Helpful Insurance Terms from Our Insurance Agency

Collision Coverage
Collision coverage applies to your vehicle if you are in an accident. This coverage is intended to repair your vehicle to the condition it was in before the accident.

Comprehensive Coverage
This insurance option covers your vehicle if it is stolen, or if it sustains damage from something other than an accident (such as a hailstorm, for example).

Deductible
A deductible is the amount that you pay toward a loss under collision and comprehensive coverage. This amount is paid first before your insurance policy provides coverage.

Liability Insurance
Liability insurance covers claims that arise when you hit someone or damage their property.

Limit
A limit refers to the amount of insurance you purchase and the maximum coverage that would be paid on a claim. For example, 50,000 & 100,000 limits of liability cover $50,000 per person and $100,000 per incident.

Medical Payments
Medical payment plans cover medical, surgical, and funeral expenses for you and your passengers when involved in an accident.

Personal Injury Protection (PIP)
Personal injury protection covers expenses for you and others if you have an accident. This is the basic coverage implemented in some states with No-Fault Automobile Insurance.

Rental Reimbursement
Rental reimbursement covers the cost of the rental car while your vehicle is being repaired as a result of a covered loss.

Uninsured Motorists Coverage
With uninsured motorists coverage, you can remain protected if you are hit by a driver who does not have adequate auto insurance coverage.