Glossary of Terms (Part 2)
July 2nd, 2008
Bodily Injury Coverage (BI) – BI pays for injuries to other people when the insured vehicle’s driver is legally at fault. This coverage is required in Colorado, New Mexico, Utah and Wyoming. The mandatory minimum limit is $25,000 per person.
Collision Coverage – Coverage for when your car is damaged as a result of colliding with another object-a brick wall, for example, or a rollover. This insurance applies only to the car. It doesn’t cover whatever the car collided with (that’s what your property damage liability is for). This coverage is optional.
Comprehensive Coverage - Coverage for when your car is stolen or damaged in ways that don’t involve a collision. Examples include: hail damage, glass breakage, fire, vandalism, collision with an animal, flood, earthquakes, falling objects and theft. This coverage is optional.
Declarations Page – This is the report from your insurance company that includes the types, limits, and cost for each coverage as well as the vehicles covered by the policy. It also would include the types of coverage for each vehicle covered by the policy and other pertinent information.
Source: autoinsuranceadvocate.net