Insurance Terms and Coverage

Property Damage Liability (PD): A type of coverage that pays for damage to the other party's car that was sustained during an accident in which the covered driver is found to be at fault. 

Bodily Injury Liability (BI): A type of coverage that pays for the other party's injuries sustained during a car accident at which the covered driver is found to be at fault.

Medical Payments (MP): A type of coverage that helps pay for the medical or funeral expenses of covered drivers or passengers after an accident. This is optional coverage in most states.

Under/Uninsured Motorist Bodily Injury (UMBI/UIMBI): A type of coverage that pays for costs associated with injuries to the not-at-fault party and their passengers in the event of an incident caused by a driver with no insurance or not enough insurance.

Uninsured Motorist Property Damage (UMPD): A type of coverage that pays for costs associated with damage to the not-at-fault party's vehicle after an incident caused by an uninsured driver.

Collision Coverage (COLL): A type of coverage that helps pay to repair or replace a vehicle if it's damaged in a covered incident with another vehicle or an object like a fence, guardrail, or tree, or a single-vehicle incident that involves rolling or falling over. This coverage comes with a “deductible”, which is the amount the insured driver has to pay before your coverage helps pay for their claim. This is usually only required for vehicles that are being leased or financed.

Comprehensive Coverage (COMP): This type of coverage helps pay to repair or replace a vehicle if it’s stolen or damaged in a covered incident that’s not a collision. Covered incidents include things like theft, fire, vandalism, or damage resulting from falling objects (like a tree or hail) or hitting an animal. This coverage comes with a “deductible”, which is the amount the insured driver has to pay before your coverage helps pay for their claim. This is usually only required for vehicles that are being leased or financed.

Alternate Transportation (AT): A coverage add-on that pays an insured driver's transportation fees if their vehicle is unusable due to a covered incident. Clearcover's AT coverage provides a daily transportation stipend that can be used on whatever form of transportation the insured desires — for example, carpools, public transportation, rideshare services, or a rental car.

Roadside Assistance (RA): A coverage add-on that helps pay for the cost of towing or roadside service resulting from a mechanical or electrical breakdown. Covered incidents include things like battery failure, flat tires, getting locked out, or running out of gas.

Personal Injury Protection (PIP): An extension of car insurance available in some states that covers medical expenses and, in some cases, lost wages and other damages.

National Association of Insurance Commissioners (NAIC): The U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories. The NAIC is responsible for supporting state insurers as they establish standards and best practices, conduct peer reviews, and coordinate their regulatory oversight. 

NAIC number: Every insurance company is assigned a number by the NAIC that serves as their identification number.

UM Stacked (PA only): Stacking combines UM and UIM coverage limits on multiple vehicles, thereby increasing protection against accident-related expenses. Higher coverage limits mean paying less out of pocket toward a covered claim. This coverage is only available to policies with more than one vehicle.

UM Unstacked (PA only): Unstacked coverage is uncombined coverage limits, so the UM/UIM coverage limit is equal to what is listed on the policy. Policies that have one vehicle automatically have unstacked UM/UIM coverage.

First Party Benefits Coverage: Insurance companies operating in the Commonwealth of Pennsylvania are required by law to make available for purchase the following benefits for policyholders, their spouse or other relatives or minors in their custody or the custody of their relatives, residing in the same household, occupants of the same motor vehicle, or persons struck by their motor vehicle:

Medical Benefits 

Income Loss Benefits

Accidental Death Benefits 

Funeral Benefits

Extraordinary Medical Benefits: Pays for medical and rehabilitation expenses that exceed $100,000.

Tort (Full Option): The laws of the Commonwealth of Pennsylvania also give insureds the right to choose a form of insurance under which they maintain the unrestricted right for them and members of their household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, the insured and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses and may all seek financial compensation for pain and suffering and other non-monetary damages as a result of injuries caused by other drivers. 

Tort (Limited Option): The laws of the Commonwealth of Pennsylvania give insureds the right to choose a form of insurance that limits their right and the right of members of their household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, insureds and other household members covered under this policy may seek recovery for all medical and out-of-pocket expenses, but not for pain and suffering or other non-monetary damages unless the injuries suffered fall within the definition of serious injury as outlined in the policy or unless one of several exceptions noted in the policy applies.

Economic Only Under/Uninsured Motorist Option (Louisiana coverage only) - Any loss that is measurable in specific monetary terms. Economic Losses include medical costs, funeral expenses, and lost wages. Economic Only Coverage excludes any loss other than financial loss including but not limited to pain, suffering, inconvenience, & mental anguish.