car insurance abbreviations
As you know, auto insurance can get confusing very fast. One reason is the unfamiliar terminology, not to mention all the abbreviations and acronyms. How can you understand what is said, if you do not know all these things mean? Well, the fact is that, knowing what these things is not so difficult if you know where to look (like here for example)! You do not have to feel like the insurance companies must be at their mercy. Take control by ensuring that know what they're talking about.
So, here is a list of frequently used terms, abbreviations and acronyms, and what they mean.
NEWS Liability </ b> – This insurance covers damage caused in an accident for which you are responsible. There are two types of liability insurance civil injury (BI) and property damage (PD). Covering, respectively, injuries to persons and damage to property. This insurance is mandatory in most and states have minimum coverage requirements.
Deductible NEWS </ b> – The amount of money paid to secure itself before start to pay for damage or loss. The higher deductible you are willing to pay, the lower your monthly premiums will be.
Full NEWS and collision insurance (COMP and Coll) or physical damage insurance </ b> – Comprehensive covers loss of your vehicle on other stages of a collision. This includes things like theft or damage to things such as flood or fire or animal, etc.. This insurance must If you have a loan or lease your vehicle.
Collision (COLL) covers damage to his vehicle when he or she is beaten by another car (or other object). It is worth to repair your vehicle less the deductible you have chosen. You may wish to drop this coverage for older vehicles since its limits are set by the cash value of the covered vehicle. If there a loan or lease on the vehicle, this coverage is required.
NEWS uninsured motorist bodily injury coverage (UM) </ b> – covers you, the insured members of your family and your passengers for bodily injury and personal (or death) caused by a fault in-uninsured or hit-and-run driver. If you are involved in an accident where the other driver is at fault, but has no insurance, the policy will cover your medical expenses up to the limits in your policy.
NEWS Underinsured Motorist bodily injury coverage (UNDUM) </ b> – Driver guilty Same as above (UM), but applies to an insufficient coverage.
NEWS uninsured property damage coverage (UMPD) </ b> – Covers your vehicle when damage property caused by an insured driver.
NEWS Underinsured Motorist coverage for property damage (UNDPD) </ b> – Same as above (UMPD) but the driver is to ensure, but coverage is not sufficient to pay all damages.
These are the main types of auto insurance coverage. Other types, which tend to be more specialized and some are available in a few states (some even only in individual states). Other types of coverage include Personal Injury Protection (PIP), first party benefits (FPB), medical expenses (MEDPM), loan / lease gap (LLG), and so on.
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