Accident Terms

1. COLLISION COVERAGE:  THIS COVERAGE PAYS FOR DAMAGES TO YOUR VEHICLE RESULTING FROM A COLLISION WITH ANOTHER VEHICLE OR OBJECT. THIS COVERAGE IS GENERALLY SOLD WITH A DEDUCTIBLE OF $0 TO $1,000. THE HIGHER YOUR DEDUCTIBLE, THE LOWER YOUR PREMIUM. EVEN IF YOU ARE AT FAULT FOR THE ACCIDENT, YOUR COLLISION COVERAGE WILL PAY THE REPAIRS LESS YOUR DEDUCTIBLE. IF THE ACCIDENT IS NOT YOUR FAULT, YOU CAN USE YOUR COLLISION COVERAGE LESS YOUR DEDUCTIBLE, AND YOUR INSURANCE COMPANY WILL TRY TO RECOVER YOUR DEDUCTIBLE FROM THE OTHER DRIVER’S INSURANCE COMPANY. THIS INCLUDES YOUR DEDUCTIBLE.

2. MEDICAL PAYMENT COVERAGE OR PERSONAL INJURY PROTECTION (PIP):  THIS COVERAGE PAYS FOR RELATED TREATMENT OF INJURIES TO THE DRIVER AND PASSENGERS OF THE POLICYHOLDER’S CAR FROM A COVERED ACCIDENT. THERE IS A LIMITS OF THE COVERAGE FROM $1,000 TO $50,000 PER PERSON IN THE VEHICLE, BASED ON THE COVERAGE PURCHASED FROM THE POLICY. PLEASE NOTE THAT SOME STATES THERE IS NO SUBROGATION OF THIS COVERAGE, SO THE DRIVER AND PASSENGER WON’T HAVE TO PAY BACK THE MONEY THAT WAS PAID ON RELATED MEDICAL BILLS FOR THE ACCIDENT.

3. CAR RENTAL COVERAGE:  THIS COVERAGE PROVIDES CAR RENTAL IF YOUR CLAIM IS COVERED UNDER COLLISION AND COMPREHENSIVE COVERAGE. THE INSURANCE COMPANY LIMITS THE DAILY AMOUNT BASED ON THE COVERAGE PURCHASED.

          i. YOU HAVE TO REMEMBER THAT THE COVERAGE YOU HAVE ON YOUR AUTO POLICY IS THE SAME COVERAGE ON THE CAR RENTAL.

          ii. CAR RENTAL USUALLY DOES NOT PAY FOR ADDITIONAL INSURANCE, MILEAGE OR GAS FOR THE CAR RENTAL.

                    a. EXAMPLE: IF YOU PURCHASED CAR RENTAL COVERAGE OF $30 PER DAY UP TO $600 OR 30 DAYS. THEN YOU CAN RENT A VEHICLE WHILE YOUR VEHICLE IS UNABLE TO BE DRIVEN OR IN THE BODY SHOP FOR $30 PER DAY FOR A TOTAL OF $600 OR WHATEVER COMES FIRST.

4. UNINSURED AND UNDERINSURED MOTORIST COVERAGE:  THIS COVERAGE WILL PAY YOU AND / OR YOUR PASSENGERS IF HIT BY ANOTHER DRIVER WITH NO INSURANCE OR HIT AND RUN. ALSO, IT COMES INTO PLAY WHEN THE DRIVER AT FAULT DOES NOT HAVE ENOUGH INSURANCE TO PAY FOR YOUR INJURIES AS WELL AS, PROTECT YOU IF YOU ARE HIT AS A PEDESTRIAN.

5. BODILY INJURY LIABILITY:  THIS COVERAGE APPLIES TO INJURIES THAT YOU OR SOMEONE WHO YOU ALLOW TO USE YOUR VEHICLE CAUSED TO SOMEONE ELSE. THE AMOUNT THAT YOUR INSURANCE COMPANY WILL PAY IS DETERMINED MY WHAT YOU PURCHASED.

          a. EXAMPLE: 15/30/10 LIMITS: YOUR INSURANCE COMPANY WILL PAY UP TO $15,000 PER PERSON PER ACCIDENT AND UP TO $30,000 TOTAL PER ACCIDENT. $10,000 IS FOR ALL PROPERTY DAMAGE PER ACCIDENT.

          b. EXAMPLE: 50/100/50 LIMITS: YOUR INSURANCE COMPANY WILL PAY UP TO $50,000 PER PERSON PER ACCIDENT AND UP TO $100,000 TOTAL PER ACCIDENT. $50,000 IS FOR ALL PROPERTY DAMAGE PER ACCIDENT.

                    i. REMEMBER IF THERE ARE MANY INJURED INDIVIDUALS THEN THE INSURANCE COMPANY WILL DIVIDE THE TOTAL LIMIT BETWEEN ALL OF THE INJURED INDIVIDUALS BASED ON THE RELATED INCURRED MEDICAL BILLS OF EACH INDIVIDUAL. HOWEVER, NO ONE INJURED INDIVIDUAL CAN RECEIVE MORE THAN THE LOW LIMIT PER PERSON . (NO MATTER HOW BAD THE INJURIES ARE)

          c. EXAMPLE: LET’S SAY THE POLICY LIMITS ARE 25/50/25

                    i. THEN NO ONE PERSON CAN COLLECT MORE THAN $25,000. $50,000 WILL BE DIVIDED AMONG THE ALL INJURED PARTIES, NO MATTER HOW MANY THERE ARE.

