Auto Insurance > resources
> Options and Products Available
Automobile insurance policies come with
a host of options available. We have prepared a list of definitions
to help educate you on the many different options available. They are
listed in no particular order of importance-just alphabetically.
Bodily Injury Liability: pays
for bodily injury to another person due to the negligent operation of
your vehicle. It may also pay if a resident member of your family, or
a person who had your permission to use your vehicle caused the damages.
Car Rental: pays for the cost of
a rental vehicle while yours is being repaired due to a Collision accident
or Comprehensive loss. (Limits, usage and length of time available vary
from company to company).
Collision Coverage: pays the cost
of repairing or replacing owner's vehicle when damaged due to an accident.
Cost of this coverage is usually alterable by choice of a deductible.
The higher the deductible (the amount you agree to pay) the lower the
cost is for this coverage.
Comprehensive Coverage: pays the
cost of repairing or replacing owner's vehicle when damaged due to Fire,
Theft, Flood, Wind, Vandalism, Riots, Storm, or Earthquake, etc. Costs
of this coverage are usually alterable by choice of a deductible. The
higher the deductible (the amount you agree to pay) the lower the cost
is for this coverage.
Custom Equipment: This coverage
if available would cover custom non-factory items such as CB radios,
Cellular Phones or Custom Sound Systems. This coverage may also be available
to cover customized features found of Conversion Vans.
Medical Payments: covers medical
and possibly funeral costs for you or those riding in your vehicle that
may be injured or killed in an accident while in your vehicle. May also
pay for you or resident family members if struck by a vehicle while
walking or riding in another vehicle. This coverage usually pays even
if you were responsible for the accident.
Property Damage Liability: pays
for the damage you caused, due to the negligent operation of a vehicle.
It may also pay if the damages were caused by a resident member of your
family, or by a person who had your permission to use your vehicle.
Towing Coverage: pays for the costs
towing or minor repair to your disabled vehicle. (Limits vary from company
Underinsured Motorist Bodily Injury
Coverage: pays above the limits of another insurance policy for
physical injuries you may sustain if your limits of Bodily Injury are
higher than the limits of the at fault motorist's policy.
Uninsured Motorist Bodily Injury Coverage:
provides coverage for "Your" physical injury that was inflicted by an
uninsured driver who was at fault or for injury you sustain as a result
of a hit-and-run driver who was at fault.
Prior topic: Buying
Decisions | Next topic: Cost vs.