Tough Terms Made Easy

Auto Insurance Terms:

If you’ve ever shopped for insurance, you know that insurance agents seem to speak a language of their own. We want to help. We’ve prepared this list of insurance terms and definitions to help you best understand your insurance coverages.

This covers both your vehicle and any other types of property you might hit like fences or lampposts.

Provides protection if you, your passengers or others are injured in a covered accident.

Provides protection if anyone tries to sue you after an accident. These necessary protections are covered by a different aspect of your car insurance.

If you are found to be at fault for an accident that causes serious injury or fatality, Bodily Injury Liability coverage will pay the costs of medical care, lost wages, pain and suffering, and other expenses. These costs can easily reach hundreds of thousands of dollars. Without this coverage, you could have your home, bank accounts and other assets seized to pay the bills.

Do you ever use your vehicle for business? When you use your car for work, your coverage requirements are different. Your personal policy may not cover you; rather, this would fall under your Business Auto Insurance.

Just like it sounds, Collision Coverage pays for damage caused by a collision or rollover.

Collisions aren’t the only potential cause of damage to your vehicle. Comprehensive Coverage pays for damage caused by fire, theft, vandalism or weather.

This coverage protects you if you are in a rental car or if you have an employee use his or her personal car for work.

After any type of accident, you could be liable for the costs of bodily injury or property damage. Liability Coverage protects your personal assets.

This covers the cost of medical treatment or funeral expenses for you, your passengers, or others that are the result of an accident. Unlike bodily injury coverage, Medical Payments Coverage kicks in no matter who is at fault.

This pays for medical care, lost wages and replacement services for anyone who is injured in an accident, regardless of who is at fault.

If your vehicle damages someone else’s property, whether it is their vehicle, home, fence or other structure, Property Damage Liability keeps you covered.

Not everyone has enough insurance coverage, or any coverage at all. If you are in an accident caused by someone with insufficient coverage, this will cover you and your passengers for medical expenses, lost wages and other losses related to the accident.

Homeowners, Renters and Condo Insurance Terms:

Your car isn't the only thing you have to insure. Whether you rent or own your home, you should have Homeowners Insurance to protect you in case of loss or damage. Here are the terms you need to know:

If your home is damaged by a fire, flood or other cause, you may be forced to live somewhere else temporarily. Loss of Use Coverage will pay your excess living expenses from a covered claim until you can move back in.

If you live in a condominium, the Master Policy protects any buildings or facilities that don’t belong to condominium owners.

Many insurance companies offer coverage specifically for certain scenarios. Named Perils may cover nearly any event you can imagine, such as Aircraft Crash, Electrical Damage, Fire, Freezing, Vandalism or even Volcanic Eruption.

What will it cost to replace your home or condominium in case of catastrophic damage? Replacement Cost Coverage will pay this cost for you.

If you have specific items to cover, such as a computers, high-end audio / video gear or power tools, you can get Scheduled Property coverage for these items. The cost of this coverage will vary depending on the type and value of these items.