Glossary of Terms (Part 5)
January 5th, 2008
Preferred Provider Organization (PPO) – In 1991, Colorado enacted a statute that allows insurance companies to offer a “PPO” option. That means for a reduced rate, the consumer agrees to use a specific PPO for medical treatment for injuries suffered in auto accidents. This is an option only. Consumers can save up to 25-percent on the medical portion of their auto insurance premium.
Property Damage Liability (PD) – This coverage is for when you damage someone else’s property with your vehicle. Usually it’s someone’s car, but it includes property like buildings, utility poles and garage doors. This coverage is required in Colorado, New Mexico, Utah and Wyoming. The mandatory minimum limit is $50,000.