Car insurance terms – Flashcards
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Deductible
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The out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss
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Premium
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Jan pays $70 each month for her auto insurance policy. This regular payment is called a:
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Bodily injury liability
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insurance that covers physical injuries caused by a vehicle accident for which you were responsible
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Collision coverage
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Pays for damage to your own car, even if the accident was your fault. Usually pays up to the actual value of the car but not for its replacement with a new car.
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Comprehensive Coverage
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Insurance that pays for damage to your car caused by something other than a collision, such as damage from storms, vandalism, and theft.
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Property damage coverage
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(liability), covers damage that you cause to other people's property as a result operating a motor vehicle
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No fault insurance
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injured workers receive benefits even if the accident was their fault
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Medical Payments or Personal Injury Protection Coverage
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Cover you and the people in your car medical bill. Some cases even pedestrians
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Uninsured motorcyclist coverage
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Insurance that covers body or property damage if hit
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Gap insurance
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pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease
