Auto Insurance Terms And Definitions

If you’re going to insure your property in U.S.A. or specifically Florida, then you’ll probably come across some terms that you might not understand easily as a layperson. Here is the list of some
insurance common terms and definitions.

 Comprehensive Coverage

In case your insured vehicle is damaged as a result of an event other than a collision, then the Comprehensive coverage pays for the damage. Comprehensive coverage includes damages from vandalism, fire, theft as well as flood and windstorm. In case of theft, it will cover both transportation and loss of use.

 Collision Coverage
In the event that your insured vehicle collides with any object or overturns, you’ll be paid for the damage to the vehicle.

 Occasional Driver
An occasional deriver is not the primary driver or the principal driver of the insured vehicle.

 Full Coverage
The term “Full coverage” is used commonly by people when they’re describing the amount of auto insurance coverage they have. Even though there is no such term as “full coverage” in the insurance industry, it always means that the policy is not just liability coverage.

 Garaging Location
When you’re not using your insured vehicle, there is a primary place where you’ll always park it and this place is what is known as garaging location. In more often than not, garaging location is always your primary residence.

 Premium
Premium simply refers to the amount that you pay to an insurance company to get an insurance protection.

 Bodily Injury Liability Coverage (BI)
In case an insured person is legally responsible for an accident, then bodily injury liability coverage will pay for injuries or death to people who have been involved in the accident apart from the insured driver. Bodily injury liability coverage will also pay for all the legal defense costs in case you are sued.

 Declarations Page (Dec Page)
Also referred to as an auto insurance coverage summary, Declarations Page (Dec Page)is offered by your insurance company and it lists the following:

a. The tye of coverage that you’ve selected
b. Limit for every coverage
c. Cost for every coverage
d. Particular vehicles covered by the policy
e. The type of coverage for every vehicle that is covered by the policy
f. Any other information that might be applicable to the policy

 Limits
An insurance coverage limit refers to the most that your insurance company will pay for both damages and injuries that apply to the coverage. You’re the one to select an insurance coverage limit and in many states, you’ll find that they have specified the minimum limit that you must purchase for every required insurance coverage.

 SR-22
An SR-22 is a document that is required by the court, which demonstrates your proof of financial responsibility if you’re convicted of certain traffic violations.

 Personal Injury Protection (PIP) Coverage
PIP is a coverage where auto insurance company will pay, within the specified limits, costs such as medical, hospital as well as funeral expenses of not only the insured person, but also of people who were in the insured vehicle and by extension, the pedestrians who have been struck by the insured vehicle.

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