Auto insurance coverage is packaged into different coverage types. It is usually easiest to determine what you are required to purchase. Then, you determine
what you have that needs to be protected. You purchase insurance to protect yourself (your family) in the event that you suffer a loss to a person or property
and you purchase insurance to protect yourself (your family) from losses suffered by others. Below is a breakdown of each car insurance coverage type to
help you understand more about what each type of coverage protects. Next to each type is a term that is usually associated with that coverage type (i.e. BI
and PD).

LIABILITY COVERAGE (LIABILTY)
BODILY INJURY LIABILITY (BI):

Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit
against you. Claims for bodily injury may be for such things as medical bills, loss of income, or pain and suffering. In the event of a serious accident, you want
enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not
your vehicle. Therefore, it is a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Bodily Injury Liability
does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy. It is mandatory in most states.

How much protection does this coverage provide?

The dual coverage limits refer to the maximum amounts that will be paid per person, per incident, respectively.

Essential things to keep in mind when selecting your Bodily Injury limits:

If you select limits that are too low, you could be putting yourself at risk, financially.

For example, if either you or a driver covered by your policy cause a serious injury where damages exceed your limits, you will be held responsible for the
amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be
attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk.

PROPERTY DAMAGE LIABILITY (PD):

Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an
accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the
amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

How much protection does this coverage provide?

The coverage limits refer to the maximum amounts that will be paid per accident.

Essential things to keep in mind when selecting your Property Damage limits:

If you select limits that are too low, you could be putting yourself at risk, financially.

For example, if either you or a driver covered by your policy cause a serious accident where damages exceed your limits, you will be held responsible for the
amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be
attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk.

Related Coverage:

Limited Property Damage, which is available in Michigan. It provides protection if you are at fault in an accident that causes damage to another vehicle.

PHYSICAL DAMAGE COVERAGE (COMP AND COLL)
COMPREHENSIVE COVERAGE (OTHER THAN COLLISION, OTC, COMP):

Covers your vehicle, and other vehicles (in limited scenarios) you may be driving for losses resulting from incidents other than collision. For example,
comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. It pays to fix your vehicle less the deductible you
choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions
contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

How much protection does this coverage provide?

The amount you see typically refers to the deductible, or the portion of a claim you are responsible for paying.

A higher deductible can substantially lower the cost of insurance premiums. You should balance this savings against your ability to absorb a larger out-of-
pocket expense.

For example, if you set your deductible at $1,000 and your car sustains damages totaling $1,500, you will pay $1,000 and your insurance company will pay
$500.

Who might benefit from buying Comprehensive coverage?

If your car is financed or leased, the finance company will probably require that you carry this coverage.
If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss.
If you have an older car or one in poor condition, you may not want to pay for this coverage.

COLLISION COVERAGE (COLL):

Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep
your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage
is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if
you have a loan or a lease then the lien holder will require it.

How much protection does this coverage provide?

The amount you see typically refers to the deductible, or the portion of a claim that you’re responsible for paying.

A higher deductible can substantially lower the cost of insurance premiums. You should balance this savings against your ability to absorb a larger out-of-
pocket expense.

For example, if you set your deductible at $1,000 and your car sustains damages totaling $1,500, you will pay $1,000 and your insurance company will pay
$500.

Who might benefit from buying Collision coverage?

If your car is financed or leased, the finance company will probably require that you carry this coverage.
If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss.
If you have an older car or one in poor condition, you may not want to pay for this coverage.

UNINSURED AND UNDERINSURED MOTORIST COVERAGE (UM)
UNINSURED MOTORIST BODILY INJURY (UM):

Covers you, the insured members of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured or
hit-and-run driver. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses, up to
the limit on your policy.

Who is covered?

Policyholder
Other drivers covered by the policy
Passengers

How much protection does this coverage provide?

If the other driver involved in an accident is uninsured, this coverage pays up to the limit you purchase. The coverage limits refer to the maximum amount that
will be paid per person, per incident, respectively.

Who might benefit from buying uninsured motorist bodily injury coverage?

Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you will be responsible for paying the
additional amount.

UNDERINSURED MOTORIST BODILY INJURY (UNDUM):

Covers you, the insured members of your household and your passengers for injuries, damages or death caused by the negligence of a person with
insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of
liability listed on your policy.

Who is covered?

Policyholder
Other drivers covered by the policy
Passengers

How much protection does this coverage provide?

If the other driver involved in an accident is underinsured, this coverage typically pays any difference between what the other driver’s insurance covers and
what your bodily injury coverage will pay. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively. If the limits
you purchase are lower than an accident’s costs, you’ll be responsible for paying the amounts over your limits, unless you’re covered by health insurance.

