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Auto Insurance Coverage
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Flashcards
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Liability Coverage
Covers expenses related to the policyholder's legal responsibility for others' bodily injuries or property damage.
Collision Coverage
Pays for damage to the policyholder's vehicle due to a collision with another vehicle or object, regardless of fault.
Comprehensive Coverage
Covers damage to the policyholder's vehicle that is not caused by a collision, like theft, vandalism, or natural disasters.
Personal Injury Protection (PIP)
Covers medical expenses, and sometimes lost wages or other damages, for the policyholder and passengers after an accident, regardless of fault.
Uninsured/Underinsured Motorist Coverage
Protects the policyholder when involved in an accident with a driver who either does not have insurance or whose insurance is inadequate.
Medical Payments Coverage
Covers medical and funeral expenses incurred by the policyholder and passengers after an accident, regardless of fault.
Gap Insurance
Covers the difference between the actual cash value of the vehicle and the balance still owed on the financing (car loan or lease) in the event of a total loss.
Rental Reimbursement Coverage
Covers the cost of a rental car if the policyholder's vehicle is in the shop for repairs due to a covered insurance claim.
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