What is the Definition of Auto Insurance Policy?

What is the Definition of Auto Insurance Policy?

There are basically six different types of coverages. Some may be required by law. Others are optional. They are: 1.  Bodily injury liability, for injuries the policyholder causes to someone else. 2.  Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder’s car. 3.  Property damage liability, for damage the policyholder causes to someone else’s property. 4.  Collision, for damage to the policyholder’s car from a collision. 5.  Comprehensive, for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft. 6.  Uninsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Auto Insurance Policy?

What is the Definition of Auto Insurance Policy?

Check out other definition of insurance terms below:


What is the Meaning of LEVEL PREMIUM POLICIES In Insurance Terms?

Premiums paid for a life insurance policy or for a deferred annuity that remain the same each year that the contract is in force. Contrast with Modified premium policies and Single premium policies.


What is the Meaning of LIABILITY INSURANCE In Insurance Terms?

Insurance forWhat the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.


What is the Meaning of LIFE ANNUITY In Insurance Terms?

A type of annuity contract that guarantees periodic income payments throughout the lifetime of a named individual—the annuitant. If a life annuity provides no further benefits after the death of the annuitant, the annuity is known as a straight life annuity. However, some life annuities provide that income payments will be paid either for the life of the annuitant or for a guaranteed period—life income with period certain—or at least until a guaranteed amount has been paid—life income with refund annuity. (See Life annuity with period certain; Life income with refund annuity; Straight life annuity)


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