Auto coverage at a glance
Does auto insurance sometimes seem like a foreign language? Don’t let the terminology discourage you. To help you better understand some of the more common auto policy coverages, here are a few of the most used (but least understood) terms and definitions:
Bodily Injury Liability (BI) – Pays for damages that involve bodily injury to others for which you are responsible under the law.
Property Damage Liability (PD) – Pays for damages to property of others for which you are responsible under the law.
Comprehensive Coverage – Pays for loss of or damage to your vehicle from all causes, except collision, subject to your policy deductible.
Collision Coverage – Pays for damage to your vehicle that is sustained when you hit something, subject to your policy deductible.
Uninsured Motorist – This coverage allows you to recover bodily injury damages suffered in an accident in which the other party does not have any insurance, but is legally liable.
Underinsured Motorist – This coverage allows you to recover bodily injury damages suffered in an accident in which the other party is legally liable, but does not have adequate liability limits to pay the entire claim.