Personal Auto Insurance Glossary

Actual Cash Value (ACV) - The actual market value of your vehicle/property.

Bodily Injury (BI) - Bodily harm, sickness, or disease sustained by a person, including death as a result from any of these.

Collision Coverage - A type of insurance coverage that covers the liability of loss due to a vehicle’s impact with another vehicle or object, or the upset of the covered vehicle or non-owned vehicle.

Comprehensive Coverage - see 'Other Than Collision' Coverage

Liability Coverage - Damage to a person(s), vehicle(s) and/or property that an insured is legally responsible for as a result of an accident.

Medical Payments Coverage - Medical expense coverage for up to a stated maximum limit that is provided for individuals in the insured’s covered auto and for the insured’s family members if injured while a walking-pedestrian by a road-use vehicle.

No-fault Automobile Insurance - Available only in certain states, this coverage allows each party in an accident to pay for their own damages, regardless of fault, up to a determined maximum. This process is designed to speed claim settlement by avoiding the necessity to determine fault and prove negligence.

Other Than Collision (Comprehensive Coverage) - Loss to a covered vehicle from something other than a collision. Typical causes may include fire, theft, weather, vandalism, glass breakage or contact with an animal. Any "direct and accidental loss" that is not caused by collision and is not specifically excluded would be covered under this provision.

Personal Injury Protection (PIP) - Provided as an endorsement in "No-fault" states, this provision allows each party to an accident to pay their own basic medical expenses, regardless of fault, up to a determined maximum.

Property Damage (PD) - Damage to, or loss of use of, tangible property.

Uninsured Motorist (UM) - Protection provided to the insured for bodily injury and/or losses caused by a motorist without insurance. Protection is provided under this provision for up to the maximum amount stated in the policy.

Underinsured Motorist (UIM) - Coverage under the insured’s policy that pays for the difference of the actual damage for bodily injury and the amount of liability insurance carried by the at-fault driver when the at-fault party’s auto limits are less than the insured's.