6. PROPERTY DAMAGE LIABILITY: THIS COVERAGE PAYS FOR THE DAMAGE YOU OR SOMEONE YOU ALLOWED TO DRIVE YOUR VEHICLE MAY CAUSE TO SOMEONE ELSE’S PROPERTY. THIS USUALLY MEANS DAMAGES TO OTHER VEHICLES, BUT IT ALSO MEANS DAMAGES TO LIGHT POLES, FENCES, BUILDINGS, OR OTHER BUILDING STRUCTURES YOUR VEHICLE MIGHT HIT. THE LIMIT IS THE LAST AMOUNT LISTED IN THE LIABILITY LIMITS. 25/50/25

          a. EXAMPLE: THE THIRD AMOUNT, $25,000, IS THE TOTAL AMOUNT THAT THE INSURANCE COMPANY WILL PAY FOR THE TOTAL PROPERTY DAMAGES TO THE OTHER. THIS DOES NOT INCLUDE INJURIES.

7. TOTAL LOSS: THIS IS WHEN THE INSURANCE COMPANY HAS INSPECTED YOUR VEHICLE AND DEEMED IT UNREPAIRABLE  (REPAIRS EXCEED THE VALUE OF YOUR VEHICLE) AND WILL OFFER YOU A VALUE FOR YOUR
VEHICLE BASED ON YOUR AREA OF THE COUNTRY. WE SUGGEST THAT YOU LOOK AT KELLEY BLUE BOOK AND NADA FOR COMPARATIVE VALUES ON YOUR VEHICLE.

8. SALVAGE VALUE: THIS IS A VALUE THAT THE INSURANCE COMPANY PLACES ON A VEHICLE DEEMED A TOTAL LOSS. THE INSURANCE COMPANY WILL ALLOW YOU TO KEEP THE TOTAL LOSS VEHICLE LESS A VALUE THAT THE INSURANCE COMPANY THINKS THEY CAN GET FROM SALVAGE BUYERS. THIS VALUE IS NEGOTIABLE WITH THE INSURANCE COMPANY. PLEASE REMEMBER THAT IF YOU RETAIN THE TOTAL LOSS VEHICLE THE INSURANCE COMPANIES WILL PROCESS THE TITLE AND GET YOU A SALAVGE TITLE.

9. INSURED: THIS IS WHEN YOUR INSURANCE CARRIER CALLS YOU THE OWNER OF THE AUTO INSURANCE POLICY, THIS MAY INCLUDE ALL FAMILY MEMBERS. ALL YOU NEED IS TO PULL OUT THE INSURANCE CARD AND SEE WHO IS ON IT.

10. CLAIMANT: THIS IS WHAT THE OTHER INSURANCE COMPANY WOULD CALL YOU OR YOUR PASSENGERS IN A MULTIPLE CAR ACCIDENT.

11. RECORDED STATEMENT: THIS IS USUALLY PERFORMED OVER THE TELEPHONE BETWEEN YOU AND THE INSURANCE COMPANIES, BUT CAN BE DONE IN PERSON. IT IS THE INSURANCE COMPANY’S WAY IN LOCKING YOUR VERSION OF THE ACCIDENT ON TAPE, SO BE CAREFUL IN WHAT YOU SAY OR IT CAN BE USED AGAINST YOU LATER. YOU MAY REFUSE A RECORDED STATEMENT IN EXCHANGE FOR A WRITTEN STATEMENT, HOWEVER THIS CAN ALSO BE USED AGAINST YOU.

12. MEDICAL AUTHORIZATION FORM: THIS FORM IS USED BY THE INSURANCE COMPANIES TO ORDER YOUR MEDICAL RECORDS AND MEDICAL BILLS FROM YOUR ACCIDENT. IF YOU SIGN THE AUTHORIZATION YOU ARE GIVING THE INSURANCE COMPANY THE RIGHT TO ORDER ALL YOUR MEDICAL RECORDS AND BILLING. THIS MAY INCLUDE PRIOR MEDICAL RECORDS IF THE AUTHORIZATION IS VAGUE. PLEASE READ CAREFULLY AND IF YOU HAVE ANY DOUBTS PLEASE CONSULT WITH AN ATTORNEY.

13. GENERAL RELEASE FORM: THIS FORM IS USED WHEN YOU HAVE REACHED A SETTLEMENT WITH THE INSURANCE COMPANY AND AGREE TO WAIVE ALL CLAIMS OF INJURIES KNOWN OR UNKNOWN. THIS SETTLEMENT WOULD INCLUDE MEDICAL BILLS, WAGE LOSS, AND PAIN AND SUFFERING THAT YOU INCURRED FROM THE WRONGDOING FROM SOMEONE ELSE. PLEASE READ CAREFULLY AND IF YOU HAVE ANY DOUBTS PLEASE CONSULT AN ATTORNEY BEFORE SIGNING.

14. SUBROGATION: THIS APPLIES IF YOU ARE NOT AT FAULT FOR THE ACCIDENT OR DAMAGE TO YOUR VEHICLE AND YOU USE YOUR OWN AUTO POLICY FOR ANY TYPES OF PAYMENTS LESS ANY DEDUCTIBLE THAT MAY
APPLY. YOUR INSURANCE COMPANY WILL PAY AND GO AFTER THE OTHER PARTY’S INSURANCE POLICY FOR REIMBURSEMENT OF WHAT THEY HAVE PAID.