Who might benefit from buying uninsured motorist bodily injury coverage?

Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you will be responsible for paying the
additional amount.

Both UM and UNDUM coverage can be combined or sold separately depending on the state and the insurance carrier.

UNINSURED PROPERTY DAMAGE (UMPD):

Covers your auto when property damage is sustained by an insured and the negligent operator does not possess insurance.
How much protection does this coverage provide?

If you don’t have Collision coverage, Uninsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states
have limits at $3500, some are lower and some are higher). If you have Collision coverage, Uninsured Motorist Property Damage coverage only pays your
Collision deductible (in some states).

Does this coverage replace Collision coverage?

No. Uninsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an
accident caused by a driver without insurance coverage.

UNDERINSURED MOTORIST PROPERTY DAMAGE (UNDPD):

Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent
driver are not sufficient to cover the damages.

How much protection does this coverage provide?

If you don’t have Collision coverage, Underinsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some
states have limits at $3500, some are lower and some are higher) If you have Collision coverage, Underinsured Motorist Property Damage coverage only pays
your Collision deductible (in some states).

Does this coverage replace Collision coverage?

No. Underinsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an
accident caused by a driver without enough liability insurance coverage.

Both UMPD and UNDPD coverage can be combined or sold separately depending on the state and insurance carrier.

OTHER COVERAGE TYPES
PERSONAL INJURY PROTECTION COVERAGE (PIP or MEDEX):

Covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic
coverage for the insured's own injuries on a first-party basis, without regard to fault. It is only available in certain states. Depending on the state, the covered
parties below and the amount of protection may vary.

Who is covered?

Policyholder
Policyholder’s relatives in the same household
Passengers
Other authorized drivers
Policyholder and family members if they are injured while riding in someone else’s car or as a pedestrian when struck by another vehicle. (in some states)

How much protection does this coverage provide?

Total payments covered by PIP are the limits indicated. That is the maximum amount that will be paid per person for any combination of covered expenses
(some states offer limits and others set it to an amount like $10,000). Specific limits and coverages vary by state.

Who might benefit from buying additional medical coverage along with PIP?

People who don’t have health insurance that adequately covers the expenses listed above or people who carpool or frequently drive with passengers.
Related Coverage:

Additional Personal Injury Protection is available in some states where PIP is available; some carriers may offer Additional PIP. Additional Personal Injury
Protection acts as a supplement to the PIP coverage required by your state. Guest Personal Injury Protection provides coverage to guest passengers in your
vehicles. It is required when all drivers on your policy have rejected no-fault coverage (state of Kentucky).

In states like New Jersey, you have to choose a Personal Injury Protection Plan. Here is a description of those choices:

Full PIP Primary— acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income
continuation, funeral expenses, death benefits, and essential services expenses, as detailed below.
Full PIP Health Primary— should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your
passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses, as detailed
below. Please note: Full PIP Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of
the military. In addition, some health insurers do not cover injuries related to car accidents. If you are unsure of what your health insurance covers, you should
select Full PIP Primary or Medical Only PIP Primary.

Medical Only PIP Primary— acts as the primary coverage for injuries sustained by you or your passengers in an auto accident.
Medical Only Health Primary— should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your
passengers in an auto accident.

Please note: Medical Only Health Primary is not available if you use Medicare or Medicaid as your primary health insurance or if you are an active member of
the military. In addition, some health insurers do not cover injuries related to car accidents. If you are unsure of what your health insurance covers, you should
select Full PIP Primary or Medical Only PIP Primary.

BASIC AND ADDITIONAL REPARATION BENEFITS (BRP or PIP):

Basic Reparations Benefits will cover medical up to the selected amount. In some states, Additional Reparations Benefits is available to extend additional
benefits. Additional Reparations Benefits is usually primary over any Health Insurance. This coverage is optional and you cannot have Medical Payments with
this coverage.

FIRST PARTY BENEFITS - MEDICAL (FPB OR MEDEX):

First Party Benefits cover several areas of insurance coverage; however, this definition is for First Party Benefits-Medical. Similar to medical payments
coverage and Personal Injury Protection, FPB helps pay for your medical expenses if you or relatives living in your household are injured in an accident.

Specific limits and coverages vary by state, but typically these services include:

Related medical and surgical treatment
Essential rehabilitative services (physical therapy, speech pathology, etc.)
Necessary dental, psychiatric, psychological, and optometric treatment
Ambulance and nursing service
Required medications, medical supplies, and prosthetic devices

Who is covered?

