Glossary

Here are a few common terms you’ll want to be familiar with when you shop for your auto insurance coverage:

Automobile Insurance: Auto insurance  coverage types include bodily injury liability, property damage liability, medical payments, and collision and comprehensive coverage for physical damage to your vehicle.

Basic Limits of Liability: The lowest amount of liability coverage you can purchase. It’s usually the minimum required by state law.

Bodily Injury Liability: A form of auto insurance coverage that protects against legal liability for causing physical injury or death to another.

Collision Insurance: Covers loss to your own automobile if it should collide with another vehicle or object.

Comprehensive Coverage: Covers vehicle damage caused by fire, theft, vandalism, and falling objects.

Deductible: The amount you have to pay before the insurance company pays the remainder of a covered loss (up to the policy limits).

Gap Insurance: In the event of a total loss, this optional auto insurance coverage pays the difference between the market value of your vehicle and the amount you still owe on it.

Medical Payments: Covers injuries sustained by passengers in your car or while you’re operating someone else’s car. It also pays for medical and funeral expenses incurred in an accident regardless of fault.