Auto InsuranceAngelica Luna

Insured◦ This is any one who is included under the P.A.P

and is covered by the insurance company. Insurer:

◦ The Insurance Company Limits of Liability-

◦ max amount of $ an insurance company will pay for a loss.

BI- Bodily Injury PD- Property Damage

Some Insurance Jargon/Abbreviations

◦ Includes all of your coverage's & other general provisions.

◦ May be referred to as your Auto Declarations Page

◦ Two types: Split Limit Policy Combined Single Limit Policy

Personal Auto Policy (P.A.P)

Liability

Medical Payments

Uninsured Motorist

Damage to Your Auto

Structure of a P.A.P

Two Types of P.A.P

Split Limits Combined Single Limits

Two limits apply to BI & PD Ex: ◦ 100/300/50

The 1st # represents the BI limit per person

The 2nd # represents the BI limit per occurrence

The 3rd # represents PD per occurrence

One limit applies to both BI & PD

Example: 300,000 CS

Insurer will pay, up to the policy limits, for Bodily Injury or Property Damage to OTHERS by ANY DRIVER of a vehicle insured under the policy.

Two Types◦ Bodily Injury Liability◦ Property Damage Liability

Bodily Injury◦ covers medical expenses, pain

and suffering, lost wages, and other special damages.

Property Damage Liability◦ covers damaged property, and

may include loss of use.

Liability

Pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident.

Provides coverage for reasonable expenses incurred within 3 yrs. For necessary medical and funeral services b/c of bodily injury: ◦ 1) caused by accident ◦ 2) Sustained by an insured

Meaning if you were hit as a pedestrian you are covered by this.

Medical Payments

o Definition: liability coverage that is purchased with a policy in case you the insured or your passengers are injured by another motorist who has no Auto Liability Insurance or not enough liability insurance.

o Limits must be equal the state minimums for Bodily Injury

Uninsured Motorist

It’s ok I do.

I don’t have insurance.

Most known as Full Coverage, purchased to insure your car Two Deductibles

◦ Collision- coverage helps pay for damage to a covered vehicle caused by: Collision with another vehicle Collision with an object A vehicle rollover

Comprehensive- helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. Examples include:◦ Fire ◦ Wind ◦ Vandalism ◦ Theft ◦ Hitting an animal

Damage To Your Auto