Financial 5.4 Vocab

Automobile Insurance

contract between driver and insurance company

Premium

the amount you pay for an insurance policy

Liable/liability

you are responsible for injuring someone else or their property

Negligent

at fault for damages caused

Bodily Injury Liability (BI)

if you are at fault, you are responsible for medical expenses of those injured and lawsuits (lost wages, etc.)

Property Damage Liability (PD)

pays for damages your cause to other's property (telephone pole, fire hydrant, another car)

Uninsured/Underinsured Motorist Protection (UMP)

pays for injuries to you or your passengers if other driver does not have adequate insurance

Personal Injury Protection (PIP)

pays for you or your passengers physical injuries sustained while in the car even if not a traffic accident

Comprehensive Insurance

coverage pays for damage to your car caused by something other than collision (hail, wind, damage, fire)

Collision Insurance

pays for damage to your car caused by hitting something or something hitting it

Car-Rental Insurance

pays for a rental car if your car is disabled due to an accident

Emergency Road Service Insurance

pays for towing or road service if your car is disabled

Actuaries

statisticians that use data to establish insurance rates

Deductible

part of the repairs that a driver has to pay out of pocket before insurance kicks in