Glossary

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Auto Insurance Policy: There are basically six different types of coverages. They are:

1. Bodily injury liability - for injuries the policyholder causes to someone else
2. Medical payments - for treatment of injuries to the driver and passengers of the policyholder's car
3. Property damage liability - for damage the policyholder causes to someone else's property
4. Collision - for damage to the policyholder's car from a collision
5. Comprehensive - for damage to the policyholder's car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, vandalism, riots and theft)
6. Uninsured motorists coverage - for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance

Bodily Injury Liability Coverage: covers injuries the policyholder causes to someone else

Bonds: a written promise that an insurance company will protect your assets and back up a promise made to someone else

Cargo Coverage: insures cargo transported on behalf of someone else

Collision Coverage: covers the damage to the policyholder's car from a collision

Comprehensive Coverage: covers damage to the policyholder's car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods and riots), and theft

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