First Party Benefits-Medical provides coverage to the policyholder, drivers listed on the policy and relatives living in the same household as the policyholder.

How much protection does this coverage provide?

Total payments covered by FPD are the limits indicated. That is the maximum amount that will be paid per person for any combination of covered expenses.

In addition to First Party Benefits – Medical, these coverages are available and sometimes combined as a package: First Party Benefits - Accidental Death,
First Party Benefits - Combination Package, First Party Benefits - Extraordinary Medical, First Party Benefits – Funeral, and First Party Benefits - Income Loss.

MEDICAL PAYMENTS (MEDPM):

Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. This
coverage applies, regardless as to who is at fault. Medical Payments may also cover policyholders and their family members when they are injured while riding
in someone else's car or when a car hits them while on foot or bicycling. Coverage is limited to the terms and conditions contained in the policy.
Who might benefit from buying Medical Payments coverage?

If you and your regular passengers already have health insurance that covers similar expenses, medical payments coverage may be unnecessary. Check
your health insurance policy for details.

WORK LOSS:

Also referred to as Optional Basic Economical Loss

This coverage helps you, drivers listed on your policy, and your passengers recover lost wages if you are unable to work due to accident-related injuries.

LOAN/LEASE GAP INSURANCE (LLG):

Also referred to as GAP, Loan/Lease Payoff

Loan/Lease Gap Coverage is optional. To buy this coverage, you must have Collision coverage and Comprehensive coverage. You must have a deductible
and your car must have a lien holder because it is financed or leased.

This coverage protects you if your car gets damaged and will reimburse you for the difference between the following items:

The actual cash value of your car at the time of the loss, less the applicable deductible and the vehicle's salvage value (if retained by the owner or insured)
and; any greater amount owed on the vehicle at the time of loss, less any unpaid finance charges, excess mileage or wear and tear charges, any other
charges or expenses associated with the loan or lease, and the vehicle's salvage value (if retained by the owner or insured).

Please follow this link to learn more about GAP Insurance. GAP insurance is usually available as a separate policy from the auto policy. It is much less
expensive to purchase LLG coverage with your policy.

RENTAL CAR REIMBURSEMENT (RREIM):

Covers renting a car if your car is not drivable or while your car is being repaired because of a covered accident.

TOWING AND LABOR (TL):

Also, referred to as Tow Club, Emergency Road Service, Emergency Roadside Service

Coverage is only available if you purchase Comprehensive and/or Collision Coverage. Some policies limit coverage to pay only when a claim has been issued
against your physical damage coverage (an accident). Coverage limits are different for each carrier, but typically, this is what is covered.

ACCIDENTAL MEDICAL PROTECTION PLAN (AMPP):

Also referred to as Accidental Death and Dismemberment

Covers you (or family under a Family Plan) while driving or riding in any private passenger vehicle. Defined accident medical expenses are paid directly to you
without a deductible.

What is covered?

Towing
Tire changing
Gas, oil, and water delivery
Battery services
Lockout services

How much protection does this coverage provide?

The coverage limits you see in your quote refer to the maximum amount that will be paid per incident, per term, respectively.

PROPERTY PROTECTION INSURANCE (PPI):

This is required coverage in Michigan. It provides protection if you cause damage to properly parked vehicles or fixed properties such as buildings or
lampposts in the state of Michigan.

ACCIDENTAL DEATH BENEFIT (ADB or ADD):

Also, referred to as Accidental Death, Accidental Death Indemnity

A death benefit pays if bodily injury causes the death of you or a covered family member.

CUSTOM PARTS AND EQUIPMENT (CPE):

Also, referred to as Additional Customized Parts Or Equipment, Customized Parts and Equipment, Electronic Equipment

Covers if your vehicle has permanently installed custom parts or equipment other than those installed by the original manufacturer.

Examples of customized equipment include:

Any dealer-installed equipment that is not offered by the original manufacturer
Special equipment on vehicles, vans, and trucks, including: running boards, brush bars, roll bars, undercarriage lighting, fog lights, bed liners, camper shells,
trailer hitches, etc.
Customized wheels, spoilers, suspensions or performance-related equipment
Stereo, sound recording and television equipment
Customized paint or decals

Insurance Box online quote form has the most comprehensive coverage section, specific to your state with further definitions and guidance. You can also ask
licensed insurance agents questions about any coverage option. 626-775-6464 or
Click here for your free quote!

Disclaimer: This information is provided for information purposes. They are not intended to substitute informed professional advice. These responses should
not be interpreted as a recommendation to buy or sell any insurance product, or to provide financial or legal advice. Please refer to your insurance policy for
specific coverage and exclusion information. Please read our Terms of Service.
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