While insurance is an important part of owning and operating a vehicle, it is a product that you may never understand or use until you are involved in an accident or your vehicle is damaged or stolen. Before you actually need to make a claim with your insurance company, it is important to understand the coverages which could provide valuable protection for you and your family.

Policy

is the document issued to you by your insurance company. The policy states the agreed-upon terms and conditions of the insurance contract.

Collision Coverage (COLL)

pays for repairs to your insured vehicle when it is damaged due to a collision with another vehicle or object. Collision usually reimburses you the amount to repair or replace your damaged vehicle, minus your deductible.

Comprehensive Coverage (COMP)

pays for repairs to your insured vehicle caused by something other than collision. This may include damage from vandalism, fire, windstorm, hail or some other peril. As with collision coverage, comprehensive coverage usually includes a deductible.

Deductible (DED)

is the dollar amount of the loss you assume before claims are paid for collision and comprehensive coverages. Each time you make a collision or comprehensive claim, you will incur the deductible amount. However, don't forget that choosing a higher deductible reduces the cost of your automobile insurance.

Bodily Injury Coverage (BI)

pays for injury to others when you are at-fault. Within policy limits, bodily injury coverage pays the amount you are legally obligated to pay for a person(s) injured or killed in an accident when you are at-fault.

Property Damage coverage (PD)

pays for damage to another's property due to an automobile accident when you are at-fault. Property Damage covers items such as an automobile, house or fence of the individual you hit.

Medical Payments coverage (MP)

pays the medical expenses for you and the occupants of your insured vehicle. You are able to choose the amount of Medical Payments coverage for you and your family. The amount of coverage available is specified by the policy.

Personal Injury Protection (PIP)

is an expanded medical coverage which is not available in all states. Subject to the limits included in your policy, PIP covers injuries sustained by you and family members as a result of an automobile accident, regardless of who is at-fault. In the event you are unable to work or are disabled in an accident, this coverage usually includes provisions for medical bills and lost wages.

Uninsured Motorists/Underinsured Motorist coverage (UM)

protects you in an accident with a motorist who has no insurance or has too little insurance to cover your injuries or damages. The other driver must be at-fault. In some states and policies, Underinsured Motorist protection is separate from Uninsured Motorist coverage.

Rental Reimbursement Coverage (RR)

is usually offered in conjunction with Collision and Comprehensive coverages. RR reimburses you for transportation expenses, within policy limits, when an insured vehicle is not operational due to a loss covered by the policy.

Towing and Labor Coverage (TL)

covers towing and on-site labor charges each time your insured vehicle is disabled. On-site labor refers to labor performed at the site of disablement (i.e., fix a flat tire so the vehicle can be towed).