Text Box: Auto Insurance Definitions Liability insurance is usually expressed as a series of numbers such as 25/50/25. These are limits, in thousands, that the company will pay... $25,000 per person, $50,000 total for bodily injury (BI) sustained by the other party, plus an additional 25,000 for damage to their property (PD). Payment is made when you are legally responsible. Medical will pay for auto related injuries. No legal liability here, just the fact that you or your passenger were injured in or by a car. Usually written in small amounts, say $5,000 per person, as it is just intended to pay the bills not covered by other insurance. Comprehensive and Collision provide coverage for your car. Collision is when the car is in an accident, comprehensive is for pretty much everything else... fire, theft, vandalism, earthquake, flood. Subject to a deductible (the amount you pay). Example of the difference between the two: Timmy gets the step stool and finds he can reach the button that closes the garage door on the hood of your new Porsche. That's comp. Later, still irritated, you back out too fast and hit the garage door. That's collision (a second deductible, and not a great day, either). Think of Uninsured Motorist (UM) / (UND) as 'reverse' liability insurance. The person who runs into our car is obviously at fault, but has no insurance or to little insurance or no assets. Your company becomes their payments BI. Towing: Will pay for towing cost or labor cost incurred at the site of a breakdown. Rental Reimbursement Pays for a rental car if the covered auto is being repaired or restored following a covered collision or applicable to other than collision loss also.

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