Auto Insurance Coverage Terms Defined

Bodily injury liability (BI)

The portion of your liability coverage that pays for medical expenses, lost wages, pain and suffering, and legal fees for other people injured in an accident you caused. Does not cover your own injuries.

Property damage liability (PD)

The portion of liability that pays for damage you cause to other people's vehicles, structures, fences, and other property. Does not cover damage to your own vehicle.

Collision coverage

Pays to repair or replace your own vehicle after it collides with another car or object, regardless of fault. Subject to your chosen deductible. See Collision Coverage for full details.

Comprehensive coverage

Covers damage to your own vehicle from non-collision events: theft, vandalism, fire, flood, hail, falling objects, and animal strikes. Also subject to your deductible. See Comprehensive Coverage.

Uninsured motorist (UM) coverage

Pays your medical bills and, in some states, vehicle damage costs when the at-fault driver has no insurance. Also covers hit-and-run accidents. See Uninsured Motorist Coverage.

Underinsured motorist (UIM) coverage

Pays the difference between the at-fault driver's liability coverage and your actual losses when their limits are insufficient to cover your damages. Often purchased alongside UM coverage.

Personal injury protection (PIP)

A first-party medical coverage required in no-fault states. Pays your medical bills, a portion of lost wages, and some household service costs regardless of fault. See PIP Coverage.

Medical payments (MedPay)

Pays medical expenses for you and passengers after an accident, regardless of fault. Available in most states where PIP is not required. Narrower than PIP — covers only medical bills, not lost wages. See MedPay Coverage.

Gap insurance

Pays the difference between what you owe on your auto loan and the vehicle's actual cash value if it's totaled. Relevant when your loan balance exceeds the car's current market value. See Gap Insurance.

Roadside assistance

An optional add-on that pays for emergency roadside services: towing, flat tire change, lockout, jump-start, and fuel delivery. See Roadside Assistance.

Endorsement (rider)

An addition to your base policy that modifies or adds coverage. Common endorsements include rental car reimbursement, new car replacement, and custom equipment coverage.

Declarations page (dec page)

The summary document at the front of your policy listing all coverages, limits, deductibles, insured drivers, vehicles, and the premium breakdown. This is your quick reference for what your policy actually includes.