicability varies widely by state.
Medical Payments(Injury to You) — If you or your passengers have medical or funeral expenses because of an accident, this coverage applies to them.This covers medical or funeral expenses resulting from injuries sustained in an accident involving the covered car. Your expenses and the expenses of your household members generally will be paid subject to the limits and exclusions of the policy. Please note that Medical Payments coverage and applicability varies widely by state.
Comprehensive(Covers Your Car) — A lot can happen to a car even when it's sitting still: fire, vandalism, glass breakage, you name it. If the damage is the result of anything that Collision does not cover, Comprehensive usually does.Comprehensive coverage provides physical damage coverage for a covered vehicle that suffers sudden damage, from fire, theft, vandalism, storm damage, contact with animal or fowl, falling objects or glass breakage. You will be responsible for the deductible you select.
Collision(Covers Your Car) — You probably won't like the way your car looks after an accident. This part pays to get it looking right again, no matter whose fault it was.Collision provides physical damage coverage for vehicles damaged by collision with another vehicle or object. This coverage pays for damages regardless of fault. You will be responsible for selecting a deductible amount.
Rental Reimbursement(For You) — If your vehicle is in the shop for any covered damage, you get to sport a rental. Depending on the amount of coverage you select, you may not even have to pay for it.Rental reimbursement coverage provides for substitute transportation expenses for a maximum of 30 days while an insured vehicle is out of service due to a covered loss. Here's a hint — make sure the limits you select will cover the costs of a day's rental in your state.
Towing and Labor(Your Car) — This is very similar to the roadside assistance you'd get from well-known auto clubs, but for much, much less.Towing & Labor coverage provides 24/7/365 emergency roadside assistance services for those dismaying times when towing, lockout assistance, flat tire changes, jump-starts, emergency fuel delivery and more are needed.
Loan/Lease Gap Coverage(Your Car) — Did you owe more money on your loan or lease than the car was worth before it got totaled? This pays the difference.The outstanding balance on a vehicle loan or lease is frequently greater than the value of the vehicle. Gap coverage covers the difference between the value of the vehicle and the payoff amount of the loan when the vehicle is a total loss.

 

* Product, service, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services or coverage. For more information, please contact Electric Insurance Company at 800.227.2757. If there are discrepancies between the information on this site and the policy, the terms in the policy apply.

 

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