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What Coverage Includes terms
The physical-damage coverages, decoded.
Collision coveragePays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible.Collision deductible waiverAn option that pays or waives your collision deductible when an identified uninsured driver is at fault for damaging your car.Comprehensive coveragePays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal.Declarations pageThe summary page of an auto policy listing who and what is insured, the coverages, limits, deductibles, premium and policy period.Excluded driverA specific person listed on a policy as not covered to drive the insured cars, often used to keep a high-risk household member from raising premiums.ExclusionA provision in an insurance policy that removes specific people, vehicles, uses or causes of loss from coverage.Full coverageInformal shorthand for a policy combining liability with collision and comprehensive, the mix lenders usually require. It is not a defined policy type.Household memberA person who lives in your home, usually a relative, whom auto policies often cover automatically and may require you to list.InsuredAny person a policy protects, including the named insured, household relatives and often permitted drivers, depending on the coverage.Medical payments coverageCoverage that pays medical and funeral costs for you and your passengers after a crash, whoever was at fault, usually in limits of a few thousand dollars.Named driver policyA car insurance policy that covers only the drivers specifically listed on it, rather than anyone who borrows the car with permission.Named insuredThe person or business listed by name on the declarations page as the policy's owner, with the broadest coverage and most rights under the contract.Permissive useCoverage for someone who drives your car with your permission but is not listed on your policy, typically on an occasional basis.Personal auto policyThe standard contract form behind most U.S. car insurance, with parts for liability, medical payments, uninsured motorists and damage to your car.Personal injury protection (PIP)Coverage that pays medical bills, part of lost income and related costs for you and your passengers after a crash, no matter who caused it.Policy periodThe span of time a car insurance policy is in force, usually six or 12 months, from its effective date to its expiration date.PolicyholderThe person or business that owns an insurance policy and pays for it, with the right to change or cancel it.StackingCombining uninsured or underinsured motorist limits across several vehicles or policies to raise the total available for one injury claim.Underinsured motorist coverageCoverage that pays your injury costs when the at-fault driver has insurance, but not enough to cover what you are owed.Uninsured motorist coverageCoverage that pays injury costs for you and your passengers when a driver with no insurance, or a hit-and-run driver, causes the crash.Uninsured motorist property damage (UMPD)Coverage that pays to repair your car when a driver with no insurance damages it, often with a small deductible and caps set by state law.