Automobile Insurance Coverage Descriptions:
Note: The following outline of coverage is for your information only. Please see your policy for exact terms, conditions, exclusions and limitations.
Bodily Injury Liability (occasionally referred to as BI):
- Pays when you are legally liable for injury or death caused by your vehicle. Legal fees and court costs are also included outside of limit, but duty to defend ends once limits are reach on a payout. Pays up to the first limit for each person and up to the second limit “Total” for all injury in the accident for which you are legally liable.
Property Damage Liability (occasionally referred to as PD):
- Pays when you are legally liable for damage to the property of others caused by your vehicle.
Uninsured Motorist (occasionally referred to as UIM):
- Pay damages that you, household relatives, and passengers in the insured motor vehicle are legally entitled to recover because of bodily injury and property damage caused by an uninsured or hit-and-run motor vehicle. Pays up to the first limit for any one person and subject to the first limit for any one person up to the second limit for all persons injured or killed in an accident.
Underinsured Motorist (occasionally referred to as UIM):
- Pays you, household relatives, and passengers in your insured motor vehicle against damages arising out of accidents with motorist who have motor vehicle insurance with lower limits of liability coverage than those damages suffered by you.
Underinsured and Uninsured Motorist Property Damage:
- Pays you for the damage caused to your car by an underinsured / uninsured motorist, including hit and run. Standard 250 deductible applies in Texas, and rental coverage is included regardless if you carry it on the policy.
Medical Payments (Each Person Limit):
- Pays medical, hospital, and funeral expenses for you, household relatives, and guest passengers injured in a motor vehicle accident regardless of fault. Also protects you and household relatives if struck as pedestrians.
Personal Injury Protection (Each Person Limit):
- Just like medical it pays medical, hospital, and funeral expenses for you, household relatives, and guest passengers injured in a motor vehicle accident regardless of fault. Also protects you and household relatives if struck as pedestrians. However in addition it will pay lost wages.
Comprehensive (Often referred to as “other than Collision”):
- Pays for loss or damage to your vehicle caused by fire, theft, vandalism, hail, windstorm, riot, falling objects, flood, etc. The deductible applies to all damage. Does not pay for collision or upset. That is paid under your collision if you carry collision.
- Pays for loss or damage to your vehicle caused by a collision with another object, or by upset of the vehicle. Payments are made on “actual cash value” basis for the amount of each loss. Your deductible applies for this coverage applies first.
Towing and Labor Costs:
- Pays up to the limit on your policy for each claim for towing your vehicle and any labor costs, such as changing a tire or a “jump start” at the place of disablement. Does not pay for parts or subsequent repair costs.
- Pays towards expenses to rent a vehicle if you have a covered loss (comprehensive or collision) and your vehicle is disabled longer than 24 hours.
- Coverage for aftermarket equipment is 1K unless the policy has been endorsed to higher limits.
Camper or Travel Trailers:
- Can be added to your automobile policy for an additional premium for comprehensive and collision. The liability for the camper extends back from the auto towing it.