INSURANCE COVERAGE GLOSSARY
BY: ATTORNEY SAM EAGLE
(714) 963-5123

• BODILY INJURY & PROPERTY DAMAGE: Also referred to as B.I./P.D. or Public Liability. This is the traditional liability coverage which protects you when you are at fault against injury and property damage claims made against you by other people. This coverage applies to 2 and 4 wheel vehicles and protects your assets, salaries and property. Strongly recommend $50,000 to $100,000.00.
• BODILY INJURY PASSENGER LIABILITY: Specifically written for motorcycles which provides liability coverage for passengers if the driver is at fault in the accident. This would cover medical bills, loss of earnings and pain and suffering.
• MEDICAL PAYMENTS: This would cover medical bills up to a stated policy limit for all injured people in or on a vehicle regardless of who is at fault. Not usually written on motorcycles. Strongly recommend $10,000.00 or more for 4-wheel vehicles. VERY IMPORTANT COVERAGE EVEN IF YOU HAVE HEALTH INSURANCE. DO NOT PURCHASE "EXCESS" OR "COORDINATED" COVERAGE.
• UNINSURED MOTORIST (BODILY INJURY): Provides payments to policyholder and all injured passengers for medical bills, lost earnings, pain and suffering and disability if the responsible driver is uninsured or if the other driver is a "hit and run" motorist and cannot be found. Very valuable and broad coverage. Can be used even if your vehicle is not involved in the accident but you are injured by an uninsured motorist. This also applies to bicycle and pedestrian accidents and if the responsible party's insurance company denies coverage or goes out of business. Strongly recommend $100,000.00.
• UNDERINSURED MOTORIST: Provides a back-up coverage to the policyholder if their claim is worth more that the insurance coverage of the responsible driver. In order to be effective, this coverage must be higher than $15,000.00.
• UNINSURED MOTORIST PROPERTY DAMAGE: Provides coverage for your damaged vehicle usually up to $3,500.00 if the responsible driver is uninsured. This coverage would be effective if there is no collision coverage on your vehicle.
• COLLISION: Covers vehicle damage resulting from an accident. Usually comes with a deductible. The higher your deductible, the lower your premium. You should also get a "deductible waiver" clause if your vehicle is damaged by an uninsured motorist.
• COMPREHENSIVE: Covers vehicle damage resulting from fire, theft and vandalism. Has similar deductible provisions as the collision coverage.