Car Accident step by step process Part 15: Understanding your insurance dec page

This one is fun.  Pull out your declaration page for your auto insurance and see what is actually covered and what it means:

This is a general overview of the definitions of what auto insurance really means.  For a clear understanding call your agent for details.  Know what your insurance will pay for, cover and will not BEFORE you get into a car accident. 



Liability Coverage/Bodily Injury Liability (Some know it as Liability; BI)
You are not covered:  Let me explain; This type of policy covers OTHER people's bodily injuries or death in which you may be found responsible.  This could be THEIR medical bills, loss of income, pain and suffering.  HINT:  Have enough to cover yourself against in a lawsuit so your personal assets are protected.     Again, this type of coverage does not cover you or other people on your policy.  Required by most states.

Property Damage Liability (PD)
This type of policy covers you if your car damages someone else's property; most cases their vehicle but it could be their home/fence should you drive through it.  It will also provide you with a legal defense if they file suit against you.  Required by most states.

Physical Damage Coverage (Comp and Coll) or Comprehensive Coverage
Covers your vehicle and the damage to other vehicles in which you may have caused.  This usually covers stolen vehicles or damage from outside forces.  It will pay to have your vehicle (and others) fixed (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Collision Coverage (Coll)
This is when someone or something else hits your vehicle.  This coverage will fix your vehicle (minus your deductible).  States do not require this but if you have a loan on your vehicle, most likely, your lender will require it.

Underinsured Motorist Bodily Injury (UNDUM)
Covers you, members of your household and your passengers for injuries and/or death caused by another person's negligence.  This coverage pays when the negligent person does not have enough coverage through their policy.

Uninsured Motorist Property Damage (UMPD)
This coverage is for your property when it is damaged by a negligent person who does not have insurance.  If you do not have collision coverage (Coll) you may have a limit on how much is paid for repairs.  If you do have collision coverage than this would pay for your deductible only (in some States...please check your State for complete details).

Underinsured Motorist Property Damage (UNDPD)
Covers your property when the negligent party does not have sufficient coverage on their policy.  As with the Uninsured Motorist coverage some states have a max this will pay for and if you have collision, this will pay for your deductible (in some States).





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