Automobile Insurance Definitions

INTRODUCTION

Getting involved in an automobile accident can be a confusing and stressful time. In addition to the possible pain you are suffering from the collision itself, you may be frustrated and confused trying to navigate your insurance policy and its coverage. Below is a general list of the insurance coverage definitions that may apply to your situation. These definitions may be different depending on your state (I practice in the state of Florida) and the policy that you may have. It is always a good idea to consult with any attorney to see what coverages may apply.

INSURANCE COVERAGE DEFINITIONS

Comprehensive Coverage Insurance - Designed to pay for the repair or replacement of the policy owner's car in the event of damage not resulting from an accident. Comprehensive insurance covers theft, fire, vandalism, weather damage, riots, missiles, and other similar circumstances which may cause damage to a vehicle.

Property Damage Coverage - An insurance policy which pays for damage caused to the property of others, including cars, as a result of a motor vehicle accident. Florida law requires minimum coverage of $10,000.00 property damage liability coverage.

Collision Coverage Insurance - Designed to pay for the repair or replacement of the policy owner's car in the event of an accident, no matter who caused the accident. Collision coverage usually requires the payment of a deductible when a claim is made and may be required to secure a new car loan.

Personal Injury Protection (PIP) Coverage (Sometimes Referred to as "No-Fault") - Insurance designed to be paid without regard to "fault," or more properly, legal liability. PIP is also called "no-fault" because, by definition, a claimant's, or insured's, insurance premium should not increase due to a PIP claim. Florida law requires minimum coverage of $10,000.00 personal injury protection.

Bodily Injury Coverage - An insurance policy that pays for injuries caused to other individuals in the event of a motor vehicle accident. Generally, insurance companies will only the allow purchase of UM/UIM coverage up to the insured's current bodily injury limit.

Uninsured Motorist Coverage - An automobile policy option which covers one for property damage and bodily injury caused by another motorist who does not carry liability insurance.

CONCLUSION

If you have suffered personal injuries and property damage as a result of an automobile accident, knowing what coverage you have under your policy is important. It is always a good idea to consult with an attorney to know your rights and coverages under your insurance policy.