Definitions No Fault Auto Insurance

Auto insurance coverage in No Fault and other states is generally quoted in terms familiar to those who work in the insurance industry. This can be confusing to customers, however, it is the only way to compare auto insurance company quotes and car insurance coverage limits. Familiarize yourself with these popular insurance definitions, then, get a no fault insurance quote for free online. Please read your policy definitions as they are presented to you by the auto insurance company. The definitions below are very broad and may not apply to your policy or state.

No Fault Insurance Coverage:
Auto insurance coverage that reimburses the policy holder without having to prove who was at fault in an accident.

Personal Injury Protection Coverage (PIP):
Auto insurance coverage for the policy holder, others inside the car, and pedestrians that are struck by the policy holder. Dollar limits are generally specified for the amount of medical, hospital, and funeral expenses the insurance company will pay in the case of an automobile accident.

Bodily Injury Liability Coverage (BI):
BI coverage pays for the injuries of people in a car accident except for the policy holder who is assumed to be the driver. BI auto insurance covers the policy holder when they become legally liable for the car accident. BI insurance coverage may also pay for legal costs if the policy holder is sued.

Collision Coverage (COLL):
As the term suggests, this is coverage for when your car hits another object or even overturns. Collision insurance coverage generally pays for the damage to your car. Collision insurance coverage may also apply to cars that you don't own, but for which you where the driver in an accident.

Comprehensive Coverage (COMP):
Insurance that covers your car if it is damaged for any reason other than a collision. Comprehensive insurance coverage reimbursement examples may include damage from flood, fire, theft, storms, and vandalism.

Property Protection Insurance Coverage (PPI):
Currently only the state of Michigan requires PPI coverage. PPI insurance covers the policy holders if they damage parked vehicles, lamp posts, buildings, or other fixed property.

Property Damage Liability Coverage (PD):
Property Damage Liability insurance coverage will pay for any damage you cause to someone else's property. Property can mean another car, fence, house or other item of value that you hit.

Uninsured Motorist Bodily Injury (UM):
When you are not at fault and the other driver has no car insurance, this coverage applies. If you are involved in a hit and run, where the driver takes off, UM may also apply. UM coverage pays for medical expenses and damages generally up to a limit as specified on your policy.

Underinsured Motorist Bodily Injury (UNDUM):
UNDUM covers you if you have a car accident with someone with less coverage than your damages total. UNDUM coverage will pay the policy holder the difference up to the limit of liability listed on the car insurance policy.

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